What's Happening with the Real Estate Market?

Here is some encouraging news - reprinted from Inman News 2/24/2012

Existing-home sales post third gain in 4 months

Increased demand from investors and first-time homebuyers helped boost existing-home sales in January - the third increase in the past four months, the national Association of Realtors reported.

NAR said total existing-home sales - including single-family homes, townhomes, condominiums and co-ops - were up 4.3 percent from December to January, to a seasonally adjusted annual rate of 4.57 million.

While that's essentially unchanged from the same time a year ago, for-sale inventory was down 20.6 percent from a year ago, to 2.31 million homes, a 6.1 month supply of homes at the current pace of sales.

Many housing analysts view a six-month inventory of homes as a good balance between supply and demand - a larger inventory of homes can indicate an oversupply of homes for sale, which can undermine prices. When inventories drop below six months, the shortage of homes for sale can drive up prices.

"The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers, " NAR Chief Economist Lawrence Yun said in a statement.

Yun cited the statistics as evidence that a government proposal to convert bank-owned properties into rentals on a large scale "does not appear to be needed at this time."

"Foreclosure sales are moving swiftly with ready homebuyers and investors competing in nearly all markets," he said.

Merrill Lynch analysts Michelle Meyer and Ethan Harris think part of the drop in inventory is due to delays in the foreclosure process in the aftermath of the so-called "robo-signing" scandal.

With top banks nearing a final settlement with state attorneys general, they expect the foreclosure process to accelerate, and for inventory to swell to eight months later this year.

The first REO-to-rental transactions are weeks away, but the property pools offered this year may be smaller and more manageable for groups of qualified local investors than previously assumed, Ken Harney reported.

NAR said foreclosures and short sales accounted for 35 percent of sales in January, and that the national median existing-home price for all housing types was down 2 percent from a year ago, to $154,700.

Investors purchased 23 percent of homes in January, up from 21 percent in December, while the percentage of first-time homebuyers increased from 31 percent in December to 33 percent in January.

Nearly one in every three January home sales was an all-cash transaction. A survey of NAR members showed more than half had at least one contract cancelled or delayed in January, often as a result of a mortgage application being turned down or because appraisals come in below the negotiated price.

Single-family home sales were up 3.8 percent from December to January, to a seasonally adjusted annual rate of 4.05 million. That's a 2.3 percent increase from a year ago. The median existing single-family home price as $154,400 in January, down 2.6  percent from the same time a year ago.

Existing condominium and co-op sales increased 8.3 percent from December to January, to a seasonally adjusted annual rate of 520,000. That's a 10.3 percent decline from a year ago. The median existing condo price was $156,600 in January, up 2 percent from January 2011.

At the regional level, the West saw the biggest jump in sales, an 8.8 percent increase from December to January. Sales were down 3.1 percent from a year ago, however, and the median price was also down 1.8 percent from January 2011 to $187,100.

The Midwest saw the smallest jump in sales, with sales up 1 percent from December to January. Although that was a 3.2 percent increase from a year ago, the median home price fell 3.9 percent from January 2011, to $122,000.

In the South, existing-home sales rose 3.5 percent from December to January but were unchanged from a year ago. The median price in the South was $134,800, down 0.3 percent from a year ago.

Existing home sales were up 3.4 percent from December to January in the Northeast, and up 7.1 percent from a year ago. At $225,700, the median price in the Northeast dropped 4.2 percent from January 2011.

PENDING HOME SALES SURGE!

Here is a great sign for home sellers. The number of Americans who signed contracts to buy homes jumped in October to the highest level in a year. Article reprinted from Thomson Reuters.

Pending sales of existing U.S. homes surged in October by the most in nearly a year as Americans took advantage of low interest rates for mortgages, data from a real estate trade group showed on Wednesday.

The National Association of Realtors Pending Home Sales Index, based on contracts signed in October, rose 10.4 percent to 93.3 from 84.5 in September.

That was the biggest monthly gain since November 2010.

Economists polled by Reuters had expected pending home sales to climb 1.5 percent.

"We hope this indicates more buyers are taking advantage of the excellent affordability conditions," said NAR economist Lawrence Yun.

The U.S. Federal Reserve has held short-term interest rates at nearly zero since 2008 and has expanded its balance sheet in a bid to get credit to businesses and households.

The Fed said in September it would renew its effort to help the housing market by reinvesting some of the maturing debt it holds into mortgage-backed securities.

That has helped bring 30-year mortgage rates to record lows.

Copyright 2011 Thomsom Reuters

FALL AND WINTER SEASONAL MAINTENANCE GUIDE - MIDWEST

 

Here is an article reposted from House Logic written

By: Karin Beuerlein

Published: September 25, 2009

If you live in the Midwest, here are maintenance jobs you should complete every fall and winter to prevent costly repairs and keep your home in peak condition

 

 

Certain home maintenance tasks should be completed each season to prevent structural damage, save energy, and keep all your home’s systems running properly. What maintenance tasks are most important for the Midwest in fall and winter? Here are the major issues you should be aware of and critical tasks you should complete. Keep your Midwestern home free from damage by preparing for the constant cycle of freezing and thawing that occurs throughout fall and winter. “In fall, it’s important to do seemingly minor things that can have disastrous consequences if not done early,” says Frank Lesh, president of Home Sweet Home Inspection Co. in Indian Head Park, Ill.

Key maintenance tasks to perform

• Disconnect hoses from outside faucets. This keeps water inside the hose from freezing and splitting the casing, and it also allows the pipes inside the wall to drain completely so that water doesn’t freeze and crack them. Most outside spigots now are self-draining, but if you have an older home, you may have to manually turn off the valve inside the house to shut off the water so that it drains completely (this valve is usually in the basement or crawl space near where the pipe goes to the outside).
It’s important to remember this task, because you may not notice that these pipes have burst until you turn the faucet on in spring and water leaks into your exterior wall. If you’re lucky, Lesh says, you’ll have a major leak that will be noticeable right away; it’s actually worse to have a slower leak that allows water to drip slowly into the wall, where mold and rot can do extensive damage without your even seeing it.
• Seal coat blacktop driveways. The heat of summer may cause asphalt to expand and crack. If these cracks aren’t repaired, water gets into them and freezes, widening the cracks. Eventually, big chunks of asphalt will break off and repair will become more difficult and expensive, so applying sealant (generally every two to three years) is an important preventive step.
On a warm, dry day in early fall when you don’t expect rain for at least 24 hours, you should clear the driveway of debris, clean up any oil stains with detergent and a scrub brush (be sure to rinse the entire driveway well with a hose), and apply asphalt crack filler to individual cracks larger than 1/4 inch wide. Allow the filler to dry for at least an hour and then spread a coat of sealant over the entire driveway. Don’t use the driveway for at least 24 hours. Expect to pay $100 for the driveway detergent, crack filler, long-handled roller, and sealer needed to do the job.
If you have a concrete driveway, you don’t need to maintain it—unless it’s less than a year old. It’s very important that during the first year of curing, no salt come into contact with the surface; don’t salt your driveway and clear any roadway salt that gets thrown onto it.
• Clean your gutters. In the Midwest, this task is especially crucial because of freezing and thawing. “After a snowfall it’s typical for the sun to come out just long enough to melt the snow on your roof, which then drips into the gutters,” Lesh says. “But the water freezes before it’s all drained.” If your gutters are clogged with debris, standing water freezes and forces its way up under the roof shingles or into the eaves, which introduces moisture that can eventually rot the roof decking. Trapped ice and frozen debris can also bend your gutters so that they don’t drain well, or even pull them away from the house.
• Schedule your annual furnace checkup. Your technician should be able to tell you exactly what he’s going to check to keep your furnace maintained. Lesh recommends asking open-ended questions (“What specifically will you be cleaning?”) and making sure the contractor is checking fuel connections, burner combustion, and the heat exchanger. In the meantime, you should be checking your furnace filters monthly and changing them whenever they’re dirty. Inspect floor grates and return ducts regularly and clean them out with a vacuum cleaner brush. You may want to enroll in a yearly maintenance agreement with an HVAC professional that includes a fall furnace service and a spring air conditioning service. Otherwise, expect to pay $50 to $100 for a furnace tune-up.
You don’t need to prepare your outside air conditioning unit for cold weather because it’s designed to withstand snow and cold. In fact, if you cover your unit with plastic to protect it, you provide a place for mice to overwinter and gnaw through the unit’s wiring. If your unit sits in a spot that’s vulnerable to falling ice or heavy tree limbs, place a sheet of plywood over the top and cover with a loose drop cloth for protection; just don’t enclose the space completely.
• Make sure deck and porch boards are secure. Loose or warped boards are hazardous. Prop up low spots with wooden shims and fasten loose boards with galvanized deck screws
• Insulate your whole-house fan. If you use a whole-house fan to help cool your house, be sure to cover it when not in use with an insulated box or other cover. “If you don’t, heated air—which you’ve paid for—will enter the attic,” Lesh says. Introducing warm, moist air into the attic will then cause frost to form on the cold surface of the roof decking, which melts and drips onto the attic floor—your ceiling, in other words. Mold and staining can result.
You can make a simple fan cover from a batt of insulation; make sure it fits snugly over the opening with no gaps. For about $30, you can buy duct tape and a piece of 2-inch-thick polystyrene foam and make a foam box to fit over the top; 2-inch foam has an insulating value of about R-10.
Attic fans, designed to remove super-hot air from attics, are usually installed in the roof or gable ends of an attic space. Unlike whole-house fans, attic fans don’t require insulation, but fall is a good time to investigate whether animals have tried to force their way in through the screen covering the vent. Replace the screen if necessary.
• Scrape, prime, and paint. Lesh recommends painting wood surfaces early in the fall before the weather gets too cold and before winter’s moisture has a chance to do any damage. Scrape peeling paint even if you can’t get to the painting this season—water actually sheds better off bare wood than wood with peeling paint attached, which traps moisture.
• Prune back trees. After leaves drop, prune any nearby trees or bushes, especially if snowfall will cause them to bend and rub against the house. This can shorten the lifespan of your roof and siding.
Performing these important fall maintenance tasks can prevent costly repairs and alert you to developing problems.
Karin Beuerlein has covered home improvement and green living topics extensively for HGTV.com, FineLiving.com, and FrontDoor.com. In more than a decade of freelancing, she’s also written for dozens of national and regional publications, including Better Homes & Gardens, The History Channel Magazine, Eating Well, and Chicago Tribune. She and her husband started married life by remodeling the house they were living in. They still have both the marriage and the house, no small feat.

 Make sure everything is in working order during the cold months:

• Caulk windows and doors.
• Check the pressure on fire extinguishers.
• Clean and inspect children’s play areas and equipment.
• Clean and inspect gutters and canales.
• Clean the clothes dryer vent.

• Clean the humidifier/dehumidifier monthly.
• Clean the kitchen range hood and vent periodically.
• Change furnace filters monthly.
• Clean windows.
• Close storm windows.
• Cover the air conditioner loosely.
• Prune trees and shrubs.
• Inspect the chimney.
• Inspect the crawl space or basement.
• Inspect drainage and the foundation.
• Inspect the roof and flashing.
• Inspect siding, fascias, and soffits.
• Inspect faucets, sinks, and pipes for leaks.
• Insulate the pull-down attic staircase.
• Insulate the whole-house fan.
• Paint the house.
• Put away outdoor equipment.
• Replace humidifier wicks.
• Schedule an HVAC maintenance appointment.
• Seal coat asphalt driveways.
• Secure loose deck and porch boards.
• Test GFCIs monthly.
• Test smoke detector/carbon monoxide detector batteries.
• Treat roof for moss growth.
• Trip circuit breakers.
• Vacuum floor registers and return ducts.
• Weatherstrip doors.
• Winterize the irrigation system.
• Winterize the lawn mower.
• Disconnect exterior hoses.

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