One piece of good news coming out of the Great Recession is the increasing affordability of housing.

The typical U.S. family earning the nation’s median income of $64,000 a year could afford to buy 70.1 percent of all homes sold in the United States during the third quarter, according to a report from the National Association of Home Builders and Wells Fargo. The report relied on the government standard of spending no more than 28 percent on housing. In the same quarter of 2008, only 56.1 percent qualified.

The five most affordable areas are:

• Indianapolis
• Youngstown, Ohio
• Detroit
• Warren, Mich.
• Grand Rapids, Mich.

The five least-affordable areas are:

• New York City
• San Francisco
• Honolulu
• Santa Ana, Calif.
• Nassau and Suffolk, Long Island, N.Y.

Source: CNNMoney.com, Les Christie (11/19/2009)
http://www.realtor.org/rmodaily.nsf/pages/News2009112002

The average rate for 15-year mortgages reached a new bottom this week, dipping from 4.40 percent to 4.32 percent—the lowest level since Freddie Mac began tracking rates in 1991.

Rates for 30-year mortgages approached the all-time low of 4.78 percent again last week, falling to 4.83 percent from an average of 4.91 percent a week ago.

Wellesley College economist Karl Case says the Federal Reserve's efforts to purchase mortgage-backed securities from Fannie Mae and Freddie Mac is lowering rates on home loans.

Source: Boston Herald, Thomas Grillo (11/20/09)
http://www.realtor.org/rmodaily.nsf/pages/News2009112003

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.

For more information please follow the link http://www.frbsf.org/publications/consumer/privatemortgage.pdf

With a little preventative maintenance in the fall your lawn and property will be in great shape in the spring. Here is a list of ten things you can do to make your life easier when things begin to get green again.

1. The biggest chore in late autumn is getting the lawn ready for the winter season. You should mow your lawn right up to the time it quits growing in the late fall. The grass should be cut to a level of two inches at last cutting. A good sign it has quit growing is the absence of lawn clippings when you run the mower. If it is higher than two inches, winter winds and wet weather will flatten the grass, bending it over and causing it to retain moisture, which can lead to bacterial growth and mold, damaging the roots. If the grass is too short, the lawn will suffer from drying winter winds, and can be damaged by the sun. Always remove any leaves and debris from the lawn. Leaves left lying on your lawn all winter long can prevent water from reaching the grass, or will trap too much moisture. This causes the grass to rot and die before spring.
2. Now is the time to fertilize the lawn. Look for fertilizers high in nitrogen. You may also consider a fertilizer that is lower in nitrogen, but higher in phosphorus and potassium. By fertilizing in late fall, you will encourage lush growth in the spring.
3. Clean up the lawn mower. Wash and dry it, removing caked on dirt, lawn clippings, and grease. Remove any caked on grass from the mower deck, and inspect the blade for damage. Determine if it should be sharpened or replaced before spring. Fill the tank to capacity, and add a product such as Sta-Bil or other comparable brands, following manufacturer instructions. run the mower for a short period to insure that the fuel stabilizer reaches all parts of the fuel system. Putting you mower up on blocks during winter months is a good idea, also. It prevents flat spots from wearing in the rubber.
4. Be careful in pruning trees late in the year. Many ornamental trees such as azalea, dogwood, forsythia, redbud and rhododendron set their buds for blooms in the late fall, and pruning them can destroy next season's blooms. Do remove any obviously dead branches.
5. Thoroughly drain all water hoses, coil them, and store in a dry area. if using a hose reel, insure that all water is drained from the hose to prevent freezing and cracking during cold weather. Drain all faucets and valves, and turn off the water supply to them from the basement if you can. Turn over empty outside containers to prevent water collection and freezing, and store all birdbaths for the winter.
6. Clean the barbecue grill thoroughly if you do not plan on using it during the winter months. Cover with a good grill cover, and secure the bottom to prevent the wind from taking it away. If you have mice that like to nest in the winter, put dryer sheets and bay leaves in the grill under the cover. It keeps them away.
7. Check your concrete driveway for any cracks that may have shown up during the summer months. If left unsealed, water will enter them, it will freeze, and you'll get a nasty surprise in the spring. Use a sealing putty, found at most hardware stores, to seal the cracks and avoid winter damage. You can also use asphalt and concrete to fill these cracks if you desire.

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Home sales will increase 15 percent to about 5.7 million units and REALTOR® income will be up 20 percent in 2010, NAR Chief Economist Lawrence Yun told a packed room of REALTORS® today in a residential economic update at the 2009 NAR Conference & Expo.

Yun credited the home buyer tax credit with unleashing sales on the lower-end of the housing market this year, bringing up to 400,000 first-time buyers into the market who wouldn't have bought otherwise. That influx tightened inventories of starter homes, shored up prices, and helped reduce households' fear over continuing price drops.

This virtuous cycle will continue now that the federal government has extended the credit to mid-2010 and expanded it to make a smaller credit available to repeat buyers and to households with higher incomes. “The key is stabilizing prices and preserving household wealth,” he says.

Yun predicts the supply of homes to stabilize at the historic norm of six to seven months. Homes above $500,000 will remain elevated in the near-term, but that weakness will be offset by a hefty drop in starter-home inventories, which are running at about a five months supply.

The tightening inventory at all price points will help improve market performance by bringing supply into better balance with demand, but the added sales, particularly on the higher end, will also increase the number and quality of the market comparables used by appraisers to assign valuations. Once appraisals improve, foreclosures will ease, blunting their drag on the market and making it less likely that Fannie Mae, Freddie Mac, and even FHA will need help from the taxpayer.

“Then we’ll be set for a durable economic expansion,” he said.

New-home sales, which comprise about 10 percent of the market, will continue at suppressed levels--about 550,000 units, down from more than a million during the boom--mainly because builders have scaled projects way back, in part because financing isn't available.

"Weakness in new-home sales shouldn’t be viewed as tepid demand," he said.

Even under the most positive economic scenario, unemployment will remain elevated through 2010. Yun is predicting unemployment to stay near double-digits going into 2011, qualifying this recession, as some economists have, as the "Great Recession.”

For the longer term, the huge deficit run up by the federal government to shore up the economy remains the big question mark. Although the deficit is expected to improve each of the next three years, it will remain at historic highs. Unless the federal government releases a credible plan for shrinking it, investors will start to balk and interest rates will need to rise to bring them back. Should inflation be the result, the housing recovery will be set back.

Source: Robert Freedman, REALTOR® magazine

http://www.realtor.org/RMODaily.nsf/pages/News2009111301?OpenDocument

1. Dated and excessively bold or dark paint and tile colors, such as “Pepto Bismol” pink, avocado green, deep plum, or jet black. “Dark can be cool, but it has to be a color that’s popular today,” says sales associate Jennifer Ames, crs^®, of Coldwell Banker Residential Brokerage in Chicago.

2. Lacquered or high-gloss painted walls that are expensive to repaint and show all defects. Likewise, faux- and sponge-painted walls can be so passe.

3. Painted trim that’s very dark-and costly to remove.

4. Wallpaper, which is a lot of work (and potentially expensive) to remove. Most disliked: Dated flowered or striped patterns.

5. Kitchens that lack any dining space. Also, outdated, small-scale, and dirty kitchen appliances that look like they won’t perform.

6. Worn, cracked laminate countertops, and backsplashes or plastic cultured marble.

7. Outdated bathrooms with small sinks, short toilets, squatty bathtubs, and tight showers-all of which aren’t conducive to unwinding after a long day’s work, says Ames.

8. Lack of ample closet space in bedrooms, or no closet at all and no place to build one or add an armoire.

9. Dens, libraries, and family rooms without built-in bookcases or a space to include shelves.

10. Stained and worn wall-to-wall carpet in rooms or on stairs. Worst choice: shag. Also, worn linoleum that suggests a house was never updated.

11. Poorly built additions that don’t blend with a home’s architecture, such as a sunroom with tinted glass.

12. Shortage of windows or very small windows, which makes a home feels dark and gloomy.

13. Ceilings with so many recessed lighting spots that they resemble Swiss cheese and are expensive to remove. Worst offenders: big 6-inch diameter lights.

14. Too many rooms outside the kitchen and bathroom that have cold ceramic tiled floors.

15. Children’s bedrooms with a theme that runs through the carpeting, wallpaper, murals, ceilings, light fixtures, curtains, and furnishings.

16. Homes without a foyer or garage.

17. Too many mirrored walls, ceilings, doors, and backsplashes in a single room. The effect is dizzying, Ames says. One mirror magnifies, but many cheapen the look.

18. Skimpy molding and trim, such as 1-inch baseboards.

19. Noisy, grinding fan in a bathroom that’s attached to a light switch so it can’t be turned off.

20. Inexpensive gold-colored light fixtures in any room. Also,  Hollywood-style lighting with huge bulbs in a bathroom is also out of date, design experts say.

http://styledstagedsold.blogs.realtor.org/2009/09/21/biggest-losers-20-home-design-features-that-send-buyers-running/

Real estate investors are moving back into the market, according to a new survey from Move.com.

According to the Move.com survey, 12.1 percent of home buyers today plan to buy a home as an investment property, compared to 5.6 percent in March 2009. The survey found that 15.8 percent of those interested in investment property were men and 8.1 percent were women and 52.6 percent of the investment buyers were between ages 35 to 49.

Of the 25.3 percent of buyers who are focusing on foreclosure properties, 42 percent regard the purchase they are considering an investment and don’t plan to live in the property themselves; 13.2 percent plan to rent out the property; 11.3 percent are going to fix up the property and resell it; and 17.4 percent plan to house a family member until the property can be sold profitably.

Of the 9.8 percent of buyers who say that they plan to purchase and live in a property in the next two years, 5.4 percent plan to purchase in the next 12 months; 48.3 percent are first-time buyers; 52.8 percent are women, and 44.1 percent are men.

Buyers of investment and personal property say they are motivated by these factors:

• Prices are as low as they will go, 23.6 percent
• Foreclosure prices are a bargain, 18.7 percent
• Great selection of homes for sale in their target community, 21.2 percent
• Concerned interest rates will rise, 14.2 percent

Source: Move.com (11/11/2009)

Twenty-nine percent of recent buyers purchased a home in foreclosure or through a short sale, according to the latest REALTORS® Confidence Index. REALTORS® who participated in the survey are also concerned about a growing number of foreclosures and the hurdles buyers face in short sales.

The RCI is a key indicator of housing market strength based on a monthly survey of more than 50,000 REALTORS®; in a typical month there are more than 3,000 usable responses. Practitioners are asked about their expectations for home sales, prices, and market conditions; they also share their insights regarding buyer preferences and financing options and how those factors are influencing real estate markets nationwide.

“REALTORS® are on the front lines with buyers and sellers in today’s market and have valuable insights into real estate trends,” NATIONAL ASSOCIATION OF REALTORS® President Charles McMillan said. “The volume of distressed sales that our members are reporting underscores the importance of the recent tax credit extension. By putting cash in the hands of financially healthy home buyers, the credit will continue to help draw down inventory and stabilize home prices to encourage a strong and sustainable housing recovery.”

Despite the high volume of distressed sales, REALTORS® report that their buyers encounter various challenges associated with these types of sales. Buyers who present a short sale offer can wait months before hearing whether their offer will be accepted. In addition, REALTORS® are also seeing increased competition for foreclosed properties, and multiple bids are sometimes driving sales prices over list prices.

Aside from the demand for short sales and foreclosed homes, today’s buyers are increasingly interested in a home’s energy efficiency and proximity to transportation corridors, reflecting concerns about rising energy costs. Many REALTORS® are seeing a growing preference among buyers for smaller homes, as people look to downsize and cut expenses.

Mortgages insured by the Federal Housing Administration are the primary lending vehicle for many buyers; 24 percent of recent buyers used an FHA loan to finance their purchase. However, more than one in five recent buyers—21 percent—paid all cash.

Source: NAR
http://www.realtor.org/RMODaily.nsf/pages/News2009111201?OpenDocument

Today I learned that Nov. 15 is National Declutter Day. Who knew?

The occasion, which was started last year by Kijiji.com (@KijijiUS), eBay’s free online classifieds site, is a great way to get sellers motivated to prepare their home for showings.

Plus, we could all use a little decluttering in our lives, couldn’t we?

In honor of the occasion, I’ve scoured the Internet for some resources you can pass on to your clients. What I’ve come up with are three handy Web sites and one clutter-busting San Carlos, Calif.-based business that can clear out a room in minutes. Intrigued? Read on.

Unclutterer.com

This Web site is all about organization, plain and simple. Organizing your life; organizing your home; organizing your office. The Washington, D.C.–based author Erin Doland is a recovering pack-rat who once “held on to objects like her third grade math assignments and every note she passed in high school.” Her book Unclutter Your Life in One Week, which went on sale this week, is a testament to her reformed, uncluttered lifestyle, and a helpful tool for anyone looking to declutter their home.

Jdorganizer.blogspot.com

Jeri Dansky of Half Moon Bay, Calif., has been a professional organizer for seven years and her blog is filled with fun, whimsical, and aesthetically pleasing ideas that are also all about decluttering. If you are looking for great storage ideas, book recommendations, and organizing trends you’ve never thought of, check out her site.

Zenhabits.net

Zen Habits is a site that takes decluttering to the next level. Author Leo Babauta describes it as “finding simplicity in the daily chaos of our lives.” Some of the best nuggets of advice I found on this site are the 72 Ideas to Simplify Your Life and 18 Five-Minute Decluttering Tips to Start Conquering Your Mess. But all the posts were inspiring with the mantra that less is not only more, less is also healthy.

Junk King

Childhood friends, Mike Andreacchi and Brian Reardon met on the soccer field at the age of 9. Little did they know that roughly 20 years later they’d be starting a business together. In 2005, Andreacchi and Reardon founded Junk King in the San Francisco Bay area. The basic premise is this: You have stuff you don’t want, and they can take care of it for you.

Junk King will collect and either recycle or dispose of basically all non-hazardous “junk” from homes and businesses. We’re talking stuff like furniture, wood, appliances, concrete, construction and building materials, yard refuse, and plain old garbage. No paints or solvents allowed, though.

“We help prepare the home to put back on the market,” Reardon says, tackling jobs like attics, kitchen cabinets, garages, and yards. “And if the owners or the REALTOR® can’t afford to pay for our service up front, we’ll wait to collect after the property has gone through escrow. It’s a win-win.”

Junk King prices by volume, and takes jobs that range from one item up to multiple truckloads. Special rates are offered to real estate practitioners.

What started out as one truck out of their garage has grown into a fleet of six trucks with 15 employees, which saves many items from ending up in a landfill, says Andreacchi.

Junk King Recycling Facts:

• Junk King recycles up to 60 percent of the materials it picks up, and estimates that more than 908 tons have been saved from landfills.
• Since January 2009, Junk King has recycled approximately 450,000 pounds, or 225 tons, of scrap metal.
• In total, Junk King has collected 2,450,000 pounds of copper, aluminum, wiring, and other metals; 840,000 pounds of plastic, paper, and recyclables; 590,000 pounds of computer equipment; and 685,000 pounds of miscellaneous junk.

Andreacchi and Reardon are beginning to franchise their business, which now consists of three corporate-owned locations and nine franchisee-owned covering the San Francisco Bay area and, starting in January, Atlanta. Looking to the future, Andreacchi and Reardon hope to see Junk King grow into a nationwide service.

“We want to be the Coca-Cola of the junk business,” Reardon says.

http://styledstagedsold.blogs.realtor.org/2009/11/04/need-help-climbing-out-of-that-clutter/