Apps for Home Improvements

An App for That!

Now we have all heard that before.   Yet, it is so very often true.  What would we do without our

Smart Phones and Tablets??

If you read this blog regularly, you know that a few days ago, I passed an article regarding a Digital Detox in the New Year.   As I had noted, some readers may seriously need a Digital Detox as he or she never ever puts down his/her phone.  

Been eating watchin a family of four all on their phones all during dinner?   You would think they would at least ask some one in person to pass the ketchup but most likely they send a text!  

That family would need a Digital Detox it seems.

Yet, for "us regular folks", we rely on applications(APPs) to look up our stock portfolios, watch a game, look up a recipe while at the market or post a picture to PinInterest, Facebook or some other site.  

In seeing this article with the 10 best apps for Home Improvement, I know that many people need these applications.   In 2015, real estate will continue to improve.  Thus, sellers will need to take care of deferred maintenance in prepping to sell and home buyers will look to enhance homes puchased.  In addition, with job market improvement and the upswing in the economy, home owners will add the fence around the yard or a pool, replace windows or roof or complete other large ticket improvements.

Thus, these 10 best apps should serve you well in any of these functions that will touch probably a minimum of 20-30% of us.   With a few years of everyone holding off, there should be lots of activity in 2015 -2019.

Here is your link to the article and the apps:

  Top Ten

Adjustable Rate Mortgage are BACK!!

Adjustable Rate

Mortgages

Fascinating!!!  Absolutely Fascinating!!

Over the weekend in the Virginia Pilot, I noted a Navy Federal ad boasting of a 3.05% interest on a 5/5 adjustable interest rate mortgage.  Today, I see a RisMedia's blogpost, self titled as Leader in Real Estate Information, along with a couple other touting the comeback of the adjustable mortgage due to the rising interest rates.

With interest rates within a 1 point or so of absolute historical lows, the home buyer must carefully evaluate the adjustable rate mortgage option.  To take an adjustable rate mortgage just for a lower payment without looking at the bigger picture or evaluating the entire situation can be a huge mistake.

No doubt if you are buying in 2014 and will be moving or expect to move in three years, you are a good candidate to buy a home with an adjustable rate mortgage.  With the low introductory rate, even a rapid run up in rates(not expected), your rate would at the highest point(based on Navy Federal's start rate) would be 5.05% when you sold the home even if rates went to 5.75%.  

Saving money on one's mortgage is always very attractive.  In the example above, the home buyer/owner would absolutely spend fewer dollars than if he/she locked in a 30 year mortgage in current mid to high 4% range.

Yet, if a home buyer unsure if he/she will sell in 5 or 10 years decides on a adjustable mortgage, he/she could find themselves in a much less positive situation.   In five years, it is very hard to predict the interest climate that far out.  It even gets worse for 8 years or 10 years out.

With interest rates low(artficially low) for all of 2011-2013, it is very possible that rates could rise over the next few years.   Perhaps they rise and settle at the historical average of mid 7% interest rates.

The homebuyer unsure of a move date would see increasing interest rates and house payments each year.  Then when the 5 year period is up(Navy Federal's example), the homebuyer, now home owner, would have to refinance to a 7% interest rate for the next 5 years(if moving in 10) or next 25 years possibly.

This minimum 2.5% premium in interest for 5 to 25 years would caused the homeowner to spend substancially more for housing than he/she would have if she would have locked in a 30 year 4.5% mortgage at the time of purchase.

As your situation can be different both at the price point of home you seek to purchase and the interest rate, based on your credit score, precise examples were not presented.  

Yet, it should be abundantly clear that a home buyer must carefully evaluate the advantages and disadvantages of an adjustable mortgage.

Your Realtor can help you and point you to an expert Mortgage Officer for a detailed discussion.

Consult your Realtor today!!

Prepare for the Unexpected

Inventory the House

With a new year, we all often look at catching up or starting a new process that will make the new year better.

Wouldn't being prepped for the unexpected be a good way to start 2014?   If you are like me, it has been a couple of years since an inventory of household items was completed or pictures of the house were taken.

Did you know there was an App for that?   No surprise but it great that Al Clark shared it with me so I can pass on to you.

Whether you have an Iphone or an Android phone, you can down load the app and get started today.

If you are "clueless" as to why you would want to do this, this link Video on Importance of Doing a Home Inventory  will make it very clear to you.

If you are a renter, you may wonder if this applies to you.  YES!!!

I must be emphatic as renters or home owners must be prepared in case of disaster to document their loss.

Having this setup in the "Cloud" will allow you to access from anywhere and ensure the list/pictures don't go up in fire or blow away with the tornado or hurricane!!!!!!

APP HELPS YOU MAKE POST-HOLIDAY INVENTORY OF YOUR STUFF

Know Your Stuff Get this free and easy-to-use app that creates a quick inventory of your household possessions, including all the new home electronics and grown-up toys you bought during the holidays.  Setting aside a few minutes to create (or update) an inventory of your personal possessions can really pay off if you ever have to file a homeowners insurance claim.  Video On Importance Of  Doing A Home Inventory Get the job done quickly and easily with the Know Your Stuff app for iPhone, androids and computers from the Insurance Information Institute.If you're not into apps, you can list your possessions in a notebook and keep receipts in a folder. Make a copy of the information to put in your safe deposit box or your can send it to a trusted friend or relative who lives in another area (if there's a local natural disaster they can send you your information). No matter how you choose to do it, the important thing is to create a home inventory and update it when you make major purchases. An up-to-date home inventory will: Help you purchase the right amount and type of insurance. Make filing a claim as simple as possible. Substantiate financial losses for tax purposes or when applying for financial assistance. You can use the Know Your Stuff? - Home Inventory website to set up an online account and store information about your insurance policies. The software guides you through the process of creating and updating your home inventory, allowing you to set up rooms and list items within those rooms. You can also upload photographs and scanned receipts or appraisal forms, and generate several types of reports once your inventory is complete, or if you need to file a claim. The software includes free, secure online storage at Amazon, so you can access your inventory anywhere, anytime-which can be important should you need to evacuate your home in a sudden emergency.

Time to Sell Your Home

Why Now is the Time to Move

Tax Reform --- Call to Action

Have thoughts on the Tax Code in the USA???

It appears the Senate Tax Writers are starting from scratch. Using a blank slate, "The intent is to lower tax rates that in turn will stimulate the economy".

Call me a pessimist but I have heard that before!

SPECIAL EDITION: CALL FOR ACTION… TELL THEM HOW YOU FEEL! Credit to Al Clark...for this article!!

Topic Summary: Tax Reform Engaging Congressional LeadersTax Reform is underway on Capitol Hill. The Senate tax-writers have adopted a "Blank Slate" approach that initially eliminates every provision in the tax code, including those that are cherished by homeowners and future homeowners.  The intent is to lower tax rates that in turn will stimulate the economy. From a website created for the effort:  "In order to make sure that we end up with a simpler, more efficient and fairer tax code, we believe it is important to start with a "blank slate" -- that is, a tax code without all of the special provisions in the form of exclusions, deductions and credits and other preferences that some refer to as "tax expenditures." This blank slate is not, of course, the end product, nor the end of the discussion.... We plan to operate from an assumption that all special provisions are out unless there is clear evidence that they: (1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives." The Democratic and Republican leaders of the Senate Finance Committee recently began a legislative push to simplify the tax code by asking all Senators to make a case for including special tax breaks. Senator Max Baucus, on the left, and Senator Orrin Hatch want to start work on the tax code by clearing it of special breaks, unless those breaks meet specific goals.  In the House, the committee that works on tax measures is called the Ways and Means Committee and it is headed up by Dave Camp, (R-Mich). This Committee hasheld many hearings on tax reform and has built "working groups" to arrive at a game plan for tax reform Normally Senators are tasked with the need to eliminate tax breaks but Senator Baucus and Senator Hatch thought that it is easier for Senators to come up with their list of deductions and breaks they want SAVED. Every  $2 trillion in individual tax breaks added back to their "blank slate" would raise tax rates 1.3 to 2.2 percentage points. In other words, Senators must decide between popular tax breaks and low income tax rates. It's easy to see how all consumers could benefit from comprehensive tax reform.

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!

More on the Mortgage Deduction

Topic Summary: In the last edition we alerted you that Congress is laying the foundation for comprehensive tax reform. (article is below) Sure to be part of those conversations is the Mortgage Interest Deduction (MID) that millions of homeowners benefit from. In this ongoing series we aim to keep you up to speed on the talks in Washington. We will give you an opportunity to get your views across to your elected officials and generally will be a valuable source of information as tax reform takes over the activity in Washington.

But I Don't Have A Mortgage. Why Should I Care? 

If certain provisions in any new tax reform are counter-productive to a robust housing market, all homeowners will lose out. If you have a paid off mortgage are you still deducting state and local property taxes? They are talking about these too. For many homeowners, property taxes are their largest tax deduction, one that continues even after a mortgage is paid off. Just remember if less people can afford to buy a home, selling yours will be more difficult.

---

What To Believe: If you benefit or not from the MID, you should be aware of some of the myths that are floating around that distort the conversation on the merits of the tax provision. Our friends at Houselogic have added their research on 6 MYTHS ON THE MORTAGE INTERST DEDUCTION

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By The Numbers. State By State Usage Of The MID

Recently the Pew Organization added some of their findings to the conversation on Tax Reform. They wanted to find out if the benefits of the MID were evenly distributed throughout the country. In other words, where do you stand in relation to other states? 

The percentage of tax filers deducting mortgage interest in 2010 ranged from a high of nearly 37 percent in Maryland to a low of 15 percent in West Virginia and North Dakota.   The Pew Organization's very comprehensive report  can be downloaded HERE

Fed ACTS

Update:   Feds just  authorized  QE 3rd repurchase of mortgage backed securities!!!

All reports indicate action taken to further pump up home sales.  As I have stated and Jim Belote in notes such as that below has stated, housing is a major contributor to our economy....not only house purchases but the complimentary appliance, furniture, lawn and garden purchases(along with hundreds of other impacts upon economy.

So the positive news keeps coming!!  Stock Market soared  200 points(DOW) with financial stocks leading the way.

Keeping you updated on the market! For the week of  September 10, 2012 MARKET RECAP This lead in could be filed under “dog bites man,” because it's something most of us already know. We are referring to recent data from the National Association of Realtors that show the time to sell a home is shrinking. According to the NAR, the time to sell for traditional sellers is back within historic norms: the median time a home was listed fell to 69 days in July, down from 98 days a year earlier. Of course, national numbers often hold little meaning to any particular local market. In fact, the NAR's data range from one-third of the homes were listed for less than a month, while one in five homes was listed for at least six months. The positive takeaway is that more homes in more markets are selling at a quicker pace. What's more, that pace appears to be accelerating. The price of many homes listed for sale is also accelerating. Clear Capital reports that home prices are up 2.9% year over year in August. Clear Capital cites fewer REO properties coming to market due to new borrower-friendly legislation and the $25 billion lenders' settlement with the federal government. That's really only part of the story, though, and gives short sales the short shrift, because many lenders are simply finding it more remunerative to engage in short sales than foreclosure and REO sales. While we are on the subject of sales and prices, Trulia reports that national asking prices on for-sale homes, which precede actual sales prices by two or more months, increased 2.3% year over year in August. Gains were widespread, with 68 of the 100 largest metropolitan areas Trulia follows reporting price increases. Trulia's data are particularly encouraging, because they are a leading indicator of future home sales (where we are going is much more important than where we've been). Therefore, we would be surprised if home-price gains and the housing recovery were not to persist into fall. That said, lending could be the monkey wrench that grinds the recovery gears to a halt. Participation is the issue, and it is akin to the observation “water, water everywhere, but not a drop to drink.” Rates are low, but not enough borrowers are able to take advantage of them. We've mentioned many times over the past year that the issue isn't low lending rates at this point: it's a dearth of borrower-buyers. If only the same people can access credit at these low rates, these low rates become meaningless. A less restrictive lending environment would do much more to accelerate the recovery than historic low rates. Economic Indicator Release Date and Time Consensus Estimate Analysis International Trade (July) Tues., Sept. 11, 8:30 am, et $43.5 Billion (Deficit) Important. A weaker dollar is raising import prices. The trend could stimulate consumer-price inflation. Mortgage Applications Wed., Sept. 12, 7:00 am, et None Important. Purchase applications have again slowed, pointing to lower home-sale volumes. Producer Price Index (August) Thurs., Sept. 13, 8:30 am, et All Goods: 1.6% (Increase) Core: 0.3% (Increase) Important. Food and energy price increases are elevating producer inflation rates. Retail Sales (August) Fri., Sept. 14, 8:30 am, et 0.7% (Increase) Important. More retail sales points to increased economic growth. Is This the Next Bubble? An aspiring home owner who can't buy a home becomes a renter. Today's credit markets have forced many aspiring home owners to become renters. In turn, the rental market has caught fire. By some estimates, there are 2.1 million more single-family homes rented now than in 2006. It's a strong trend. Rents rose nationally 4.7% year over year in August, which builds upon the 5.8% year-over-year rise recorded back in May. In a few markets, Houston and Seattle most notably, rents are up 10% year over year. Buyers of rental homes (many paying with cash) have soaked up much of the inventory, and to be sure, that's a positive. But many of the people renting these properties would have preferred to buy them themselves, but they were precluded from buying because they were unable to secure financing. The market at this point is becoming too skewed toward rentals, which is driving up rents at an abnormally fast rate. This isn't a good thing, because abnormally fast-growing rates aren't sustainable rates. Should rents turn south, many of those investment properties will no longer be sound investments, particularly those bought late into the rising-rent trend. What's more, a neighborhood of rentals isn't as well maintained or holds its value like a neighborhood of owners. A neighborhood of rental homes tends to loose value over time; a neighborhood of owner-occupied homes tends to gain value over time. The point we want to emphasis is that we need a lending environment that encourages more of the latter; that is, more owner-occupied buying. To get that, we need a lending environment that encourages profitable, heterogeneous lending. We simply don't have that today. If you wish to unsubscribe, click on the link below and send the email. If this

Another timely note from Al Clark!!!  


As you know handling your taxes is key!!  Perhaps you believe as I do, I am very willing to pay the taxes I owe the government for the services provided(not going to debate where we might pay for what reason we don't know).  Yet, I don't want to pay more than is required under the current tax code.   


Thus, any helpful information, I will always pass on!!!  Know you can come here and always find something useful for your day.

AX SERIES CONTINUED- DOING ANY WORK FROM HOME?

Work From Home? Consider the Home Office Deduction Tip Sheet on free filing assistance and cautions. Whether you are self-employed or an employee, if you use a portion of your home for business, you may be able to take a home office deduction.  Here are six things the IRS wants you to know about the Home Office deduction 1. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly: as your principal place of business, or as a place to meet or deal with patients, clients or customers in the normal course of your business, or in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home. 2. For certain storage use, rental use, or daycare-facility use, you are required to use the property regularly but not exclusively. 3. Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses. 4. There are special rules for qualified daycare providers and for persons storing business inventory or product samples. 5. If you are self-employed, use Form 8829, Expenses for Business Use of Your Home to figure your home office deduction and report those deductions on line 30 of Form 1040 Schedule C, Profit or Loss From Business. 6. If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be for the convenience of your employer. For more information see IRS Publication 587, Business Use of Your Home, available at http://www.IRS.gov or by calling 800-TAX-FORM (800-829-3676). Links: Publication 587, Business Use of Your Home (PDF 214K) Form 8829, Expenses for Business Use of Your Home (PDF 64K) Form 8829 Instructions (PDF 29K) Schedule C, Profit or Loss from Business (PDF 111K) Schedule A, Itemized Deductions (PDF)

How to Do It??? Check In Here!!!

A Great 'How-To' Website

Hello. I'm happy to be able to share more information with you that I think you may find interesting. Have you heard of the web site that provides step-by-step how-to information for thousands of common projects, from how to replace a leaky faucet to how to plan a dinner party? It'shttp://www.ehow.com/.

I enjoy being able to share Internet sites that I think may be useful to my clients. It's one of the ways I say that I care about you and your family. Of course, I have a whole lot more information that I can share with you. I just need to know your needs and goals. I find that the better prepared my clients are in advance of the actual purchase or sale of a home, the less anxiety they tend to experience.

Don't think you are bothering me with your questions, either. That's what I'm here for. You want someone you can trust with a decision of this size. That's why I encourage you to call or e-mail me, so that we can get to know each other.

Whatever your real estate needs, I look forward to the chance of working with you.

Bryan Cerny Bryan Cerny Rose & Womble Realty Office: 7574363636 Cell: 7575806546 Office: 7574363636 Fax: 757 390-3469 Email me at: BCerny@roseandwomble.com Visit my website at: http://BryanCerny.com

2012 is Here...Will the Real Estate Market Recover?

HAPPY NEW YEAR!!!!


2012 opens with lots of optimism.  As you read, Jim Belote's "Mortgage Matters", you will note varied view from different banks as to the health/potential recovery of the housing market in 2012.   


You should not be surprise that Bank of America provides a negative assessment due to their heavy inventory of foreclosed homes.  If you or I owned "widgets" that were not selling and look to be worth less in the coming year, we both would be a bit negative when asked.  The other banks noted are less impacted by foreclosed/short sales and see a rosier picture.


Jim's note on the math of home availability is good but he fails to note it applies to resale homes(previously owned).
When you add constrained demand for three years, we have the formula for a significant trend change in 2012.


So with rates now below 4%(3.75% FHA and VA loans!!) and plenty of great home values, why are you waiting around if you need a home.  


     YES!  I AM PART OF THE CHORUS OF REALTORS, MORTGAGE OFFICERS, FINANCIAL ADVISORS, ECT THAT KEEP SAYING:

            LOW HOME PRICES WITH LOW INTEREST
                 RATES IN AN ANOMOLY 


Historically, home prices are high with low interest rates
                   home prices depressed with high interest rates


WE HAVE LOW RATES AND SHARP HOME PRICING!!


              Do read all of Jim's notes below!!!

Keeping you updated on the market! For the week of  January 2 , 2012 MARKET RECAP The news is understandably slow the week between Christmas and New Year's Day. The most notable release was last Friday's news on new home sales, which rose to an annualized rate of 315,000 units in November, a 1.6-percent gain over October. To be sure, we have a long way to go until we reach the normalized construction rate of 1.5-million units per year. Nevertheless, we expect the new-home market to gain pace in 2012. After all, there are only 158,000 units in inventory. Even at the current slow sales pace, this equates to a record low six-month supply Over the past three years, new-home construction has fallen far below historical norms and also below the level needed to keep pace with population growth. The fact is our country gains roughly 2.7 million people and one million new households annually. You might not see supply as a problem. We are all familiar with the glut of distressed properties. Indeed, Bank of America expects eight million distressed homes to come to market over the next four years. These homes, we've so often heard, will continue to depress new home construction. We view B-of-A's outlook with a skeptical eye. There is a likely prospect that many of these distressed properties will simply go away. Destruction is too frequently overlooked in many supply projections. A house is not a permanent structure. Many are destroyed by fire, wind and flood each year. Many more are lost through simple decay and abandonment. Based on U.S. Census data, 300,000 homes are lost annually. That number will surely rise in years to come. In short, the math – low inventory plus more households minus more home destruction – suggests to us a rebound in new-home construction. We are not alone in this contention, either. Wells Fargo projects that housing starts will continue to rise each year for the next five years before reaching once again the normalized construction rate of 1.5-million units annually by 2017. Of course, projections are one thing, betting on those projections is another. Here, we see an encouraging trend. Big money is starting to wager on housing. The Wall Street Journalreports that many large hedge funds are investing billions in housing-related investments. Other investors have followed suit. Shares of homebuilders are up 30 percent over the past three months, making them one of the best performing investments in the market. Economic Indicator Release Date and Time Consensus Estimate Analysis Construction Spending (November) Tues., Jan. 3, 10:00 am, et No Change Important. Residential spending is accelerating and contributing more to economic growth. Mortgage Applications Wed., Jan. 4, 7:00 am, et None Important. Markets are anticipating increased purchase activity to start 2012. Factory Orders (November) Wed., Jan. 4, 10:00 am, et 2.5% (Increase) Important. Growing order momentum is indicative of increased economic activity. Employment Situation (December) Fri., Jan. 6, 8:30 am , et Unemployment Rate: 8.7% Payrolls: 150,000 (Increase) Very Important. Job growth is accelerating, which is encouraging for housing, but less so for low interest rates Up For A New Year As we approach the end of the old year nearly all of us stop to ask, “How will the new year unfold?” Of course, none of us know with any certainty the answer to that question, but it can be insightful (and fun) to ponder. So, how will 2012 unfold, at least as it pertains to the housing and mortgage markets? Both markets will obviously be influenced by economic growth, which, in turn, will spur job growth. We see a pick up in economic growth and job growth in 2012. The economy has been growing at a sluggish rate for too long now. The United States is unique in that Americans tire of pessimism quicker than most other cultures, and then we do something about it. In our opinion, rising consumer confidence points to a lot of pent-up demand that is waiting to bust loose, and will bust loose in 2012. A pick up in demand, in turn, necessitates new hires. In fact, a recent survey by CareerBuilder.com found that nearly one in four employers is keen to add new permanent full-time employees. These employers are simply waiting for a clear sign the coast is clear. We think they will get that sign in the first quarter of 2012. Greater economic activity will obviously impact the housing market. We see accelerated sales volume in both the new and existing home markets. We also expect to see prices stabilize in the first half of the year, and then appreciate perceptibly in the second half. As for the mortgage market? This is much more difficult to call. The Federal Reserve has stated it intends to hold rates low through 2012. However, all it takes are a few persuasive signs that the economy is back on track, and the Fed could easily backtrack from its stated goals. All we can say is that we would be much less surprised to see mortgage rates 50 basis points higher six months from today than 50 basis points lower.

Be Positive!!! You Just Got to Believe!!

Every day, we hear some comment on the real estate market.  Most it is negative.


Jim Belote, Union Mortgage, has a great update on part of the commentary...that related to homeowners "underwater".  As he notes, it could be overstated and the "dramatic" element of people walking away is simply an irrational response to a given dilemna.


You have to read to the end. As he states so well, the fear of today is ridiculous. In three to five years, buyers are going to be doing hand springs for buying a house at this time with these rates.

MARKET RECAP

Negative equity pushed aside home price trends as the hot topic this past week. CoreLogic, which had a lot to say the previous week on prices, also had a lot to say about negative equity.


CoreLogic reports that 22.7 percent of all U.S. homeowners owed more than what they owned at the end of the first quarter of 2011 (which is actually an improvement from the 23.1 percent posted in the first quarter of 2010). CoreLogic states that 10.9 million borrowers are underwater and another 2.5 million borrowers are in a near-negative equity position, defined as having less than 5-percent positive equity.


We are obviously on the inflated end of the negative-equity scale, considering that CoreLogic was reporting 7.5 million borrowers were in a negative-equity position in 2008. However, do elevated negative-equity levels mean we are looking at another surge in foreclosures? Not according to the Federal Reserve Bank of Boston , which studied the relationship between the two. Based on data from the 1990s, the Boston Fed found that fewer than 10 percent of homeowners underwater lost their homes to foreclosure.


Self-interest, not surprisingly, was the deciding factor. Fed economists found that borrowers with negative equity who had ample liquid wealth would usually find it in their economic interest to stay in their homes. Economic interest is usually tied to the job market and regional economic growth. The good news is that job and economic growth for the country as a whole continue to trend higher. The bad news is that they haven't been trending quite as high in the past month.


As for mortgage rates, they continue to trend lower. Rates dropped again this past week to hit their lows for the year. We've obviously been on the wrong side of this bet over the past couple months. Given the Federal Reserve's massive injection of money into the banking system, the rising costs of many consumer staples, and the expectations for economic growth, we thought we would be looking at rates a quarter to a half percentage point higher than what we had at the start of the year.


The economic variables noted above have been overpowered by debt worries in Europe and the various crises in the Middle East , which have many investors flocking to the haven of U.S. government debt. The influx of money into U.S. debt markets coupled with slack aggregate mortgage demand has pushed mortgage rates lower. That said, high money levels, rising prices, and economic growth remain, which is to say that they are capable of moving to the foreground and pressuring interest rates higher in coming months.




Economic  IndicatorRelease


Date and TimeConsensus


EstimateAnalysis


Producer


Price Index


(May)Tues., June 14,


8:30 am, etAll Goods: 0.2% (Increase)


Core: 0.2%


(Increase)Important. Productivity gains have kept price inflation in check, but rising energy costs could move prices higher.


Retail Sales


(May)Tues., June 14,


8:30 am, et0.3%


(Decrease)Moderately Important. Rising prices are reducing overall consumer demand.


Mortgage Applications Wed., June 15,


7:00 am, etNone Important. Purchase applications ended flat for May, but the monthly trend remains up.


Consumer


Price Index


(May)Wed., June 15,


8:30 am, etAll Goods: 0.0%


Core: 0.2%


(Increase)Important. Retail prices suggest inflation is running higher than the CPI estimates.


House Builders Index


(June)Wed., June 15,


10:00 am, et16 Index Important. Low inventory levels and price stability should boost future demand.


Housing Starts


(May) Thurs., June 16,


8:30 am, et 535,000 (Annualized) Important. Starts remain volatile and unable to establish a trend.


Leading Indicators


(May) Fri., June 17,


10:00 am, et 0.2%


(Increase) Moderately Important. The indicators point to slowing near-term economic growth.

Still Sold on Real Estate

Over the past six months, we've proselytized frequently on why we think real estate is today's best investment. The Wall Street Journal, in an article titled "Why It's Time To Buy," encapsulates and expounds many of the reasons we've previously stated on why we think real estate is such a wonderful opportunity.


For one, the ratio of home prices to income is now 20-percent lower than the 15-year average through 2010, and 12-percent lower than the 1989-2004 average, according to Moody's Analytics. Moody's data also show that household formation increased to nearly 950,000 last year, and should average 1.2 million over the next decade. Greater demand leads to higher prices, and, eventually, to greater new-home supply.


The short-term outlook looks discouraging, though: job growth has slowed and foreclosures and inventory still weigh on pricing. However, longer-term - three-to-five years out - job growth won't be sluggish and inventory will have returned to more normal levels. In other words, buyers today will likely be looking at positive equity in the not-to-distant future. This is an important message to convey to our buy-side clients, many of whom remain hesitant to make what will likely be a very profitable investment.





Agree?? Disagree??? No matter what the reports say in the next week, long term is positive.







Bryan Cerny, Associate Broker, GRI, ABR, SRES, SFR



Rose &Womble Realty, Chesapeake, VA



Licensed in VA & NC

Regardless of the field of knowledge, we always look to an expert to provide us the advice and direction to be successful.  Just look at how many of us watch HGTV, Doctor Oz and go to Personal Trainers besides seeking the best lawyers, doctors and dentists that we can find.

In the same way, in buying or selling real estate, one needs the expertise of someone who can guide him/her through the intricacies and complications of a real state transation while have his/her very best interest in mind.

Yet....

                             How to Choose A Realtor???

Key Questions to ask is Selling Your Property:

1.      Are you a Realtor?  If so, tell me what value it brings to me.

2.      What percentage of your potential commission will go to advertising my property?   What sources of advertising do you use and why?

3.       Where does your company rank among the Real Estate Companies in

   Southside Hampton Roads?

4.      What services does your company provide that differentiates it from your competition?

5.      How many offices and agents are associated with your firm? What advantage is that to me?

6.      Describe your Buyer Pool?  How will that impact the sale of my house?

7.      What Relocation assistance can you provide?

8.      What assistance can you provide in me preparing my house to sell?

9.      What specific experience do you have selling in this neighborhood?

10.  How do you:

1)      Ensure I don’t move until I’m ready to move? 

2)      Ensure only qualified buyers see my house?

3)      Ensure the potential buyer has solid financing?

11.  How does the Standard Purchase Agreement work in my favor?

12.  Where do you rank in your company in sales and listings?  In Hampton Roads?

13.   How many years have you been a Realtor?  Number of Circle of Excellence Awards or other awards?

14.   Do you have letters of recommendation that you can provide?