The homeownership rate dropped to 66.4 percent in April 2011, the lowest it’s been since 1998, according to the U.S. Census Bureau. Some would argue this means owning a home is not as important to Americans as it once was—but they’re wrong.
What it really means is that the artificially stimulated level of 69 percent in 2005 wasn’t sustainable. Today’s level is merely a return to a more normal rate.
The dream of homeownership is as strong as ever, and it deserves protection—not more regulatory roadblocks.
Understandably, government leaders are looking at ways to avoid another housing crisis, but prohibitive down payments and elimination of the Mortgage Interest Deduction (MID) are two highly detrimental steps in the wrong direction at the worst time.
Consumer confidence took a considerable hit during the past few years, and its gradual recovery is still very fragile.
An unprecedented number of recent and current homeowners has been rocked by the downturn—and prospective buyers are shaken on the sidelines. But there hasn’t been so much damage that people have abandoned their dream of owning a home.
According to a Pew Research Center study conducted in April, 81 percent of adults surveyed either somewhat agree or strongly agree that buying a home is the best long-term investment a person can make. Of homeowners whose homes have lost value during the downturn, 82 percent still favor owning a home. And 81 percent of renters aspire to own a home in the future.
These survey results are compelling enough, coming straight from consumers. But in case there’s any doubt about whether there’s still an interest in buying, recent home sales and pricing data show that buyer activity is picking up.
In all 54 metro areas tracked, home sales increased by no less than 9 percent from February to March 2011—the third-straight month of gains. And 35 of those markets also experienced price increases. Would we see these results without increased buyer demand? Of course not.
Investor activity has picked up considerably over the past six-plus months, with 22 percent of home sales linked to this influential buyer group. But investing alone can’t be expected to absorb the millions of foreclosed properties yet to be released to the market.
Right now, government leaders should focus on ways to keep qualified buyers motivated. Not everyone will purchase a home, but those who save and prepare should know, absolutely, that it’s attainable.
Wednesday, June 15, 2011
Friday, June 3, 2011
Don't Believe the Doom on US Housing
Data from the US housing market has not made for nice reading in recent months but one analyst believes the worst could well be over and that if you take a closer look at the data prices are stabilizing.
“The decline is mainly because the mix of homes sold has changed in favor of distressed sales, which typically sell with a 'foreclosure discount.'
Non-distressed properties (sold by voluntary sellers) have already started to stabilize,” said Ajay Rajadhyaksha, the co-head of US fixed income strategy at Barclays Capital said in a research note on Friday.
“As voluntary sales pick up in the summer, the mix of homes should change again in the next few months, in favor of non-distressed sales. As a result, the aggregate index of home prices should stop declining and could even go up,” he added.
As a result Rajadhyaksha dismisses fears that recent drops in prices indicate a double dip for the housing market and predicts national valuations have reached a point where downside risks are limited.
“For investors who look to the home price indices for clues to the macro-economy, we recommend focusing on the index of voluntary sales, since non-distressed borrowers will increasingly determine the true health of the housing market,” he wrote.
“This index has held up reasonably well and suggests that prices are stabilizing. In sum, there are many reasons to worry about the US macroeconomic picture (the recent softening in the labor market, the US fiscal picture, etc.) but the recent drop in US home prices should not be one of them,” said Rajadhyaksha.
“The decline is mainly because the mix of homes sold has changed in favor of distressed sales, which typically sell with a 'foreclosure discount.'
Non-distressed properties (sold by voluntary sellers) have already started to stabilize,” said Ajay Rajadhyaksha, the co-head of US fixed income strategy at Barclays Capital said in a research note on Friday.
“As voluntary sales pick up in the summer, the mix of homes should change again in the next few months, in favor of non-distressed sales. As a result, the aggregate index of home prices should stop declining and could even go up,” he added.
As a result Rajadhyaksha dismisses fears that recent drops in prices indicate a double dip for the housing market and predicts national valuations have reached a point where downside risks are limited.
“For investors who look to the home price indices for clues to the macro-economy, we recommend focusing on the index of voluntary sales, since non-distressed borrowers will increasingly determine the true health of the housing market,” he wrote.
“This index has held up reasonably well and suggests that prices are stabilizing. In sum, there are many reasons to worry about the US macroeconomic picture (the recent softening in the labor market, the US fiscal picture, etc.) but the recent drop in US home prices should not be one of them,” said Rajadhyaksha.
Wednesday, June 1, 2011
REALTORS® Continue to Push Congress for Comprehensive GSE Strategy
The National Association of REALTORS® supports a secondary mortgage market model with some level of government participation that would protect taxpayers and ensure that creditworthy consumers have access to affordable mortgage capital in all markets at all times.
That is the message delivered recently by NAR President Ron Phipps during a Senate Banking, Housing and Urban Affairs Committee hearing.
“As the leading advocate for homeownership, REALTORS® agree that the existing housing finance system failed and that reforms are needed; however, those reforms must be done in a methodical, measured and comprehensive effort based on practical market experience,” says Phipps. “We applaud the committee’s caution as you continue to discuss this very important and complex issue.”
In his testimony, Phipps urges support for comprehensive reform of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which remain critical to ensuring mortgage liquidity, and expressed concern over recently proposed legislation that takes a piecemeal approach and could increase uncertainty in the housing market, which is still struggling to recover.
To ensure a viable secondary mortgage market going forward, Phipps says that private capital must return to the housing finance market and the government’s involvement needs to be reduced; however, full privatization is not a viable option.
“There are strong negative repercussions for relying solely on private capital to form the foundation of the housing finance system. After the housing downturn, private mortgage capital became nearly nonexistent, and without the GSEs, qualified borrowers would not have had access to the funds required to purchase a home. A government backstop is critical to ensure a continual flow of mortgage liquidity and the long-term viability of the housing market,” Phipps says.
He adds that in a fully private market, financial institutions with FDIC-backed deposits would focus more on optimizing their profits in a noncompetitive banking industry, and potentially fostering new, risky mortgage products that place taxpayers at risk, rather than products that would be in the best interests of consumers and the nation’s economy. That could lead to the end of long-term fixed rate loan products, like the 30-year fixed rate mortgage, and drastically raise the cost of mortgage capital for millions of American consumers.
Phipps also testified about another important issue that will dramatically impact the future of housing finance—the proposed risk retention regulation under the Dodd-Frank Act, which requires lenders that securitize mortgage loans to retain 5% of the credit risk unless the mortgage is a qualified residential mortgage (QRM).
“A poor QRM policy that focuses on high downpayment requirements rather than a variety of traditional safe, well underwritten products will exclude hundreds of thousands of buyers from homeownership, slowing economic recovery and hampering job creation,” says Phipps. “REALTORS® support a reasonable and affordable cash investment coupled with quality credit standards, strong documentation and sound underwriting; but higher downpayments do not have a meaningful impact on default rates.”
He also expressed strong support for making permanent the GSE and FHA mortgage loan limits that are currently in place and set to expire later this year. Phipps said that in today’s real estate market, lowering the loan limits will restrict liquidity and make mortgages more expensive for households nationwide. More than 612 counties in 40 states and the District of Columbia will see an average decline of $50,000 in loan limits in their area.
“REALTORS® look forward to working with Congress and our industry partners to design a secondary mortgage model that will best serve our nation today and into the future,” says Phipps.
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
That is the message delivered recently by NAR President Ron Phipps during a Senate Banking, Housing and Urban Affairs Committee hearing.
“As the leading advocate for homeownership, REALTORS® agree that the existing housing finance system failed and that reforms are needed; however, those reforms must be done in a methodical, measured and comprehensive effort based on practical market experience,” says Phipps. “We applaud the committee’s caution as you continue to discuss this very important and complex issue.”
In his testimony, Phipps urges support for comprehensive reform of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which remain critical to ensuring mortgage liquidity, and expressed concern over recently proposed legislation that takes a piecemeal approach and could increase uncertainty in the housing market, which is still struggling to recover.
To ensure a viable secondary mortgage market going forward, Phipps says that private capital must return to the housing finance market and the government’s involvement needs to be reduced; however, full privatization is not a viable option.
“There are strong negative repercussions for relying solely on private capital to form the foundation of the housing finance system. After the housing downturn, private mortgage capital became nearly nonexistent, and without the GSEs, qualified borrowers would not have had access to the funds required to purchase a home. A government backstop is critical to ensure a continual flow of mortgage liquidity and the long-term viability of the housing market,” Phipps says.
He adds that in a fully private market, financial institutions with FDIC-backed deposits would focus more on optimizing their profits in a noncompetitive banking industry, and potentially fostering new, risky mortgage products that place taxpayers at risk, rather than products that would be in the best interests of consumers and the nation’s economy. That could lead to the end of long-term fixed rate loan products, like the 30-year fixed rate mortgage, and drastically raise the cost of mortgage capital for millions of American consumers.
Phipps also testified about another important issue that will dramatically impact the future of housing finance—the proposed risk retention regulation under the Dodd-Frank Act, which requires lenders that securitize mortgage loans to retain 5% of the credit risk unless the mortgage is a qualified residential mortgage (QRM).
“A poor QRM policy that focuses on high downpayment requirements rather than a variety of traditional safe, well underwritten products will exclude hundreds of thousands of buyers from homeownership, slowing economic recovery and hampering job creation,” says Phipps. “REALTORS® support a reasonable and affordable cash investment coupled with quality credit standards, strong documentation and sound underwriting; but higher downpayments do not have a meaningful impact on default rates.”
He also expressed strong support for making permanent the GSE and FHA mortgage loan limits that are currently in place and set to expire later this year. Phipps said that in today’s real estate market, lowering the loan limits will restrict liquidity and make mortgages more expensive for households nationwide. More than 612 counties in 40 states and the District of Columbia will see an average decline of $50,000 in loan limits in their area.
“REALTORS® look forward to working with Congress and our industry partners to design a secondary mortgage model that will best serve our nation today and into the future,” says Phipps.
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
Tuesday, May 24, 2011
New Home Sales Rise to Four-Month High in April
New U.S. single-family home sales rose unexpectedly in April to notch their second straight month of gains and prices increased, according to a government report on Tuesday that offered some hope for the stagnant housing market.
The Commerce Department said sales increased 7.3 percent to a seasonally adjusted 323,000 unit annual rate, the highest level since December, from a slightly upwardly revised 301,000-unit pace in March.
Economists polled by Reuters had forecast new home sales unchanged at a previously reported 300,000-unit rate. All four regions recorded gains in sales, with the West reporting a 15.1 percent rise.
However, compared to April last year sales were down 23.1 percent.
"It suggests maybe we're beginning to see some signs of stabilization in housing, but it's too early to say we've bottomed out," said Gary Thayer, chief macro strategist at Wells Fargo Advisors in St. Louis, Missouri.
While the report cast a positive light on the housing market, it did little to change perceptions the economy remained mired in a soft patch.
Data ranging so far ranging from retail sales to industrial production have painted a picture of an economy struggling to regain momentum as the second quarter started, with employment only the bright spot.
Manufacturing activity in the central Atlantic region paused in May, after expanding during the previous seven months, according to the Richmond Fed's latest survey, released on Tuesday.
The government is expected to report on Thursday that the economy grew at an annual 2.1 percent rate in the first quarter, according to a Reuters survey, rather than the 1.8 percent pace it estimated last month.
Lots of Homes for Sale
"There's still a tremendous overhang in the housing market, and while new home sales are starting to percolate, that doesn't change the fact that we still have such huge inventory," said Michael Yoshikami, chief investment strategist at YCMNET Advisors in Walnut Creek, California.
An oversupply of used houses and a relentless wave of foreclosed properties are curbing the market for new homes, even as builders are keeping lean inventories.
There were a record low 175,000 new homes available for sale last month, down 2.8 percent from the prior month.
Data last week showed a steep drop in new home construction in April and a dip in sales of previously owned homes.
The Commerce Department report the median sales price for a new home rose 1.6 percent last month to $217,900. Compared with April last year, the median price increased 4.6 percent.
At April's sales pace, the supply of new homes on the market dropped to 6.5 months' worth, the lowest since April last year, from 7.2 months' worth in March.
The Commerce Department said sales increased 7.3 percent to a seasonally adjusted 323,000 unit annual rate, the highest level since December, from a slightly upwardly revised 301,000-unit pace in March.
Economists polled by Reuters had forecast new home sales unchanged at a previously reported 300,000-unit rate. All four regions recorded gains in sales, with the West reporting a 15.1 percent rise.
However, compared to April last year sales were down 23.1 percent.
"It suggests maybe we're beginning to see some signs of stabilization in housing, but it's too early to say we've bottomed out," said Gary Thayer, chief macro strategist at Wells Fargo Advisors in St. Louis, Missouri.
While the report cast a positive light on the housing market, it did little to change perceptions the economy remained mired in a soft patch.
Data ranging so far ranging from retail sales to industrial production have painted a picture of an economy struggling to regain momentum as the second quarter started, with employment only the bright spot.
Manufacturing activity in the central Atlantic region paused in May, after expanding during the previous seven months, according to the Richmond Fed's latest survey, released on Tuesday.
The government is expected to report on Thursday that the economy grew at an annual 2.1 percent rate in the first quarter, according to a Reuters survey, rather than the 1.8 percent pace it estimated last month.
Lots of Homes for Sale
"There's still a tremendous overhang in the housing market, and while new home sales are starting to percolate, that doesn't change the fact that we still have such huge inventory," said Michael Yoshikami, chief investment strategist at YCMNET Advisors in Walnut Creek, California.
An oversupply of used houses and a relentless wave of foreclosed properties are curbing the market for new homes, even as builders are keeping lean inventories.
There were a record low 175,000 new homes available for sale last month, down 2.8 percent from the prior month.
Data last week showed a steep drop in new home construction in April and a dip in sales of previously owned homes.
The Commerce Department report the median sales price for a new home rose 1.6 percent last month to $217,900. Compared with April last year, the median price increased 4.6 percent.
At April's sales pace, the supply of new homes on the market dropped to 6.5 months' worth, the lowest since April last year, from 7.2 months' worth in March.
Thursday, May 12, 2011
Spring Breathes Life into Prices
A seasonal uptick in both median prices and inventory has appeared in most metropolitan areas across the country, contradicting earlier price reports, according to Altos Research’s 20-city Composite trends data in April. Price increases are apparent in 24 of the 26 tracked markets, and inventory increases are apparent in 23 of the 26 tracked markets.
The week-over-week median prices have been increasing for a few months now, and the 90-day rolling average is now reflecting the same trend.
“The historical view tells us a seasonal increase in activity is expected at this time of year. Regardless of what’s happening in the economy as a whole, we see a seasonal spike in both median prices and inventory when the country starts to thaw from the winter months,” says the Altos report.
Altos’ national index median price rose to $440,194 in April, up 1.82 percent from $432,307 in March. The leaders in the price increase category were in “Sunshine States”—San Francisco (4.87 percent), San Jose (4.32 percent), Phoenix (3.30 percent), Denver (3.23 percent), and DC (3.04 percent).
Austin, Boston, Philadelphia, San Francisco, and Washington D.C. all showed double-digit inventory increases and Boston posted the biggest inventory increase at 19.18 percent. The 7-day and 90-day averages are both trending upwards for median prices and inventory. The 7-day trends are always the first indication of a shifting market and should be watched closely.
Prices were flat in New York, Philadelphia, Portland, Salt Lake City, Seattle, and Tampa. Las Vegas and New York were the only markets showing a decrease in inventory, and the decreases were modest (-1.05 percent and -0.26 percent, respectively). Compared to the big price drops over the past six months, this is welcome news for sellers.
The Altos Research Real-Time Housing Report provides up-to-the-minute data relative to housing market conditions in major markets around the nation. The Altos report uses metrics associated with active residential property listings to deliver real-time information
The week-over-week median prices have been increasing for a few months now, and the 90-day rolling average is now reflecting the same trend.
“The historical view tells us a seasonal increase in activity is expected at this time of year. Regardless of what’s happening in the economy as a whole, we see a seasonal spike in both median prices and inventory when the country starts to thaw from the winter months,” says the Altos report.
Altos’ national index median price rose to $440,194 in April, up 1.82 percent from $432,307 in March. The leaders in the price increase category were in “Sunshine States”—San Francisco (4.87 percent), San Jose (4.32 percent), Phoenix (3.30 percent), Denver (3.23 percent), and DC (3.04 percent).
Austin, Boston, Philadelphia, San Francisco, and Washington D.C. all showed double-digit inventory increases and Boston posted the biggest inventory increase at 19.18 percent. The 7-day and 90-day averages are both trending upwards for median prices and inventory. The 7-day trends are always the first indication of a shifting market and should be watched closely.
Prices were flat in New York, Philadelphia, Portland, Salt Lake City, Seattle, and Tampa. Las Vegas and New York were the only markets showing a decrease in inventory, and the decreases were modest (-1.05 percent and -0.26 percent, respectively). Compared to the big price drops over the past six months, this is welcome news for sellers.
The Altos Research Real-Time Housing Report provides up-to-the-minute data relative to housing market conditions in major markets around the nation. The Altos report uses metrics associated with active residential property listings to deliver real-time information
Tuesday, May 10, 2011
During a Tornado, Run, Don’t Gawk!!
One video circulating in cyberspace—shot by a 12-year-old boy with his cell phone in the back seat of his vehicle—shows a tornado closing in on a family driving in North Carolina last month —right up until the tornado hits them.
Another shows a tornado closing in on a Walgreens in Wilson, N.C., shot by a man in the parking lot who seems oblivious to the danger he is in until the last second.
“Hang on—I love you,” he tells his wife as the tornado bears down on him, as if finally realizing he may be moments from death.
The videos startled officials at the National Weather Service. In response, they’ve issued a fresh round of tornado safety tips to counter bad information—or simple ignorance—when it comes to tornado safety.
People seem to be “just clueless” about what to do if a tornado threatens, says Dick Elder, meteorologist-in-charge of the NWS’ Wichita branch.
In response to the tornado outbreaks in the South last month, Elder says “we are saddened and humbled by the number of people who have been killed and injured.”
More than 300 tornadoes recently touched down in six states, killing at least 344 people.
“I am saddened and frustrated at the growing number of lost lives from the recent tornado outbreaks,” says Charlene Miller, assistant director of emergency management for Butler County. “As public servants, we can only go so far. There is a level of personal responsibility that each and every one of us are accountable for.”
Eleven of the tornadoes that touched down were rated EF-4 or EF-5 on the Enhanced Fujita Tornado Scale.
Tornadoes in those categories can be killers even if people take all the proper steps to protect themselves, weather officials note. But far too often, they say, videos showed people doing absolutely the wrong thing as violent weather struck.
“You would look at that and go, ‘My goodness, they’re pretty stupid,’ ” Elder says.
More and more, he comments, the desire to capture a dramatic storm on video seems to be trumping common sense and safety.
Yet others may simply have forgotten what to do. That’s why weather officials are relaying the safety information.
“It’s always a good reminder to tell people where to go to save themselves,” Elder says, commenting that he is still troubled by the video of former Wichita television reporter Gregg Jarrett and his cameraman taking shelter from the weakened Andover tornado under a highway overpass on the Kansas Turnpike in 1991.
The clip recently surfaced on Fox News, where Jarrett works. In the piece, an “expert” on tornado safety says using an overpass for shelter is a good idea—even though weather officials have stated for years that an overpass can be a lethal place to be if a tornado approaches.
“I hate seeing that, because then people will start thinking, ‘Maybe that’s what we should do,’ ” Elder says. Three people were killed in May 1999 in Oklahoma when they took shelter under overpasses during a significant tornado outbreak. The overpasses become wind tunnels and debris collectors as a tornado nears, authorities have noted, making them particularly dangerous.
Tornado Safety
Here are ways you can protect yourself and your family if a tornado threatens:
• Before the storm:
- Develop a plan of action
- Have frequent drills
- Have a NOAA weather radio with a warning alarm tone
- Listen to weather information
- If planning a trip outdoors, listen to forecasts
• In homes or small buildings:
- Go to the basement or an interior room on the lowest floor (i.e., closet or bathroom). Upper floors are unsafe
- Wrap yourself in overcoats or blankets to protect yourself from flying debris
• In schools, hospitals, factories or shopping centers:
- Go to interior rooms and halls on the lowest floor. Stay away from glass-enclosed places or areas with wide-span roofs such as auditoriums and warehouses
- Crouch down and cover your head. Don’t take shelter in halls that open to the south or the west. Centrally located stairwells are another good shelter
• In mobile homes:
- Abandon them immediately and go to a designated shelter or ditch. Most fatalities occur in mobile homes or vehicles.
• In automobiles:
- If possible, get out and go to a sturdy structure or ditch
- If there isn’t time, buckle your seat belt and get below window level of your vehicle
For more information visit www.kansas.com.
Another shows a tornado closing in on a Walgreens in Wilson, N.C., shot by a man in the parking lot who seems oblivious to the danger he is in until the last second.
“Hang on—I love you,” he tells his wife as the tornado bears down on him, as if finally realizing he may be moments from death.
The videos startled officials at the National Weather Service. In response, they’ve issued a fresh round of tornado safety tips to counter bad information—or simple ignorance—when it comes to tornado safety.
People seem to be “just clueless” about what to do if a tornado threatens, says Dick Elder, meteorologist-in-charge of the NWS’ Wichita branch.
In response to the tornado outbreaks in the South last month, Elder says “we are saddened and humbled by the number of people who have been killed and injured.”
More than 300 tornadoes recently touched down in six states, killing at least 344 people.
“I am saddened and frustrated at the growing number of lost lives from the recent tornado outbreaks,” says Charlene Miller, assistant director of emergency management for Butler County. “As public servants, we can only go so far. There is a level of personal responsibility that each and every one of us are accountable for.”
Eleven of the tornadoes that touched down were rated EF-4 or EF-5 on the Enhanced Fujita Tornado Scale.
Tornadoes in those categories can be killers even if people take all the proper steps to protect themselves, weather officials note. But far too often, they say, videos showed people doing absolutely the wrong thing as violent weather struck.
“You would look at that and go, ‘My goodness, they’re pretty stupid,’ ” Elder says.
More and more, he comments, the desire to capture a dramatic storm on video seems to be trumping common sense and safety.
Yet others may simply have forgotten what to do. That’s why weather officials are relaying the safety information.
“It’s always a good reminder to tell people where to go to save themselves,” Elder says, commenting that he is still troubled by the video of former Wichita television reporter Gregg Jarrett and his cameraman taking shelter from the weakened Andover tornado under a highway overpass on the Kansas Turnpike in 1991.
The clip recently surfaced on Fox News, where Jarrett works. In the piece, an “expert” on tornado safety says using an overpass for shelter is a good idea—even though weather officials have stated for years that an overpass can be a lethal place to be if a tornado approaches.
“I hate seeing that, because then people will start thinking, ‘Maybe that’s what we should do,’ ” Elder says. Three people were killed in May 1999 in Oklahoma when they took shelter under overpasses during a significant tornado outbreak. The overpasses become wind tunnels and debris collectors as a tornado nears, authorities have noted, making them particularly dangerous.
Tornado Safety
Here are ways you can protect yourself and your family if a tornado threatens:
• Before the storm:
- Develop a plan of action
- Have frequent drills
- Have a NOAA weather radio with a warning alarm tone
- Listen to weather information
- If planning a trip outdoors, listen to forecasts
• In homes or small buildings:
- Go to the basement or an interior room on the lowest floor (i.e., closet or bathroom). Upper floors are unsafe
- Wrap yourself in overcoats or blankets to protect yourself from flying debris
• In schools, hospitals, factories or shopping centers:
- Go to interior rooms and halls on the lowest floor. Stay away from glass-enclosed places or areas with wide-span roofs such as auditoriums and warehouses
- Crouch down and cover your head. Don’t take shelter in halls that open to the south or the west. Centrally located stairwells are another good shelter
• In mobile homes:
- Abandon them immediately and go to a designated shelter or ditch. Most fatalities occur in mobile homes or vehicles.
• In automobiles:
- If possible, get out and go to a sturdy structure or ditch
- If there isn’t time, buckle your seat belt and get below window level of your vehicle
For more information visit www.kansas.com.
Saturday, May 7, 2011
Bin Laden's hiding place: a $1 million compound
Unquestionably, the most interesting piece of real estate on the entire planet today is the "mansion" compound where Osama bin Laden was found.
As the New York Times reported, "It was hardly the spartan cave in the mountains that many had envisioned as bin Laden's hiding place. Rather, it was a mansion on the outskirts of the town's center, set on an imposing hilltop and ringed by 12-foot-high concrete walls topped with barbed wire.
"The property was valued at $1 million, but it had neither a telephone nor an Internet connection," the Times wrote. "American officials believed that the compound, built in 2005, was designed for the specific purpose of hiding bin Laden."
The Los Angeles Times has published a graphic showing property details, as well as satellite images from before and after the compound was built.
The Associated Press reported that a doctor, Qazi Mahfooz Ul Haq, sold the land in 2005 where the compound was built, and The Telegraph reports that the contractor who allegedly built the complex, named in reports as Gul Muhammad, has been arrested near Abbottabad, Pakistan.
The man listed as the buyer of the property may have been killed in the U.S. raid, AP also reported. There is a photo of the compound, and a Guardian article discusses bin Laden's family background in building and architecture.
http://www.telegraph.co.uk/news/picturegalleries/worldnews/8491858/Osama-bin-Laden-the-compound-in-Abbottabad-Pakistan-where-the-al-Qaeda-leader-lived.html
As the New York Times reported, "It was hardly the spartan cave in the mountains that many had envisioned as bin Laden's hiding place. Rather, it was a mansion on the outskirts of the town's center, set on an imposing hilltop and ringed by 12-foot-high concrete walls topped with barbed wire.
"The property was valued at $1 million, but it had neither a telephone nor an Internet connection," the Times wrote. "American officials believed that the compound, built in 2005, was designed for the specific purpose of hiding bin Laden."
The Los Angeles Times has published a graphic showing property details, as well as satellite images from before and after the compound was built.
The Associated Press reported that a doctor, Qazi Mahfooz Ul Haq, sold the land in 2005 where the compound was built, and The Telegraph reports that the contractor who allegedly built the complex, named in reports as Gul Muhammad, has been arrested near Abbottabad, Pakistan.
The man listed as the buyer of the property may have been killed in the U.S. raid, AP also reported. There is a photo of the compound, and a Guardian article discusses bin Laden's family background in building and architecture.
http://www.telegraph.co.uk/news/picturegalleries/worldnews/8491858/Osama-bin-Laden-the-compound-in-Abbottabad-Pakistan-where-the-al-Qaeda-leader-lived.html
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