Positive Trends: is the Housing Market Headed for Recovery?
By Deanna Sletten
After four months of rising home sales, the housing market is looking brighter. The National Association of Realtors reported that between April and July existing home sales experienced increases each month with July leading with a 7.2% increase. It has been five years since the real estate market has seen such an upward trend and it has led many in the industry to believe that the market has finally bottomed out and is heading for recovery.
Sales of Foreclosures Led the Way
Many factors prompted the rise in sales over the past four months. Sales of foreclosure and distressed homes were up 31% in July because of their affordability. First-time home buyers accounted for 30% of the July sales so they could qualify in time for the $8,000 tax credit. Low mortgage interest rates also contributed to the surge in sales. With a market full of affordable homes to choose from and low interest loans available, home buyers are
taking advantage of the deals and buying nicer homes they might otherwise have not been able to afford.
Where Recovery is Felt the Most
Thirty-nine states saw sales increase over the last two quarters with some states, such as New York, Hawaii and Wisconsin, seeing an increase of 20% or more. Sales varied depending upon how heavily the areas were hit by the real estate crash. California, Michigan and Colorado saw a drop in sales by 6% even though other states saw increases in sales. In cities like San Diego, Phoenix, Orlando and Las Vegas where house prices have dropped significantly while incomes have stayed the same, the demand for foreclosure and lower priced homes has soared. Experts agree that the recovery will be slower for some areas than for others depending upon how hard the area was hit.
Will the Recovery Continue?
Even though the housing market looks as though it's on the way to recovery, experts caution that it may not see a significant upswing until the early part of 2010 when the economy is expected to pick up. Another factor that may help the recovery is dependent upon Congress extending the first-time homeowner tax credit past the November 30 deadline and into 2010 which is being lobbied for by two national organizations.
A total housing market recovery is dependent upon how quickly the economy picks up and how long interest rates stay low. But for now, economists are encouraged by the continued increase in sales and believe that the housing market is heading toward a recovery.
Thursday, October 22, 2009
Friday, August 21, 2009
NY State First Time Home Buyer Credit - Enhancement
Gov. David A. Paterson announced last week that New York will offer a federal income tax credit to first-time homebuyers to encourage home sales in New York State. The New York State Mortgage Credit Certificate Program (MCC) will enable first-time homebuyers to claim a tax credit equal to 20 percent of their annual mortgage interest costs, which could save the average homebuyer around $1,500 a year. This program expands the $8,000 First-Time Homebuyer Credit, which expires on November 30, 2009.
Closets 101 (you've heard this from me before!)
Learn How to Purge Closets Sensibly
By Katherine Salant, Washington PostSaturday, August 15, 2009
In many cases, the desire to move to a bigger house is driven by the need to "get my life under control."
The thinking goes something like this: In a bigger house I will have more places to put things and bigger closets so my house will not be awash in clutter anymore.
But bigger closets can be both a blessing and a curse, said Sandra Felton, founder of Messies Anonymous (http://www.messies.com), author of seven books on how to create order from household chaos, and a person who learned to keep order in her own house after struggling with chaos for more than 23 years.
The problem with the bigger closet solution, Felton said, is that many people regard their bigger closet as an "ever expanding universe" and keep on accumulating things until the new closet becomes as crammed as their old one.
Even worse, the scale of disorder in a bigger closet can often become a heavier burden than it was with the smaller one, Felton said. When a 10- to 15-foot-long walk-in closet (not an unusual size in houses built in the last 20 years) is filled, "you've created your own boutique," Felton said. You can feel like you're managing a store or a warehouse without the benefit of a modern inventory system. You can't remember what you own, or you can't find it, and you end up with multiple and nearly identical clothing items, shoes and accessories.
A more adaptive strategy if you're striving for order, and one that could ultimately lead you to stay where you are, Felton said, is a "steady state approach" -- a recognition that the closet size is finite and that when you acquire new things you need to remove some old ones.
It sounds easy enough, add a new thing, subtract an old thing, but many people find the subtraction aspect paralyzing and decisions on what to keep and what to discard impossible, Felton said.
To this, Feldon says simply, "you have to be a grown up and ask yourself a few simple questions: Do I use it? Is it more important than other things that will also take up space? Is it important that I have it?" She says the decision-making process gets easier with practice; it's also easier with smaller closets that limit what you can accumulate.
In her own 1950s Miami ranch, the closets are only 39 inches long. She uses two closets for her clothes, and this keeps her decisions regarding her wardrobe to "manageable numbers," she said.
It's tempting to wait until you can't fit anything more into your closet to decide what should go, but this can leave you feeling pressured and making choices you later regret, Felton said. She's found she's more comfortable with a "de-access as you go" approach, and she removes a garment as soon as she's ready to part with it. To keep herself from revisiting her decision, the garment goes in a "charity box" on the other side of her house and, in short order, to a local charity.
But Felton acknowledges that the disposition answers do not come easily in every instance, and she says you don't have to give every old garment away as you acquire new ones.
Many things have special sentimental value because they are "memory holders" that give us a sense of who we are, Felton said. We need to keep these pieces of our personal history, but we don't have to have them immediately accessible. They can be archived and stored elsewhere in your house. In describing the kinds of priceless and unique things that people keep, she mentioned her father's college diploma. But, she emphasized, you don't have to keep everything a person ever gave to you to honor their memory.
Felton also emphasized that many people need time to get comfortable with giving away things of a personal nature. While some people "can do it without feeling a twinge," most people become upset if these things are "jerked out of their lives," she said.
And sometimes you just can't decide what to do with something.
Felton's solution to this dilemma is an "ambivalence box." It can be filled with clothes and anything else, sealed and stored in an out-of-the-way place like a basement or garage for five or six months. You'll be pleased with the closet space that the ambivalence box frees up, Felton said, and when you eventually open it, you'll discover that you feel differently about its contents. "Time dulls their sparkle and they don't look as good after a long period," she said.
Felton has done this many times over the years, and she said she can't recall ever using any of the boxed-up items again, though she's archived a few clothing items that were "beautiful in their own way, even if they weren't stylish anymore or wearable."
The idea of organizing yourself to carry out Felton's ambivalence box suggestion may seem like too much time and trouble, but an impending move can be a powerful "situational" motivation, she said.
It worked for me. When we moved to New York City for a year, I boxed up half of my clothes and stored them in our basement. When we returned, I was amazed at the clarity that time can bring. In less than an hour, I went through all the boxes and dispatched more than half of the contents to a local thrift shop.
What was in my personal time capsule that I so easily parted with?
-- Clothing that had belonged to my mother that I realized I didn't need to honor her memory.
-- Worn-out shoes that I loved and had worn on a European trip with our children.
-- Work attire that might fit someday.
-- Garage-sale items that I might wear someday.
-- Everything I hadn't worn in at least five years.
-- Worn out clothes I had kept because they were given as presents by my family.
-- Items that salespeople had convinced me were "flattering" but which I had never worn.
-- Clothes I had worn on special family occasions.
By Katherine Salant, Washington PostSaturday, August 15, 2009
In many cases, the desire to move to a bigger house is driven by the need to "get my life under control."
The thinking goes something like this: In a bigger house I will have more places to put things and bigger closets so my house will not be awash in clutter anymore.
But bigger closets can be both a blessing and a curse, said Sandra Felton, founder of Messies Anonymous (http://www.messies.com), author of seven books on how to create order from household chaos, and a person who learned to keep order in her own house after struggling with chaos for more than 23 years.
The problem with the bigger closet solution, Felton said, is that many people regard their bigger closet as an "ever expanding universe" and keep on accumulating things until the new closet becomes as crammed as their old one.
Even worse, the scale of disorder in a bigger closet can often become a heavier burden than it was with the smaller one, Felton said. When a 10- to 15-foot-long walk-in closet (not an unusual size in houses built in the last 20 years) is filled, "you've created your own boutique," Felton said. You can feel like you're managing a store or a warehouse without the benefit of a modern inventory system. You can't remember what you own, or you can't find it, and you end up with multiple and nearly identical clothing items, shoes and accessories.
A more adaptive strategy if you're striving for order, and one that could ultimately lead you to stay where you are, Felton said, is a "steady state approach" -- a recognition that the closet size is finite and that when you acquire new things you need to remove some old ones.
It sounds easy enough, add a new thing, subtract an old thing, but many people find the subtraction aspect paralyzing and decisions on what to keep and what to discard impossible, Felton said.
To this, Feldon says simply, "you have to be a grown up and ask yourself a few simple questions: Do I use it? Is it more important than other things that will also take up space? Is it important that I have it?" She says the decision-making process gets easier with practice; it's also easier with smaller closets that limit what you can accumulate.
In her own 1950s Miami ranch, the closets are only 39 inches long. She uses two closets for her clothes, and this keeps her decisions regarding her wardrobe to "manageable numbers," she said.
It's tempting to wait until you can't fit anything more into your closet to decide what should go, but this can leave you feeling pressured and making choices you later regret, Felton said. She's found she's more comfortable with a "de-access as you go" approach, and she removes a garment as soon as she's ready to part with it. To keep herself from revisiting her decision, the garment goes in a "charity box" on the other side of her house and, in short order, to a local charity.
But Felton acknowledges that the disposition answers do not come easily in every instance, and she says you don't have to give every old garment away as you acquire new ones.
Many things have special sentimental value because they are "memory holders" that give us a sense of who we are, Felton said. We need to keep these pieces of our personal history, but we don't have to have them immediately accessible. They can be archived and stored elsewhere in your house. In describing the kinds of priceless and unique things that people keep, she mentioned her father's college diploma. But, she emphasized, you don't have to keep everything a person ever gave to you to honor their memory.
Felton also emphasized that many people need time to get comfortable with giving away things of a personal nature. While some people "can do it without feeling a twinge," most people become upset if these things are "jerked out of their lives," she said.
And sometimes you just can't decide what to do with something.
Felton's solution to this dilemma is an "ambivalence box." It can be filled with clothes and anything else, sealed and stored in an out-of-the-way place like a basement or garage for five or six months. You'll be pleased with the closet space that the ambivalence box frees up, Felton said, and when you eventually open it, you'll discover that you feel differently about its contents. "Time dulls their sparkle and they don't look as good after a long period," she said.
Felton has done this many times over the years, and she said she can't recall ever using any of the boxed-up items again, though she's archived a few clothing items that were "beautiful in their own way, even if they weren't stylish anymore or wearable."
The idea of organizing yourself to carry out Felton's ambivalence box suggestion may seem like too much time and trouble, but an impending move can be a powerful "situational" motivation, she said.
It worked for me. When we moved to New York City for a year, I boxed up half of my clothes and stored them in our basement. When we returned, I was amazed at the clarity that time can bring. In less than an hour, I went through all the boxes and dispatched more than half of the contents to a local thrift shop.
What was in my personal time capsule that I so easily parted with?
-- Clothing that had belonged to my mother that I realized I didn't need to honor her memory.
-- Worn-out shoes that I loved and had worn on a European trip with our children.
-- Work attire that might fit someday.
-- Garage-sale items that I might wear someday.
-- Everything I hadn't worn in at least five years.
-- Worn out clothes I had kept because they were given as presents by my family.
-- Items that salespeople had convinced me were "flattering" but which I had never worn.
-- Clothes I had worn on special family occasions.
Friday, August 14, 2009
Time to Update your Bathroom?
4 Reasons to Update a Bathroom
By E. E. Kane
Bathrooms may not hold the most glamorous spot in your home, but they must remain functional or everyone suffers. Remodeling can be very expensive, so how do you know when it's time to invest money in your bathroom? The following four reasons explain why remodeling may be worth the expense.
1. Signs of Water Damage.
Leaks in the plumbing can easily lead to problems like mold, loose tiles, and structural damage to the floor underneath. Water damage can wreak havoc on a bathroom, and in some cases will require tearing everything out. If you simply have a mold issue, you may be able to resolve it with ventilation. Install an exhaust fan or a new window, and then kill the mold with a bleach-and-water solution. Finally, use primer and paint that specifically hinder mold growth.
2. Electrical Safety.
Do the lights flicker? Does the outlet sizzle when you plug in the hair dryer? Has the exhaust fan stopped working? Whether you need to overhaul the electrical circuits or simply change a few receptacles, don't ignore electrical problems in the bathroom. Every bathroom should have a GFCI outlet, which prevents electrocution should a shaver or hair dryer drop into water.
3. Just Plain Gunky Issues.
Stained carpeting, cracked vinyl flooring, broken or missing tiles, a bathtub or sink that never looks clean no matter how much you scrub, Pepto-Bismol pink tiles—these are all reasons to feel ambivalent about your bathroom. If "gross" is the first word you think of to describe your bathroom, it's time to remodel.
4. Planning to Sell in a Few Years.
If you know you'll be moving within the next five years, remodeling an outdated bathroom can increase the value of your property. Although you may not recoup everything you spend, bathroom remodels have shown a greater return on investment than most other areas of the house. Focus on functionality, storage, and neutral palettes.
Resolving the issues and making repairs should always come before cosmetics like paint or wallpaper. Remodeling a bathroom can be very disruptive to family life, so if you can't make the repairs yourself, find a reputable contractor who will work with your budget and your time frame.
By E. E. Kane
Bathrooms may not hold the most glamorous spot in your home, but they must remain functional or everyone suffers. Remodeling can be very expensive, so how do you know when it's time to invest money in your bathroom? The following four reasons explain why remodeling may be worth the expense.
1. Signs of Water Damage.
Leaks in the plumbing can easily lead to problems like mold, loose tiles, and structural damage to the floor underneath. Water damage can wreak havoc on a bathroom, and in some cases will require tearing everything out. If you simply have a mold issue, you may be able to resolve it with ventilation. Install an exhaust fan or a new window, and then kill the mold with a bleach-and-water solution. Finally, use primer and paint that specifically hinder mold growth.
2. Electrical Safety.
Do the lights flicker? Does the outlet sizzle when you plug in the hair dryer? Has the exhaust fan stopped working? Whether you need to overhaul the electrical circuits or simply change a few receptacles, don't ignore electrical problems in the bathroom. Every bathroom should have a GFCI outlet, which prevents electrocution should a shaver or hair dryer drop into water.
3. Just Plain Gunky Issues.
Stained carpeting, cracked vinyl flooring, broken or missing tiles, a bathtub or sink that never looks clean no matter how much you scrub, Pepto-Bismol pink tiles—these are all reasons to feel ambivalent about your bathroom. If "gross" is the first word you think of to describe your bathroom, it's time to remodel.
4. Planning to Sell in a Few Years.
If you know you'll be moving within the next five years, remodeling an outdated bathroom can increase the value of your property. Although you may not recoup everything you spend, bathroom remodels have shown a greater return on investment than most other areas of the house. Focus on functionality, storage, and neutral palettes.
Resolving the issues and making repairs should always come before cosmetics like paint or wallpaper. Remodeling a bathroom can be very disruptive to family life, so if you can't make the repairs yourself, find a reputable contractor who will work with your budget and your time frame.
Tuesday, July 7, 2009
How do I keep important documents safe?
This is one of the best lists I've seen. Think about purchasing a safety deposit boxe or a fire safe box for storage. If it's a safety deposit box, getting access to important papers might be difficult, so make sure you know in advance who will be able to have access. Different states have different laws on who can access the box when you die. Make sure if you give someone a key to your safe deposit box they are on the bank contract.
• Adoption Papers
• Automobile title(s)
• Bank account numbers and contact information
• Baptismal and other Religious Certificates
• Birth certificates
• Cemetery Deed
• Child Custody Agreements or Parenting Plans
• Citizenship papers
• Collectibles that are valuable
• Credit card account numbers
• Death certificates
• Diplomas
• Divorce decree
• Employee Benefit Records
• Family historical information
• Household inventory and appraisals
• Important contracts
• Immunization Records
• Insurance policy names and numbers
• Investment certificates
• Jewelry and jewelry appraisals
• Leases
• Marriage certificate
• Medals
• Military records
• Mortgage
• Naturalization Certificates
• Negatives of important photos
• Patents and copyrights
• Photos of Possessions
• Rare Stamps and Coins
• Real Estate Deeds
• Retirement plan information
• Stock and bond certificates
• Veteran’s Papers
• Adoption Papers
• Automobile title(s)
• Bank account numbers and contact information
• Baptismal and other Religious Certificates
• Birth certificates
• Cemetery Deed
• Child Custody Agreements or Parenting Plans
• Citizenship papers
• Collectibles that are valuable
• Credit card account numbers
• Death certificates
• Diplomas
• Divorce decree
• Employee Benefit Records
• Family historical information
• Household inventory and appraisals
• Important contracts
• Immunization Records
• Insurance policy names and numbers
• Investment certificates
• Jewelry and jewelry appraisals
• Leases
• Marriage certificate
• Medals
• Military records
• Mortgage
• Naturalization Certificates
• Negatives of important photos
• Patents and copyrights
• Photos of Possessions
• Rare Stamps and Coins
• Real Estate Deeds
• Retirement plan information
• Stock and bond certificates
• Veteran’s Papers
Thursday, July 2, 2009
Grill Burgers, Not Your Home
For years, New York City has prohibited propane barbecue grilling on a balcony, terrace or roof. Residents can barbecue with charcoal on a balcony or terrace provided there's sufficient clearance and a source of water to douse any flare-ups.
Last year, Washington State began banning open-flame gas or charcoal barbecues on certain multifamily housing balconies where there's no overhead sprinkler.
And beginning this year, Silicon Valley placed a permanent ban on charcoal and gas fired grills on multi-family housing balconies made of wood or other combustible materials, if there is no sprinkler overhead. Propane tanks heavier than one pound are forbidden on such balconies -- sprinkler or not.
Residential barbecue bans amount to gustatory purgatory for a growing number of barbecue fans who have to wait get their thrill from a grill away from home.
Nearly 80 percent of households own an outdoor barbecue appliance and nearly 60 percent use them year round, according to the Hearth, Patio & Barbecue Association (HPBA).
But firing up a grill with an open flame presents a clear and present fire danger, especially in confined spaces.
The U.S. Fire Administration's National Fire Data Center estimates that barbecuing accounts for more than 6,000 fires, 170 injuries, a half dozen fatalities and some $35 million in property loss each year.
Grilling responds to our primal longing for fire-kissed feasts, but singeing sustenance into submission comes with another primal directive -- protecting life and property.
The HPBA offers these tips to get you safely through a barbecued meal.
Read the owners manual. As simple as it sounds, many fail to follow instructions in their rush to barbecue heaven. The manual contains specific assembly, use and safety procedures, as well as manufacturer contact information.
Never use a grill indoors. Barbecuing in your trailer, tent, house, garage, fireplace or any enclosed area can become a carbon monoxide accumulation hazard and kill you. Barbecue smoke can clog your fireplace flue.
Even outdoors, use a well ventilated area. Laws prohibit use on certain small balconies because they don't have sufficient clearance from the building, can produce a back draft into the home and provide limited safe maneuvering space. Set the grill away from buildings, overhead combustibles, dry leaves, brush and swimming pools and swimmers. Beware of wind-blown sparks.
Follow other codes. Electric grills or accessories (rotisseries, etc.) must be properly grounded in accordance with local codes. Place electrical cords out of traffic, walkways or where people can trip over them.
Keep the grill still. Be sure all parts of the grill are level and firmly in place so that it cannot be tipped over. Don't allow play or young children near the grill. Never attempt to move a hot grill. If you stumble and drop the grill, nasty burns are possible.
Use the proper equipment. Use long-handled utensils designed for barbecue work to avoid burns and splatters. Wear clothing that does not have hanging shirt tails, frills, or apron strings that can catch fire, and use flame-retardant mitts when adjusting hot vents.
Keep the fire controlled. To put out flare-ups, either raise the food grid, spread out the coals evenly, or adjust the controls to reduce oxygen and/or lower the temperature. If you must douse the flames with a light spritz of water, first remove the food from the grill. Never leave a grill unattended once lit.
Be ready to extinguish flames. Use baking soda to control a grease fire and have a fire extinguisher handy. Keep a bucket of sand or a garden hose near if you don’t have a commercial extinguisher.
Buy a grill pad or splatter mat. Heat resistant pads placed beneath the grill are usually made of lightweight composite cement or plastic and will protect your deck or patio from any grease that misses the drip pan.
Written by Broderick Perkins
Last year, Washington State began banning open-flame gas or charcoal barbecues on certain multifamily housing balconies where there's no overhead sprinkler.
And beginning this year, Silicon Valley placed a permanent ban on charcoal and gas fired grills on multi-family housing balconies made of wood or other combustible materials, if there is no sprinkler overhead. Propane tanks heavier than one pound are forbidden on such balconies -- sprinkler or not.
Residential barbecue bans amount to gustatory purgatory for a growing number of barbecue fans who have to wait get their thrill from a grill away from home.
Nearly 80 percent of households own an outdoor barbecue appliance and nearly 60 percent use them year round, according to the Hearth, Patio & Barbecue Association (HPBA).
But firing up a grill with an open flame presents a clear and present fire danger, especially in confined spaces.
The U.S. Fire Administration's National Fire Data Center estimates that barbecuing accounts for more than 6,000 fires, 170 injuries, a half dozen fatalities and some $35 million in property loss each year.
Grilling responds to our primal longing for fire-kissed feasts, but singeing sustenance into submission comes with another primal directive -- protecting life and property.
The HPBA offers these tips to get you safely through a barbecued meal.
Read the owners manual. As simple as it sounds, many fail to follow instructions in their rush to barbecue heaven. The manual contains specific assembly, use and safety procedures, as well as manufacturer contact information.
Never use a grill indoors. Barbecuing in your trailer, tent, house, garage, fireplace or any enclosed area can become a carbon monoxide accumulation hazard and kill you. Barbecue smoke can clog your fireplace flue.
Even outdoors, use a well ventilated area. Laws prohibit use on certain small balconies because they don't have sufficient clearance from the building, can produce a back draft into the home and provide limited safe maneuvering space. Set the grill away from buildings, overhead combustibles, dry leaves, brush and swimming pools and swimmers. Beware of wind-blown sparks.
Follow other codes. Electric grills or accessories (rotisseries, etc.) must be properly grounded in accordance with local codes. Place electrical cords out of traffic, walkways or where people can trip over them.
Keep the grill still. Be sure all parts of the grill are level and firmly in place so that it cannot be tipped over. Don't allow play or young children near the grill. Never attempt to move a hot grill. If you stumble and drop the grill, nasty burns are possible.
Use the proper equipment. Use long-handled utensils designed for barbecue work to avoid burns and splatters. Wear clothing that does not have hanging shirt tails, frills, or apron strings that can catch fire, and use flame-retardant mitts when adjusting hot vents.
Keep the fire controlled. To put out flare-ups, either raise the food grid, spread out the coals evenly, or adjust the controls to reduce oxygen and/or lower the temperature. If you must douse the flames with a light spritz of water, first remove the food from the grill. Never leave a grill unattended once lit.
Be ready to extinguish flames. Use baking soda to control a grease fire and have a fire extinguisher handy. Keep a bucket of sand or a garden hose near if you don’t have a commercial extinguisher.
Buy a grill pad or splatter mat. Heat resistant pads placed beneath the grill are usually made of lightweight composite cement or plastic and will protect your deck or patio from any grease that misses the drip pan.
Written by Broderick Perkins
Saturday, May 30, 2009
Stat's from NAR for April Real Estate #'s
Source: NAR 5/27/09 (NATIONAL ASSOCIATION OF REALTORS®)
NAR: Existing-Home Sales Jump Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”Buyers Once Again Emerge An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.It's critical that distressed homes be quickly cleared from the market, Yun says. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.
NAR reported the that the Northeast jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
NAR: Existing-Home Sales Jump Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”Buyers Once Again Emerge An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.It's critical that distressed homes be quickly cleared from the market, Yun says. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.
NAR reported the that the Northeast jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
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