As I am looking outside of my office window, snow is falling from the sky. It is not just a dusting, but an expected 5-10 inches. It is wonderful to watch it falling from the sky, although I should be thinking about the drive home.
We have such a mild winter so far here in Denver, but with below freezing temperatures here and more winter to come, this master checklist is great for prepping your home for cooler weather. By following this list, you will not have to worry about a burst pipe, an unexpected $500 heating bill, or realizing in April that your patio furniture is ruined.
Outdoors
Patio furniture: Outdoor furniture is pretty resistant, particularly when you use these storage tips from Mary Ulibarri, manager of Ludeman's Fireplace and Patio in Beaverton, Oregon:
Clean-Mix warm water with a car wash solution, which is designed to cut through outside grime. Follow the package instructions, scrubbing furniture with a soft brush. Rinse with water and let air-dry.
Derust-Rub off rust with a scouring pad to stop it in it's tracks (always test in corner first to make sure you won't scratch the surface).
Wash-Cushions and fabrics should either be machine-washed, or handwashed in a large basin with dishwashing soap and warm water. "Store them completely clean and dry," says Ulibarri, to prevent rot and mold.
Store-Hardwood furniture (the heavy stuff, like teak or cherry) can stay outside. Soft woods (like pine or cedar, which age with uneven splotches) need to come indoors or be covered. If your furniture is aluminum, the heavyweight variety can be left outside; lightweight versions have hollow rails, which can hold water and crack when it freezes, so take it indoors. Store plastic or wicker indoors, and if you're not sure what your furniture is made out of, take a cell phone photo and bring it to a patio store. They will know.
Cover-Anything that's staying outdoors needs a breathable cover made of Gore-Tex-like fabric to keep moisture from coming in while allowing moisture trapped inside to escape. Attach covers tautly so water cannot pool and freeze.
Landscaping
Turn off water-Find the indoor water shutoff for all outside lines and turn it off. (If you don't know where it is, ask your plumber.) Turn on the spigots and empty them; also empty out hoses and store them indoors. If you have an irrigation system, hire an irrigation professional to use an air compressor to empty the water lines so they don't burst, says Jeremy Link, owner of EcoFriendly Irrigation in Cincinnati.
Aerate and seed-Want a lush spring lawn? Labor Day is the time to use and aerator (a rolling yard tool with spikes in it). "Aerating allows grass to get more water and grow more going into fall and winter," says Hunter Stubbs, partner in B.B. Barns Garden Company in Asheville, North Carolina. If seeding is needed, do it now, when temperatures are still warm.
Fertilize-"Fertilize the lawn at Labor Day, and again around Thanksgiving," says Stubbs. Fertilize shrubs in November too, when they've gone dormant.
Mulch flowers-Foolproof one-hour trick to a good-looking winter yard: Clear away sticks and leaves, pull up dead plants and use a rake to aerate the soil. Then mulch-it makes your flowerbeds look nice, and also prevents pests from living under debris. You can also neaten your garden by pruning back your perennials and flowering plants.
Gutters
Clean-Taking a plastic bucket with you, climb a ladder and use gloves to remove debris so it doesn't freeze and damage the gutter. (If you have someone to help, you can use a rope to raise and lower the bucket.) Consider getting gutter guards to use year round to block out most gunk. Mesh covers allow water and some debris to pass through, rather than models that promise no debris, which tend to feature tiny holes that get plugged up.
Check for moss-While you're up there, glance around the gutters and roof for moss and algae. It grows at a glacial pace, can do a lot of damage by keeping the roof below permanently wet and causing rot. If you see any, make a mixture of 5 parts water, 1 part bleach and a heaping tablespoon of trisodium phosphate (from a home improvement store), and spray it one the moss to kill it.
Chimney
Seal-To prevent costly, damaging leaks to your brick, block or cement chimney, seal it every five years. A pro charges around $75 per hour, but if you're comfortable on a ladder, apply clear acrylic water seal to all outside surfaces of the chimney, just like you're painting.
Indoors
Heating
Program thermostats-Set the thermostat to click on every time the daytime temperature drops below, say, 68 degrees (it's cheaper to maintain a temperature than to turn a thermostat up and down.) If your thermostats aren't programmable, replace them: They're easy to install and cost anywhere from $35 to $250-which you'll make back in a few months. By turning it up only when you're home, you'll save as much as 30 percent on your heating bill; setting the temperature at 68 degrees instead of 72 degrees can save you 20 percent.
Replace filters-Change the filters in your furnace and, if you have one, forced-air system. (If you're not sure where filters are or how to replace them, ask at your next heating inspection.) Dirty filters force the system to chug, wasting energy and costing you you anywhere from 10 to 30 percent more.
Clear the path-Make sure that no furniture or objects are within 3 feet of space heaters or radiators. Even if that chair looks perfect near the heater, move it-it's blocking the heat and a fire hazard.
Insulate-If you have a forced-air heating system, look for ducts running through unheated parts of the house, like the garage and attic. Measure those ducts and head to the store for precut insulation, which wraps right around them, keeping the hot air in the ducts (and in your home) and toasty warm. About $1 per foot at The Home Depot can save you 10 percent on your bill.
Weatherization
Caulk-And foam. Light a candle and move it around windows and doors; where it flickers, you've got a draft. (You can also test by dampening your hand.) Seal the gap with latex window caulk or foam sealant. You'll still be able to open the window, and in the spring you can remove the caulk with a razor blade. If you won't be opening the window, caulk the sash (where both parts of the window meet in the middle). And don't forget the attic. Plug door bottoms with stick-on weather stripping from a hardware store ($5 to $10). Winter heating bill savings: $100 to $300.
Insulate water pipes-Starting at your hot water heater, look for uninsulated pipes running along the walls or ceilings. (If they're not labeled, you can usually place a hand near them and feel the heat.) Polystyrene insulation, which has a slit in the middle, slips right over the pipe. And once you insulate, the heat stays in the pipes longer, so the hot water heater doesn't need to work as hard. 25 cents per foot at The Home Depot. Savings: $50
Insulate the water heater-Your heater should have a "blanket"-they look like giant versions of the little insulator bags for travel coffee mugs. If it doesn't, take a snapshot of your water heater, measure the length and diameter, and head to the store (blankets are $20 to $40 at Lowe's). Exceedingly smart investment, since the blanket will keep heat in and your hot water heater won't have to turn on as frequently. Winter heating bill savings: $100
Thursday, December 30, 2010
Monday, December 27, 2010
How Are Existing Home Sales Doing?
Existing-home sales got back on an upward path in November 2010, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6% to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9% below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.
Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
Yun added that home buyers are responding to improved affordability conditions.
“The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011.”
The national median existing-home price for all housing types was $170,600 in November, up 0.4% from November 2009. Distressed homes have been a fairly stable market share, accounting for 33% of sales in November; they were 34% in October and 33% in November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15% in November, while short sales were discounted 10% in comparison with traditional home sales.
Total housing inventory at the end of November fell 4.0% to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30% in November from a record low 4.23% in October; the rate was 4.88% in November 2009.
“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”
A parallel NAR practitioner survey shows first-time buyers purchased 32% of homes in November, the same as in October, but are below a 51% share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19% of transactions in November, also unchanged from October, but are up from 12% in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31% in November, up from 29% in October and 19% a year ago. “The elevated level of all-cash transactions continues to reflect tight credit market conditions,” Yun said.
Single-family home sales rose 6.7% to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3% below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2% above a year ago.
Existing condominium and co-op sales declined 1.9% to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2% below the 782,000-unit tax credit rush one year ago. The median existing condo price was $165,300 in November, down 5.5% from November 2009. “At the current stage of the housing cycle, condos are offering better deals for bargain hunters,” Yun said.
Regionally, existing-home sales in the Northeast rose 2.7% to an annual pace of 770,000 in November but are 33.0% below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2% higher than a year ago.
Existing-home sales in the Midwest increased 6.4% in November to a level of 1.00 million but are 35.1% below the year-ago surge. The median price in the Midwest was $138,900, down 1.1% from November 2009.
In the South, existing-home sales rose 2.9% to an annual pace of 1.76 million in November but are 26.1% below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6% from a year ago.
Existing-home sales in the West jumped 11.7% to an annual level of 1.15 million in November but are 19.0% below the sales peak in November 2009. The median price in the West was $212,500, up 0.4% from a year ago.
Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
Yun added that home buyers are responding to improved affordability conditions.
“The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011.”
The national median existing-home price for all housing types was $170,600 in November, up 0.4% from November 2009. Distressed homes have been a fairly stable market share, accounting for 33% of sales in November; they were 34% in October and 33% in November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15% in November, while short sales were discounted 10% in comparison with traditional home sales.
Total housing inventory at the end of November fell 4.0% to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30% in November from a record low 4.23% in October; the rate was 4.88% in November 2009.
“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”
A parallel NAR practitioner survey shows first-time buyers purchased 32% of homes in November, the same as in October, but are below a 51% share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19% of transactions in November, also unchanged from October, but are up from 12% in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31% in November, up from 29% in October and 19% a year ago. “The elevated level of all-cash transactions continues to reflect tight credit market conditions,” Yun said.
Single-family home sales rose 6.7% to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3% below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2% above a year ago.
Existing condominium and co-op sales declined 1.9% to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2% below the 782,000-unit tax credit rush one year ago. The median existing condo price was $165,300 in November, down 5.5% from November 2009. “At the current stage of the housing cycle, condos are offering better deals for bargain hunters,” Yun said.
Regionally, existing-home sales in the Northeast rose 2.7% to an annual pace of 770,000 in November but are 33.0% below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2% higher than a year ago.
Existing-home sales in the Midwest increased 6.4% in November to a level of 1.00 million but are 35.1% below the year-ago surge. The median price in the Midwest was $138,900, down 1.1% from November 2009.
In the South, existing-home sales rose 2.9% to an annual pace of 1.76 million in November but are 26.1% below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6% from a year ago.
Existing-home sales in the West jumped 11.7% to an annual level of 1.15 million in November but are 19.0% below the sales peak in November 2009. The median price in the West was $212,500, up 0.4% from a year ago.
More Reasons To Love Denver
I thought I would do a little different blog today. After being with my family in Louisiana for the holidays, I cannot tell you how great it was to get back to Denver, my home. I adore this city and everything it has to offer. The friends I spoke with in which Denver came up, they agreed that it is a progressive city with many wonderful things to do. This article was in the Denver Business Journal and I wanted to pass along...more reasons to be thankful we live here.
Denver is the nation's sixth-best city for business out of 102 major metro areas, MarketWatch declares in its annual ranking.
"[A] perennial top 10 city, Denver continues to attract businesses of all types looking for quality of life," the business-news-and-information website says.
It says Denver "seems to have no trouble attracting new companies," noting the recent decision by kidney-care giant DaVita Inc. (NYSE: DVA) to locate its headquarters here.
MarketWatch, which has compiled its ranking for four years, evaluated 102 large cities, using a variety of measures that break down into two categories: "company score," the concentration of businesses within a metro area, and "economic score," which takes into account unemployment, job growth, population growth, personal income and local gross domestic product.
It said it used more metric categories this year than before, partly to better reflect tourism business and the economic impact of military bases.
Denver's total score is 980, its company score is 599, and its economic score is 381.
Denver's company score is second-highest of the 102 cities, after Minneapolis' 601. That may surprise some locals, since the common wisdom is that the Mile High City is home to fewer large company headquarters than other cities its size.
Nevertheless, "the region is among the top 20 in six of the seven metrics that measure concentration of companies," MarketWatch's Russ Britt writes.
But MarketWatch downgrades Denver on personal income and in change in employment. "Its jobless rate rose half a percentage point" from last year, Britt says.
Denver ranked seventh in MarketWatch's 2009 best-cities-for-business ranking, third in 2008 and second in 2007.
Denver has done well recently in business, economic and career rankings. In November, career search engine Juju.com rated it the ninth-best city for job seekers. In October, the CareerCast.com/JobSerf Index placed Denver ninth as a place to find a managerial position. Businessweek in July called Denver the nation's eighth-best city for college grads to find work. And Forbes in June ranked Denver America's eighth-best city for young professionals.
MarketWatch ranks Colorado Springs No. 54 overall, with a total score of 715, a company score of 312 and an economic score of 403.
The top city is Washington, D.C., with a total score of 1100, a company score of 585 and an economic score of 515.
"Washington has made the most out of having the U.S. government, a very large customer for any company, to keep it chugging during the tough times," Britt writes. "But the region also has seen massive expansion in suburban towns in Virginia and Maryland over the years that has boosted its economy."
Rounding out the top 10 after Washington are Omaha, Neb.; Boston; Des Moines, Iowa; Minneapolis; Denver; Richmond, Va.; New York; Harrisburg, Pa.; and Seattle.
Fresno, Calif. is at the bottom of the list at No. 102.
Denver is the nation's sixth-best city for business out of 102 major metro areas, MarketWatch declares in its annual ranking.
"[A] perennial top 10 city, Denver continues to attract businesses of all types looking for quality of life," the business-news-and-information website says.
It says Denver "seems to have no trouble attracting new companies," noting the recent decision by kidney-care giant DaVita Inc. (NYSE: DVA) to locate its headquarters here.
MarketWatch, which has compiled its ranking for four years, evaluated 102 large cities, using a variety of measures that break down into two categories: "company score," the concentration of businesses within a metro area, and "economic score," which takes into account unemployment, job growth, population growth, personal income and local gross domestic product.
It said it used more metric categories this year than before, partly to better reflect tourism business and the economic impact of military bases.
Denver's total score is 980, its company score is 599, and its economic score is 381.
Denver's company score is second-highest of the 102 cities, after Minneapolis' 601. That may surprise some locals, since the common wisdom is that the Mile High City is home to fewer large company headquarters than other cities its size.
Nevertheless, "the region is among the top 20 in six of the seven metrics that measure concentration of companies," MarketWatch's Russ Britt writes.
But MarketWatch downgrades Denver on personal income and in change in employment. "Its jobless rate rose half a percentage point" from last year, Britt says.
Denver ranked seventh in MarketWatch's 2009 best-cities-for-business ranking, third in 2008 and second in 2007.
Denver has done well recently in business, economic and career rankings. In November, career search engine Juju.com rated it the ninth-best city for job seekers. In October, the CareerCast.com/JobSerf Index placed Denver ninth as a place to find a managerial position. Businessweek in July called Denver the nation's eighth-best city for college grads to find work. And Forbes in June ranked Denver America's eighth-best city for young professionals.
MarketWatch ranks Colorado Springs No. 54 overall, with a total score of 715, a company score of 312 and an economic score of 403.
The top city is Washington, D.C., with a total score of 1100, a company score of 585 and an economic score of 515.
"Washington has made the most out of having the U.S. government, a very large customer for any company, to keep it chugging during the tough times," Britt writes. "But the region also has seen massive expansion in suburban towns in Virginia and Maryland over the years that has boosted its economy."
Rounding out the top 10 after Washington are Omaha, Neb.; Boston; Des Moines, Iowa; Minneapolis; Denver; Richmond, Va.; New York; Harrisburg, Pa.; and Seattle.
Fresno, Calif. is at the bottom of the list at No. 102.
Sunday, December 19, 2010
What Is Happening With Housing Starts At This Time?
Nationwide housing starts rose 3.9% in November 2010 to a seasonally adjusted annual rate of 555,000 units from an upwardly revised number in the previous month, according to newly released data from the U.S. Commerce Department. This marked the first upward movement in new-home production since August, and was entirely attributable to a nearly 7% gain in single-family home building.
“Builders are very cautiously adding to their diminished inventories in preparation for the spring buying season and an anticipated modest revival in buyer demand when the economy shows more signs of improvement,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Michigan. “That said, we are still looking at a very low level of housing production, due largely to builders’ inability to obtain construction financing.”
“The modest increase in single-family starts and permits in November is consistent with a very low inventory of unsold new homes and our member surveys that have shown a degree of optimism among builders with regard to sales expectations in the next six months,” said NAHB Chief Economist David Crowe. “However, builders continue to find it extremely difficult to obtain credit for acquisition, development and construction activities, and this is weighing on their ability to initiate viable new projects that could generate much-needed job growth.”
The 3.9% gain in overall housing starts this November was due entirely to a 6.9% increase to a 465,000 unit seasonally adjusted annual rate of new-home production on the single-family side. Meanwhile, multifamily housing starts declined 9.1% to a 90,000-unit rate.
Regionally, starts activity showed gains in all but one part of the country in November. The Midwest, South and West each posted gains, of 15.8%, 2.3% and 2.1%, respectively, while the Northeast posted a 2.5% decline.
Permit issuance, which can be an indicator of future building activity, declined 4% to a seasonally adjusted annual rate of 530,000 units in November, its lowest level since April 2009. However, this decline was entirely due to a 23% drop-off in the more volatile multifamily sector, where permits hit a seasonally adjusted annual rate of just 114,000 units. In contrast, single-family permits rose 3% to a rate of 416,000 units—their highest level since this June.
Regionally, permit activity was mixed in November, with the Northeast and Midwest registering declines of 8.3% and 22.2%, respectively, and the South and West posting gains of 1.9% and 2.7%, respectively.
“Builders are very cautiously adding to their diminished inventories in preparation for the spring buying season and an anticipated modest revival in buyer demand when the economy shows more signs of improvement,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Michigan. “That said, we are still looking at a very low level of housing production, due largely to builders’ inability to obtain construction financing.”
“The modest increase in single-family starts and permits in November is consistent with a very low inventory of unsold new homes and our member surveys that have shown a degree of optimism among builders with regard to sales expectations in the next six months,” said NAHB Chief Economist David Crowe. “However, builders continue to find it extremely difficult to obtain credit for acquisition, development and construction activities, and this is weighing on their ability to initiate viable new projects that could generate much-needed job growth.”
The 3.9% gain in overall housing starts this November was due entirely to a 6.9% increase to a 465,000 unit seasonally adjusted annual rate of new-home production on the single-family side. Meanwhile, multifamily housing starts declined 9.1% to a 90,000-unit rate.
Regionally, starts activity showed gains in all but one part of the country in November. The Midwest, South and West each posted gains, of 15.8%, 2.3% and 2.1%, respectively, while the Northeast posted a 2.5% decline.
Permit issuance, which can be an indicator of future building activity, declined 4% to a seasonally adjusted annual rate of 530,000 units in November, its lowest level since April 2009. However, this decline was entirely due to a 23% drop-off in the more volatile multifamily sector, where permits hit a seasonally adjusted annual rate of just 114,000 units. In contrast, single-family permits rose 3% to a rate of 416,000 units—their highest level since this June.
Regionally, permit activity was mixed in November, with the Northeast and Midwest registering declines of 8.3% and 22.2%, respectively, and the South and West posting gains of 1.9% and 2.7%, respectively.
Wednesday, December 15, 2010
How can I keep an eye on my roof throughout the year?
If you think roof leaks are only a problem if you live in a climate with frequent rain, think again. While roofing problems are obviously most often caused or exacerbated by rain, there are other just as insidious, but lesser-known, sources that contribute to roof leak issues. Whether you’ve got a new home or an older one, most roof shingles, on average, can go 15 years without needing repair—but that doesn’t mean you should set the alarm for a decade and a half and forget about it. A roof can get in bad shape well before the 15-year mark, and the longer you wait to repair it, the more expensive the repair will likely be.
To keep repair costs as minimal as possible, be aware of some problems that can cause serious roof leaks, and stop them at the source whenever possible to prolong your roof’s life. If you aren’t experienced with home repairs, it’s a good idea—for safety’s sake—to call in a professional home inspector to assess the damage, and a trusted repair person to fix it correctly. And if you’re in the home buying or selling process and a home inspector is required anyway, choose a professionally trained inspector who knows the importance of checking for all of the following problems, which can contribute to leaks:
1. Incorrect shingle installation. Don’t rely on looks alone; even the strongest shingles won’t stand up to rain if they’re not properly installed. Improper joint locations and a lack of underlay are two issues that are particularly hard to see, but can be extremely problematic.
2. Structural sagging. A sagging roof structure is often the result of moisture retention, and nearly always foreshadows, or coincides with, a leak issue.
3. Water “ponding.” Clogged roof drains and indented areas on flat roofs can cause water pooling—which is basically a leak waiting to happen.
4. Damaged nails. Even on shingles that have been expertly installed, nails are the first thing to show wear. Corroding nails leave microscopic holes that invite water in.
5. Improperly hung gutters. Gutter placement is critical, and if you’re in an area with strong wind, just a tiny shift can tamper with the gutter system and divert rain—meant for the gutter—onto the roof.
6. Moss. You might think it’s just an aesthetic problem, but as moss gathers, it retains more and more moisture that you might not be able to see—until it starts dripping into the attic.
7. Insufficient insulation. The roof might look great on the outside, but if it’s not properly insulated underneath, you’re in trouble. Pre-1980s homes, in particular, may not have an adequate vapor barrier; if they don’t, a replacement is warranted—surface patching and minor repairs will just amount to wasted money.
8. A deteriorating chimney. Whether its cracks, eroded joints or a decaying cap, the chimney has plenty of inroads for moisture and water. Don’t discount the chimney; sometimes it might need all the repairs, when the roof might be just fine.
9. Evidence of badly-done past repairs. From improper plastering to inadequately plugged-up holes, any past repairs that look like they’re DIY are probably not up to code, and are just a stopgap measure. Don’t look to them to provide any leak protection in the future. Have a professional inspector evaluate these half-hearted fixes, and suggest ways to re-do them properly, to prolong the roof’s life.
10. Don’t forget the attic. Leaks into the attic aren’t just a problem; but so are leaks originating in the attic. One of the most important precautions: Don’t terminate any vent or exhaust pipes in the attic.
To keep repair costs as minimal as possible, be aware of some problems that can cause serious roof leaks, and stop them at the source whenever possible to prolong your roof’s life. If you aren’t experienced with home repairs, it’s a good idea—for safety’s sake—to call in a professional home inspector to assess the damage, and a trusted repair person to fix it correctly. And if you’re in the home buying or selling process and a home inspector is required anyway, choose a professionally trained inspector who knows the importance of checking for all of the following problems, which can contribute to leaks:
1. Incorrect shingle installation. Don’t rely on looks alone; even the strongest shingles won’t stand up to rain if they’re not properly installed. Improper joint locations and a lack of underlay are two issues that are particularly hard to see, but can be extremely problematic.
2. Structural sagging. A sagging roof structure is often the result of moisture retention, and nearly always foreshadows, or coincides with, a leak issue.
3. Water “ponding.” Clogged roof drains and indented areas on flat roofs can cause water pooling—which is basically a leak waiting to happen.
4. Damaged nails. Even on shingles that have been expertly installed, nails are the first thing to show wear. Corroding nails leave microscopic holes that invite water in.
5. Improperly hung gutters. Gutter placement is critical, and if you’re in an area with strong wind, just a tiny shift can tamper with the gutter system and divert rain—meant for the gutter—onto the roof.
6. Moss. You might think it’s just an aesthetic problem, but as moss gathers, it retains more and more moisture that you might not be able to see—until it starts dripping into the attic.
7. Insufficient insulation. The roof might look great on the outside, but if it’s not properly insulated underneath, you’re in trouble. Pre-1980s homes, in particular, may not have an adequate vapor barrier; if they don’t, a replacement is warranted—surface patching and minor repairs will just amount to wasted money.
8. A deteriorating chimney. Whether its cracks, eroded joints or a decaying cap, the chimney has plenty of inroads for moisture and water. Don’t discount the chimney; sometimes it might need all the repairs, when the roof might be just fine.
9. Evidence of badly-done past repairs. From improper plastering to inadequately plugged-up holes, any past repairs that look like they’re DIY are probably not up to code, and are just a stopgap measure. Don’t look to them to provide any leak protection in the future. Have a professional inspector evaluate these half-hearted fixes, and suggest ways to re-do them properly, to prolong the roof’s life.
10. Don’t forget the attic. Leaks into the attic aren’t just a problem; but so are leaks originating in the attic. One of the most important precautions: Don’t terminate any vent or exhaust pipes in the attic.
Tuesday, December 14, 2010
Thinking About Purchasing a Condo With a FHA Loan?
I work with many buyers that choose to obtain FHA loans. This type of loan is backed by the government and still offers a lower rate in relation to a conventional loan, plus the opportunity to put a lesser down payment on the home. That being said, in order to avoid headaches if you are thinking about going under contract on a condominium residence, it is best to find out if the condo building is FHA approved before writing the offer. In my experience, FHA loans take a bit longer than conventional loans and there are also additional requirements that need to be met in order for the loan to be approved. For any questions on these additional requirements, please let me know. At this time, FHA project approval is a crucial step in selling condominiums in today's market.
This article from RISMEDIA explains more: Earlier this year, the FHA required all condominium developments to have their developments approved as a prerequisite to lending. Without “Project Approval,” the FHA would no longer insure loans, effectively stopping FHA lending within effected developments.
The FHA loan has become the choice of many, if not most buyers, due to its highly affordable 3.5% down payment. Without Project Approval, the FHA loan and other FHA backed loan products will no longer be available in non-approved condominium developments including loans for refinance, debt consolidation and reverse mortgages.
Under guidance issued by FHA, developments granted project approval prior to January 1, 2008 had until December 7, 2010 to recertify or lose their approved status. Research reveals that to-date, most condos have not recertified.
According to Orest Tomaselli, CEO of National Condo Advisors, LLC, a consulting firm specializing in condominium project approval, the elimination of FHA lending in condominium developments will make selling condominiums more difficult, especially in today’s already challenging real estate markets. “We are seeing a ‘Perfect Storm’ forming in the condominium market.”
Tomaselli is referring to today’s lower number of transactions, lower prices, looming foreclosures and near-record unemployment. “When we see reduced lending in this sector of the housing market, we have to recognize that we will be facing harder times,” he said. “However, there is a solution.”
“Without FHA Project Approval, lenders must decline loan applicants applying for FHA loans as FHA will no longer insure loans in that condominium. The solution will be for the condominium to re-certify their project approval. FHA loan products will become available immediately upon approval restoring the availability of credit within the development.”
Tomaselli advises many, if not most, of his consulting clients to seriously consider FHA Project Approval to create such credit.
Monday, December 13, 2010
What can we expect for the real estate market moving forward?
What should we expect moving forward is a question I get asked often. Although we cannot completely predict the future, past market knowledge is a good indicator of what's to come. I liked this article from Trulia and RealtyTrac and thought it was worth sharing. 58% of Americans expect the housing market to recover after 2012.
Trulia.com, a top site for home buyers, sellers and renters, and RealtyTrac, a leading online marketplace for foreclosure properties released the latest results of an ongoing survey tracking home buyers’ attitudes toward foreclosed homes. Results of the survey conducted online from November 2-4, 2010 by Harris Interactive on behalf on Trulia and RealtyTrac showed that Americans continue to grapple with uncertainty about the housing market, with 58% of U.S. adults expecting recovery to take at least another two years.
As a result of the recent robo-signing debacle, half of U.S. adults expressed that they now have less faith in mortgage lenders, banks and the government. Another 35% believe the robo-signing issue will delay the housing market’s recovery, while only 6% of U.S. adults think the robo-signing issue will have no effect on the recovery of the housing market.
“More and more, American homeowners, -sellers and -buyers are tamping down their expectations for a swift recovery in the housing market and bracing themselves for a long, slow climb back to a healthy real estate market. Fifty-eight percent believe recovery will happen after 2012 and more than one in five U.S. adults believe recovery won’t happen until 2015 or later,” said Pete Flint, co-founder and CEO, Trulia. “Government incentives have come and gone and historic lows in interest rates have done little to spur recovery. Then, as if prospective buyers and sellers needed more to be concerned about, the robo-signing issue caused a ‘what’s next?’ fear to surface in the minds of consumers who, frankly, have lost faith in banks and their government to make good decisions.”
Nearly half (48%) of homeowners with a mortgage admitted that they would consider walking away if their mortgage was under water, an increase compared with May 2010, when only 41% said they would consider walking away if their mortgage was under water. Interestingly, men (57%) are more likely than women (40%) to consider strategic default as an option for dealing with negative equity.
If they became unable to pay the mortgage payments on their current primary residence, two-thirds of U.S. adults with mortgages said they would consider calling the lender and trying to modify the terms of the loan as their first option. The next most popular solution is to have a tenant move in to contribute to the mortgage, but only 10% of U.S. adults would do this.
Nearly half (49%) of U.S. adults are at least somewhat likely to consider purchasing a foreclosed property, up from 45% in May 2010. Despite the rising interest in buying a foreclosed home, an increasing number of U.S. adults also recognize negative aspects to buying a foreclosure. Over the past six months, the number of U.S. adults who believe there are downsides to buying foreclosed properties has increased to 81%, from 78% in May 2010.
Two-thirds (67%) of U.S. adults would expect to pay at least 30% less for a foreclosed home than a similar home that was not in foreclosure, and one-third of U.S. adults (35%) would expect to pay at least 50% less for a foreclosed home. Overall, 97% of U.S. adults would expect at least some discount on a foreclosed home.
“It seems like consumer expectations and market realities are beginning to align when it comes to foreclosure discounts,” said Rick Sharga, senior vice president, RealtyTrac. “During the third quarter, foreclosure homes sold for an average of 32% less than homes not in foreclosure. It’s also not surprising that we’ve seen an increase in negative sentiment toward foreclosure purchases, where the recent robo-signing controversy has added more confusion to an already complicated process.”
Trulia.com, a top site for home buyers, sellers and renters, and RealtyTrac, a leading online marketplace for foreclosure properties released the latest results of an ongoing survey tracking home buyers’ attitudes toward foreclosed homes. Results of the survey conducted online from November 2-4, 2010 by Harris Interactive on behalf on Trulia and RealtyTrac showed that Americans continue to grapple with uncertainty about the housing market, with 58% of U.S. adults expecting recovery to take at least another two years.
As a result of the recent robo-signing debacle, half of U.S. adults expressed that they now have less faith in mortgage lenders, banks and the government. Another 35% believe the robo-signing issue will delay the housing market’s recovery, while only 6% of U.S. adults think the robo-signing issue will have no effect on the recovery of the housing market.
“More and more, American homeowners, -sellers and -buyers are tamping down their expectations for a swift recovery in the housing market and bracing themselves for a long, slow climb back to a healthy real estate market. Fifty-eight percent believe recovery will happen after 2012 and more than one in five U.S. adults believe recovery won’t happen until 2015 or later,” said Pete Flint, co-founder and CEO, Trulia. “Government incentives have come and gone and historic lows in interest rates have done little to spur recovery. Then, as if prospective buyers and sellers needed more to be concerned about, the robo-signing issue caused a ‘what’s next?’ fear to surface in the minds of consumers who, frankly, have lost faith in banks and their government to make good decisions.”
Nearly half (48%) of homeowners with a mortgage admitted that they would consider walking away if their mortgage was under water, an increase compared with May 2010, when only 41% said they would consider walking away if their mortgage was under water. Interestingly, men (57%) are more likely than women (40%) to consider strategic default as an option for dealing with negative equity.
If they became unable to pay the mortgage payments on their current primary residence, two-thirds of U.S. adults with mortgages said they would consider calling the lender and trying to modify the terms of the loan as their first option. The next most popular solution is to have a tenant move in to contribute to the mortgage, but only 10% of U.S. adults would do this.
Nearly half (49%) of U.S. adults are at least somewhat likely to consider purchasing a foreclosed property, up from 45% in May 2010. Despite the rising interest in buying a foreclosed home, an increasing number of U.S. adults also recognize negative aspects to buying a foreclosure. Over the past six months, the number of U.S. adults who believe there are downsides to buying foreclosed properties has increased to 81%, from 78% in May 2010.
Two-thirds (67%) of U.S. adults would expect to pay at least 30% less for a foreclosed home than a similar home that was not in foreclosure, and one-third of U.S. adults (35%) would expect to pay at least 50% less for a foreclosed home. Overall, 97% of U.S. adults would expect at least some discount on a foreclosed home.
“It seems like consumer expectations and market realities are beginning to align when it comes to foreclosure discounts,” said Rick Sharga, senior vice president, RealtyTrac. “During the third quarter, foreclosure homes sold for an average of 32% less than homes not in foreclosure. It’s also not surprising that we’ve seen an increase in negative sentiment toward foreclosure purchases, where the recent robo-signing controversy has added more confusion to an already complicated process.”
Tuesday, December 7, 2010
What are Some Crafty Ideas for Winter Curb Appeal?
During summer months when gardens are in bloom and the sun is shining bright, curb appeal comes naturally to many homes. But when the autumn chill turns to winter cold and the sun sets earlier in the day, it becomes more difficult to create that inviting exterior look that grabs buyers from the curb.
Fortunately, it is possible to create striking winter curb appeal without expensive or complicated exterior changes, says Charlene Storozuk, a home stager and designer with Dezigner Digz in Burlington, Ontario-a city that averages 51 inches of snow per year. It just requires a little creativity. She and other home-design experts offer these eight tips.
1. Add splashes of green and purple.
Plants, grasses, and evergreens can liven up a home's winter landscape. Experiment with tall grasses, such as fountain grasses, that survive harsh winters. And in late fall and early winter, plants from the cabbage family add a vibrant purple color. Make the front door the focal point with a large wreath adorned with a colorful ribbon. To finish the look, place large, colorful planters filled with evergreens beside the front door.
2. Give it seasonal sparkle.
Transform an unused bird bath or fountain into a seasonal display by adding twigs with red berries. Or fill frost-resistant urns with twigs, winter greenery, and sparkly baubles (sold at most craft stores). For extra sparkle, roll twigs in glitter and incorporate a gazing ball-a mirrored glass ball available in various colors-into the display.
3. Light it bright.
During the winter, it's more likely that buyers will be viewing homes after sunset. Use clear flood spotlights to focus on the home's architectural features. Keep exterior lighting fixtures at maximum wattage and clean them regularly. When snow covers the ground, take photos of your home at night with all of the interior lights on-the light bounces off the white snow to create a warm, inviting glow. For the best results, turn off the flash.
4. Show off the lifestyle.
Just because it's cold outside doesn't mean you can't use the deck. Shovel your backyard sitting area and leave your grill uncovered for showings so buyers can envision themselves using the space.
5. Make the deck the extension of the house.
Set up your outdoor tables and chairs just as you would in warmer months. "Home owners often cover their furniture and place lawn objects haphazardly on the deck," says Kitty Schwartz, president and owner of Classic Home Staging in Katonah, N.Y. For added appeal, she adds a weatherproof cafe set with pillows that play off of interior accent colors. "Glancing out onto this type of vignette can make the indoor space feel larger and more interesting," she says.
6. Create a photo display of sunnier days.
Show buyers what the outside of the home looks like during other seasons by displaying some landscape photos in frames or using a digital photo frame with a slide show of images. "This will give a sense of what the property looks like at other times of the year," Storozuk says. If the home has a garden, make a list of what is planted where. Perennials can be expensive, so treat them as a selling feature.
7. Don't forget a clear path.
If the ground is covered in snow, the simplest and most important thing you can do is shovel the driveway and sidewalks and keep the home's patios and decks as clear as possible so buyers can get a sense of their true size.
Monday, December 6, 2010
The Road To "Normalcy"
Recently, I had the chance to hear Lawrence Yun, the National Association of Realtors Chief Economist. He is very knowledgeable on the overall housing market and had some good thoughts I wanted to share with you all. I think it is great information!
Prior to the recent mid-term elections consumers expressed their troubling unhappiness about their situations. The index measuring confidence about consumers' present situation, which is based primarily on questions related to the economy, job and personal finances, was 23.9 in October. That is much lower than the neutral 100 mark and essentially at near historic lows-even matching the levels at the depth of the recessions in the early 1980s and early 1990s.
Of course, Americans are a tough-minded people who understand that bad events occur sometimes, but they are also always ready to pick themselves up. However, what is different this time around is that consumer are decidedly less optimistic about the future. Consider-the consumer confidence index about future expectations is currently 67.8, not as bad as the "present conditions" index, but much loser than the reading of 115 in 1983 when the economy also suffered from the same 9.6 percent unemployment rate that is occurring today.
Businesses through their actions have also expressed less confidence about the economy. Corporate profits are back up to their peak before the recession, yet business spending has been lackluster. Companies are just sitting on cash and not redeploying that cash back into the economy.
Meanwhile, the housing market is trying to scratch out a decent recovery under its own power without any federal stimulus of a home-buyer tax credit. Existing-home sales (actual closings and not contracts) rose to 4.5 million units (seasonally adjusted annualized rate) in September, a solid 17 percent cumulative gain over two months following the big tumble in July when the tax credit was no longer in effect. Home sales would need to rise to at least the 5-million unit mark to be considered "back to normal" under present circumstances where the total number of jobs is equal to that in the year 2000. Back then, existing-home sales registered 5.2 million units and so 2000 would also have been considered a very normal year without any hints of a housing bubble. The 7.1 million bubble-ish home sales of 2005 is long gone and will not return until both population and job growth over many years can rightly justify such levels.
The currently anticipated housing recovery is about returning to normalcy. All data point toward the market being back to fundamentally justifiable levels. The home price bubble has been fully deflated. The cost of constructing new homes is measurably higher compered to buying a nearly identical existing one. Home sales in relation to total jobs are back to normal. Home price to income ratio is slightly below historical trends, signaling a slight over correction.
the return to normalcy, however, will not be a straight upward path. We've seen evidence of that already. September's pending home sales (i.e., contract signings) took a step back after two consecutive months of increases. This type of trend-two steps forward and one step back-is likely to occur in the coming year as well. The underlying fundamentals of rising demand are present in the forms of compelling affordability condition and from job creation. But while investors appear eager to "get in" as well, they are being hampered by very tight mortgage availability for non-owner occupancy loan. In addition, the hiccups to recovery will also arise from market swings in economic data and from a a flow of foreclosed/REO properties reaching the market.
Yes, there was some good news on the job market in October with the creation of 151,000 net new jobs. Indeed, the job market has clearly turned the corner. Since January, about one million private sector jobs have been created. The pace, however, needs to kick into a higher gear. At the current job creation pace, the economy is just treading water and there will be no meaningful improvement in the unemployment rate.
The mortgage rates are at rock bottom, but are still likely to head higher. Even after the announcement of a second try at 'quantitative easing' by the Federal Reserve (QE2 in today's vernacular), which means more purchases of government bonds with freshly printed money, the long-term government borrowing rate rose, perhaps out of future inflationary fears. The 10-year and 30-year Treasury yields in mid-November were 2.6 percent and 4.2 percent, respectively. That is up from 2.4 percent and 3.7 percent, respectively, one month prior.
The QE2 attempt to keep long-term rates lower, which may or may not be working, is inconsequential to the market compared to the importance of returning lending standards to normal from their overly stringent rules currently. A well-known banker's axiom says that all bad loans are made in good times. Today's defaulting mortgages were invariably originated during the bubble years with lax underwriting standards. Both FHA-along with Fannie Mae and Freddie Mac-are reporting that those mortgages originated in the past two years are performing quite well. But the continuing anecdotal stories of good credit-worthy consumers being denied a mortgage probably hint at unreasonably tight underwriting standards.
We certainly don't want to return to any lax standards, but denying mortgages to those who are capable of making payments is holding back a true recover in both the housing market and the broader economy.
The baseline forecast is for existing-home sales to rise 6 percent in 2011 to 5.1 million units-up from 4.8 million in 2010. new home sales will rise to 400,000 in 2011 from 300,000 this year-a big increase in percentage therms but still well below normal yearly sales activity. Home values overall are not likely to move in any measurable way, up or down. We are lucky to be in Denver, where home prices in the metro area are up 2% from this time last year.
Prior to the recent mid-term elections consumers expressed their troubling unhappiness about their situations. The index measuring confidence about consumers' present situation, which is based primarily on questions related to the economy, job and personal finances, was 23.9 in October. That is much lower than the neutral 100 mark and essentially at near historic lows-even matching the levels at the depth of the recessions in the early 1980s and early 1990s.
Of course, Americans are a tough-minded people who understand that bad events occur sometimes, but they are also always ready to pick themselves up. However, what is different this time around is that consumer are decidedly less optimistic about the future. Consider-the consumer confidence index about future expectations is currently 67.8, not as bad as the "present conditions" index, but much loser than the reading of 115 in 1983 when the economy also suffered from the same 9.6 percent unemployment rate that is occurring today.
Businesses through their actions have also expressed less confidence about the economy. Corporate profits are back up to their peak before the recession, yet business spending has been lackluster. Companies are just sitting on cash and not redeploying that cash back into the economy.
Meanwhile, the housing market is trying to scratch out a decent recovery under its own power without any federal stimulus of a home-buyer tax credit. Existing-home sales (actual closings and not contracts) rose to 4.5 million units (seasonally adjusted annualized rate) in September, a solid 17 percent cumulative gain over two months following the big tumble in July when the tax credit was no longer in effect. Home sales would need to rise to at least the 5-million unit mark to be considered "back to normal" under present circumstances where the total number of jobs is equal to that in the year 2000. Back then, existing-home sales registered 5.2 million units and so 2000 would also have been considered a very normal year without any hints of a housing bubble. The 7.1 million bubble-ish home sales of 2005 is long gone and will not return until both population and job growth over many years can rightly justify such levels.
The currently anticipated housing recovery is about returning to normalcy. All data point toward the market being back to fundamentally justifiable levels. The home price bubble has been fully deflated. The cost of constructing new homes is measurably higher compered to buying a nearly identical existing one. Home sales in relation to total jobs are back to normal. Home price to income ratio is slightly below historical trends, signaling a slight over correction.
the return to normalcy, however, will not be a straight upward path. We've seen evidence of that already. September's pending home sales (i.e., contract signings) took a step back after two consecutive months of increases. This type of trend-two steps forward and one step back-is likely to occur in the coming year as well. The underlying fundamentals of rising demand are present in the forms of compelling affordability condition and from job creation. But while investors appear eager to "get in" as well, they are being hampered by very tight mortgage availability for non-owner occupancy loan. In addition, the hiccups to recovery will also arise from market swings in economic data and from a a flow of foreclosed/REO properties reaching the market.
Yes, there was some good news on the job market in October with the creation of 151,000 net new jobs. Indeed, the job market has clearly turned the corner. Since January, about one million private sector jobs have been created. The pace, however, needs to kick into a higher gear. At the current job creation pace, the economy is just treading water and there will be no meaningful improvement in the unemployment rate.
The mortgage rates are at rock bottom, but are still likely to head higher. Even after the announcement of a second try at 'quantitative easing' by the Federal Reserve (QE2 in today's vernacular), which means more purchases of government bonds with freshly printed money, the long-term government borrowing rate rose, perhaps out of future inflationary fears. The 10-year and 30-year Treasury yields in mid-November were 2.6 percent and 4.2 percent, respectively. That is up from 2.4 percent and 3.7 percent, respectively, one month prior.
The QE2 attempt to keep long-term rates lower, which may or may not be working, is inconsequential to the market compared to the importance of returning lending standards to normal from their overly stringent rules currently. A well-known banker's axiom says that all bad loans are made in good times. Today's defaulting mortgages were invariably originated during the bubble years with lax underwriting standards. Both FHA-along with Fannie Mae and Freddie Mac-are reporting that those mortgages originated in the past two years are performing quite well. But the continuing anecdotal stories of good credit-worthy consumers being denied a mortgage probably hint at unreasonably tight underwriting standards.
We certainly don't want to return to any lax standards, but denying mortgages to those who are capable of making payments is holding back a true recover in both the housing market and the broader economy.
The baseline forecast is for existing-home sales to rise 6 percent in 2011 to 5.1 million units-up from 4.8 million in 2010. new home sales will rise to 400,000 in 2011 from 300,000 this year-a big increase in percentage therms but still well below normal yearly sales activity. Home values overall are not likely to move in any measurable way, up or down. We are lucky to be in Denver, where home prices in the metro area are up 2% from this time last year.
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