If I made a list of the top stories in America in 2007, which I didn't, I would include the housing story in the top two or three. It affects personal wealth, community stability, civic engagement, local government income, banking and finance and yes, even the health of media -- especially newspapers that have relied on real estate listings for significant income.
Home prices in 20 major U.S. cities were down 6.1 percent on average in the
past year as of October, according to the
Case-Shiller price index
released Wednesday by Standard & Poor's.
Since October 2006, prices
in 10 cities fell 6.7 percent -- a record drop. The prior largest decline was
6.3 percent, reached in April 1991.
Standard & Poor's announced the findings in a
news release:
"No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim," says Robert J. Shiller, Chief Economist at MacroMarkets LLC. "Not only did the 10-City Composite post a record low in its annual growth rate, but 11 of the 20 metro areas did the same. If you look at the monthly figures, every MSA (metropolitan statistical area) went down in both October and September. Eleven of the 20 MSAs, in addition to the two composites, recorded their single largest monthly decline on record in October. For both the 10-City and 20-City composites this was a decline of 1.4 percent over September."
Download data here (Excel files).
Foreclosures: The Tragedy of 2007
California, Michigan, Georgia, Florida,
Arizona, Texas and Ohio led the nation in new foreclosures this month
,
according to Foreclosure Listings.com. The site says Detroit, Las Vegas, Atlanta, Sacramento, and St. Louis have the nation's highest number of new foreclosures in December.
Mortgage-research firm RealtyTrac
told NPR that 201,950
foreclosure filings were reported last month compared with 120,334 in
November 2006.
According to NPR's report, Rick Sharga, RealtyTrac's vice president of marketing, says we can expect to see another wave of problems in early 2008, and again mid-year,
when new rounds of rate changes hit adjustable rate mortgages and homeowners fall behind on payments. They could be in default by fall.
This story is washing into a new year.
The Boston Globe found that when owners of apartment buildings fall into foreclosure, lots of people pay the price:
Tenants in some foreclosed Boston apartment buildings are living
without adequate heat because the new landlords -- mortgage companies
often based in other states -- have not repaired broken systems or paid
for the delivery of heating oil.
Karla
Herrera, who gave birth to a daughter Wednesday, has lived without heat
in her Roxbury apartment since November, when the system broke. "Sometimes, I turn on the oven for 20 minutes for heat," she said in
Spanish, speaking through an interpreter.
Some foreclosed
buildings also lack electricity, or hot water, or even running water,
and the tenants may have no one to call: The new landlords often fail
to provide tenants with a contact number, as required by Massachusetts
law. And when landlords can be reached, the response is often so
limited -- half a tank of heating oil, for example -- that the problems
recur within a few days.
City officials say they have dealt with
a dozen cases in the last two weeks of utility problems at foreclosed
apartment buildings. Michael Kelley, acting administrator of the city's
Rental Housing Resource Center, said the numbers are rising as
foreclosures pile up and temperatures drop.
He said the city is
searching for ways to compel companies to fulfill their
responsibilities as landlords. The city also is trying to persuade the
companies to improve voluntarily. "It is a sad state of affairs," he
said, "that it takes a government agency to reach out to a responsible
party to get some action."
At Boston Medical Center, a growing
number of children who live in foreclosed buildings are being treated
for problems related to a lack of heat, hot water, or electricity,
according to the hospital's legal aid clinic, the Medical-Legal
Partnership for Children.
One malnourished child was living in a
building without running water, making it hard for the mother to mix
formula. A child with sickle-cell anemia was treated for pain after
temperature fluctuations in an unheated apartment caused the disease to
flare up. The medical center's emergency room has treated children
whose asthma inhalers cannot be recharged because their apartments have
no electricity.
A Way Out of Foreclosure in 2008 While the housing market
may remain sour for most of 2008,
The Cincinnati Enquirer reports that there are ways out for homeowners in financial trouble:
According to the Mortgage Bankers Association, nearly a quarter of
the nation's mortgages have rates that reset in 2007 or are scheduled
to in 2008. Resetting to higher mortgage rates means higher payments
for millions of homeowners; some of whom are already struggling to make
payments.
If you're one of the homeowners facing the possibility
of becoming delinquent on your mortgage or being foreclosed on, you'll
be encouraged to know there are steps being taken to help you weather
the situation.
On a national level, the U.S. Senate recently
approved legislation that will allow the Federal Housing Administration
to back refinanced loans for tens of thousands of borrowers at risk
because of a rate adjustment. The legislation will increase the
mortgage amount the FHA can insure -- up from $362,790 to $417,000. In
addition, President Bush has announced a plan that will freeze interest
rates up to five years for some sub-prime borrowers.
The article says state and local governments also offer help to distressed homeowners.
The Lives of Realtors and Builders in 2007It has been a tough year for builders and Realtors. This month
the chief economist for the National Association of Home Builders said there's
a 40 percent chance the nation will slide into recession. And Realtors are
leaving the business: after years of growth, the National Association of Realtors expects to end the year with fewer members than it started with.
The Other Real Estate StoryAs housing sales slow,
the National Association of Realtors says
demand for multifamily homes -- apartment buildings -- is rising. The commercial real estate
business is also strong nationwide. This is worth a closer look in
your town because it is so different from the housing market.
All about Kwanzaa
Through
Jan. 1, African Americans will be celebrating Kwanzaa and yet, I
suspect, most Americans (and maybe most journalists) have only a vague idea of what the celebrations
are all about. It is a cultural holiday, not a religious event. I
suspect the timing of the holiday, around Christmas, confuses those who
don't know much about it.
Yet for millions of Americans, this is a deeply important holiday that helps them to connect with their cultural heritage, as
this story in the
Detroit Free Press points out.
I have seen stories around the country about
bookstores and museums planning events.
Kwanzaa, as a celebration, is only 41 years old, created in 1966 by Maulana Karenga, a professor in the Department of Black Studies at California State University, Long Beach.
Karenga explains the holiday on his
Web site:
Kwanzaa is an African American and Pan-African holiday which celebrates family, community and culture. Celebrated from 26 December through 1 January, its origins are in the first harvest celebrations of Africa from which it takes its name. The name Kwanzaa is derived from the phrase "matunda ya kwanza" which means "first fruits" in Swahili, a Pan-African language which is the most widely-spoken African language.
The site explains:
Kwanzaa was created to introduce and reinforce the Nguzo Saba (the Seven Principles). These seven communitarian African values are: Umoja (Unity), Kujichagulia (Self-Determination), Ujima (Collective Work and Responsibility), Ujamaa (Cooperative Economics), Nia (Purpose), Kuumba (Creativity), and Imani (Faith).
On
the last day of Kwanzaa, the first day of the new year, celebrants are
to ask themselves the following questions (which are pretty good
questions for all of us to ask on the first day of a new year): "Who am I, am I really who I am, and am I all I ought to
be?"
Even the U.S. Postal Service has recognized Kwanzaa
with a commemorative stamp. (
Click here for the current stamp.)
The Kwanzaa site
describes the symbols of Kwanzaa and what they mean, as does The International Kwanzaa Exchange:
- Kinara: candle holder, not to be confused with the Jewish menorah.
- Mkeka: placemat, preferably made of straw.
- Mazao: crops, meaning fruits and vegetables.
- Vibunzi/Muhindi: ears of corn to reflect the number
of children in the household.
- Kikombe cha umoja: communal
unity cup.
- Mishumaa saba: seven candles, one black, three
red, and three green.
- Zawadi: gifts that are enriching.
Check out these
Kwanzaa crafts and
recipes.
The Year We Started Turning Green (Multimedia Alert!)We may look back on 2007 and see it as the year America started to get serious about environmental issues. It feels like more than a fad juiced up by rising fuel prices. Journalists have done more than the obligatory lists of ways to "go green."
Recently, for example,
The Fresno Bee published a special section on air quality that looks at how that region continues to have some of the worst air pollution in the nation (second behind Los Angeles). The newspaper report, 16 pages in print, was accompanied by
an online version of the project, which includes some cool stuff for readers.
I really like how the paper used its creativity to push the story far beyond print to include online interactives that were not only useful, but fun.
The Web site includes a database that allows Californians to enter their license plate number or vehicle identification number (VIN) and see how their car's emissions compare to other cars of the same make and model. Another database allows users to check air monitors anywhere in the state. There are also two quizzes, as well as audio, video and animated graphics.
The print version also had some alternative storytelling, including a double-truck board game that takes people through everyday things that either pollute or help clean the air. You can
find a PDF here (2MB file).
I interviewed
Fresno Bee Metro Editor Kathy Mahan to learn more about the project.
Q. Sixteen pages in print! Wow! Do you think anybody read all of that? A. I know it seems like a lot to get through, but I think people in California’s Central Valley are really concerned about breathing bad air. We tried to give readers a lot of entry points, from vignettes that tell the stories of professionals who have fled the region to a board game that gives facts about what pollutes and what helps clean the air, to harder-hitting stories that show how bureaucracy gets in the way of progress. The package had a mix of long and short stories, alternative storytelling and graphics to make it easier to digest. We worked hard to find better ways to convey the information and to make it interactive so people see their stake in dealing with this problem.
Q. Has America reached some kind of turning point when we will care about such things? Do you think 2008 will bring a lot more environmental coverage in American media? A. I think they have. Five years ago when
The Bee published "Last Gasp," its first special section about air quality issues, the topic wasn't ranked as a top concern. That changed. Today, citizens show up to air board meetings and some protest on street corners. We see a steady stream of letters to the editor on the topic. Polls by the Public Policy Institute of California show air quality is now the No. 1 concern of residents in the Central Valley. As more people are diagnosed (or have children diagnosed) with asthma and deal with health problems made worse by breathing polluted air, they are looking for results.
The Fresno Bee will continue to emphasize the air quality story as well as following developments on global warming, water and other environmental issues.
Q. How did the database work and why was this such an important element to your online presentation? A. We went into this project wanting to give people an opportunity to seek out more information using
fresnobee.com. There are two databases in this project. The first uses state Smog Check data to allow people to search any license plate number or vehicle identification number and compare the emissions from that car to cars of the same make and model. This data graphically illustrates which cars are gross polluters (those that emit at least twice the allowable pollution). Only one in 10 cars are in this category, but those cars produce three-fourths of illegal emissions. So if the state can get these cars off the road, then major progress could be made in cleaning the air. This database gives people a chance to see the emissions history of their car, a neighbor's car or even a used car they may be interested in buying.
The second database allows people to look at smog trends in their neighborhood or to see pollution at any air monitor in the state. This is important because it allows people to see the concentration of pollution they are breathing and to see how often air quality exceeds federal standards. For some people in our region, the days when pollution is above what is considered healthy can stretch for months. Both can be accessed
here.
Q. You even used games and interactives. Tell us about those and why it is important to do such things. A. Air pollution isn’t the easiest topic to make understandable to people. There is a lot of technical information and jargon involved. Our goal was to get people to see the problems from things they deal with in their daily lives, such as driving kids to school, using the drive-through or mowing the lawn, and to get a better sense of how complex it is to clean the air. It's easier to relate to those things than a bureaucrat talking about "sources of pollution."
In print we used the double-truck for "Smogbusters," a game that takes people on a winding road of air pollution facts. Depending on the square -– whether the action cleans the air or creates pollution -- you move forward or backwards. We're hoping to get copies of the game into classrooms in school districts in our six-county region.
Online, we decided to do two games. One tests your knowledge on air pollution and is a way for people to see what they've learned from the project. The other gives people the chance to make decisions on cutting one kind of pollution. It shows how hard it is to manage the cleanup because each action affects the economy and nearly every option is expensive.
Q. What has the reaction been? What did you hope would happen? A. So far we've received positive feedback. The day after it published, a local TV station had a discussion about the section on its morning show; the local PBS station invited our reporters to take part in a discussion; and we received several e-mails and phone calls and a few comments on our blog. A couple organizations, including the state air board, have requested additional copies of the section. The Central Valley Health Institute, which studies public health issues, encouraged people to read the section. Our goal was to keep the spotlight on one of the biggest problems facing our community.
We'd like to hear from people who live here or who have fled. Right now, air officials say they need 17 years to clean up ozone and 7 years to wipe out the particulate problem. Even then, the air will not be clean by our own California standards, which are more health protective. We want to know what people think of that. We'd like to see people learn more about air pollution and get involved in setting the priorities for cleaning the air.
It will take a lot of public money to fix this problem, and this region will not have the clout in Sacramento or Washington unless people speak out. We hope lawmakers will take action by creating new laws, programs and/or finding funds to help attack the problem more aggressively. We think it is a very worthy goal to spare the next generation from breathing bad air.
We are always looking for your great ideas. Send Al a few sentences and links.
Editor's
Note: Al's Morning Meeting is a compendium of ideas, edited story
excerpts and other materials from a variety of Web sites, as well as
original concepts and analysis. When the information comes directly
from another source, it will be attributed and a link will be provided
whenever possible. The column is fact-checked, but depends on the
accuracy and integrity of the original sources cited. Errors and
inaccuracies found will be corrected.
Has anyone done an article addressing the two-fold aspect of...
