Make the Tax Man happy with LESS!

Read to Save

on Taxes

For many, tax season has them seeing red.  Work all year and then write a check to the IRS after you have see 15% to 20% of every check go to taxes.

Oh sure, those taxes from each check went to Social Security, Unemployments, the State(Income Tax) and the Federal goverment(Income Tax).   Yet, frequently, a check must be written to the IRS due to taxes owed.

No doubt, the payment of taxes isn't a problem for many as we all know it cost to have a standing army, good roads, education system and so much more.  It just seems salt in the wound to have to

write a check after filing one's taxes.

Fortunately, the attached Homeowner's Guide to Taxes(courtesy of HouseLogic) can help you ensure you take all the legal above board deductions possible.   These all relate to home ownership so you must own your residence to benefit.

If you are renting, you can look at this post as a motivation to buy a home so you can benefit from all home ownership has to offer!  Lower taxes is actually the least of the best reasons to own a home!

Here is the link:

Home Owners Guide to Taxes

Title Insurance: A Home Purchase Necessity

Title Insurance:

Necessity?

In working with buyers, I frequently get asked about the necessity of title insurance.  To every buyer, I discuss a variety of topics commonly arising during the home purchase process.

One of those items will always be Title Insurance.  A buyer needs to know that the bank providing the loan will ask the buyer to pay for the lender's title insurance.  Banks seek this title insurance to ensure if anything is wrong with the title examination whether error or fraud that the bank has no financial exposure.

As I share with my clients, a buyer should be wise to protect them from financial exposure to unknown problems with the title received as ownership is transferred from Seller to Buyer.  Like any insurance, Owners Title Insurance is purchased for the possible unforeseen problem that can cause financial loss.  Unlike most insurances though,Owners Title Insurance is paid for at the time of settlement and no further payments are needed.

In fact, this title insurance is perpetual.  Even if an individual buys and sells five homes over 20 years, if title insurance is purchased for each home, the individual is protected against loss as relates to the title for any home purchased and/or sold in the past.  The one caveat is the individual must have a copy of each home's Owners Title Insurance policy.   

Though you may know every bank that lent you money and know they are still in business(good luck with that!), the Lender Title Insurance does you no good as it insures the Lender(Bank's) financial interest only.   So Owners Title Insurance is a must.

Shred your copy of the deed when a home is sold but hang on to the Title Insurance forever!!!

To underscore the importance of title insurance, I have include Advance Title's recent handout on "why title insurance"

Please note:  all those scary things like forged signatures or inaccurate paperwork don't happen all the time.  But neither do car accidents and home fires!!!

Title Insurance is a Necessity

What would you do to save $10,000?

HOW SWEET IT IS!

Saving money is a hobby of mine.  Maybe you prefer to save versus waste money.  

But can you imagine the Federal Government saving you some?  Seems they are better at spending than saving...oops shouldn't go there.

Federal Housing Administration believe housing counseling could save you nearly $10,000 over the life of a loan(30 years loan I would guess). 

If you have never purchased a home, this would be a great class!

Or if you had a home but been renting for years, this would be very helpful for you also. 

 For us that have had mortgages for years, we could glean information but most likely would be looking in the rear view mirror wondering why we didn't know this sooner.

As you can see, the goal is to raise home ownership.  A very worthy goal as home ownership improves neighborhoods, cities and the country.

TAKING THIS CLASS COULD LOWER YOUR MORTGAGE COSTS BY THOUSANDS

Class Could Lower Your Mortgage Costs  Would you go to a housing counseling education program if it would save you nearly $10,000 over the life of your mortgage? The Federal Housing Administration is betting you would. It's proposing a new program that would give mortgage insurers premium discounts for homeowners who agree to undergo housing counseling before getting an FHA mortgage. If the program is approved, you'll get a 50 basis point discount in the upfront FHA mortgage insurance premium you pay at closing, after you take the course. A basis point is 1/100th of 1 percent, so 50 basis points is one-half of one percent. You'll also get a 10 basis point reduction on your annual mortgage insurance premium. If you do post-closing counseling and go on to pay your mortgage on time for two years, you'll get another 15 basis points knocked off your annual mortgage insurance premium. How Much You Could Save On the average $180,000 FHA mortgage, you'll save $9,800 over the life of the loan by completing the housing counseling course and paying on time. Why is FHA so hot on homeownership counseling? It has research showing mortgage problems are 29 percent lower for first-time homebuyers who get counseling and 15 percent lower for all homebuyers who get counseling, compared to buyers who get no counseling. During housing counseling, you'll receive individual, objective advice on reaching your housing and financial goals, homeowner rights and responsibilities and managing your credit and savings. Building Homeownership The proposed program is part of a bigger effort to help Americans better manage their credit. This will help further homeownership and build lasting wealth. According to the Urban Institute, the average credit score for loans sold to government sponsored mortgage companies is 752. Currently, there are 13 million people with credit scores ranging from 580 to 680. "Shutting these consumers out of the market hurts American families and undermines our efforts to build more stable communities, create pathways to the middle class and increase homeownership opportunities for minority and low-wealth borrowers," FHA officials said when they announced the proposed program earlier this month.

5 Reasons to Buy A Home Now Instead of Spring

              5 Reasons to Buy A Home Now Instead of Spring


If you clicked first and asked questions later, you already know the 5 reasons to by now.

I know it is a bit counter intuitive to buy homes when everyone else is buying Christmas gifts.  But you can't differ with the value of acting right now.

Rents are rising...thus home ownership is less expensive. Home ownership helps create family wealth, low interest rates means more wealth growth possible.  

Not acting decreases family wealth and will make home ownership more expensive due to the noted shrinking(shrunk!) inventory and the pressure on prices caused by low inventory.

All very very good reasons buy now!

What will you do???

Solar Pays Dividends for Homeowners

Solar Power Pays

Back in Denver

This is news!  Solar power was shown, via a study in Denver, to add value to a home's sales price.

With the advent of great interest in energy efficiency, low carbon foot print and simply higher energy costs, it isn't surprising that green homes eventually would be more valuable. 

Yet, Solar Energy has been dogged by the high cost of installation.  Perhaps this is the break the solar energy needed to expand its residential foothold.   I know it will be a win/win scenario as large acceptance will drive down the cost of Solar Energy(if all other industries would indicate), improve the cost efficiency of home owner ship and really lower our carbon footprint as carbon fuels usage could possibly decrease substantially.

Only time will tell.   Read below for the scoop!

SOLAR ELECTRIC SYSTEMS HELP HOMES SELL FASTER

Solar photovoltaic (PV) systems typically increased market value and almost always decreased the length of time it took to sell a sample of 30 single-family homes in Denver studied by the Appraisal Institute. Homeowners in the Denver metro area over time increasingly have sought residential homes with PV systems, Appraisal Institute officials pointed out. And because the study looked only at homes in Denver, you shouldn't assume it automatically applies to homes in your area. How much any one home feature, including a PV system, adds to home value is always a moving target, said Appraisal Institute President Richard Borges. Good appraisers monitor the local market for changes in demand for PV systems, just as they do for other property features. One big factor in the value of a PV system is the local cost for electricity. Where electricity costs are high, a PV system will likely have a better return on investment than in an area where electricity is relatively cheap. The age and size of the PV system also influence its value. The Appraisal Institute study found value was most commonly related to the size of the property's PV system, followed by its age. Larger systems typically sell for more than the smaller systems. Overall, the value added per kilowatt (kW) ranged from $1,450 to $2,570. courtesy of Al Clark HomeAction Newsletter

Timely Housing Questiona and Answers for a Home Owner

HOMEOWNER Q AND A: 3 MORE TIMELY TOPICS AND THE BEST RESOURCES Courtesy of Al Clark's Newsletter.

For the rest of the summer we are going to feature answers to some of our reader's questions that are tied into situations they are going through. For the answers we are taking you to a reliable source. Q.  I have been to some back-yard parties recently and I am starting to see a lot of custom designed driveway and sidewalks that have images and textures. How do they do that? A. The process is called Stamped Concrete. It can be a DIY project if you have the skills. To see what's new and the costs, click into this reference from House Logic Q.  We may be renting a home for 2-3 weeks this summer and I am wondering about insurance issues. Am I  protected with my regular homeowners policy? A. The answer is yes and no!  To clarify what incidents you are covered for and not, you can check out this resource form the Insurance Information Institute Q. I am committed to going green to the degree I can. I am looking for some good websites to help me out. Any ideas ? A. When it comes to "going green" we always reach out towww.greenandsave.com  This site not only provides info about green issues in your home but has resources for small businesses too.  Make sure you sign up for their newsletter!

Condo Living: Right for you?

Live in a Condo???


Here are some questions to review!!  Different situations arise in condo living than exist in other homes.  Thus this article from Al Clarks Home Action Newsletter is very timely if you live in a condo....or plan to move to one tomorrow!!!

CAN'T WE ALL GET ALONG? - SURVIVAL Q AND A WHILE LIVING IN A CONDO/HOA

These Q and A's and articles are managed by Richard Thompson fromwww.regensis.net. Richard has been involved for many years with various aspects of Condo and  community living. He provides consulting services to community groups and industry vendors. He also takes questions from online consumers with Condo/HOA issues.  Question: We are updating the member directory for the first time in years. The board intends to print and mail to members and post it on the HOA's website. Our last member directory included the names of members' children. What do you think? Answer: Actually, nobody should be included in a member directory without their written permission. Children could be included but the parents should give written permission. Question: I am in a High-Rise Condo building.I have requested financial statements from the board but my requests are ignored. I'm planning to withhold my HOA fees until I get them. Answer: Members are entitled to review the finances. So, the board should produce and distribute regular financial statements to all members for review or offer to make them available upon request. Those financial statements should reflect how money has been spent in a clear fashion together with additional notes if there are unexplained, unusual or larger than normal expenses. Also, you have the right as a member of the HOA to examine all financial records. Question: Our pool and clubhouse are 15 years old. The board wants to build a larger pool and upgrade the clubhouse which would require a $200,000 special assessment and drain our reserves. Answer: The board has no authority to expand the common area amenities. Its authority is to maintain existing amenities in good condition. However, if an appropriate majority of the members are in favor of raising and spending this money for this purpose, that is acceptable. However, the "appropriate" majority may be a super majority of two thirds or more depending on how your governing documents read. This requirement could effectively kill the proposal. Question: For years, our board refused to put money away for projects like roofs, fences and painting. Well, now the roofs need replacing, the paint is peeling and fences are falling down. Home values have been compromised and special assessments to pay for the projects are routinely shot down by the membership. Answer: The concept of planning for future projects is called a "reserve study". It is a tried and proven way of dealing with these predictable expenses and events. Moreover, a fairly funded reserve study shares these costs with all members along the, usually, 30 year time line rather than nailing the unfortunate ones at special assessment time. Special assessments are the product of poor or no planning since virtually all reserve events can be anticipated many years in advance. The board has a fiduciary duty to run business in a reasonable way. It also has a duty to protect the interests of current and future members. Any board that fails to plan for foreseeable events and expenses has failed in its duty. Most governing documents obligate the board to budget for known (or knowable) expenses. Failure to plan for reserve events is usually indicative of a systemic problem like the operating budget being underfunded and poor maintenance. The results are plain to see: erosion of the property and home values. The board usually has the authority to set the budget and reserves at a level to take care of HOA business without approval from the members. If your board is required to get member approval, it could easily roadblock getting things done. But often, the board simply doesn't raise the issue because naysayers won't like it and the board doesn't want to get yelled at. However, naysayers are usually few and far between because most want to protect the value of their property and know it costs money to do it. Take this message to the board: "You have fiduciary duty to reasonably protect and maintain common assets. Reserve planning and funding is an accepted and fair way to do it."

Interest Mortgage Deduction....Advantage: Home Owner

UPDATE YOUR INFORMATION SAVED ARTICLES REFER  COMMENTS & FEEDBACK YOUR SPONSOR Al Clark 5705103507Send EmailAny Link You Want Any Link 2 Any Link 3 Any Link 4 Any Link 5 Any Link 6 MORTGAGE INTEREST DEDUCTION FRONT AND CENTER IN CONGRESS Topic Summary: As part of the ongoing effort by House lawmakers to craft comprehensive tax reform legislation in 2013, the House Ways and Means Committee welcomed testimony from real estate industry executives and economists on the merits of the mortgage interest deduction (MID). On the "keep things as they are side" caution was advised not to harm the very robust housing recovery by adding new tax policies that will lead to uncertainty for homeowners. Just In: The national median existing-home price for all housing types was$184,300 in March, which is 11.8 percent higher than March 2012. The March increase is the strongest since November 2005 when it rose 12.9 percent from a year earlier, and the last time there were 13 consecutive months of year-over-year price increases was from May 2005 to May 2006. Not if , but how. Many in Washington and real estate circles feel that something will be done to the cherished deduction this year. While pledging a "careful, thoughtful review," House Ways and Means Chairman Dave Camp asked several experts for their ideas on how to alter the MID to raise more revenue for the government. Any changes that come about or even discussed can have a chilling effect on the real estate industry and future homebuyers and sellers. Fist Some Facts: The deduction for mortgage interest has been part of the federal income tax code since its inception in 1913. Despite a century of additions, modifications, deletions and overhauls of the tax code, Congress has left the mortgage interest deduction untouched. Current law allows a homeowner to deduct the interest paid yearly on up to $1 million in total acquisition debt for a principal residence and a second, non-rental home. Homeowners may also deduct the interest on up to $100,000 in home equity debt. According to estimates from the Joint Committee on Taxation, (JCT) the mortgage interest deduction will cost (loss revenue) $75 billion in fiscal year 2015, real property tax deductions will cost $30.4 billion and the exclusion of capital gains on owner-occupied housing will cost $26.0 billion. In 2012, 34 million households, or 22 percent of tax filers, claimed the home mortgage deduction. That cost the federal government $68 billion in forgone revenue, according to estimates from the JCT Less than a quarter of the deduction's benefits, the JCT says, went to households making less than $100,000 in 2012, and the deduction is only available to the roughly one-third of households that itemize. Ideas on The Table There are three ways Congress could play with the home mortgage deduction: the direct way, a "back door" way and a gradual way. The direct way to raise more revenue would be to reduce the amount of the deduction--for example, it could be limited to homes (mortgages) worth $500,000 or less, rather than the current $1 million dollar limit. It could also be eliminated entirely for second homes. The most extreme measure would be to phase out the deduction entirely. Such attacks would be strongly fought by the real estate industry and hopefully homeowners. The Sneaky Way.  Instead of specifically targeting the home mortgage deduction, a cap would be placed on all itemized tax deductions. The Obama Administration has already proposed capping such deductions at 28% for households earning more than $250,000. This would substantially reduce the value of the home mortgage deduction for high income taxpayers. For example, Under the President's proposal, married taxpayers with adjusted gross income greater than $250,000 would normally see a $35.00 benefit for every $100 in itemized deductions but instead they would receive only a $28.00 benefit for every $100 in itemized deductions. The Gradual Way. Some are suggesting just wind down the value of the deduction over several years to lessen the sting on the economy and home prices.  Don't forget other deductions are also being talked about for reduction too. The ability to deduct property taxes cost the government $30 billion last year. A Home seller's ability to exclude capital gains on a home sale reduced revenues about $26 billion. Timeframe: The tax writers indicate they want to get substantive tax reform done this year. We will be keeping a watch out for any news on this important issue facing current and would be homeowners.

New Weekly Article - Opposites Attract || Home By Design Weekly Article

No surprise here!!

Any one married knows that this is a common adage applied to couples.   Normally it is very true!!!   

Yet, as in a great marriage, those opposite tendencies lend to the beauty of the union.   Often, one person's strengths compliment the weaknesses of the other and likewise in reverse.

You get this same sense regarding this Texas home's remodel/ update.  Something you might wish to consider with your home.


New Weekly Article - Opposites Attract || Home By Design Weekly Article

New Weekly Articles - Drama in the Dining Room || Home By Design Weekly Article

A wonderful aspect of owning a home is making it your own.   Frequently, a homeowner has a strong desire to place their stamp on a house to make it "home".   Yet, with so many options and perhaps a mate that doesn't agree on every point, the desire can go unrealized for years.

Hopefully these articles from HomebyDesign Magazine are helping you break through on fulling your dream to make a "home" out of the bricks and sticks that make up the house.  

This week article address the dining room.  Such a key part of the home during the holidays as we all host various family, friends and cohorts from work throughout the Thanksgiving to New Years period. 

Enjoy the ideas presented...take one or more and make it/them your own!!!



New Weekly Articles - Drama in the Dining Room || Home By Design Weekly Article

Housing...Market Savior!!!!!

As been frequently noted in this blog(how did I know?) and Jim's Mortgage Update, the housing market has strengthened throughout 2012.  Only given areas of the country(like Northeast) are still suffering depressed values....most of us are seeing upperward pressure on prices.

So now, in Jim's notes, you will see the terms "Savior" attached to the housing industry as relates to the U.S. economy as it struggles with mortgage financing restrictions and uncertainty on the budget agreement.   It was bound to happen....good things are continuing to happen!!!

Read and enjoy.  Question and contradict(is so inclined).















Keeping you updated on the market!

For the week of
November 19, 2012



MARKET RECAP


All the hype and hoopla that centered on shadow inventory and its ability to depress the housing market earlier this year seems a little overdone in retrospect.

Indeed, shadow inventory has almost become a non-issue these days, and heading into 2013 it will likely become even less of an issue. We say that because the Mortgage Bankers Association reports mortgage delinquencies hit a four-year low in the third quarter. At the same time, the foreclosure inventory rate fell 20-basis points, posting the lowest quarterly drop since the MBA began surveying the market.

The delinquency and foreclosure trend has actually been on the decline since peaking two years ago. We expect it will continue to decline through 2013, and very likely beyond.There are a number of reasons we think distressed properties won't spoil the recovery.

For one, negative equity is declining. Zillow reports that negative equity declined 30% in the third quarter of 2012, the largest percentage decline Zillow has ever reported.

The decline in negative equity is the corollary to rising home prices. Over the past year, we've continually, and almost without fail, reported on rising home prices. Keeping the streak alive, we report this week that Zillow's data show home values rose 1.3% in the third quarter compared to the second quarter, with the national median home price rising to $153,800.

A dearth of inventory will keep home prices rising, and thus further reduce the negative-equity overhang. New-home inventory is at record lows. The National Association of Realtors will report existing-home inventory next week, and most industry watchers are expecting inventory levels will be down sharply year over year in October. Low supply plus rising demand equals rising prices.

The current interest-rate environment should continue to ensure a minimum level of demand going forward. We are all aware that mortgage lending rates are at multi-decade lows, and that's unlikely to change through 2013.

Underwriting is the more pressing issue these days. Lending standards remain tight, particularly with lower-rated borrowers. A less diverse lending environment is one reason they remain restrictive. Private investment has yet to return in mass following the financial-sector meltdown in 2008.

Risk aversion is another reason. Lenders are rightfully concerned with the costs Obamacare will impose on the economy next year. They are also concerned with the fiscal cliff, which would mean tax-rate hikes and spending cuts. It also appears more likely that Europe could fall into recession. If that occurs, the probability rises that the United States could fall into recession too.

The fiscal cliff is the most oppressive concern these days. Democrats and Republicans have attempted to pound out various compromises. We've heard some chatter that the mortgage income tax deduction is on the table. One bipartisan plan would limit the deduction to $25,000 worth of mortgage interest annually. Other proposals include eliminating the deduction for taxpayers earning $250,000 or more, ending the deduction on second homes, and even ending the deduction entirely (this last option is unlikely).

In short, there is a heckuva lot of uncertainty in the financial markets today. Until some of the uncertainty is removed, we can expect mortgage rates to remain low, but we can also expect for underwriting standards to remain elevated.

Economic Indicator Release        Date and Time        Consensus  Estimate            Analysis

Existing Home Sales(October)    Mon., Nov. 19,     4.8 Million(Annualized) Important.sales momentum, but
                                                  10:00am,ET                                               the trend is being held in check
                                                                                                                     by low inventory.


Home Builder Index(November)Mon., Nov. 19,      42 Index                       Important. Strengthening
                                                 10:00am, ET                                               demand and new construction 
                                                                                                                    projects continue to lift builder
                                                                                                                    sentiment


Housing Starts(October)           Tues., Nov. 20,       835,000 (Annualized)    Important.The surge in starts
                                                8:30 am, ET                                                  points to housing as a leading
                                                                                                                     economic driver in 2013.

Mortgage Applications              Wed., Nov. 21,       None                            Important.Applications spiked
                                                7:00 am, ET                                                 on the return of Northeast
                                                                                                                    borrowers, but week-to-week
                                                                                                                    purchase activity remains
                                                                                                                    volatile


Housing as Savior

Times certainly change. Until early this year, most pundits and commentators were lamenting how housing was a drag on the economy. No more, housing is now looked at in many circles as the savior that will get the economy going. The great investor Warren Buffett, for one, sees housing growth stimulating the economy (and he is investing in housing and banking accordingly).

While its growth has been far from parabolic, housing has been the one constant this year. Equity markets, commodities, Europe, and our own domestic economy have displayed fits of volatility and stagnation. Housing in contrast, has continually pushed forward.

This is very good news, and better than most people appreciate. Residential fixed investment accounted for 0.33% of one percentage point of GDP growth (a sixth of its growth) during the third quarter of 2012, up from 0.19% in the second quarter, and up from 0.03% in the year-ago quarter. Housing is obviously a big contributor to economic growth.

Housing is also a big contributor to consumer confidence. Many people don't understand the stock market or the European debt crisis or the fiscal cliff, but everyone understands housing. As housing goes, so goes consumer confidence. Considering the direction housing is going, that's a strong positive indicator of how things could go in 2013.

Trends Are Great....Why are You just Setting There

Amazing Survey Results!!!

Realtors are surveyed regularly by various groups to get a sense of the market for buyers and sellers.

A recent report by Credit Suisse was quite revealing.   There was not a trend in any factor measured that was lower than 2011.  In fact most factors have steadily improved since November 2011.

This is quite impressive as this is a nationwide survey in the top 45 Markets.  And it is based on the experiences of Realtors in our day to day  interaction with buyers, sellers and prospects.

Here is a summary by factor:

Buyer Trends:  Increase 26.9(factor) to 51 in July 2012, with peaks as high as 63.5.

"Buyer interest remains solid due to the favorable affordability but a lack of inventory is a dray on sales in many markets"

Price Index:  "All time high of 63 in July"
Note:  Reading above 50 indicates higher home prices in past 30 days.

Incentives(closing costs, buydowns, etc):  
Rose from 37.6 August 2011 to 50 in July 2012
(indicating incentive are less prevalent).

"Unchanged in July(from May/June) and likely to fall as demands improve"  

Inventory Levels:  "Inventory levels continued to trend lower in July, as our home listing index rose to 72 from 68 in June, the highest reading since our survey began."

Length of Time to Sell:  "Decrease again in July"...a growing trend since August 2011

Across the board, the market has improved for sellers and become a bit tougher for buyers(improving prices and low inventory).   No doubt every market is not responding the same!  Yet every market is moving forward.

Whether trying to buy or sell, don't let this market past you.  

Buyer:  Rates are unbelievable

Seller:   Buyers are looking for you!

Finally, is your market better

                   or 
        
                      worse than this survey suggests??

An Improving Real Estate Market...Missing out???

The Market is improving!!!

              The Market is Improving!!!!

                           THE MARKET IS IMPROVING!!

The news continues to be very positive for the housing industry.  Though, not yet robust and completely healthy,

the Real Estate Market is on the uptick.

Lack of inventory in many markets is pressuring prices.  Jim notes below that it is due to investors snatching properties off to convert to rentals thus keeping homes off the market. It may also be due to sellers not yet knowing now is the time 

to act while the competition is low.  In Hampton Roads, we are roughly 30% lower in inventory than we were in 2011.

With buyer activity beginning to tick up(low low interest rates and pent up demand), we could see complaints about no inventory to meet demand.  As each Real Estate market is really a local market, this will vary throughout the country.

I know I have seen my homes selling in less than 30 days in the past three months or so.   Even homes in the higher price ranges are seeing improved activity...could see a couple of contract this week on these homes!!

Read below and consider...is it time for you to dive in???

It is an awesome time to buy or sell!!!

Keeping you updated on the market! For the week of  August 13, 2012 MARKET RECAP The foreclosure data continue to trend positively. RealtyTrac reports foreclosure filings declined 3 percent month-over-month in July and are down 10% year-over—year. We are not surprised by the downward trend in foreclosures; it's simply more remunerative for banks to seek other alternatives than taking back a house. RealtyTrac reports that short sales, on average, sell for $25,000 more than an REO property. Banks are no doubt being helped by the persistent uptrend in prices. On that front, CoreLogic reports national prices rose 2.5 percent year-over-year in June, and 6 percent in the second quarter of 2012 compared to the first quarter. Supply is a main price driver: there simply isn't enough supply to meet growing demand, particularly in the starter and low-price segments. Investor demand is impacting supply. Given the strong rental demand in many markets, investors are buying homes and turning them into rentals instead of flipping them; thus keeping the properties off the market. As for new-home supply, builders only recently began to ramp up construction. New-home inventory is at levels unseen in decades. (Keep in mind; decades ago there were also fewer people.) More demand and less supply can only lead to one outcome – higher prices. At the beginning of the year, few pundits were expecting prices to rise in 2012. Today, many have changed their tune. Zelman & Associates, a real estate research firm, for one, recently revised its forecast, predicting prices will rise 5 percent nationally in 2012. At the beginning of the year, Zelman's forecast a 1-percent decline. Negative equity remains a problem in many markets, and that's also helping to keep supply low. But as prices move higher, more of these properties will turn positive. An even stronger price trend will, in turn, draw more buyers and more sellers into the market. That means more overall transaction activity, which means rising mortgage purchase demand. As for rates on current mortgage demand, they moved up this past week. Most products saw a three or four basis-point increase. Given the trend in 10-year Treasury yields, we don't expect to see a pullback. Over the past two weeks, the yield on the 10-year Treasury note has increased nearly 30 basis points. This suggests that investors are becoming less risk averse, pulling money out of Treasuries and putting that money into riskier investments: Over the same two-week period, the S&P 500 stock index is up over 6 percent. Yes, the Federal Reserve has stated that it's determined to hold long-term lending rates low for the next two years, but don't assume the Fed can automatically achieve its goal. Markets are dynamic forces, and if more investors sell bonds in favor of other investments, yields on Treasury securities will continue to rise. That means mortgage lending rates will rise too. Economic Indicator Release Date and Time Consensus Estimate Analysis Producer Price Index (July) Tues., Aug. 14, 8:30 am, et All Goods: 0.2% (Increase) Core: 0.2% (Increase) Moderately Important. Lower energy prices are keeping producer price inflation in check. Mortgage Applications Wed., Aug. 15, 7:00 am, et None Important. Purchase activity remains flat, which points to flat home sales for the month. Home Builder Index (August) Wed., Aug. 15, 8:30 am, et 36 Index Important. Sentiment is approaching a five-year high, which bodes well for the sector's outlook. Housing Starts (July) Thurs., Aug 16, 8:30 am, et 765,000 (Annualized) Important. Rising residential construction is helping to stimulate economic growth. Don't Expect Perfection The problem with vetting national numbers is that local markets rarely reflect the national numbers. This causes problems, mostly due to false or unrealistic expectations if the local numbers don't gel with the national numbers. The fact is there is never a perfect time to buy or sell a home. Only in hindsight do we realize that our timing was good, or maybe not so good. That said, it's important not to be paralyzed by the fear of not selling at the top or buying at the bottom or financing at rock-bottom rates. There are still pundits (most notably Fiserv) who think falling home prices are in our future. Unfortunately, that expectation gets reported at the national level and is interpreted to mean prices in most markets will fall. This isn't the case, but it tends to attenuate activity through fear. We are keen to emphasize that markets are local. But even in local markets that are rising, there will always be concerns about prices backsliding or the economy tanking. The key is to always factor in where we are in a historical context. Looking at the big picture removes some of the worry and places a long-term investment like residential real estate in the proper perspective. It also increases the likelihood of making a profitable purchase or sale.

Hazelton to the Rescue

Al Clark just passed on these awesome videos for clutzs like me that need a hint on how to do "hands on" improvments in his Home Actions Newsletter. Ron Hazelton is amazing!!! If this is too much and you rather buy a house with Paver Patio or a Four Season Room, give me a call! MORE PRACTICAL TIPS AND VIDEOS FROM OUR CONTENT PARTNER, RON HAZELTON

Pump In Your Zip Code On This Page And See When Ron Is Airing Locally    How To Make a Patio Out Of Concrete Pavers In One Day! Get The Video HERE    How To Build a 4 Season Room Over a Porch Takes more than a day!Get The Video HERE   How To Install a Stamped Metal Ceiling Getting back in the Roaring 1920's? Get The Video HERE   How To Install a Celing Fan Easy, energy saving idea Get The Video HERE

Summer is Time to Remodel!!

Wow!!!  Al Clark has lots of good hints....got share!!  Thanks Al!!! See Al's contact information below! SUMMERTIME REMODELING DREAMS? GET THESE RESOURCES FIRST

Topic Summary: This time of the year, consumers hatch remodeling ideas more than at any other time. Experts caution that homeowners should not jump into a project unless they know what the payback is. After all, one of the goals of renovating is increasing your home's value! Planning your remodel and want make sure you're spending your hard-earned cash wisely? Each of these replacements and upgrades earned top honors in Remodeling magazine's latest?Cost vs. Value Report* for having the biggest bang for your buck - giving you the best return on your home improvement dollar while preserving the value of your home.See the entire report and lean about the regional variations in project payback. Bonus Tips! You have options for recourse if a contractor disappears or does shoddy work. Click this LINK to learn about those options. Here are some time-tested questions to ask before the work starts. Before the "he said, she said" phone calls start. You have probably heard some of these one liners? used by Contractors to get someone to sign a contract. Getting The Best Work Out Of Your Contractor. Know How To Do It! FULL ARTICLE SAVE ARTICLE EMAIL ME SHARE THIS Your Comments   Is this article valuable to you? Yes No Maybe Is this item worth sharing with other friends? Yes No Maybe Can you see this item helping you with homeownership? Yes No Maybe Comments: YOUR SPONSOR Al Clark 5705103507

Credit Ready???

          Being Credit Ready is key when looking to purchase a home.   But did you know that it will keep insurance costs and loan costs low through out the time you own your home??

As you can see in Larry's letter below, there are key elements that impact your credit score.  And there are actions not to be taken without considerable thought so that you don't adversely affect your credit score.

As you look over the pie chart, two categories stick out like a sore thumb:  Payment History and Amounted Owed.

At 35% and 30% of your credit score respectively, you can see regular, on-time bill payment over time and a low debt level will provide a big part of a positive score.  Just as the opposite behavior(missed payment and high debt) will drag the a credit score into the gutter.

Really pay attention to these two and you can really improve your credit.

YET DON'T IGNORE AND OF THE OTHER THREE!!!

A 10% or 15% swing can take a great 700 credit score to mediocre to poor 630/595 scores by not paying any attention to the other details of your credit score.

If your credit needs improving, start with improving on time payments and reducing your debt!!  Be ready for that

next purchase!!!  Or to lower your insurance costs!!

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