SayEducate

Quick: Home prices have bottomed out or they could still drop an additional 25%.

Depending on what you read and whom you believe, you will hear diverging, even contradictory predictions outlining housing trends through the remainder of this year. Some analysts appear to be applying possible local market conditions to the the national scene, something which simply shouldn’t be done.

Different Conditions In Various Markets

What happens in Boise, Idaho is a far cry from the conditions in Detroit, Raleigh, Sacramento and elsewhere. True, the overall housing market was flat or down in 2007, but there were some bright lights then and there will be additional ones in 2008.

Fact: Roughly half of the U.S. metropolitan statistical areas saw the median prices for existing single-family homes increase during the fourth quarter of 2007. Early indications for 2008 is that many of these same areas are seeing the upward trend continue. Source: National Association of Realtors.

Fact: Home sizes are up, approximately 50% bigger than homes built three decades ago. Better construction materials, sophisticated electronic connections, improved appliances including heating/cooling and the inclusion of outdoor amenities such as in-ground pools adds to the cost of a new home.

Fact: The biggest pressure on the housing market has been adjustable rate mortgages, particularly for those homes financed when rates were at their lowest. With hundreds of thousands of homeowners refinancing in 2008 thanks to lower interest rates, the number of homes becoming available due to foreclosure is dropping. As the market tightens, home prices will increase.

Boom, Then Bust?

Some analysts are predicting that 2008 will turn out better than expected in some markets, but are cautioning that the gains could be short-lived if mortgage rates head up again come 2009.

Speculating how market conditions will perform has been going on for years — getting it right is a science in and of itself!

Further Reading:

Why Housing Prices Are Nearing Bottom

Home Mortgage Calculators and Tools

From the New Deal, a Way Out of the Mess

Paying Off Your Mortgage Fast!

For January 2008, U.S. home sales dropped by 0.4% to an annual pace of 4.89 million homes. According to the National Association of Realtors, which tracks home sales, the year-to-year drop was 23.4%, the largest dip since the association began tracking these trends in 1999.Average housing prices also retreated, falling 5.1% to $198,700. The association estimates that there are now 4.2 million homes available for sale which translates into a ten-month supply.

Strong Rebound Expected This Spring

Despite the current difficulty in the housing market, some analysts are expecting a strong rebound to begin this Spring, attributing the reversal to the following:

• Mortgage interest rates are down, very near to historically low figures.

• Housing prices have dropped, making purchasing a new home within the reach of more homeowners.

• The oversupply of homes means that sellers are willing to deal. Savvy buyers are doing their homework and finding some great buys.

The nation’s largest builders have had to cut prices and trim production, as they have felt the strain of the housing slowdown. Lennar, Hovnanian, Toll Brothers and KB Home have all reported large losses for the fourth quarter of 2007, with these same losses continuing into 2008.

Further Reading:

More Signs Of Home Sales Weakness

Understanding the True Costs of a Mortgage

Home Purchase Loans

Today’s mobile-high tech society means that your next door neighbor could be a complete stranger to you, an oddity of our times. We’re better connected with online “friends” in the UK and Taiwan then we are with people living in our own neighborhoods.

It is that sort of anonymity which can cause problems, particularly if there is a break-in or when some other type of vandalism takes place. A generation or two ago when a crime was reported, neighbors quickly alerted each other or sent out a warning when a strange car or person was spotted nearby.

Empty Neighborhoods = Trouble

Today, many neighborhoods are empty during the day as both the husband and wife work, with some homes empty for days on end as people travel, often without telling their neighbors that they would be gone for awhile. Empty homes are an easy target for thieves, driving up crime rates in some neighborhoods sharply.

Tracking Crime Online

There is a way for you to track local crime even if your neighbors are literal strangers. Thanks to the initiative of one website, local law enforcement personnel can share crime reports right online. CrimeReports.com is a site where registered law enforcement agencies are able to share crime details in near real-time and members of the site can log in to keep up with the latest happenings nearby. Members can also receive email alerts when local crime incidents are posted to this site.

At present, law enforcement personnel in eighteen states (including DC) are participating, with not every jurisdiction covered. Clearly, this is a new program, one that will catch on over the ensuing years. Speaking of Washington, DC, Kevin Morison, who is the Director of Corporate Communications, Metropolitan Police has been quoted as saying the following about this service:

“CrimeReports.com has been an invaluable tool for the Metropolitan Police Department to get useful information out to the community in a timely and efficient manner. Our whole philosophy of community policing is predicated on the easy and open exchange of information between police and community. CrimeReports.com helps to make that happen.“

Working With What You Have

Getting to know your neighbors is still the best way to thwart crime, but with the help of one website and the participation of your local law enforcement community, the internet can be a useful tool to keep you informed.

You can protect your home from criminals by incorporating certain security measures such as adding deadbolts, security lighting, and removing overgrown shrubs adjacent to your house. Please visit SayImprove.com to get free internet tools to protect your home.