General Category
3 DIY Projects That Can Help Your Home Sell For More
March 2nd, 2009 categories: General, Market Trends, Sellers
In a tight economy, do-it-yourself home improvements projects not only save money, but may also justify a higher listing price for a soon-to-be home seller.
In the 4-minute video above, Sweat Equity host Amy Matthews talks with NBC’s Matt Lauer about affordable home upgrades that even the least skilled home remodelers can finish on their own.
Three of the huge, bang-for-the-buck projects discussed are:
- Refinish laminate countertops for $95.
- Replace hollow “builders’ doors” with sturdy doors for $200 each.
- Install kitchen and bathroom backsplashes for $500 each.
The video also recommends installing a basement egress window, if possible. As far as DIY goes, it’s a little bit more complex but the results are stunning.
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What Are The Nation’s Best Affordable Suburbs?
February 27th, 2009 categories: General, Market Trends, Sellers
Nationwide, home affordability has received a serious boost from the combination of falling home prices and falling mortgage rates.
Today, because of the sagging economy, in most parts of the country, the cost of owning a home versus renting one is now very close to its historical average.
That said, though, near every major city, there are some neighborhoods in which home affordability and quality of life are stand-out. Using real estate data from OnBoard Informatics, Business Week highlights these areas in a report it calls the “Best Affordable Suburbs“.
Now, the country’s “Best Affordable Suburbs” doesn’t list the nation’s most affordable suburbs, but instead, a group of cities, towns, and villages in which the populace sits between five and sixty-thousand, and the economy, the schools, the lifestyle and the crime levels are all within a desirable range.
As concluded by Business Week, these are areas in which buying a home is a good value.
At the top of the list is Awake, Wisconsin, a suburb 20 minutes west of Milwaukee, prized for its outdoor lifestyle and healthy jobs market. The complete 50-state listing is posted at Business Week’s website.
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The Key Fact Missing From Today’s Existing Home Sales Headlines
February 26th, 2009 categories: Buyers, General, Market Trends
In reading the headlines this morning, you’d think that last month’s Existing Home Sales figure signaled more trouble ahead for the housing market.
Quite the contrary.
Beyond the attention-grabbing headlines is the real story; the one that shows — once again — that housing market fundaments are coming back into balance.
As home values tick lower, it appears, value buyers are stepping in and snapping up supply. It’s true that the number of homes sold fell to its lowest levels in 12 years, but we can’t ignore the fact that the number of homes available to buy fell, too.
- Banks have put the brakes on foreclosures
- Economic uncertainty is reducing job-related relocations
- Builders have all but stopped building new homes
The national housing supply is as low as it’s been in more than a year.
Based on the current rate of sales activity, the national housing supply would be 100% sold in 9.6 months — a two-month improvement from the high point set in June 2008.
Demand for homes is expected to rise, too:
- The Federal Reserve is trying to hold mortgage rates low
- Fannie Mae is opening its checkbook to real estate investors
- The stimulus package is granting tax credits to first-timers
So, it’s not that the headlines are wrong; it’s just that they’re incomplete.
In looking at all of the data and not just one sliver of it, we can find hope. Falling supply plus rising demand leads home values higher and that’s the basis for a recovery.
(Image courtesy: Wall Street Journal Online)
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The Crown and Goose A Great Dining Experience in Downtown Knoxville
February 26th, 2009 categories: General
My wife and I are always looking for GREAT local restaurants. Last Saturday night along with our friend Richard and Pam Zackary 
we decided to try The Crown & Goose One really nice thing is they have parking right across the street from the restaurant.
Looking for a GREAT Dining Experience…
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More Signs Of Recovery : The Cost Of Owning Versus Renting Falls Back To Historical Norms
February 25th, 2009 categories: Buyers, General, Market Trends
One popular housing theory is that — before a bona fide housing recovery can begin – the cost of owning a home versus renting one must return to historical levels.
If that belief is a truth, a national return to rising home prices may be in store for 2009.
Falling home prices coupled with falling mortgage rates, too, have dropped the relative, after-tax cost of owning a home to 125% of the cost of renting a home.
This is the exact 18-year historical average and not since 2001 has the gap been this small.
As reported by the Wall Street Journal, though, the study has some flaws. For example, the data doesn’t account for ongoing home maintenance costs, nor does it consider real estate tax bills and insurance policies.
But, combining a relatively low cost of ownership with the government’s $8,000 tax credit for first-time home buyers is likely to convert long-time renters into never-before homeowners.
This, too, is thought to be a key element of the housing recovery.
In many markets (but not all), home prices are expected to edge lower through 2009. Provided mortgage rates stay low, the cost gap between owning and renting will shrink even more.
(Image courtesy: Wall Street Journal)
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County-By-County: The 2009 “High-Cost” Conforming Loan Limits
February 24th, 2009 categories: Buyers, General, Market Trends
As part of the stimulus package passed last week, Congress authorized a temporary increase to conforming loan limits in certain high-cost parts of the country.
“High cost” is defined by a regions’ median sales price.
With the temporary increase, a greater share of Americans can now qualify for Fannie Mae- and Freddie Mac-backed loans, usually the least expensive source for mortgage money.
Higher loan limits can be good for the housing market and the broader economy for two reasons:
- Cheaper money can spur new home demand, supporting home values.
- Higher loan limits render more homeowners refinance-eligible, freeing up cash for spending, saving, or investing.
The complete county-by-county loan limit list is available on the OFHEO website.
Of the 3,232 U.S. counties, 10 percent are considered ”high-cost”. Residents of these areas can expect the same low rates offered to the rest of the country, but with a slight premium. Be sure to ask your loan officer about how it works.
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What The Homeowner Affordability and Stability Plan Doesn’t Mean For Homeowners
February 19th, 2009 categories: Buyers, General, Market Trends
In Mesa, Arizona, Wednesday, the President presented the Homeowner Affordability and Stability plan, a multi-pronged effort to support the housing market.
The story made the front page of nearly every newspaper in the country.
The president’s plan is sweeping:
- Incent mortgage servicers to work with at-risk homeowners before delinquency starts
- Let homeowners with good credit but little equity refinance to today’s low rates
- Fund Fannie Mae and Freddie Mac to support mortgage markets
It’s a broad plan with many positive angles, but for now, we can’t forget that it’s just a plan. Although the White House shapes and influences housing policy, Congress, Loan Servicers, and the Federal Agencies must still implement and execute it. Until that implementation occurs, these reforms exist only on paper.
It’s a key aspect of the speech that’s not getting coverage.
One thing we learned during the stimulus package debate was that just because the President wants something to happen doesn’t mean that it will. There are always details to be worked out and that’s one reason why the Homeowner Affordability and Stability Plan couldn’t go into effect immediately. There are still loose ends to tie and details to define.
According to its website, the White House lists March 4, 2009 as the plan’s effective date. Until March 4, therefore, nothing in Wednesday’s speech is guaranteed.
(Image courtesy: Birmingham News)
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Wouldn’t You Know It? As Consumer Confidence Falls, Home Sales Rise
February 13th, 2009 categories: General, Market Trends, Sellers
Consumer Confidence fell this month for the first time in three months, reflecting Americans’ concern for the economy, housing, and the financial system.
The reading isn’t much of a surprise given our collective exposure to a near-constant stream of negative news. Before long, the reports become a self-fulfilling prophecy.
Despite falling confidence, however, the housing industry appears to be reviving. Sales of existing homes are on the rise and an increasing number of homes are under contract to sell. And, if these statistics seem out of place, consider the external forces that are accompanying this “down” economy:
- In some markets, home values have plummeted to early-2000 levels
- Government intervention has brought mortgage rates to near-5 percent
- Congress is pledging key support to housing and mortgage markets
These points can’t be captured in confidence surveys which, by comparison, ignore facts and focus on Big Picture behavioral questions like “Do you think you’ll be better off a year from now?” and “What’s your attitude toward buying major household items?”. It’s useful information for economists, but not so much for home buyers.
Anecdotally, a lot of the country’s housing markets have already started their recovery. Couple that with the natural momentum of Spring Buying and the stimulus package’s proposed first-time home buyer tax credit and you can clearly see the disconnect.
Just because confidence is down doesn’t mean that home prices will be, too.
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12 Easy Changes To Save $1,600 Per Year At Home
February 9th, 2009 categories: General
As Americans move from net spenders to net savers, it seems that we’re all looking for ways to save some extra cash. As part of its ongoing “Save-a-Buck” series, NBC’s The Today Show offers some pointers.
Among the tips, there’s a split between common sense items and I-never-thought-of-that advice including:
- Why you should cook with your microwave more often
- Why you should keep closet doors closed
- How your dryer’s positioning may impact your energy bill
In all, the tips from the 4-minute video can save $125 per month — $1,600 per year. They’re not all practical, but they’re easy to implement.
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10 Cities For Job Growth in 2009
February 6th, 2009 categories: General, Market Trends
Employment figures released this morning show that the economy has now shed 3.6 million jobs since December 2007, included close to half that in the last 3 months alone. The Unemployment Rate is now 7.6%.
But jobs aren’t fading in every housing market equally.
As reported by Ajilon Professional Staffing, there are still areas around the country in which unemployment rates are low and job outlooks are strong.
Led by Madison, WI, Ajilon calls them “10 Cities For Job Growth in 2009” and they are:
- Madison, WI
- Washington, D.C.
- Boston, MA
- Richmond, VA
- Milwaukee, WI
- Pittsburgh, PA
- Baltimore, MD
- Seattle, WA
- Houston, TX
- Dallas, TX
There’s no common denominator uniting the list — cities are buffered by industries as varied as healthcare, energy, and technology. However, it’s worth noting that — in each of these 10 towns — housing markets seem to be performing above-average versus the rest of the nation.
Clearly, there’s a link between jobs and housing.
(Image courtesy: Forbes.com)
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