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Archive for February, 2008

Housing Prices: Bottoming Out or Still Falling?

February 29th, 2008 by Matthew C. Keegan | 1 Comment | Filed in Home Buying, Home Construction, Home Selling

new homes

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!


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January Home Sales Drop, But Beat Expectations

February 28th, 2008 by Matthew C. Keegan | 1 Comment | Filed in Home Buying, Home Financing, Home Selling

home sell

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


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You Can Track Local Crime Online

February 27th, 2008 by Matthew C. Keegan | 1 Comment | Filed in Free Internet Tools

Crime

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.


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A Fresh Approach to Outfitting Your Lawn

February 26th, 2008 by Matthew C. Keegan | 1 Comment | Filed in Home Construction

This article is part of our ongoing home construction specification plan series.

Assembling a Home Construction Specification Plan — Spec Plan S: Landscaping

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First impressions of a home are often made by just how well the front lawn looks. A million dollar home can lose its sheen if the lawn is burnt, filled with crab grass, or patchy. Trees, poorly placed shrubbery, and misuse of yard ornamentation can also make your estate (or simple abode) look less appealing.

Saving Your Landscape Project For Last

Many new homeowners rightly save their major landscaping project until after they move in and rightly so: you have other things to take care of first. Besides, when it comes to your lawn you want to be on site when the landscape contractors appear. What better way to do that then when you’re actually living in your home and able to direct the project?

Points to Consider When Landscaping

Today’s homeowners are much more in tune with the environmental impact that their landscaping projects have on their property and the surrounding area. When working with a landscape contractor or doing the job yourself consider these points when developing your master plan:

How Much Grass Do You Want To Maintain? Seeding, fertilization, maintenance, and watering can take up a lot of your time and use up valuable resources. In some areas of the country, local drought conditions will dictate what you can or cannot do, therefore consider creating a landscaped area that requires less water and incorporates superior seepage. Smart use of an in-ground irrigation system can keep your lawn green longer and help you monitor water usage.

Planting Trees And Incorporating Existing Vegetation. If your lot wasn’t clear cut when your home was built, then you probably have some mature trees and bushes already present. Trim back dead branches and survey the property to create a nice balance of sun and shade. Plant additional trees well away from your home if desired, select those types of trees which are native to your area, disease and drought resistant, and offer the least amount of maintenance. Apply these same points to shrubbery too.

Making Room For Gardens. Sunny areas adjoining your house make for perfect gardens. However, if you are considering vegetable gardening, you’ll want to move these gardens well away from your home. Flowers and small bushes look appealing next to your home, but tomatoes, corn, cucumbers, and other vegetables do not and they need the maximum amount of sun.

Your Outdoor Living Area. If you plan on spending a lot of time outdoors, then having an area for relaxation and entertainment is a must. Consider brick pavers or concrete slabs as places to put your outdoor furniture. Even if your home has a deck, you may want a separate area where you can be closer to the lawn, flowers, etc.

Some homeowners are opting to simply pave over their properties to limit their outdoor maintenance tasks. While this may be an option for some, drainage is a real problem as run off must exit the property, perhaps flooding a nearby neighbor’s parcel.

If you are planning to do the landscaping project yourself, you are in good company. The largest outdoor living stores regularly run free seminars for their customers, a great way to learn how to map out your landscaping master plan and save money in the landscape design and implementation process.

Photo Credit: Paula Jensen; Duluth, MN


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