Business
Today is the last day to apply for a $10,000 tax credit that helped spur new-home sales this year.
The state Franchise Tax Board will take applications until midnight - and then it's over. The tax board accepted 12,000 applications for the tax credit, which is spread over three years, and will grant them until the money is exhausted.
Builders credit the incentive with helping juice sales over the last three months. The $100 million was so popular that legislators are working on proposals to expand it.
I don't think many people were surprised today when the U.S. Bureau of Labor Statistics reported that more jobs were lost in June.
What did surprise me was that fewer people are holding down more than one job than a year ago.
It probably shouldn't be a shock, though. After all, if the economy has shed about 6.5 million jobs since the recession started in late 2007, it's logical that a good portion of those jobs were likely positions that represented a second income for people who are working hard to make ends meet.
Nearly 7.7 million people were multiple jobholders in June 2008, according to the report. By last month, that had fallen to just over 7 million.
Also buried in the statistical mountain: A big increase in the number of people who want a job but have just given up looking. The feds report that almost 2.2 million people are "marginally attached to the labor force" -- a bureaucratic way of saying they've looked for work over the last 12 months and were able to take a job if it was offered.
Of that figure, nearly 800,000 aren't looking now because they are discouraged over job prospects. That means they think no work is available, couldn't find work, lack the right training, or report they were subject to employers thinking they're too young, too old or some other form of discrimination. A year ago, the number discouraged workers was about 420,000.
About 1.4 million other people have stopped looking because of school or family responsibilities, health or transportation problems. That's up from about 1.1 million a year ago.
California will come out with its June labor market information for the state and individual counties later this month. It will be interesting to see whether Fresno County and other Valley counties can make it a third straight month for the unemployment rate to fall even as the state and national rates continue to rise. Let's keep our fingers crossed.
Who would have thought that amid all this doom and gloom is, drum roll please, a seller's market.
It likely won't last long - maybe just a few weeks - but it does create an opportunity for traditional sellers to perhaps compete against the foreclosures that have dominated the marketplace for so long.
Foreclosures are piling up at the banks, but haven't been released to the market yet. Meanwhile, first-time buyers and investors are snapping up the foreclosures that are available - pushing prices up in some areas.
Bidding wars have driven up offers to the point where some appraisals, which are determined by comparable sales, can't support them.
"We are having more appraisal issues," said Mike Gilmore of Royal Charter Mortgage in Fresno. "There is a lot of renegotiation and some deals are falling apart because of it."
How long will it last? Probably until the next batch of foreclosures hits, perhaps as soon as August. "There is a little window period for traditional sellers," said Harold Penner, a Fresno real estate agent who also notes a mini sellers market.
Mortgage counselors in the central San Joaquin Valley say many more at-risk homeowners in the Fresno area could get help through an expansion of President Obama's Home Affordable Refinance Program, which was announced today.
The Obama plan can no help borrowers who are up to 125% underwater. That percentage is up from 105%.
For example, if the house is worth $100,000, the borrower must owe $125,000 or less and be current on payments to qualify. Previously, the limit was was $105,000.
That could boost the number of borrowers who can qualify for refinancing through Obama's program, said Elias Del Gado of ClearPoint Credit Counseling Solution in Fresno.
Still, refinances and loan modifications can be particularly challenging in the Valley because values have fallen up to 50% in some areas. Many borrowers still exceed the 125% ratio or, as interest and unemployment rates increase, fall behind on payments.
Fresno's foreclosure rate is 14th in the nation.
Continue reading "Obama plan expanded to help more in Valley" »
It looks like my daughter and her friends could save housing.
The 75 million Americans between the ages of 14 and 30 - called "echo boomers" because of size and relation to baby boomers - have the heft to create a robust demand for housing, Harvard University's Joint Center for Housing Studies says in its annual state of the industry report.
"When new-home sales rebound and the economy begins to pick up, the aging of the echo boomers - the largest generation to reach adulthood in the nation's history - should reinvigorate the housing market," the report states.
When that kicks in remains to be seen. We are in the worst home-building slump since World War II, but it won't last forever.
Continue reading "My daughter could save the housing industry" »
Experts tell me that more loan modifications are being negotiated, but this New York Times story doesn't make me feel any better. I would love to talk to a few people in our area who have actually completed one.
After writing about the new Doré Bakery for Word on the Street, I'm wishing I lived or worked in Clovis.
The new bakery on Clovis Avenue downtown has tons of delectable goodies. I sampled the peanut butter bar when I was there (spectacular) and they had some gorgeous cupcakes decorated like flowers. And of course, who doesn't like cheesecake bars?
You can read more about it in this week's Word on the Street. Also in this week's edition are a La-Z-Boy store on West Shaw reassuring customers that yes, they are open and general contractor who is actually getting business these days.
Short sales -- in which lenders agree to sell houses before they go into foreclosure -- are picking up steam, and some experts feel they could be a way to help stem the flow of bank-owned properties onto the marketplace.
In a short sale, a bank agrees to sell a house at or near market rate to avoid a protracted, costly and painful foreclosure process. But they historically have been difficult to negotiate, and many wind up falling apart before, or even after, an offer is accepted.
About 43% of all residential listings in Fresno and Clovis are short-sale opportunities (compared with 14% that are bank owned). But getting the deal clinched is another story: In the last 30 days, only 12% of closed transactions were short sales.
Why is this important? People who sell their houses via a short sale don't have a foreclosure on their record and can be back in the home-buying market in as little as 18 months, compared with five to seven years if the house is lost to foreclosure.
Continue reading "Short sales becoming more of a force in real estate" »
Clovis continued to have the highest home prices in Fresno County last month, despite a 20% decline over the last 12 months, DataQuick Information Systems reported.
The median price in Clovis was $246,500, significantly up from $135,000 in Fresno, $171,000 in Reedley and $131,500 in Selma. The values include new and used houses.
Madera reported a median price of $122,750, while Merced declined 44.8% to $100,000.
Visalia was at $144,000, down 33.5%.
DataQuick notes that median prices are influenced by the size of homes being sold and are subject to fluctuations in smaller cities.
Home builders in Fresno County enjoyed a boost in activity last month as buyers took advantage of special tax credits, the California Building Industry Association reported.
Developers were issued 213 permits for new houses in May, up 36% from April - but a 7.4% decline from a year earlier. Builders in Tulare County pulled 23.1% more permits, while counterparts in Bakersfield and Merced experienced flat or declining activity.
Statewide, single-family permits declined 7% for the month, but the association said that "just" a 7% slip was good news. By the way, most of the $100 million earmarked for the $10,000 tax credits is gone and legislators are trying to get more approved.
I just ran across this story about a Modesto mall getting an H&M clothing store -- before Fresno. Does anyone else find that surprising?
H&M is a Swedish, low-priced retailer known for "fast fashion" that is expanding into the United States. I've found plenty of trendy clothing at the stores during visits to the retailer in San Francisco and the Las Vegas strip -- most of it under $20.
Does anyone else find it surprising that Modesto would get an H&M before Fresno? Modesto has about half the population and has been hit even harder than Fresno by the housing crisis.
I would think such a store would do well in Fresno. We've certainly got enough people looking for low-priced clothing. And retail experts say many stores do extremely well here because there's no competing cities nearby with big malls to draw away customers.
So how about you, readers? Anyone visited an H&M elsewhere? Would you shop there if they came to Fresno?
Reusable bags are all the rage these days. But I'm finding some retailers aren't used to dealing with them. The grocery store: No problem. At Target I've run into some hiccups.
A few times a puzzled cashier has turned the bag over and over looking for the price tag. (That's my fault. I have snazzy bags.)
But often they'll put just three or four items into the bag. Hang on there, these aren't flimsy plastic; these babies are sturdy. Load 'em up. (They carried two 5-pound dumbbells just fine.)
Or, as happened recently, the cashier put the item in a plastic bag, then put that in the canvas bag. Kinda defeats the whole cutting-back-on-plastic thing, doesn't it?
I find this all ironic as Target sells reusable shopping bags. Maybe they should invest some of the money they make from them to train cashiers.
Anyone else face difficulties when using canvas bags?
 Fresno Mayor Ashley Swearengin chose an interesting venue for a press conference today responding to the latest unemployment statistics for the city and Fresno County.
But Swearengin (right) insisted the location, next to the trauma center at dowtown Fresno's Community Regional Medical Center, had nothing to do with the traumatic condition of the economy.
(Bee file photo)
Rather, it's because the hospital company is an indicator of hope for job seekers because it's one of the places that's doing the most hiring right now in the face of dismal jobless figures.
The countywide unemployment rate of 15.4% in May, and the rate within Fresno of 14.5%, are "entirely unacceptable," Swearengin said today. "But we can't stop until those numbers go in the other direction."
Actually, the numbers are going in "the other direction": This is the second month in a row that the jobless rate in Fresno has fallen. It was 15.9% in March, and 14.8% in April.
But it's still not great, not when you consider the unemployment rate in the city was 8.8% in May 2008 -- the lowest point it reached in the entire year.
"Don't let today's bad news convince you there aren't opportunities," she said. Despite the statistics, "there are employers out there looking for people to fill jobs every day. ... There are jobs for skilled workers right now."
Ginny Burdick, who manages human resources for Community Regional, said the hospital company is currently recruiting to fill more than 300 jobs, and have hired more than 1,000 people over the last nine months.
"None of us knows what the economics will be tomorrow," Burdick said. "But today we're hiring people."
 Eddie Bauer Holdings Inc. filed for Chapter 11 bankruptcy today in Delaware, yet another retailer slammed by falling sales, climbing losses and a cruddy economy.
The Washington-based company, long known for outdoorsy apparel and gear, has two stores in the central San Joaquin Valley -- one at Fresno's Fig Garden Village, and an outlet store in Tulare.
In a statement today, the company announced it has a buyer lined up to continue operating the company as a "going concern." It's not yet clear what that means for the two Valley stores, but Eddie Bauer says its $202 million deal with CCMP Capital Advisors will "keep the majority of the stores open and retain the majority of employees."
It repeats that assertion in a letter to its customers.
The Valley has seen its share of retailers with a local presence fall by the bankruptcy wayside since the recession hit high gear last year: Mervyns, Linens N Things and Circuit City, among others, and, of course, Fresno's own homegrown Gottschalks. Fallen denizens of Fig Garden Village include at least two other bankruptcy casualties, Sharper Image and The Bombay Company.
So far, no information has been posted to the U.S. District Bankruptcy Court docket detailing the terms of the proposed sale or the possible fate of the Valley's stores. But other prospective buyers will have an opportunity to bid on Eddie Bauer's assets as well. Fans of the store will need to stay tuned for details.
The Gottschalks liquidation is in full swing. Today's story got the most hits of any story on the FresnoBee.com website this morning. I've already received three phone calls about it: a complaint about the naked mannequin picture, a call about gift cards (it appears they're still taking them) and a caller frustrated with the prices.
So have you been the stores lately? What do you think of the liquidation? Did you buy anything?
Leo Wilson and his design team spent two years engineering his new Canterbury collection of homes at Harlan Ranch and Camden Place in Clovis. What resulted, he said, is unlike anything he's ever done.
Home buyers want value in this recessionary environment, but they also desire a house that meets their individual needs, he says.
So, Wilson Homes created what he calls "Value Plus" standard base designs starting at $259,000 and ranging from 1,800 square feet to 2,300 square feet in size. And then he offers dozens of structural alterations and options that allow families to customize the home inside and out, depending upon their budget.
"You really can have it your way," he said, borrowing a line from Burger King.
Here are some of the versions customers have ordered:
Continue reading "Home builder has value plus plan" »
We are all too familiar with the scenario. Buyer borrows money to house. Buyer loses job or somehow stops paying mortgage. Property goes back to Lender. Bank finds new listing agent. Bank sells house.
It works the same with home builders, several of whom have hit rocky shoals, gone out of business and stranded undeveloped lots throughout the Valley. Included were Dunmore Homes and 87 roughly graded parcels in Dinuba once destined to be part of the Viscaya 2 subdivision.
Those lots went back to the bank in 2007. Today, they have re-emerged in a sales circular by Park Place Land Advisors.
Eventually, they will be sold to either an investor or builder; the new-home market will recover. Many investment groups are already in place, looking for good opportunities. Strategic Investment Partners, created by veteran builders and capitalized with $500 million, in January bought the bank notes on 80 finished and 30 partially finished lots in Madera and Kerman.
Regional manager Rick Langdon said the lots could be held until the right time, which could be three or four years. Langdon said the Dinuba parcels will likely draw some sniffs, but price and development status will determine how long they remain unsold.
Often, the gap between what the sellers are asking and what investors are willing to pay is too wide. For example, Strategic Investment Partners might write 100 offers and only get two or three accepted.
Continue reading "Home lots back on the market" »
The McCaffrey Group in Fresno received three Gold Nugget Merit awards for architectural design during the recent Pacific Coast Builders Conference in San Francisco.
McCaffrey won for the Genoa plan at the Palmina Collection in Clovis and the Tuscan Castle and Villa Siena plans at Madison Place in Fresno.
This is the third consecutive year that McCaffrey has received a Gold Nugget.
 Economists say there are almost 2 million fewer job openings now in the U.S. than there were in December 2007, when the current recession began. Combined with continuing job losses across the country, it means that competition continues to increase for available positions.
An analysis today by the Economic Policy Institute (see chart at right), a nonpartisan think tank in Washington, D.C., reports there are now more than five job-seekers for every available job, compared to fewer than two when the economic tumble started.
The math is discouraging. Information from the federal Bureau of Labor Statistics show there were about 2.5 million job openings at the end of April, compared to 13.7 million people looking for work -- a ratio in which people outnumber jobs by 5.4-to-1.
EPI economist Heidi Shierholz reports: "At the start of the recession, an unemployed worker had a much better chance of finding a job, with only 1.7 job seekers per job opening, but the line of applicants waiting for each job is now three times longer."
Much was made in the news last week of the fact that fewer new claims for unemployment benefits are being filed -- a hint that even as unemployment rose to 9.4% nationwide, the rate at which jobs are being lost may be slowing down.
But until the unemployment rate actually reverses, it's still way too soon to be lulled into a sense of security that all is well.
 We're not sure what kind of traction it has, but something of a proxy spat seems to be brewing over at Porterville's Bank of the Sierra.
Directors of the bank's parent company, Sierra Bancorp, are seeking authorization from shareholders to issue 10 million shares of preferred stock. But the company's two largest shareholders are voting against the proposal, and an independent analysis by a finance and governance research firm is also recommending that shareholders vote no.
Patricia Childress of Visalia and her sister, Carol Bates of Porterville, together own or control more than 1.4 million of the company's 9.6 million shares of common stock. And Childress is urging other shareholders to vote against the proposal as well.
Continue reading "Porterville bank's stock proposal triggers proxy spat" »
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