Merry Christmas!

 

All of us at Melissa Home Lending join in sending you best wishes for the holiday and the new year!

Home Sales During Housing Bust Worse Than Thought

 

" Existing home sales during the housing bust were actually 14.3% worse than previously reported, a revision to Realtors' group numbers shows.

On Wednesday, the National Association of Realtors (NAR) revised home sale counts back to 2007 due to flaws in their original data analysis. 

In 2007, there were actually just 5.04 million existing home sales, 11% less than the 5.65 million originally reported. Even worse were 2008 and 2009, when there were 16% fewer sales than originally reported. Sales in 2010 were 15% lower.

"The errors started in 2007 and continued to accumulate over time," said Lawrence Yun, NAR's chief economist.

The accuracy of the data is important. Private companies like residential real estate developers rely on it for planning and policy makers make decisions based on it. 

HOME BUILDING SPIKES HIGHER

The data is "key to the economic outlook," said Mark Zandi of Moody's Analytics, "and the revisions help to explain the severity of the housing crash."

David Crowe, chief economist for the National Association of Home Builders, said its members use existing home sales as reported by NAR as a gauge of the overall health of the housing market." [Continue reading...]

Mortgage Rates Fall to Record Lows

 

"Mortgage rates sunk to record lows again this week.

The average rate on the 30-year fixed mortgage fell to 3.94%, matching the all-time low hit in early October, according to Freddie Mac's weekly mortgage rate survey. Meanwhile, 15-year fixed-rate loans hit a new record low of 3.21%, surpassing the record set on October 6. 

Five-year adjustable rate mortgages also plumbed new depths, hitting 2.86% for the week.

"We've been hanging around record lows for a few months now and we finally hit another one," said Keith Gumbinger of HSH Associates, a provider of mortgage data.

Low-interest mortgages will be available at least through mid-2012, according to Freddie Mac's chief economist, Frank Nothaft.

Where homes are affordable

The low rates can translate into big savings for home buyers. Five years ago, a home buyer would have been lucky to land a 5% rate on a 15-year loan. On a $200,000 mortgage, that would have meant the borrower would have paid $1,582 a month. Should a borrower land a 3.2% rate on a $200,000 loan now, the monthly mortgage payment would come to $1,400 -- a savings of $182 a month." [Continue reading...]

Tips for Buying a House

"1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can't put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process." [Continue reading...]

More Student Debt, Fewer Homeowners

"FinAid's Student Loan Debt Clock is just as alarming, in its way, as those clocks that relentlessly tick up the national debt.

The FinAid clock is fast approaching $1 trillion, ratcheting up at the pace of nearly $3,000 per second.Americans owe more on student loans than they do on their credit cards, a switchover that happened last year.

Consider that the amount you can borrow to buy a home depends not only on how much you earn but also how much debt you already have, and you can see what the student-loan boom has to do with the housing market. 

Rick Palacios Jr., senior research analyst at John Burns Real Estate Consulting, wrote recently that homebuilders should beware.

"Faced with mounting student loan debt, poor job prospects and stagnant wages, an increasing amount of 25 to 34 year olds (a prized demographic for the housing sector) have moved back in with their parents," he wrote.

According to Palacios, the number of adults in that age bracket living with parents is up 26 percent since the Great Recession started in late 2007. They're now nearly 6 million strong." [Continue reading...]

Existing Home Sales Report

"Existing U.S. home sales edged up in October, according to the National Association of Realtors, even as mortgage credit continued to be tight.

Total existing home sales increased by 1.4 percent to a seasonally adjusted annual rate of 4.97 million units from a downwardly revised 4.90 million in September. Yearly sales are up as well, by 13.5 percent.

Sales have been tempered by several factors, said NAR chief economist Lawrence Yun. "Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales such as job creation, rising rents and high affordability conditions. Many people who are attempting to buy homes are thwarted in the process," he said.

"In some areas we're hearing about shortages of foreclosure inventory in the lower price ranges with multiple bidding on the more desirable properties," Yun added." Realtors in such areas are calling for a faster process of getting foreclosure inventory into the market because they have ready buyers. In addition, extending credit to responsible investors would help to absorb inventory at an even faster pace, which would go a long way toward restoring market balance."

The national median home price fell once again, declining to $162,500 in October from $165,800 in September. Compared to last year, prices are down 4.7 percent." [Continue reading...]

New-Home Sales Edge Higher

"New-home sales edged slightly higher last month, as more Americans hunted for bargains in the struggling housing market.

                                                                                                                                                                   The Census Bureau reported an annual sales rate of 307,000 new homes last month, up 1.3% from a downwardly revised rate of 303,000 homes in September. Compared to new home sales a year ago, October sales were up 8.9%. 

The 307,000 rate fell just short of expectations. Economists had forecast a sales rate of 312,000 new homes, according to consensus estimates from Briefing.com.

While the higher rate in October indicated that consumers are chipping away at the huge inventory of homes on the market, there's still a long way to go.

There were about 162,000 new homes on the market by the end of October. That represented a 6.3-month supply at the current rate of sale. The median sale price was $212,300. 

Last week, a separate report showed that more house-hunters are also eyeing previously owned homes. Sales of existing homes rose 1.4% in October, slightly more than economists had expected, according to the report." [Continue reading...]

Winterizing Your Home

1) Furnace Inspection

• Call an HVAC professional to inspect your furnace and clean ducts.
• Stock up on furnace filters and change them monthly.
• Consider switching out your thermostat for a programmable thermostat.
• If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
• Remove all flammable material from the area surrounding your furnace.

2) Get the Fireplace Ready

• Cap or screen the top of the chimney to keep out rodents and birds.
• If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote.
• Buy firewood or chop wood. Store it in a dry place away from the exterior of your home.
• Inspect the fireplace damper for proper opening and closing.
• Check the mortar between bricks and tuckpoint, if necessary.

3) Check the Exterior, Doors and Windows

• Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
• Use weatherstripping around doors to prevent cold air from entering the home and caulk windows.
• Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.
• If your home has a basement, consider protecting its window wells by covering them with plastic shields.
• Switch out summer screens with glass replacements from storage. If you have storm windows, install them.

4) Inspect Roof, Gutters & Downspouts

• If your weather temperature will fall below 32 degrees in the winter, adding extra insulation to the attic will prevent warm air from creeping to your roof and causing ice dams.
• Check flashing to ensure water cannot enter the home.
• Replace worn roof shingles or tiles.
• Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
• Consider installing leaf guards on the gutters or extensions on the downspouts to direct water away from the home.

5) Service Weather-Specific Equipment

• Drain gas from lawnmowers.
• Service or tune-up snow blowers.
• Replace worn rakes and snow shovels.
• Clean, dry and store summer gardening equipment.
• Sharpen ice choppers and buy bags of ice-melt / sand. 

[Continue reading...]

Realty Bill May Open New Doors to Transparent, Secure Home Buying

"For many, buying a residential property is the biggest investment they make in their lifetime. Last week, the government released for public comments a draft Real Estate Regulation Bill, which is said to be on its way to becoming a law in the winter session of Parliament. As such, this is a step towards bringing some semblance of consumer protection to the decidedly anti-consumer practices of the real-estate industry. 

However, this news did give me a strong feeling of deja vu. When I googled the phrase 'India real estate regulatory bill', I came across a newspaper article from 2006 saying that a real estate regulatory bill was expected to be passed in the 2006 winter session of Parliament. 

I also came across another article from 2008 that said a real estate regulatory bill was expected to be passed in the 2008 winter session of Parliament. Not just that, I also also came across a draft of a model bill dated September 2009 with a covering letter from a government official attached. 

The letter said that the bill should be put up on the web by November 9, 2009, and comments invited from the public. So, I wouldn't keep my fingers crossed too hard. 

Nonetheless, if and when this bill does become a law, it will be a huge improvement for house-buyers in India. Many, if not most, of the problems associated with buying a house at every step could be solved substantially. 

For example, right at the beginning of the process, buyers face the problem of getting trustworthy information about the identity of the promoter and basic facts regarding the legal and approval status of the land and the project concerned. " [Continue reading...]

How To Prepare Your House For Sale

Prepping and staging a house. Every seller wants her home to sell fast and bring top dollar. Does that sound good to you? Well, it's not luck that makes that happen. It's careful planning and knowing how to professionally spruce up your home that will send home buyers scurrying for their checkbooks. Here is how to prep a house and turn it into an irresistible and marketable home. 

Here's How:

1. Disassociate Yourself With Your Home.
   • Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
   • Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
   • Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
   • Say goodbye to every room.
   • Don't look backwards -- look toward the future.
2. De-Personalize.
   Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
   People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
   • If you don't need it, why not donate it or throw it away?
   • Remove all books from bookcases.
   • Pack up those knickknacks.
   • Clean off everything on kitchen counters.
   • Put essential items used daily in a small box that can be stored in a closet when not in use.
   • Think of this process as a head-start on the packing you will eventually need to do anyway. [Continue reading...]

Happy Thanksgiving!

 

From our family to yours, we would like to wish you a very happy Thanksgiving! Be safe and enjoy the turkey!

Carving the Perfect Turkey

The Best Roast Turkey Recipe For Thanksgiving

Thanksgiving Pet Tips

Home Improvement Tips : Ceramic Tile Installation

How to Build a Compost Pile

Lawn Mower Fall Maintenance and Repair Tips

Home Buying 101 Helps Prepare First-Timers

"James Williamson, an agent with Remax Realty, explains some of the intricacies of home buying to Kristi and Josh Neroni during the Homebuyers Education Course. / Photos by Andrea Stetson/news-press.com

The road to buying a home can be exciting, yet confusing and even scary.

Wading through the maze of mortgage and closing procedures, financial management, inspections and home improvements can be daunting, especially for first-time homebuyers. That's why the Lee County Housing Development Corp. and Realtor Association of Greater Fort Myers and the Beach has a free Homebuyers Education Course.

The eight-hour class can turn the blur of paperwork, finances and responsibilities into something clear and manageable.

The course just reached its second year helping people in Southwest Florida. More than 350 people have taken the class since it began in the fall of 2009. Statistics from the housing corporation show 82 percent of people who go through homebuyer courses don't default on their mortgages.

"It takes you through the whole process," said Treva Gilligan, executive director of the housing corporation.

The course includes information on homeownership readiness and affordability, money and credit management, types of properties and financing available, obtaining a mortgage, the closing processes, and home maintenance and financial management after you've bought your home.

"We tell them to think about long term," Gilligan said. "They need to put money away so they have money when they get into their home."

Participants also learn about the different types of insurance they will need and how to budget for insurance and taxes." [Continue reading...]

Direct-Vent Fireplaces: Buying Guide

"Unlike traditional mortar-and-brick masonry fireplaces with foundations and chimneys, direct-vent units take advantage of zero-clearance technology.

They are prefabricated from metal and designed to be installed in wood-frame construction without a foundation or—and this is the big difference between these and any other fireplace—a chimney.
They burn so efficiently, they can be vented directly out a wall. This means they're much easier and less expensive to install than masonry units and you have much greater flexibility in their placement.

Because they are gas-fired, these units address the serious problem of wood-smoke pollution that grew to crisis proportions in some regions about a decade ago. Unlike wood-burners, these gas fireplaces give off virtually no particulates.

Like all gas-burning fireplaces, they're much easier to use than wood-burning units because you don't have to buy, haul, chop, start, and continually feed wood to the fire. And you don't have to scoop out the ashes or sweep the chimney. With gas, you just turn on the fire with a knob, a switch or even a remote control. Or you can let a thermostat do the job. When in use, they only cost pennies per hour to operate.
Of course, all gas-burning fireplaces have artificial logs, so the big question is: Does the fire look like a wood fire? The only way to set your mind to rest on this issue is to visit a couple of dealers and check out their offerings. You're likely to discover that, although early gas fireplaces had phony-looking fires, new burners and artificial logs are surprisingly realistic. Many produce a very authentic fire with tall, dancing flames and have logs and embers that glow. And, to heighten the effect, you can even buy incense that imitates the aroma of a wood fire.

When shopping for a new gas fireplace, be sure it is lab-certified by an organization that is compliant with your local codes, such as the American Gas Association (AGA). Also be sure that the fireplace is installed according to the manufacturer's directions. If you intend to put it in a bedroom, a mobile home, or at a relatively high elevation, be sure it's approved for that usage." [Continue reading...]

10 Tips for Saving Water in the Garden

Saving water in your garden and yard trims your water bill and saves an increasingly scarce natural resource.
A water-efficient landscape can:

• Reduce outdoor water use by 20% to 50%
• Save up to 10,000 gallons a year
• Shave $30 to $70 off the average annual household water bill.
• Planting drought-tolerant landscaping is one way to turn off the spigot in your garden. Here are other tips for saving water while growing flora.

1. Choose native plants


Native plants have had eons to adjust to the area’s normal rainfall, soil, and climate. Once established, they require little or no watering. Start your research on native plants at your local cooperative extension or botanical garden.


Websites such as eNature.com or H2ouse can help you find the best species for your location. Portland-based PlantNative has a handy database of nurseries nationwide that specialize in native plants. [Continue reading...]

Happy Halloween!

 

We would like to wish everyone a very Happy Halloween! Be safe and try not to eat too much candy!

Autumn Maintenance For Your Home

"As the leaves change and the days get shorter, take the time this autumn to prepare for the oncoming cold weather. Ready the furnace for the months of work it will have ahead, and clean out the fireplace. Test them both to ensure they’ll be working when you need the heat. Don’t wait until it’s snowing to clear out your gutters. With upkeep in the fall, you’ll have peace of mind in the winter and more time to hibernate.

INSIDE THE HOUSE

Heating System Checkup

Be sure to change the air filter in your furnace and check its efficiency before the cold weather begins. Call in an HVAC contractor to test the heating output and give the system a tune-up. This technician can also check for and correct possibly hazardous carbon monoxide levels generated by your heating system. Stock up on several air filters for the winter, and change them every month. If you don’t have a programmable thermostat, purchase one for the system to help lower your energy costs.

After your furnace has been tuned up to its maximum efficiency, take a moment to inspect your heating ducts and vents. Dust them off and clear away anything that may have gotten into them over the summer. Then check your windows for any leaks that may compromise your heating efficiency. If you feel cold air coming in, purchase a plastic sealing kit from the hardware store and place the plastic around the window to keep the heat from escaping. Be sure to check your doors as well, and fix their weather-stripping if needed.

Check The Fireplace And Chimney

Most chimney sweeps recommend an annual sweeping, but depending on how often you use the fireplace, you might be able to wait on a full sweep. But if you will be using the fireplace often, call a chimney sweep for an inspection. For further information, read the Chimney and Woodburning Fireplace Safety guide.

Hopefully you will have your older, seasoned firewood now ready for use after sitting for the spring and summer. It’s recommended to keep the firewood at least 30 feet from the house and covered. Seasoned wood is best for fires, as it burns cleaner and longer." [Continue reading...]

Pumpkin Carving Tips

5 Essential Questions to Ask Before Hiring a Contractor

 

"For all of the excitement of choosing plumbing fixtures, cabinets, and tiles for a remodeling project, the most important decision you make won’t involve color swatches or glossy brochures. It’s the contractor you pick that makes or breaks the job. That choice will determine the quality of the craftsmanship, the timeliness of the work, and the amount of emotional and financial stress the process puts on you. To make sure you’re getting the best contractor for the job, here are five questions to ask the candidates.

1. Would you please itemize your bid?

Many contractors prefer to give you a single, bottom-line price for your project, but this puts you in the dark about what they’re charging for each aspect of the job. For example, let’s say the original plan calls for beadboard wainscot in your bathroom, but you decide not to install it after all. How much should you be credited for eliminating that work? With a single bottom-line price, you have no way to know.

On the other hand, if you get an itemized bid, it’ll show the costs for all of the various elements of the job—demolition, framing, plumbing, electrical, tile, fixtures, and so forth. That makes it easier to compare different contractors’ prices and see where the discrepancies are. If you need to cut the project costs, you can easily assess your options. Plus, an itemized bid becomes valuable documentation about the exact scope of the project, which may eliminate disputes later.

The contractor shouldn’t give you a hard time about itemizing his bid. He has to figure out his total price line by line anyway, so you’re not asking him to do more work, only to share the details. If he resists, it means he wants to withhold important information about his bid—a red flag for sure.

2. Is your bid an estimate or a fixed price?

Homeowners generally assume that the bid they’re seeing is a fixed price, but some contractors treat their proposals as estimates, meaning bills could wind up being higher in the end. If he calls it an estimate, request a fixed price bid instead. If he says he can’t offer a fixed price because there are too many unknowns about the job, then eliminate the unknowns.

“Have him open up a wall to check the structure he’s unsure about or go back to your architect and solidify the design plans,” says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association’s Forum on the Construction Industry. If you simply cannot resolve the unknowns he’s concerned about, have the project specs describe what he expects to do—and if he needs to do additional work later, you can do a change order (a written mini-bid for new work).

3. How long have you been doing business in this town?

A contractor who’s been plying his trade locally for 5 or 10 years has an established network of subcontractors and suppliers in the area and a local reputation to uphold. That makes him a safer bet than a contractor who’s either new to the business or new to the area—or who’s planning to commute to your job from 50 miles away.

You want to see a nearby address (not a PO box) on his business card—and should ask him to include one or two of his earliest clients on your list of references. This will help you verify that he hasn’t just recently hung his shingle—and will give you perspective from a homeowner who has lived with the contractor’s work for years. After all, the test of a quality job, whether it’s a bluestone patio or a family room addition, is how well it stands the test of time." [Continue reading...]

Halloween Safety Tips

"Halloween is an exciting time of year for kids, and to help ensure they have a safe holiday, here are some tips from the American Academy of Pediatrics (AAP). Feel free to excerpt these tips or use them in their entirety for any print or broadcast story, with acknowledgment of source."


ALL DRESSED UP:

• Plan costumes that are bright and reflective. Make sure that shoes fit well and that costumes are short enough to prevent tripping, entanglement or contact with flame.
• Consider adding reflective tape or striping to costumes and Trick-or-Treat bags for greater visibility.
• Because masks can limit or block eyesight, consider non-toxic makeup and decorative hats as safer alternatives. Hats should fit properly to prevent them from sliding over eyes.
• When shopping for costumes, wigs and accessories look for and purchase those with a label clearly indicating they are flame resistant.
• If a sword, cane, or stick is a part of your child's costume, make sure it is not sharp or too long. A child may be easily hurt by these accessories if he stumbles or trips.
• Obtain flashlights with fresh batteries for all children and their escorts.
• Do not use decorative contact lenses without an eye examination and a prescription from an eye care professional. While the packaging on decorative lenses will often make claims such as “one size fits all,” or “no need to see an eye specialist,” obtaining decorative contact lenses without a prescription is both dangerous and illegal. This can cause pain, inflammation, and serious eye disorders and infections, which may lead to permanent vision loss.
• Teach children how to call 9-1-1 (or their local emergency number) if they have an emergency or become lost.

CARVING A NICHE:

• Small children should never carve pumpkins. Children can draw a face with markers.  Then parents can do the cutting.
• Consider using a flashlight or glow stick instead of a candle to light your pumpkin. If you do use a candle, a votive candle is safest.
• Candlelit pumpkins should be placed on a sturdy table, away from curtains and other flammable objects, and should never be left unattended. [Continue reading...]

High-Tech Kitchen Faucet: A Hip, Smart Retrofit

 

"If you’re looking for a new kitchen faucet, check out the high-tech wonders. The latest-gen kitchen faucets seem to operate with only a wink and a nod, and are a cool way to upgrade your kitchen without remodeling the whole space. Best of all, they aren’t that expensive—you can get some of the latest features for under $200.

Can you do this with your kitchen faucet?

The contortionists: The trouble with a kitchen faucet that only pivots left or right is that you’re limited by the range of motion. Today you can find faucets equipped with multiple articulated joints, folding necks, or spouts on pullout hoses so you can direct water deep into any corner of the sink or fill your tallest flower vase.

Check it out: Five pivoting joints allow the Karbon articulating kitchen faucet an especially flexible range of motion, allowing you to precisely direct the stream or select height. You’ll appreciate the sculptural quality of this faucet as you play with various configurations. The faucet starts at about $900.

Lights fantastic: If you think water and light make an eye-appealing combination, try a kitchen faucet with built-in lighting. Colorful LEDs indicate whether water is hot or cold, while soft white lights elegantly illuminate the water stream.

Check it out: An LED light in the faucet head of the Chrome Centerset LED Sensor Faucet (0599-QH0108F) changes color to indicate water temperature. Green indicates 82 degrees or below. Blue means the water is 82 to 100 degrees. Red says the water is 100 to 118 degrees. When the light turns red and flashes, the water temperature is too hot! The chrome gooseneck faucet sells for about $180." [Continue reading...]