“RealtorMag” the on-line magazine published for the National Association of Realtors, listed issues impacting the housing industry in 2011. These were noted by Trulia’s chief economist, Jed Kolko in a “Time” magazine article. Some of these issues and their impacts, paraphrased, are:
1. Fallout from banks approving foreclosures without proper review procedures. The consequence is that banks now have to take extra precautions. Regulators and banks are working on a settlement that could improve the pace of foreclosures in 2012.
2. Natural disasters: tornadoes, floods and hurricanes pushed the National Flood Insurance Program into the spotlight. This program was still strapped financially from Hurricane Katrina. Thus, insurance premiums did not fully cover the Katrina disaster. Home owners living in flood-prone areas must now have flood insurance to get a mortgage. If the National Flood Insurance Program is not taken beyond its current May 2012 extension, the future of mortgages in areas prone to floods is uncertain.
3. Loans backed by Fannie Mae, Freddie Mac and FHA. Mortgage lenders are willing to charge lower rates for loans backed by Fannie and Freddie with a lower conforming loan limit. A smaller number of loans now qualify for this backing according.
Regardless of impacts to the housing industry in 2011, it is now 2012. The future is ahead. While understanding negative impacts on the past can help us plan for the future, it is time to look for new ways around obstacles to make the dreams of home buyers and home sellers come true.
Monday, January 16, 2012
Monday, December 12, 2011
Energy Efficient or Green Homes
A major expense squeezing homeowners today is heating and cooling cost. Although green upgrades are often expensive, their benefits can be large over time. Witness solar panels, double pane windows, and replacing appliances. All of these require sizable investments up front. But energy efficiency doesn't have to be expensive or labor intensive.
Small changes such as weather stripping can add up over time. Flourescent light bulbs can replace incandescent with minimal investment. Wrapping hot water heaters with insulation is inexpensive and requires little effort. In addition, the temperature on a hot water heater can be turned down to reduce waste and reduce accidental burns. Some laundry can be washed in cold or warm water rather than hot. Shorter showers will reduce hot water costs. Adjusting the heat and air thermostat 2-3 degrees can make a sizable difference in utility bills. These options require minimal effort and investment.
Check off energy efficient and environmentally-friendly changes one at a time, starting with the least expensive if you wish. You may be surprised at how quickly you see a difference in your utility bill. Most worthwhile and important changes in life take time. "Going green" may bring attractive results in your budget with minimal effort and investment. The extra money at the end of the month can provide the motivation you need to help you decide to use that bonus or income tax refund so you can install more costly green options, benefiting you and your neighbors.
Friday, December 9, 2011
Lending Down by Banks
According to data from the FDIC, in the year ending March 2011, loan volumes fell $260 billion. This is in the wake of deposits that grew by $300 billion and assets that have grown by $80 billion. In addition, profits were up by $12 billion.
Lawrence Yun, Chief Economist of the National Association of Realtors®, noted in a recent article that the economy is slowed when banks accumulate profit at the expense of lending.
Unemployment, underemployment, the trace deficit, tornadoes, and many factors can affect the economy; but banks have traditionally paid interest on deposits and loaned to depositors while investing to make additional profits.
Tight lending conditions can result in further price declines in home values, although prices in some areas are solid or heading up according to Yun.
The housing recovery and economic recovery can be sped up by banks returning to their roots of lending more when deposits are up. Although caution has been in order as more homeowners have defaulted, particularly when mortgages are under water, reducing lending to a trickle is not the way to keep the economy healthy. In the long term, what is good for America is good for the banks.
Lawrence Yun, Chief Economist of the National Association of Realtors®, noted in a recent article that the economy is slowed when banks accumulate profit at the expense of lending.
Unemployment, underemployment, the trace deficit, tornadoes, and many factors can affect the economy; but banks have traditionally paid interest on deposits and loaned to depositors while investing to make additional profits.
Tight lending conditions can result in further price declines in home values, although prices in some areas are solid or heading up according to Yun.
The housing recovery and economic recovery can be sped up by banks returning to their roots of lending more when deposits are up. Although caution has been in order as more homeowners have defaulted, particularly when mortgages are under water, reducing lending to a trickle is not the way to keep the economy healthy. In the long term, what is good for America is good for the banks.
Tuesday, May 31, 2011
Another Big Dip in Home Prices
Home prices have dipped again, in the 3rd straight quarterly drop, down 5.1 percent from a year ago. According to a 5/31/2011 internet article on the CNNMoney website authored by Les Christie, prices are the lowest they have been since 2002. Prices are down almost 38 percent from the peak five years ago according to S&P/Case-Shiller national home price index.
A spokesman for S&P, David Blitzer, said the downward spiral in homes prices continues with no relief in sight.
Mr. Christie pointed out that the housing market went through a brief recovery in mid-2009, recovering nearly 5 percent of losses but resumed a slump after homebuyer tax credits expired last April.
Foreclosures and repossessed homes continue to flood the market, making it difficult for conventionally sold homes to compete and keep their value. This has a devastaing effect on new construction which typically contributes to economic recovery. But new construction frequently cannot compete with today's existing homes. The sale of existing homes does not contribute nearly as much to economic recovery as new home sales which bring with them jobs for construction workers.
And what is the good news? Now may be a good time for people who wish to buy a home at a reduced price or invest in existing homes they fix up for resale or utilize for rentals. Carefully evaluate your own circumstances with specialized professionals so you can make the most of your search and wisely use any investment dollars.
A spokesman for S&P, David Blitzer, said the downward spiral in homes prices continues with no relief in sight.
Mr. Christie pointed out that the housing market went through a brief recovery in mid-2009, recovering nearly 5 percent of losses but resumed a slump after homebuyer tax credits expired last April.
Foreclosures and repossessed homes continue to flood the market, making it difficult for conventionally sold homes to compete and keep their value. This has a devastaing effect on new construction which typically contributes to economic recovery. But new construction frequently cannot compete with today's existing homes. The sale of existing homes does not contribute nearly as much to economic recovery as new home sales which bring with them jobs for construction workers.
And what is the good news? Now may be a good time for people who wish to buy a home at a reduced price or invest in existing homes they fix up for resale or utilize for rentals. Carefully evaluate your own circumstances with specialized professionals so you can make the most of your search and wisely use any investment dollars.
Sunday, May 29, 2011
Low-Cost Tips to Improve Home Sales Potential
Welcome to Summer! Time to shed the winter blues and increase your home's sales potential through low-cost improvements. According to Melissa Dittmann Tracey of Realtor House & Home, home sellers don't want to spend big bucks to improve their chances with today's smart buyers. Melissa writes there is a lot that sellers can do at low or even no cost. Try these tips:
1. Pack up all the extras before you sell your home. Rooms appear more spacious and inviting if they are not cluttered with too much "stuff."
2. Pick a focal point for each room (bed in bedroom or piano in music room, for example) and make that the focus of your decorating and placement.
3. Attend to details like replacing burned-out light bulbs, and putting away items you aren't using. Keep it neat and well maintained.
4. Spruce up stainless steel sinks and make them shine with baby oil and club soda according to DoItYourself.com.
5. Let the light shine in. Open blinds and clean your windows!
6. Use an area rug over lack-luster flooring to define your living area and add a touch of color.
Use your creativity. You will be surprised at the results you can achieve on a low budget. And in the mean time, you will enjoy the living spaces more until a sign is placed in the yard with "Sold."
1. Pack up all the extras before you sell your home. Rooms appear more spacious and inviting if they are not cluttered with too much "stuff."
2. Pick a focal point for each room (bed in bedroom or piano in music room, for example) and make that the focus of your decorating and placement.
3. Attend to details like replacing burned-out light bulbs, and putting away items you aren't using. Keep it neat and well maintained.
4. Spruce up stainless steel sinks and make them shine with baby oil and club soda according to DoItYourself.com.
5. Let the light shine in. Open blinds and clean your windows!
6. Use an area rug over lack-luster flooring to define your living area and add a touch of color.
Use your creativity. You will be surprised at the results you can achieve on a low budget. And in the mean time, you will enjoy the living spaces more until a sign is placed in the yard with "Sold."
Sunday, March 27, 2011
Tips for a Cozy Kitchen
With today's busy lifestyles, home buyers are often opting for cozy, connected kitchens according to Realtor magazine. The kitchen is becoming a place for more than cooking. It is a gathering place for entertaining, homework, conversation, and projects. Homes are trending smaller. ,Thus versatility is a priority for optimal kitchen design. Dining rooms are not segregated from the kitchen but blend openly with kitchen space. Likewise, living room space blends into the same area without the confinement of walls. So. What can you do to create a social and cozy feel to a kitchen that is already created as you prepare your home for sale or if you can't afford to remodel? Try these tips to cozy-up your existing kitchen: 1. Soften the light in the room with sconces or accent lighting. 2. Use comfy, upholstered chairs rather than wooden bar stools. 3. Add functional and conversational space with a kitchen island. 4. Add a buffet, cupboard, or wall shelving for useful storage space and to attract buyers who want more storage. 5. Repair cabinets; replace broken hardware, and replace broken countertops as you are able. Don't stress over what you cannot do. Take one step at a time. You don't have to spend a lot of money or time to make a kitchen cozy. Come up with your own unique solutions. Sometimes an item moved from one room into another such as a painting moved from the hallway to the kitchen can soften the look and feel of the kitchen. You will get ideas as you observe other's homes or visit interior design shops. Most of all, enjoy the journey! And call me, Pat Branham, if I can help you find your ideal kitchen in a desirable home!
Friday, March 4, 2011
Tips for Staging Your Home Inexpensively
The National Association of Realtors "houselogic" website offers many tips for home buyers and sellers. Whether you live in Chattanooga, TN or another area, being familiar with inexpensive home staging tips can boost your potential to sell your home in today's competive market.
See the full article and explore the website at: http:\\buyandsell.houselogic.com. You will be amazed at the simple, low-to-no cost ways you can attract buyers and set your home apart from other listings in the neighborhood.
First, do a thorough cleaning of your home. Don't just vaccum in the middle of the room and dust around objects. Remove stains and pet odors from carpets and clean down to the base boards and blinds. Make your tile or wood floor gleam and polish your furniture. Wipe all decorative objects.
And speaking of furniture and decorative objects, remove personal items such a family photos and personal mementos from walls and tables. Store some of your furniture to make your rooms look larger. Get rid of clutter and organize books and papers. Kitchen countertops should display minimal small appliances or other items. Less is better. Buyers want to see themselves living in the home.
Organize your furniture in groupings with focal points such as a fireplace. Paint your sroom with fresh, neutral tones and add a few splashes of color such as an afghan , plant or pillow. Put fresh linens on the beds, and put complimentary, clean and lush towels in the bathrooms. Replace the shower curtains if needed.
Finally, create a pleasant outdoor entry that invites buyers inside by keeping your lawn mowed and by trimming your landscape. Add a pot of colorful flowers near the entrance to the home.
Staging a home doesn't need to be expensive. Practical and low-cost staging can invite buyers to your door and lead them to come inside. Appropriate staging is worth the time and effort and increases your chances of a quicker sale.
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