Five home improvement projects to tackle now

Project 1: Prepare for Winter

While spending precious summer moments preparing for the winter season may sound like a drag, you'll be glad you did come December or January. Besides, many of the projects that make for good winterizing are projects best done in warm, dry weather.

For instance, replacing old windows with new double-pane windows (made of two glass panes with an airtight space between them) might be a good project. These windows, says George Moore, chairman of the National Association of Home Builders (NAHB) Remodelers, can help keep heat in, thus reducing heating bills while keeping you cozy.

And because you'll need to take out the old windows to replace them with new ones, you'd probably prefer to have big holes in your walls during the summer months, opposed to during cold or snowy weather.

But what if you can’t afford new windows? No problem. Replacing the caulking—which seals cracks against air infiltration—in older-style windows is a great move, says Moore. "It's easy and also a very energy efficient task that can stop the moisture and air from getting in," he says.

Here are a few more projects to get done before Old Man Winter comes to your town, according to Moore:

Insulate your attic: This not only helps to keep your home cool in summer, but can help keep it warmer in winter. Just be prepared for a pretty hot job - summer can really heat up your attic. Also, wear protective clothing: long pants, long sleeves, gloves and eye protection.

Check your heating system: Whether it's a fireplace or furnace, make sure it's in good condition. When the first cold snap hits, it could be dangerous to be without a heating system, especially if you live in a part of the country that sees freezing temperatures during the winter. Also, if you want a professional to do it, their availability and pricing is usually better in summer.

Weatherproof your doors: If you can still see the great outdoors through the space between your closed door and the doorjamb, it's time either for a new door or for weather stripping. This is a foam or rubber insulator that attaches to the jammed door to keep cold air out and warm air in.

Project 2: Roof Installation or Repair

Let's see...what's the main purpose of a roof? Oh yes, to keep you dry. And in most areas of the United States, that means your roof is working overtime in the winter and catching a break in the summer.

It also means that late summer or early fall is a great time to repair or replace your roof, says Herriges. Obviously, it does rain in summer in many places in the country, but bad weather is thankfully easier to predict—and therefore prepare for—in summer months, he says.

As a result, the likelihood of getting caught with your "shingles down" and exposing your home to rain is more manageable.

You should also be happy to know that reputable roofing contractors are generally very good at watching weather patterns, says Herriges. So if a big blotch of rain does show up on the radar during your roof repair, they should be able to protect your home (and the project materials) while it blows through.

Finally, he says summer is a good time for roof repairs because many roofing materials require an outdoor temperature of at least 40 degrees. Why? Because in low temperatures, adhesives can freeze, and materials that go under shingles (underlayment) can become brittle and break. This, of course, could compromise your roof.

Project 3: Painting

Is it time for a whole new look and feel to your home's interior or exterior? Aside from buying all new furniture, there are probably not many projects that will totally reinvent your living space like a fresh coat of paint.

And now is a great time for this project, whether you do it yourself or hire a professional, says Moore.

A good first reason to tackle this in late summer, he says, is temperature. Paint typically likes to dry in temperatures above 40 to 50 degrees. And without proper insulation, the exterior walls could be a lot colder than the interior walls. This means those exterior walls could have problems drying, says Moore. This could lead to some walls being a different shade, or even faint stripes.

Probably not your goal, right?

Another great thing about summer painting, he says, is you can ventilate your house by opening windows. This way, you may avoid some nasty—and potentially dangerous—fumes.

Finally, summer's extra natural light and longer days will give you a better idea of the true color you're putting on your walls. This could help you avoid waking up to a shade much different than you anticipated.

Project 4: Air Conditioner (AC) Upgrade or Replacement

Isn’t it ironic how all winter long you crave the warmth of summer, then when it gets here you run for the air conditioner? And isn't it sad when the AC doesn’t blast you with that winter-cool air you want?

ACs are complicated gadgets, says Herriges, so having an AC professional check it out to make sure it's in optimum condition is always a good idea, whether it's for late-season heatwaves or next summer.

Here are a few potential problems you may want a professional to check, says Herriges:

Refrigerant leaks: Your AC needs a refrigerant to carry heat from your house to the outside. If a leak occurs and this chemical is low or gone, you'll be sweating faster than you can say summer heatwave.

Inadequate insulation: The more your house heats up, the harder your AC works to cool it back down. So insulating your home is a way to help Mr. Cool do his job.

Faulty component: Your AC has many different and specialized components, like fans, coils, filters and motors. It's a good idea to have these checked by a professional to make sure they're in good working order - or a late heatwave might discover these issues for you, and you probably won’t enjoy that.

Electrical problems: ACs use a lot of electricity and have a lot of wiring. And this wiring doesn’t particularly get along well with heat (more irony!). So, making sure all connections are clean and wiring is intact is a very cool thing to do.

Project 5: Erecting a Fence

Late summer might be the best time all year to enjoy your backyard. Of course, there’s nothing that says "summer bummer" more than watching your neighbor do the same. Yes, good fences make good neighbors, and now is a great time to install a fence.

Why? Because that fun backyard weather is also good fence-building weather. And even if a late-summer shower does happen your way, there’s no need to worry, says Moore.

"The materials used for fences generally are made to be out in the elements [fair and foul weather], so there's no pressing time frame," he says.

There are things to be wary of, however, such as property lines. Moore explains that no part of your fence can go over that line. That means not just the posts, but the underground footing you dig for them.

And speaking of digging, Moore says to be sure you know where all electrical, gas and water lines are. Your project will go downhill fast if you crack one of those open. Best-case scenario: Something gets wet. Worst case: A lot of things blow up. Moore says if you hire a reputable contractor to install your fence, he or she will contact utility companies to check the property lines.

CREDIT: Yahoo Real Estate/Yahoo Homes - By Terence Loose | Yahoo! Homes – Thu, Aug 16, 2012 7:50 PM EDT

Home Prices Show Strongest Gain in 6 Years: NAR

Existing-home sales rose to 4.62 million (seasonally adjusted annualized rate) in April from a downwardly revised March rate of 4.47 million, the National Association of Realtors (NAR) reported Tuesday. Economists had forecast the April sales pace would be 4.66 million.

The median price of an existing home climbed 10.1 percent to $177,400 from $161,100 in April 2011, the strongest year-to-year gain since January 2006. The median price in April reached its highest level since July 2010 when it was $182,100.

The inventory of homes for sale in April rose to 2.54 million, the highest level since last November, bringing the months’ supply of homes on the market to 6.6.

The 10.0 percent yearly gain in the sales rate was the strongest since October when sales were up 14.0 percent year-over-year.

Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011, the NAR said. Foreclosures sold for an average discount of 21 percent below market value in April (compared with an average discount of 19 percent in March), while short sales were discounted 14 percent in April compared with 16 percent in March.

The months’ supply of existing homes for sale remains well below the July 2010 cyclical peak of 12.4 which had been the highest level since 1982. Inventories as tracked by theNAR are 20.3 percent below their year ago level. However, anecdotal evidence suggests there is still a large “shadow” inventory of homes available for sale, especially bank-owned properties.

Regionally, existing-home sales rose in April in every region of the country led by a 5.1 percent month-to-month increase in the Northeast where sales were up19.2 percent over April 2011. Sales rose 4.4 percent over March in the West (a 7.3 percent year-year gain), 3.5 percent in the South (6.5 percent year-year) and 1.0 percent in the Midwest (14.4 percent year over year).

The median price of an existing home rose month-to-month and year-to-year in all four regions. At $256,600, the median price of an existing home reached its highest level since August 2010. The median price of an existing home in the South rose to $153,400, the highest level since July 2010 and the median price of an existing home in the West rose to $221,700, also the highest since July 2010.

The year-to-year price gain in the West, 15.9 percent, was the strongest since November 2005. The year-to-year price increase in the Northeast was the first since last June.

Author: Mark Lieberman, Five Star Institute Economist • Date: 05/22/2012 •

How to Beat the Competition and Buy a Foreclosure

 Finding a bank-owned home for sale these days is hard enough. Actually buying one is an even bigger problem.

Last year the supply of bargain-basement, foreclosure homes shrank, as banks temporarily stopped trying to repossess properties to review possible paperwork errors.

But 2012 should be a different story. Lenders are starting to resume foreclosure filings, so more of these distressed homes are expected to be listed for sale.

“There’s such demand from buyers,” says Judy Trudel, a real estate agent in Florida. “Whatever foreclosures hit the market this year will be eaten up.”

Here’s how buyers can find the homes and make their offers stand out from the competition:

Locate Foreclosures: Ask real estate agents or go online. Any good agent can direct clients to bank-owned homes. Buyers who want to do their own research beforehand can visit websites that give consumers a free, seven-day trial. After that, there’s a $49.95 monthly fee to search for property addresses.

Government-run mortgage companies Fannie Mae and Freddie Mac market foreclosures nationwide on HomePath.com and HomeSteps.com, respectively. Neither charges a fee.

In addition, Fannie and Freddie have a program called First Look that gives first-time buyers and others who need financing a head start on investors in the search for bank-owned homes.

Under the program, people who intend to occupy a home as a primary residence can submit offers during a 15-day window without competition from investors. After the 15 days, investor offers will be considered with all other bids.

Start with Your Best Offer: This isn’t 2007 or 2008, when sales were sluggish and sellers were thrilled with any offer. Demand creates bidding wars.

“If I was a purchaser, I definitely wouldn’t go in (offering) less than the asking price,” says Summer Greene, a Florida real estate manager and the 2012 president of the Florida REALTORS® trade group.

“My advice is to offer the most you feel you would ever pay for the property,” said Laura Cameron, 51, who paid cash for a Deerfield Beach, Fla., foreclosure home last year.

Pay Up: Consider making a hefty good-faith deposit. Upon making an offer, a typical buyer puts down $1,000 to convey interest. Buyers who want to impress the bank may want to offer substantially more.

Trudel recently attended a real estate negotiating class, where the instructor suggested that cash buyers put down the entire purchase price. The rationale: They’ll pay the full amount in a few weeks at closing anyway, so they might as well pay it up front to show serious interest.

But that strategy isn’t for the faint of heart. If a buyer has to back out of the deal for a reason not allowed in the contract, the deposit is at risk, Trudel says.

Be Accommodating: Volunteer to close quickly. And when submitting offers, buyers should turn in all the requested paperwork. If a bidder forgets to include a “proof of funds” letter or other documents, the bank may just move on to a more complete offer.

Stand Firm: Don’t cave in to unreasonable demands. Trudel said she was told by a bank’s real estate agent that her client would have to waive his right to a home inspection if he wanted the property because so many bidders were interested. The client agreed over Trudel’s objection but still didn’t get the home.

Buying a foreclosure without an inspection is risky because many of the homes are in disrepair, and some have been sabotaged by the previous owners.

“I 100 percent do not recommend it,” Trudel says.

Credit-

©2012 the Sun Sentinel (Fort Lauderdale, Fl.)  

How to Beat the Competition and Buy a Foreclosure

Posted By beth On February 26, 2012 @ 4:05 pm In Today's Home Spun Wisdom

Article printed from RISMedia: http://rismedia.com
URL to article: http://rismedia.com/2012-02-26/how-to-beat-the-competition-and-buy-a-foreclosure/

2011-2012 Cost vs. Value: Which Remodeling Projects Pay Off the Most?

When tackling home remodeling projects, you’ll find some projects pay off more than others at times of resale. Remodeling Magazine, in conjunction with REALTOR® Magazine, recently released findings of its annual Cost vs. Value report for 2011-2012, revealing which remodeling projects offer the biggest bang for your buck.

Overall, the trend right now is replacement over remodeling–swapping out the old for the new rather than doing a total gut job, which can be much more costly.

This year’s Cost vs. Value report found that exterior replacement projects–such as new garage doors and a new entry door–offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.

The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:

1. Replacing the entry door to steel

Estimated cost: $1,238

Cost recouped at resale: 73%

2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)

Estimated cost: $50,148

Cost recouped at resale: 72.5%

3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)

Estimated cost: $19,588

Cost recouped at resale: 72.1%

4. Garage door replacement

Estimated cost: $1,512

Cost recouped at resale: 71.9%

5. Deck addition (wood)

Estimated cost: $10,350

Cost recouped at resale: 70.1%

6. Siding replacement (vinyl)

Estimated cost: $11,729

Cost recouped at resale: 69.5%

Written By - By Melissa Dittmann Tracey, REALTOR® Magazine 

(re-posted from Realtor.org) Thanks!

Where have all the down payments gone?

Where have all the down payments gone?

By Lou Barnes - Inman News®

It is an election year. In addition to the distorted economic "analysis" offered by the ever-cheerful stock market channels, CNBC and Bloomberg, political interests will add their garbled gabble all year long.

Today's reports of 200,000 new jobs in December and unemployment down from 8.7 percent to 8.5 percent were greeted with happy bugles from the usual suspects. Ignore that, and watch the markets themselves.

Interest rates rise on legitimate good news; today's 10-year Treasury-note yield has fallen to 1.94 percent, and mortgages are near 4 percent again. The stock market rises on good news, and today it is flat to down.

The addition of 200,000 jobs is good news, but year-over-year earnings have risen only 2.1 percent. A few are back to work, but it's not the job that it was. And even if employment growth persists at that level, and new unemployment claims stay down as they were in December from 400,000 weekly, it's not enough to dent the job losses since 2007.

Part of the tepid response from markets today is derived from ongoing concern for Europe. Perhaps the best indicator for markets this winter will be the pace of recession onset in Europe. Genuine economic turn depends on housing. Many self-deceiving financial-market types in the last weeks have announced discovery of a housing turn; although there is none in the actual market, there is one in public policy.

The Federal Reserve is very reluctant to lecture politicians (because of its perpetual political peril), but has done so this week. Fed Chairman Ben Bernanke shot a very well-done paper at congressional committee leaders, laying out damage by insufficient credit, by pinched and self-destructive attitude at the regulators of Fannie Mae and Freddie Mac, and by exposing the total absence of administration policy.

Today, Bill Dudley, president of the New York Federal Reserve, fired off another:www.newyorkfed.org/newsevents/speeches/2012/dud120106.html.

President Obama and Treasury Secretary Timothy Geithner have been so completely detached from housing that even a blast from the Fed may not get their attention. But I can hope.

We have 4.2 million homes in terminal delinquency, not yet foreclosed, and another 600,000 REO (real estate owned or bank-owned properties). The annual rate of sale of existing homes is a little over 4 million -- one-third of that in distressed resales, barely moving the newly distressed, with no net gain.

That absorption conundrum is bad, but masks a tough and unusual phenomenon in the ordinary, nondistressed market: an odd freeze descending.

Here in my Denver backyard, the listed for-sale inventory dropped by one-third last year, ordinarily the precursor of rising prices. Maybe that will happen here -- we led the nation in foreclosures way back in 2004 -- but there is another force in play: down payments.

Where to get one? The most common source is rolling over the equity in a current home to buy a new one. Right. Roger that. Although we do not have the underwater inventory that Zillow "fantasizes," with local prices roughly the same as 2001 and price-appreciated equity a memory, there are fewer and fewer owners both wanting to move and with equity to roll. Thus, fewer and fewer listings.

Other than appreciating value, nothing but loan amortization builds equity. See entry for "glacial," and kids can Google Rip Van Winkle.

If you're not an owner, down payments come by saving money. Good, healthy discipline. However, in prior times your savings earned something. Even in a bank. In the 1990s the stock market might have doubled your savings every other year.

Another reliable source of down payment: bonuses. As I ask clients about that, today I get a lot more wry chuckles in response than happy answers. Same for stock options, proceeds of initial public offerings, or growing commission income. And there are sad answers to the prospect of help from tapped-out families.

If mortgage credit began to flow on reasonable terms, and somebody running for office told the American people that modestly rising home prices are in the national interest, and we got a 5 percent or 10 percent rise in prices, we would unlock the entire economy.

You might ask a nearby politician about that.

Rate of home sales:

Long way to go:

The most painful part: those forced to take part-time "survival" jobs:

CREDIT-
By Lou Barnes - Inman News®

Why Landlords Charge High Security Deposits

Why Landlords Charge High Security Deposits

DATE:JANUARY 3, 2012 | FROM-  www.Zillow.com 

If you’re renting an apartment and you wonder why the landlord charges a high security deposit, it could be because they’ve been burned by inconsiderate tenants who trashed rental units, moved out in the middle of the night or perhaps left an awful mess in what is considered an important investment by the owner.  Landlords don’t take too kindly to that, and often charge higher security deposits to cover the possibility of it happening again.  However, this is not the only reason landlords charge higher security deposits.

The main reason a landlord may charge more is if a tenant throws up red flags to the landlord or property management company during the application process.  These red flags may or may not be intentional, but can include:

·         Not properly filling out or completing all of the application fields.  Incomplete information on an application can come across to the landlord as the tenant might be hiding or avoiding something.

·         Details are sketchy.  If you’re not exactly sure of dates or how long you lived in your last rental property, don’t guess at it; be sure and accurate.

·         The previous landlord references won’t divulge any information… good or bad.

·         The tenant has already started off requesting renovations to the property or making demands for lower rents if they do the renovation work, when they haven’t even turned in their application yet. This is a sign that the tenant may not be able to afford the place.

This is all in addition to the obvious reasons of misrepresentation of facts, embellishments and other white lies, big and small.  To some, this might seem like an automatic denial of a tenant’s rental application.  However, when the market is tight, sometimes a landlord has to take a chance on a flawed application in order to get the property rented and get their vacancy rates down. To mitigate risks, the landlord will charge a high security deposit, in the chance that the red flags end up as real issues.

Whether or not a landlord has been burned or even if there are no red flag warnings coming from the tenant, there might be other reasons that a landlord will ask for a double security deposit.  They may include:

·         The landlord just remodeled the rental unit and they’d like to protect their investment.

·         The tenant might have pets.

·         Possibly the tenant hasn’t been on their job a long time, or they may be in a temporary status that is not secure employment.

·         The landlord may have been burned by the previous tenant.  This is a tough situation for the current/new tenant moving into the unit.  It may not seem “fair” but the landlord has a right to do so.

Ultimately, the reasons for a high security deposit could be for nearly anything and the landlord doesn’t necessarily have to tell the tenant why they are charging more in most states.  As a landlord, if you feel you have to explain, it can generally be summed up with reminding the tenant that the security deposit is fully refundable.  As the tenant, you need to remember that as well.  The deposit is refundable and all parties need to make sure that the lease states as such.

Both landlords and tenants should be familiar with their state’s landlord and tenant laws.  It is typical that there is a cap on how much security deposit a landlord can charge or hold, such as no more than two month’s rent.  There are also other important things to watch for in state or city laws, such as time frames that a landlord has in refunding a tenant’s security deposit or itemize damages withheld.

The bottom line is that with a security deposit, no matter how large or significant it may be, it is most likely refundable.  As a tenant, do your part, take care of the unit, pay your rent, fulfill the terms of the lease and chances are you’ll get your money back.

AUTHOR:JESSICA HICKOK

DATE:JANUARY 3, 2012 | FROM- ZILLOW.COM/BLOG

FHA Keeps Funding Flips, Investors And Buyers Rejoice

FHA Keeps Funding Flips, Investors And Buyers Rejoice

December 29, 2011 · Broadwater Properties

http://www.travisbroadwater.com

From our friends over at ForeclosureRadar.

In a move that will undoubtedly make investors stand up and cheer, the Department of Housing and Urban Development (HUD) announced today that the Federal Housing Administration is extending a temporary waiver of its “anti-flipping” rule. The waiver is a boon for investors who rely on rehabbing and selling properties in a short timeframe, and homeowners who rely on FHA-insured financing to buy.

The pool of buyers who rely on FHA dramatically increases the investors’ ability to quickly sell. FHA research finds that in today’s market, it takes a real estate investor less than 90 days to acquire, rehab, and sell a property. Before the initial waiver in February 2010, FHA did not allow potential buyers to purchase properties that had previously been purchased within the last 90 days to protect its mutual mortgage program from losses on homes that were not rehabbed, but flipped at inflated prices.

The waiver is subject to certain restrictions, including that transactions must be at arms-length, meaning that the deal must be made between separate parties who would not gain from the buying or selling of the property.

The waiver was set to expire on January 31, but now will be in effect through December 31, 2012.

This is great news for the thousands of potential homeowners who are first-time buyers or those who lack the down payment required on a conventional loan, as well as real estate investors that have built a business around rehabbing properties and selling to FHA borrowers.

From our friends over at ForeclosureRadar.

Existing-Home Sales Continue to Climb in November

From Realtor.org 12/22/2011
Washington, DC, December 21, 2011


Existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors®. Also released today were periodic benchmark revisions with downward adjustments to sales and inventory data since 2007, led by a decline in for-sale-by-owners.

Although rebenchmarking resulted in lower adjustments to several years of home sales data, the month-to-month characterization of market conditions did not change. There are no changes to home prices or month’s supply.

The latest monthly data shows total existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent to a seasonally adjusted annual rate of 4.42 million in November from 4.25 million in October, and are 12.2 percent above the 3.94 million-unit pace in November 2010.

Lawrence Yun, NAR chief economist, said more people are taking advantage of the buyer’s market. “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing,” he said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.99 percent in November from 4.07 percent in October; the rate was 4.30 percent in November 2010; records date back to 1971.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said housing affordability conditions have set a new record high. “With record low mortgage interest rates and bargain home prices, NAR’s housing affordability index shows that a median-income family can easily afford a median-priced home,” he said.

“With consumer price inflation rising by more than 3 percent this year, consumers are looking to lock-in steady payments by taking out long-term fixed-rate mortgages. However, the problem remains that some financially qualified families who are willing to stay well within their means are being denied the opportunity to buy in today’s market by the overly restrictive mortgage underwriting situation,” Veissi said.

An elevated level of contract failures continues to hold back a broader sales recovery. Contract failures2 were reported by 33 percent of NAR members in November, unchanged from October but notably above a year ago when it was 9 percent.

Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including lower conforming mortgage loan limits, home inspections and employment losses.

Also released today are benchmark revisions3 to historic existing-home sales. The 2010 benchmark shows there were 4,190,000 existing-home sales last year, a 14.6 percent revision from the previously projected 4,908,000 sales. For the total period of 2007 through 2010, sales and inventory were downwardly revised by 14.3 percent. The revisions are expected to have a minor impact on future revisions to Gross Domestic Product.

“From a consumer’s perspective, only the local market information matters and there are no changes to local multiple listing service (MLS) data or local supply-and-demand balance, or to local home prices,” Yun explained.

A divergence developed over time between sales reported by MLSs and sales determined by a U.S. Census benchmark; the variance began in 2007. Reasons include growth in MLS coverage areas from which sales data is collected, and geographic population shifts. “It appears that about half of the revisions result solely from a decline in for-sale-by-owners (FSBOs), with more sellers turning to Realtors® to market their homes when the market softened. The FSBO market was overwhelmed during the housing downturn, and since most FSBOs are not reported in MLSs, national estimates of existing-home sales began to diverge based on previous assumptions,” Yun said.

NAR consumer survey data in 2000 showed FSBOs accounted for a 16 percent market share, which fell to a record low 9 percent in 2010.

“In essence, Realtors® began to capture a greater market share. In addition to a decline in FSBO transactions, more builders began marketing new properties through real estate brokers that weren’t completely filtered from the existing-home data,” Yun said. “Some property listings on more than one MLS, and issues related to house flipping, also contributed to the downward revisions.” The new independent benchmark was discussed with government agencies and outside housing market experts, and will allow for annual revisions in the future.

Total housing inventory at the end of November fell 5.8 percent to 2.58 million existing homes available for sale, which represents a 7.0-month supply4 at the current sales pace, down from a 7.7-month supply in October. “Since setting a record of 4.04 million in July 2007, inventories have trended down and supplies are moving close to price stabilization levels,” Yun said.

The national median existing-home price5 for all housing types was $164,200 in November, down 3.5 percent from a year ago. Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 29 percent of sales in November (19 percent were foreclosures and 10 percent were short sales), compared with 28 percent in October and 33 percent in November 2010.

All-cash sales accounted for 28 percent of purchases in November; they were 29 percent in October and 31 percent in November 2010. Investors make up the bulk of cash transactions.

Investors purchased 19 percent of homes in November, little changed from 18 percent in October and 19 percent in November 2010. First-time buyers accounted for 35 percent of transactions in November, up from 34 percent in October and 32 percent in November 2010.

Single-family home sales rose 4.5 percent to a seasonally adjusted annual rate of 3.95 million in November from 3.78 million in October, and are 12.9 percent above the 3.50 million-unit level in November 2010. The median existing single-family home price was $164,100 in November, down 4.0 percent from a year ago.

Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 470,000 in November and are 6.8 percent higher than the 440,000-unit pace one year ago. The median existing condo price6 was $164,600 in November, which is 0.2 percent below November 2010.

Regionally, existing-home sales in the Northeast jumped 9.8 percent to an annual pace of 560,000 in November and are 7.7 percent above a year ago. The median price in the Northeast was $240,200, which is 0.1 percent below November 2010.

Existing-home sales in the Midwest rose 4.3 percent in November to a level of 960,000 and are 15.7 percent higher than November 2010. The median price in the Midwest was $133,400, down 4.0 percent from a year ago.

In the South, existing-home sales increased 2.4 percent to an annual pace of 1.74 million in November and are 12.3 percent above a year ago. The median price in the South was $143,300, which is 2.1 percent below November 2010.

Existing-home sales in the West rose 3.6 percent to an annual level of 1.16 million in November and are 11.5 percent higher than November 2010. The median price in the West was $195,300, down 8.4 percent below a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

From Realtor.org

Mortgage Rates Stay Low Helping to Keep Housing Affordability High

MCLEAN, Va., Dec. 8, 2011 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey(R) (PMMS(R)), showing average fixed mortgage rates largely unchanged and near their record lows helping to keep housing affordability high for those borrowers who are in the market. The 30-year fixed dipped to 3.99 percent, and at 3.27 percent, the 15-year fixed averaged just slightly above its all-time low of 3.26 percent on October 6, 2011.

News Facts
30-year fixed-rate mortgage (FRM) averaged 3.99 percent with an average 0.7 point for the week ending December 8, 2011, down from last week when it averaged 4.00 percent. Last year at this time, the 30-year FRM averaged 4.61 percent.
15-year FRM this week averaged 3.27 percent with an average 0.8 point, down from last week when it averaged 3.30 percent. A year ago at this time, the 15-year FRM averaged 3.96 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93 percent this week, with an average 0.5 point, up from last week when it averaged 2.90 percent. A year ago, the 5-year ARM averaged 3.60 percent.
1-year Treasury-indexed ARM averaged 2.80 percent this week with an average 0.6 point, up from last week when it averaged 2.78 percent. At this time last year, the 1-year ARM averaged 3.27 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac. "Thirty-year fixed-rate loans have declined 0.62 percentage points from a year ago, and median sales prices on existing homes are off 4.7 percent in the year ending with October. These low rates and home prices have pushed housing affordability to record highs this year. For instance, the National Housing Affordability Index, which dates back to 1971, reached another all-time record high in October for the sixth time in 2011, according to the National Association of Realtors®. Monthly principal and mortgage interest payments accounted for a mere 12.6 percent of median family incomes that month. This level of affordability likely contributed to the rise in conventional mortgage applications for home purchases over the week of December 2nd to the most in nearly a year."
Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter: @FreddieMac Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

SOURCE Freddie Mac
RELATED LINKS
http://www.freddiemac.com

Understanding Mortgage Points, Rates and Fees

Not only do you have to understand what type of mortgage you should choose, you have to understand the costs associated with your mortgage. All of these costs will be paid upon closing your mortgage.

Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer you live in your home, the more you can save on interest over the life of the loan.

Interest Rate
When you get a mortgage, you are charged an interest rate. This is the rate which the lender charges you for using their money to buy a home. It determines how much your monthly payments will be. Generally speaking, the higher the interest rate, the higher your monthly payment.
Mortgage interest rates change constantly. Daily, even hourly. If you speak to a lender and are quoted a specific interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you formally lock-in that rate with the lender. Locking in an interest rate will guarantee you get your loan with a particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the more expensive it will be, since it's more of a risk to lenders.

Fees
There are always fees associated with getting a mortgage, these fees cover the cost of processing and underwriting the loan. These fees can include charges for ensuring the title to the home is free and clear; paying for a land survey; or paying for a home appraisal which gives you the estimated value of the property (lenders require an appraisal to close on your mortgage).
Deciding which mortgage to get may depend on what each lender does because different lenders may charge different amounts. Some may charge lesser closing fees to lure you in, but may charge you a higher interest rate, which means you may pay more in the long run. But everyone has different needs.you may or may not be able to afford to pay more at closing and are willing to pay more over the long term.
Before it comes time to close, do your homework, make sure there are no hidden fees, and ask your lender lots of questions so that you understand all the costs involved with your mortgage.

*Please consult your tax advisor.

Pending Home Sales Jump in October

Pending Home Sales Jump in October

Washington, DC, November 30, 2011
Pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this is indicates more buyers are taking advantage of the excellent affordability conditions,” he said.

“Many consumers are recognizing that home buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun added.

The PHSI in the Northeast surged 17.7 percent to 71.3 in October and is 3.4 percent above October 2010. In the Midwest the index jumped 24.1 percent to 88.7 in October and remains 13.2 percent above a year ago. Pending home sales in the South rose 8.6 percent in October to an index of 99.5 and are 9.7 percent higher than October 2010. In the West the index slipped 0.3 percent to 105.5 in October but is 8.1 percent above a year ago.

“Although contract signings are up, not all contracts lead to closings. Many potential home buyers inadvertently hurt their credit scores and chances of getting a mortgage through easily averted actions, such as cancelling an old credit line while taking on a new one,” Yun said. “Such actions could unwittingly prevent buyers from obtaining a mortgage if their credit score is close the margins of qualifying, or they might get a loan but with less favorable terms.”

NAR encourages consumers to be aware of their credit score and actions which could hurt or enhance it. HouseLogic.com, the association’s consumer website devoted to all aspects of homeownership, offers tips for improving credit scores at http://buyandsell.houselogic.com/articles/7-tips-improving-your-credit/.


The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.