Archive for March, 2010
Case-Shiller Shows Home Price Improvement In A Majority Of Cities Nationwide
March 31st, 2010 categories: Case-Shiller Index
Standard & Poors released its Case-Shiller Index Wednesday. The report shows that, on a seasonally-adjusted basis, between December and January, home prices rose in more than half of the index’s tracked markets.
The strength of this month’s Case-Shiller report, however, should be put in context.
| Discussion: No Comments »
Knoxville FHA Buyers You Better Hurry — Fees Increase 1/2 Percent Starting Monday, April 5, 2010
March 30th, 2010 categories: Buyers, FHA Mortgages, Homebuyer Tax Credit, Market Trends, Mortgage Rates, New Home Sales
Have you Been Looking At Homes?? Plan on using FHA financing to buy your new Knoxville Area Home??
Starting Monday, April 5, 2010, getting an FHA mortgage in Knoxville TN and nationwide will be more expensive for borrowers.
In new guidelines set forth earlier this year, the FHA announced plans to raise additional revenue and reduce the overall risk of its mortgage portfolio.
The changes include the following:
- Increase Upfront Mortgage Insurance Premiums from 1.75% to 2.25% for everyone
- A plan to reduce seller concessions from 6 percent to 3 percent
- An increase in minimum downpayment for FICOs 580 or lower
| Discussion: No Comments »
CNNMoney.com Predicts The Best And Worst Real Estate Markets For 2010
March 29th, 2010 categories: Home Values
CNNMoney.com recently published its 2010 forecast and projections for home prices in the country’s largest metro markets.
Listed as “Top 25″ and also comprehensively by state, CNNMoney.com’s home price forecasts puts Santa Rosa, California at the top of 2010’s home appreciation list and Hanford, California at its bottom.
The 10 cities projected for highest home appreciation in 2010 are:
- Santa Rosa, CA : +6.0%
- Cheyenne, WY : +4.7%
- Kennewick, WA : +4.6%
- Merced, CA : +4.4%
- Bremerton, WA : +4.2%
- Fairbanks, AK : +4.2%
- Corvallis, OR : +4.1%
- Tacoma, WA : +3.9%
- Anchorage, AK : +3.8%
- Bend, OR : +3.3%
| Discussion: No Comments »
Do Your Spring Cleaning Like Martha Stewart
March 29th, 2010 categories: Home How To
Spring is here and Farragut homeowners are starting their respective Spring Cleaning rituals.
In some households, Spring Cleaning is best tackled in a single weekend filled with rubber gloves, ratty clothes, and sweat. In other homes, it’s a less serious undertaking. Either way, to clean a home from top-to-bottom, you need to have a plan.
If you’ve never used the Martha Stewart, 9-step Spring Cleaning Organizer, check it out. It covers the basics:
- Cleaning shades and windows
- Sorting through wardrobes for “old” clothes
- Cleaning and rotating mattresses and cushions
For most of the cleaning, everyday household cleansers and a vacuum or rags will do the trick.
There are a few items on the list, however, that require heavy-duty appliances; ones you may not keep at-home. For example, cleaning carpets is best-handled with a steam cleaner. You can choose to rent cleaning equipment from a local hardware store, or considering hiring an Angie’s List contractor to do the job. It’ll be more expensive, but the job will be done properly.
Also on the list is a reminder to check batteries in smoke alarms, carbon monoxide detectors, and flashlights.
| Discussion: No Comments »
Existing Home Sales Flatten And Point To A Much Better Spring
March 29th, 2010 categories: Existing Home Sales
As expected, Existing Home Sales fell in February, slipping 30,000 units versus January’s numbers. It’s the 4th straight month in which Existing Home Sales were lower, month-over-month.
An “existing” home is one that is previously owned and lived-in (i.e. not new construction).
Existing Home Sales peaked in November 2009, just as the First-Time Home Buyer Tax Credit was set to expire. Immediately thereafter, according to the National Association of Realtors®, monthly sales plunged 17 percent in December, then another 7 percent in January.
Comparatively, February’s dip is a modest 0.6 percent and is more in line with the pre-tax-credit Existing Home Sales trend. The real estate market is rediscovering its normal.
But “normal” may not last for long.
When the federal home buyer’s tax program was extended last year, the new rules stated that home buyers must be under contract for their new, respective homes on, or before, April 30, 2010 in order to claim up to $8,000 in federal money. That deadline is approaching and many markets — Knoxville included — are experiencing a surge in buyer traffic as April 30 nears.
| Discussion: No Comments »
The Home Price Index Shows Home Values Lower Broadly, But Not Specifically
March 26th, 2010 categories: Home Price Index
Home values fell again in January, according to the Federal Home Finance Agency’s Home Price Index. Values were reported down 0.6 percent, on average.
We say “on average” because the Home Price Index is a national report. It doesn’t capture the essence of a local market like Fox Run , or even a city market like Farragut.
The most granular that the monthly Home Price Index gets is regional and January’s report shows that:
- Values in the Mountain states rose 2.0%
- Values in the Pacific states were flat
- Values in the East North Central states fell 1.8%
It’s hardly helpful for home buyers entering the market, or home sellers trying to properly price a home. Furthermore, because the Home Price Index reports on a 2-month delay, its data fails to reflect the current market conditions.
Versus January — the period from which HPI data is collected — mortgage rates are lower, buyer activity is up, and the federal home buyer tax credit is closer to expiring. These each can have an impact on housing.
Ultimately, national real estate data like the Home Price Index is best suited for lenders and policy-makers. National data helps to identify trends that shape formal policy, but it doesn’t help you, specifically.
Since peaking in April 2007, the Home Price Index is off 13.2 percent.
| Discussion: No Comments »
The Average Household Will Get $2,800 In Tax Refunds. Will You?
March 25th, 2010 categories: Household Finances
April 15 is Tax Day and the IRS estimates that the average U.S. household will receive a $2,800 tax refund this year. If you’re among the Americans expecting a refund, this 4-minute piece from NBC’s The Today Show may be helpful. It’s a talk about how to receive a refund and what to do with it.
| Discussion: No Comments »
For Clues About The Future Of Mortgage Rates, Watch For Inflation
March 19th, 2010 categories: Mortgage Rates
Homes are more affordable in Fox Den and across the nation as the housing market emerges from a slow winter season with mortgage rates still near 5 percent.
Soft housing and low rates are an excellent combination for home buyers but whereas home values rise with a gradual pace, mortgage rates change in an instant. It’s something worth watching.
Each 0.25% increase to conventional or FHA rates adds approximately $16 per month for each $100,000 borrowed. Mortgage rate volatility can change your household budget.
If you’re trying to gauge whether rates will be rising or falling, one keyword for which to listen is “inflation”. Mortgage rates are highly responsive to inflation.
| Discussion: No Comments »
Single-Family Housing Starts Hold Steady For The 8th Straight Month
March 18th, 2010 categories: Housing Starts
Single-family Housing Starts idled last month, dropping just 3,000 units from the month prior, or 0.2%.
According to the Commerce Department’s report, February marked the 8th straight month in which Housing Starts straddled the half-million marker, dating back to June 2009.
This is a different slant on the Housing Starts story as told by the press.
Most publications are reporting that Housing Starts fell 5.9 percent in February. Technically, this is true. Housing Starts did fall 5.9 percent last month. However, the Housing Starts data is comprised of three parts:
- Single-Family Housing Starts
- 2-4 Unit Housing Starts
- “Apartment Building” Housing Starts (i.e. 5 or more units)
The press tends to lump all 3 together but that’s not relevant for everyday homeowners and buyers.
2-4 unit homes, and apartments and condos are a different housing class as compared to single-family homes and are notoriously volatile, too. Single-family starts are more steady and better reflect the country’s housing stock.
| Discussion: No Comments »
A Simple Explanation Of The Federal Reserve Statement (March 16, 2010 Edition)
March 16th, 2010 categories: FOMC, FOMC Minutes, Market Trends, Mortgage Rates, Statistics
Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged, in its target range of 0.000-0.250 percent.
In its press release, the FOMC noted that the U.S. economy “has continued to strengthen” and that the jobs markets “is stabilizing”. It also said that business spending has “has risen significantly”.
This is a slight departure from the Fed’s January statement in which housing was not mentioned and business spending was said to be “picking up”.
It’s also the sixth straight statement from the FOMC in which the Fed described the economy with optimism. This is a signal to markets that 2008-2009 recession is over and that economic growth is returning.
| Discussion: No Comments »
