RISMEDIA, March 18, 2011—While affordable housing prices, ample inventories, and historically low interest rates signal ‘buyer’s market’ for investors or move-up buyers in many U.S. markets, inexperienced first-time buyers may not know if the time is right to make a move into real estate.
“It’s not about timing the market. It’s about time in the market,” says Steve Berkowitz, chief executive officer at Move, Inc., a leader in online real estate. “Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Be confident about your own job security, down payment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. While homeownership may not be for everyone, it is the right choice for hundreds of thousands of people. Today’s housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities.”
To help first-time buyers know if they’re ready to look for the home of their dreams as we head into this year’s home-buying season, the experts at Move have created a ‘reality checklist’ designed to help them decide if the time is right.
Get your financial house in order
Before you decide to buy a home, it’s essential to make sure your credit is in good shape and repair any damage previously done. Know your credit score: thirty-five percent (35%) of successful buyers recently reported they didn’t know their credit score when they went house shopping, according to a national survey fielded for MortgageMatch.com. Having enough money set aside for a down payment is a key component to making sure you are ready to purchase a home. Also, it’s important to not put all of your money in the down payment as other fees or unexpected expenses often arise after closing.
Don’t fall in love with a house you can’t buy
Find out how much you can afford: establishing your purchase power upfront, including how much money will be required for a down payment and closing costs, is a must for first-time buyers. Look for special loans available from FHA and government sponsored loans for first-time home buyers that reduce the amount of money required to get into a home.
Learn the lingo
Since first-time buyers are new to the market and will finance a significant portion of their purchase, it’s important to get familiar with the processes and terminology associated with home-buying. Here are a few key terms from MortgageMatch.com to add to your vocabulary:
Bait rate: Misleading mortgages with low rate promises and no contingencies generally for those with extraordinary credit. Rates are based on: credit, debt-to-income and loan-to-value ratios, the size and type of loan, property location and the day you lock your rate, etc. The loan isn’t locked until the application is accepted. By then, it may be too late to find a better rate from another lender.
Basis point: A term used in the mortgage industry which simply means 1/100th of 1%.
Closing costs: The fees required to process and close your loan. They’re a cash obligation running from 3-5% of the purchase price. Motivated sellers might pay a portion of these costs.
FHA: Federal Housing Administration, the Federal Government Agency that oversees the U.S. Housing market. FHA Loans are loans insured by the Dept. of Housing and Urban Development.
FRM and ARM: A Fixed-Rate Mortgage Loan (FRM) is a loan where your interest rate stays the same for the life of the loan. ARMs are Adjustable-Rate Mortgages with variable interest rates that fluctuate based on an agreed-upon index.
GFE: The Good Faith Estimate (GFE) is a document explaining all costs involved in getting a loan.
TIL: The Federal Truth-in-Lending Form is a document that spells out the costs and fees of the loan.
Lis pendens: An official notice that there is a pending lawsuit over real estate.
Per Diem interest: Interest you pay per day, from the day you close to the last day of the month.
Underwriting/underwriting fees: Underwriting is a process the lender performs to qualify a borrower for a loan and the fee is what you pay the lender at closing to cover evaluating the risk involved with loaning you money.
Warranty deed: A legal document guaranteeing the seller has a right to sell a property, which is very important if you are considering a distressed or discounted property.
Mortgage Knowledge
While national rates on 30-year-fixed-rates mortgages have risen slightly this year, they are still at historic lows not seen since 1980, according to Freddie Mac. “Buyers who prepare themselves financially before they start looking for a home will have a better chance of succeeding,” says Sue Stewart, senior vice president for Move, Inc. “If you want to land the best mortgage that fits your needs, start early, educate yourself on your financial situation, get your documentation together and find a lender you trust.”
Find a REALTOR® and go shopping
For those ready to buy, REALTOR.com® has the tools and tips to help you find a REALTOR® and, ultimately, the right home. Finding a licensed real estate professional in your area will make the process smoother and easier to understand. Once you find an agent, share your realistic budget and what you’re looking for in a home. Stay in constant contact with your agent and look for homes whenever you have a spare moment.
First-time home buyer resources
For more tips designed to help the first-time buyer navigate the home buying process, the experts at Move have provided an abundance of helpful information that’s just one click away:
-Reality checklist – Are you sure you’re ready to buy? Here’s how to know.
-How-to Guide: Buying Your First Home – Everything you need to know about buying a home
-Get Prequalified Now – Get prequalified for a mortgage before you begin shopping
-Realtor.com Blogs– Connect with REALTORS® to help you navigate the market
-MortgageMatch.com News – Answers questions about finances and mortgages
-Move.com Home Finance – Equips first-time buyers with tools, guides, advice, and more
If now isn’t the right time, prepare for your future purchase
If now isn’t the right time to buy a home, make a plan with a target date for when you expect to be ready. Improving your credit, paying down debt, stabilizing your work history and calculating exactly how much you can afford, are the best ways to prepare for your future home purchase. It’s also important to refrain from making any new large purchases or applying for new credit.
For more information, visit www.move.com [2] and www.Realtor.com [3].
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com [4].
Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. Having only launched this past June 2010, the RREIN network is already comprised of 40 leading brokerages, which make up 575 offices, 30,000 agents, 167,000 closings and represents over $41 billion in transactions. How can RREIN help your recruiting efforts and differentiate your company today? For more information, email rrein@rismedia.com [5].
Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
The Gray Rider
The Gray Rider Real Estate Co.-
Friday, March 18, 2011
Monday, February 14, 2011
Obama Administration Lays Out Plan for Winding Down Fannie and Freddie
The Treasury Department released the Obama administration’s plan Friday for reforming the nation’s housing finance system and winding down Fannie Mae and Freddie Mac.
Officials say the reform measures will shrink the government’s footprint in the mortgage market, fix “fundamental flaws” in the system, increase transparency for investors, and improve underwriting and mortgage servicing standards.
On a conference call with the media, Treasury Secretary Timothy Geithner stressed that “realistically, this is going to take five to seven years” for full reform to be implemented.
HUD Secretary Shaun Donovan added, however, that there are short term steps that don’t require legislation, which can and need to be taken immediately to return private capital to the market.
“We are going to start the process of reform now, but we are going to do it responsibly and carefully so that we support the recovery and the process of repair of the housing market,” Geithner said.
The first item on the administration’s laundry list of reform measures is phasing out the nation’s two largest mortgage companies. With the financial crisis, private capital retreated from the housing market, leaving the government to guarantee more than nine out of every 10 new mortgages. Both Geithner and Donovan underscored the fact that the plan for winding down Fannie and Freddie is centered on returning private capital to the market.
The private sector must fill in the receding role of the government and “should be the primary source of mortgage credit and bear the burden for losses,” according to a Treasury statement.
The administration recommends ending what it called “unfair capital advantages that Fannie Mae and Freddie Mac previously enjoyed” by requiring them to price their guarantees as though they were held to the same capital standards as private lenders. Although the pace of increasing guarantee fees will depend largely on market conditions, the administration says it wants to bring Fannie and Freddie to a level playing field with the private market “over the next several years.”
The administration is also recommending Congress allow the temporary increase in conforming loan limits to reset as scheduled on October 1, 2011. The limits for GSE loans, as well as for the Federal Housing Administration (FHA), were raised to $729,000 to allow for greater market support. Unless Congress extends the temporary increase, the limit will revert back to $625,500 in the fall.
The report also advocates a 10 percent down payment requirement for any mortgage than Fannie Mae and Freddie Mac guarantee. The proposal suggests a “gradual increasing,” but does not set a target date for hitting the 10 percent mark.
In addition, the administration’s plan calls for scaling back Fannie Mae and Freddie Mac’s investment portfolio at an annual rate of no less than 10 percent per year.
“We believe that under our current Preferred Stock Purchase Agreements, there is sufficient funding to ensure the orderly and deliberate wind down of Fannie Mae and Freddie Mac,” the administration said in its report.
While much attention has been centered on what will become of Fannie and Freddie, the proposal covers many elements of the housing finance system beyond the GSEs, including FHA, which currently accounts for about a third of the mortgage market.
The report recommends increasing FHA’s annual mortgage insurance premium by 25 basis points – a change the administration wants to see go into effect in April.
Additionally, the plan will help provide targeted support to creditworthy but underserved families that want to own their own home, as well as affordable rental options.
In the report, officials note that “[a]ny responsible reform effort that addresses the flaws in the pre-crisis housing market will make credit less easily available than before the crisis.”
For months now, economists have been debating the government’s decades-long push to provide the American Dream of homeownership to every citizen and whether or not that modus operandi served to fuel the housing bubble and lax lending standards that put so many borrowers into unsustainable mortgages.
Donovan stressed that the government must ensure a “better balance of homeownership and renting.” He said the proposal includes measures that would expand FHA’s capacity to support financing of affordable rental and multifamily housing.
The administration is also throwing its weight behind several immediate and near-term reforms to correct problems in mortgage servicing and foreclosure processing. These include:
•Putting in place national standards for mortgage servicing;
•Reforming servicing compensation to ensure servicers have proper incentives to help borrowers avoid foreclosure;
•Requiring that mortgage documents disclose the presence of second liens and define the process for modifying a second lien; and
•Allowing primary mortgage holders to restrict additional debt secured by the same property.
Beyond the administration’s specific recommendations, the report also puts forward three longer-term reform choices, ranging from a government role that is limited to just the FHA, to an FDIC-type insurance guarantee for certain mortgage securities. We cover these three options in more detail in a separate article on DSNews.com.
The administration’s proposal has been delivered to Congress. Donovan says the options outlined in the report should “deepen debate and dialogue” among lawmakers as they decide the best route to take to move forward. A copy of the full 32-page report can be accessed here.
Article Written by Carrie Bay - DSNews.com
©2011 DS News. All Rights Reserved.
Officials say the reform measures will shrink the government’s footprint in the mortgage market, fix “fundamental flaws” in the system, increase transparency for investors, and improve underwriting and mortgage servicing standards.
On a conference call with the media, Treasury Secretary Timothy Geithner stressed that “realistically, this is going to take five to seven years” for full reform to be implemented.
HUD Secretary Shaun Donovan added, however, that there are short term steps that don’t require legislation, which can and need to be taken immediately to return private capital to the market.
“We are going to start the process of reform now, but we are going to do it responsibly and carefully so that we support the recovery and the process of repair of the housing market,” Geithner said.
The first item on the administration’s laundry list of reform measures is phasing out the nation’s two largest mortgage companies. With the financial crisis, private capital retreated from the housing market, leaving the government to guarantee more than nine out of every 10 new mortgages. Both Geithner and Donovan underscored the fact that the plan for winding down Fannie and Freddie is centered on returning private capital to the market.
The private sector must fill in the receding role of the government and “should be the primary source of mortgage credit and bear the burden for losses,” according to a Treasury statement.
The administration recommends ending what it called “unfair capital advantages that Fannie Mae and Freddie Mac previously enjoyed” by requiring them to price their guarantees as though they were held to the same capital standards as private lenders. Although the pace of increasing guarantee fees will depend largely on market conditions, the administration says it wants to bring Fannie and Freddie to a level playing field with the private market “over the next several years.”
The administration is also recommending Congress allow the temporary increase in conforming loan limits to reset as scheduled on October 1, 2011. The limits for GSE loans, as well as for the Federal Housing Administration (FHA), were raised to $729,000 to allow for greater market support. Unless Congress extends the temporary increase, the limit will revert back to $625,500 in the fall.
The report also advocates a 10 percent down payment requirement for any mortgage than Fannie Mae and Freddie Mac guarantee. The proposal suggests a “gradual increasing,” but does not set a target date for hitting the 10 percent mark.
In addition, the administration’s plan calls for scaling back Fannie Mae and Freddie Mac’s investment portfolio at an annual rate of no less than 10 percent per year.
“We believe that under our current Preferred Stock Purchase Agreements, there is sufficient funding to ensure the orderly and deliberate wind down of Fannie Mae and Freddie Mac,” the administration said in its report.
While much attention has been centered on what will become of Fannie and Freddie, the proposal covers many elements of the housing finance system beyond the GSEs, including FHA, which currently accounts for about a third of the mortgage market.
The report recommends increasing FHA’s annual mortgage insurance premium by 25 basis points – a change the administration wants to see go into effect in April.
Additionally, the plan will help provide targeted support to creditworthy but underserved families that want to own their own home, as well as affordable rental options.
In the report, officials note that “[a]ny responsible reform effort that addresses the flaws in the pre-crisis housing market will make credit less easily available than before the crisis.”
For months now, economists have been debating the government’s decades-long push to provide the American Dream of homeownership to every citizen and whether or not that modus operandi served to fuel the housing bubble and lax lending standards that put so many borrowers into unsustainable mortgages.
Donovan stressed that the government must ensure a “better balance of homeownership and renting.” He said the proposal includes measures that would expand FHA’s capacity to support financing of affordable rental and multifamily housing.
The administration is also throwing its weight behind several immediate and near-term reforms to correct problems in mortgage servicing and foreclosure processing. These include:
•Putting in place national standards for mortgage servicing;
•Reforming servicing compensation to ensure servicers have proper incentives to help borrowers avoid foreclosure;
•Requiring that mortgage documents disclose the presence of second liens and define the process for modifying a second lien; and
•Allowing primary mortgage holders to restrict additional debt secured by the same property.
Beyond the administration’s specific recommendations, the report also puts forward three longer-term reform choices, ranging from a government role that is limited to just the FHA, to an FDIC-type insurance guarantee for certain mortgage securities. We cover these three options in more detail in a separate article on DSNews.com.
The administration’s proposal has been delivered to Congress. Donovan says the options outlined in the report should “deepen debate and dialogue” among lawmakers as they decide the best route to take to move forward. A copy of the full 32-page report can be accessed here.
Article Written by Carrie Bay - DSNews.com
©2011 DS News. All Rights Reserved.
Tuesday, February 1, 2011
U.S. CENSUS: 11% OF HOMES IN USA ARE VACANT
Data continue to mount showing that the housing sector remains depressed. First came news from the Standard & Poor’s/Case-Shiller index that home prices fell 1.6 percent in the year through November.
\Now, the Census Department reports that vacant home totaled 18.4 million in the fourth quarter, meaning 11 percent of all housing units are vacant year-round, according to CNBC.
The country’s home ownership rate, after holding steady for months, dropped to 66.5 percent in the fourth quarter from 66.9 percent in the third quarter. That's the lowest level since 1998.
“Homeownership is falling at an alarming pace, despite the fact that home prices have fallen, affordability is much improved, and inventories of new and existing homes are still running quite high,” writes CNBC real estate columnist Diana Olick.
Much of the problem is that the nation is still recovering emotionally from the housing crash of the past four years, she says.
“Younger Americans have seen what home ownership has done to their friends and families, and many want no part of it. Credit has become very nearly elitist.”
Ace economist Nouriel Roubini says housing is in the midst of a double-dip recession. “Demand is falling, and supply is increasing because there is a shadow inventory of millions of not yet foreclosed homes. Therefore, prices are going to fall even further,” he tells Forbes video.
-------------------------------
© Moneynews. All rights reserved.
Article written by Dan Weil - MoneyNews.com
\Now, the Census Department reports that vacant home totaled 18.4 million in the fourth quarter, meaning 11 percent of all housing units are vacant year-round, according to CNBC.
The country’s home ownership rate, after holding steady for months, dropped to 66.5 percent in the fourth quarter from 66.9 percent in the third quarter. That's the lowest level since 1998.
“Homeownership is falling at an alarming pace, despite the fact that home prices have fallen, affordability is much improved, and inventories of new and existing homes are still running quite high,” writes CNBC real estate columnist Diana Olick.
Much of the problem is that the nation is still recovering emotionally from the housing crash of the past four years, she says.
“Younger Americans have seen what home ownership has done to their friends and families, and many want no part of it. Credit has become very nearly elitist.”
Ace economist Nouriel Roubini says housing is in the midst of a double-dip recession. “Demand is falling, and supply is increasing because there is a shadow inventory of millions of not yet foreclosed homes. Therefore, prices are going to fall even further,” he tells Forbes video.
-------------------------------
© Moneynews. All rights reserved.
Article written by Dan Weil - MoneyNews.com
Monday, January 17, 2011
IS A SOLAR-THERMAL HOT WATER SYSTEM FOR YOU?
We Americans take our hot water for granted—we love our soaker tubs, and many of us just can’t start the day without a vigorous shower. But it’s not free. According to the U.S. Department of Energy, on average we spend about $308 per year, per household, just to have hot water ready at the twist of a faucet handle. But you could slash that figure in half, or more, with a solar-thermal system—a proven renewable-energy technology that enables the rays of the sun to heat your home’s hot-water supply.
THE FUEL IS FREE
Both solar-thermal systems and more costly solar-photovoltaic panels—which use the sun to generate electricity—can make a significant dent in your utility bill. But with a solar-thermal system, instead of generating energy, you’re saving it.
“When compared to solar-electric panels, it is a lower-cost option,” says Monique Hanis, a spokesperson for the Solar Industries Association. “A system for a home would run anywhere from $4,000 to $6,000, and that could take care of a good chunk of your hot-water needs.”
Those ballpark figures don’t include the across-the-board federal tax credit that knocks 30% off the cost of a system, plus there are additional state and local-government incentives that can trim set-up costs even more. (Check the Database of State Incentives for Renewables & Efficiency for relevant programs in your area.) Maintenance is minimal, and collectors should last for 20 years or more.
HOW SOLAR-THERMAL WORKS:
All solar-thermal systems feature glassed-covered boxes or sets of tubes that contain fluid-filled piping. The systems can be divided into two basic categories—direct and indirect.
In an indirect system, a pump continually circulates an antifreeze solution between the collector mounted on your roof and a heat-exchanger coil located inside your home’s hot-water tank. A pump circulates the antifreeze solution between the solar panel—where the sun heats it—and the coil, where it raises the temperature of the water in the tank.
The second type of solar-thermal system, called a direct system, circulates household water directly through the solar collector. This setup is only appropriate for regions, such as Hawaii and Florida, that don’t experience winter freeze-ups.
Either type of thermal collector is so efficient that it will produce hot water even on a cloudy day—though a snowfall will bury and temporarily disable a collector until warmer temperatures melt the snow off.
HOW MUCH YOU WILL NEED:
A solar contractor/installer will evaluate your property’s potential for capturing solar radiation throughout the year, but your house is likely a good candidate if one side of its roof faces south, without too much shading from tall trees and structures. A pair of 4-by-8-foot collectors will significantly reduce the cost of heating hot water for a family of four.
How much you’ll save depends on where you live. The National Renewable Energy Laboratory has researched the degree to which a solar-thermal system can reduce a homeowner’s energy bill in various regions of the country. The lab expresses this savings via a rating known as a “solar fraction.”
Put simply, a solar fraction is the percentage of a home’s water-heating energy needs that could be met with a rooftop collector. For example, a solar fraction of 60% means that the solar-thermal hot water system would reduce the amount of energy a home used to heat hot water by 60%. In Harrisburg, Penn., Albany, NY, and Eugene, Ore., the solar fraction is 50%. In Fort Worth, Texas, and Tampa, Fla., it’s a whopping 75%.
RESEARCHING SOLAR-THERMAL COLLECTORS:
Last fall, the U.S. Department of Energy added solar-hot water systems to its EnergyStar program. You can browse approved solar water heaters on the Energy Star web site, and discuss which model best suits your needs with an installer. Bear in mind that solar-thermal collectors are not do-it-yourself projects. The North American Board of Certified Energy Practitioners certifies solar-thermal installers. As of late 2009, the group’s web site lists 97 professionals across the country who sell, install, and service the systems.
If you’re interested in saving energy and harnessing the free power of the sun, a solar-thermal water-heating system is an attractive option.
-----------------------------------
Article written by James Glave. James Glave is the author of “Almost Green: How I Saved 1/6th of a Billionth of the Planet.” He has been reporting on the challenges and opportunities of sustainable development full-time since 2005.
Friday, January 14, 2011
HOME OWNERSHIP REALLY DOES MATTER
As a real estate professional, I know that America is a nation of homeowners—67% of American households are owner-occupied. And housing is a key driver of our economy, accounting for 15% of our Gross Domestic Product in general. Research shows that for every home purchased, $60,000 is pumped into the economy for furniture, home improvements and related items. Plus homeowners pay 80-90% of individual federal income taxes, contributing to federal programs that benefit all Americans.
Yet some of our politicians question the value of homeownership and whether it is worthy of the tax benefits currently available. Some media reports even contend that changing federal policies and eliminating tax incentives that support homeownership, such as the Mortgage Interest Deduction, might even be in the public’s best interest.
For more than 100 years, REALTORS® have championed homeownership as a fundamental part of the American Dream. Now more than ever, we must stand up for homeownership. And with the help of the NATIONAL ASSOCIATION OF REALTORS®’ (NAR’s) I have pledged to spread the word about the value of homeownership to my clients, community and elected officials.
“There are some, mostly in academic circles and in the media, who have been questioning the value of homeownership and the importance of incentives for homeowners,” says Pamela Geurds Kabati, vice president of Public Affairs and Consumer Media. “They ask whether we wouldn’t be better off as a nation of renters. As an industry, we have to stand up and say, ‘Absolutely not.’ We need our voice to be loud and clear to influence the court of public opinion and policymakers. Homeownership provides homeowners, their communities, and our country with so many benefits.”
HOME OWNERSHIP MATTERS:
Homeownership has a significant, positive impact on net worth, educational achievement, civic participation and overall quality of life. Owning a home is one of the best ways to build long-term wealth. In the past 12 years, a typical homeowner’s net worth has been 31-46 times that of a renter. Plus, most homeowners enjoy stable housing costs. In fact, studies show that fixed rate mortgage payments typically stay the same, while rent has increased at an average rate of approximately 3% per year in the last 10 years.
The National Association fo Realtors believe that homeowners contribute more to their communities by voting and volunteering more. They do not move as frequently as renters, bringing stability to neighborhoods, which helps reduce crime and support upkeep.
And it has been shown that homeowners enjoy a better quality of life. They tend to be happier and healthier, and feel a greater sense of control over their lives. They are free to redecorate, renovate and modify their homes as they wish. And their children tend to do better in school and stay in school longer, according to a recent white paper by NAR titled “The Social Benefits of Home Ownership.”
To learn more about why Home Ownership Matters, visit www.REALTOR.org/homeownership where you’ll find everything you need to keep you current on the debate, including articles, stats and data, blog posts, videos, and webinars.
NAR will continue to fight to preserve this important institution through advocacy and outreach to lawmakers, consumers and the media. NAR will continue to lobby policymakers in Washington, DC, and its consumer website, www.Houselogic.com, will help reinforce the benefits of homeownership.
So spread the word. Because homeownership really does matter.
Yet some of our politicians question the value of homeownership and whether it is worthy of the tax benefits currently available. Some media reports even contend that changing federal policies and eliminating tax incentives that support homeownership, such as the Mortgage Interest Deduction, might even be in the public’s best interest.
For more than 100 years, REALTORS® have championed homeownership as a fundamental part of the American Dream. Now more than ever, we must stand up for homeownership. And with the help of the NATIONAL ASSOCIATION OF REALTORS®’ (NAR’s) I have pledged to spread the word about the value of homeownership to my clients, community and elected officials.
“There are some, mostly in academic circles and in the media, who have been questioning the value of homeownership and the importance of incentives for homeowners,” says Pamela Geurds Kabati, vice president of Public Affairs and Consumer Media. “They ask whether we wouldn’t be better off as a nation of renters. As an industry, we have to stand up and say, ‘Absolutely not.’ We need our voice to be loud and clear to influence the court of public opinion and policymakers. Homeownership provides homeowners, their communities, and our country with so many benefits.”
HOME OWNERSHIP MATTERS:
Homeownership has a significant, positive impact on net worth, educational achievement, civic participation and overall quality of life. Owning a home is one of the best ways to build long-term wealth. In the past 12 years, a typical homeowner’s net worth has been 31-46 times that of a renter. Plus, most homeowners enjoy stable housing costs. In fact, studies show that fixed rate mortgage payments typically stay the same, while rent has increased at an average rate of approximately 3% per year in the last 10 years.
The National Association fo Realtors believe that homeowners contribute more to their communities by voting and volunteering more. They do not move as frequently as renters, bringing stability to neighborhoods, which helps reduce crime and support upkeep.
And it has been shown that homeowners enjoy a better quality of life. They tend to be happier and healthier, and feel a greater sense of control over their lives. They are free to redecorate, renovate and modify their homes as they wish. And their children tend to do better in school and stay in school longer, according to a recent white paper by NAR titled “The Social Benefits of Home Ownership.”
To learn more about why Home Ownership Matters, visit www.REALTOR.org/homeownership where you’ll find everything you need to keep you current on the debate, including articles, stats and data, blog posts, videos, and webinars.
NAR will continue to fight to preserve this important institution through advocacy and outreach to lawmakers, consumers and the media. NAR will continue to lobby policymakers in Washington, DC, and its consumer website, www.Houselogic.com, will help reinforce the benefits of homeownership.
So spread the word. Because homeownership really does matter.
Friday, December 24, 2010
A POEM: THE AMERICAN SOLDIER STANDING GUARD AT CHRISTMAS
The embers glowed softly, and in their dim light,
I gazed round the room and I cherished the sight.
My wife was asleep, her head on my chest,
My daughter beside me, angelic in rest.
Outside the snow fell, a blanket of white,
Transforming the yard to a winter delight.
The sparkling lights in the tree I believe,
Completed the magic that was Christmas Eve.
My eyelids were heavy, my breathing was deep,
Secure and surrounded by love I would sleep.
In perfect contentment, or so it would seem,
So I slumbered, perhaps I started to dream.
The sound wasn't loud, and it wasn't too near,
But I opened my eyes when it tickled my ear..
Perhaps just a cough, I didn't quite know, Then the
sure sound of footsteps outside in the snow.
My soul gave a tremble, I struggled to hear,
And I crept to the door just to see who was near.
Standing out in the cold and the dark of the night,
A lone figure stood, his face weary and tight.
A soldier, I puzzled, some twenty years old,
Perhaps a Marine, huddled here in the cold.
Alone in the dark, he looked up and smiled,
Standing watch over me, and my wife and my child.
"What are you doing?" I asked without fear,
"Come in this moment, it's freezing out here!
Put down your pack, brush the snow from your sleeve,
You should be at home on a cold Christmas Eve!"
For barely a moment I saw his eyes shift,
Away from the cold and the snow blown in drifts..
To the window that danced with a warm fire's light
Then he sighed and he said "Its really all right,
I'm out here by choice. I'm here every night."
"It's my duty to stand at the front of the line,
That separates you from the darkest of times.
No one had to ask or beg or implore me,
I'm proud to stand here like my fathers before me.
My Gramps died at ' Pearl on a day in December,"
Then he sighed, "That's a Christmas 'Gram always remembers."
My dad stood his watch in the jungles of ' Nam ',
And now it is my turn and so, here I am.
I've not seen my own son in more than a while,
But my wife sends me pictures, he's sure got her smile.
Then he bent and he carefully pulled from his bag,
The red, white, and blue... an American flag.
I can live through the cold and the being alone,
Away from my family, my house and my home.
I can stand at my post through the rain and the sleet,
I can sleep in a foxhole with little to eat.
I can carry the weight of killing another,
Or lay down my life with my sister and brother...
Who stand at the front against any and all,
To ensure for all time that this flag will not fall.."
" So go back inside," he said, "harbor no fright,
Your family is waiting and I'll be all right."
"But isn't there something I can do, at the least,
"Give you money," I asked, "or prepare you a feast?
It seems all too little for all that you've done,
For being away from your wife and your son."
Then his eye welled a tear that held no regret,
"Just tell us you love us, and never forget.
To fight for our rights back at home while we're gone,
To stand your own watch, no matter how long.
For when we come home, either standing or dead,
To know you remember we fought and we bled.
Is payment enough, and with that we will trust,
That we mattered to you as you mattered to us."
-------------------------------------------------
PLEASE, would you do me the kind favor of sending this to as many
people as you can?
Christmas is upon us and some credit is due to our U.S service men and women for our being able to celebrate these festivities. Let's try in this small way to pay a tiny bit of what we owe. Make people stop and think of our heroes, living and dead, who sacrificed themselves for us.
By an Anonymous and Gratefull American Citizen
I gazed round the room and I cherished the sight.
My wife was asleep, her head on my chest,
My daughter beside me, angelic in rest.
Outside the snow fell, a blanket of white,
Transforming the yard to a winter delight.
The sparkling lights in the tree I believe,
Completed the magic that was Christmas Eve.
My eyelids were heavy, my breathing was deep,
Secure and surrounded by love I would sleep.
In perfect contentment, or so it would seem,
So I slumbered, perhaps I started to dream.
The sound wasn't loud, and it wasn't too near,
But I opened my eyes when it tickled my ear..
Perhaps just a cough, I didn't quite know, Then the
sure sound of footsteps outside in the snow.
My soul gave a tremble, I struggled to hear,
And I crept to the door just to see who was near.
Standing out in the cold and the dark of the night,
A lone figure stood, his face weary and tight.
A soldier, I puzzled, some twenty years old,
Perhaps a Marine, huddled here in the cold.
Alone in the dark, he looked up and smiled,
Standing watch over me, and my wife and my child.
"What are you doing?" I asked without fear,
"Come in this moment, it's freezing out here!
Put down your pack, brush the snow from your sleeve,
You should be at home on a cold Christmas Eve!"
For barely a moment I saw his eyes shift,
Away from the cold and the snow blown in drifts..
To the window that danced with a warm fire's light
Then he sighed and he said "Its really all right,
I'm out here by choice. I'm here every night."
"It's my duty to stand at the front of the line,
That separates you from the darkest of times.
No one had to ask or beg or implore me,
I'm proud to stand here like my fathers before me.
My Gramps died at ' Pearl on a day in December,"
Then he sighed, "That's a Christmas 'Gram always remembers."
My dad stood his watch in the jungles of ' Nam ',
And now it is my turn and so, here I am.
I've not seen my own son in more than a while,
But my wife sends me pictures, he's sure got her smile.
Then he bent and he carefully pulled from his bag,
The red, white, and blue... an American flag.
I can live through the cold and the being alone,
Away from my family, my house and my home.
I can stand at my post through the rain and the sleet,
I can sleep in a foxhole with little to eat.
I can carry the weight of killing another,
Or lay down my life with my sister and brother...
Who stand at the front against any and all,
To ensure for all time that this flag will not fall.."
" So go back inside," he said, "harbor no fright,
Your family is waiting and I'll be all right."
"But isn't there something I can do, at the least,
"Give you money," I asked, "or prepare you a feast?
It seems all too little for all that you've done,
For being away from your wife and your son."
Then his eye welled a tear that held no regret,
"Just tell us you love us, and never forget.
To fight for our rights back at home while we're gone,
To stand your own watch, no matter how long.
For when we come home, either standing or dead,
To know you remember we fought and we bled.
Is payment enough, and with that we will trust,
That we mattered to you as you mattered to us."
-------------------------------------------------
PLEASE, would you do me the kind favor of sending this to as many
people as you can?
Christmas is upon us and some credit is due to our U.S service men and women for our being able to celebrate these festivities. Let's try in this small way to pay a tiny bit of what we owe. Make people stop and think of our heroes, living and dead, who sacrificed themselves for us.
By an Anonymous and Gratefull American Citizen
Thursday, December 23, 2010
SALES OF EXISTING HOMES GAINED GROUND IN NOVEMBER 2010
Existing-home sales got back on an upward path in November 2010, resuming a growth trend since bottoming in July, the National Association of Realtors (NAR) reported Wednesday.
Sales of previously owned homes rose 5.6 percent last month to a seasonally adjusted annual rate of 4.68 million, according to the trade group’s market study. That follows a 2.2 percent drop during the month of October when the annual sales rate was at 4.43 million units.
Distressed homes accounted for 33 percent of the month’s total sales volume. Housing inventory at the end of November fell 4 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace. That’s down from a 10.5-month supply in October.
Paul Ashworth, chief U.S. economist for the research firm Capital Economics, says despite the November gains, sales are running at about the same pace we saw during the worst of the financial crisis in the first quarter of 2009. According to Ashworth, home sales are still down by more than a third from the homebuyer tax credit induced rebound earlier this year and down by 40 percent since the peak in 2005.
“Put in that context, it would be more than a stretch to characterize this latest uptick as a meaningful recovery,” he said. “The more appropriate description is that housing is still bouncing along the bottom.”
Still, Lawrence Yun, NAR’s chief economist, says the numbers bode well heading into the new year. “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,” Yun said.
Yun added that homebuyers 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.”
NAR’s study shows that the median price for existing-homes sold nationwide in November was $170,600, up 0.4 percent from November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share last month, sold at a median discount of 15 percent, while short sales were discounted 10 percent in comparison with traditional home sales, according to NAR.
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in November, the same as in October, but well below their 51 percent share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19 percent of transactions in November, also unchanged from October, but are up from 12 percent in November 2009. The balance of sales were to repeat buyers.
All-cash sales were at 31 percent in November, up from 29 percent in October and 19 percent a year ago. Yun says the elevated level of all-cash transactions continues to reflect tight credit market conditions.
--------------------
Article by Carrie Bay - http://www.dsnews.com/
Sales of previously owned homes rose 5.6 percent last month to a seasonally adjusted annual rate of 4.68 million, according to the trade group’s market study. That follows a 2.2 percent drop during the month of October when the annual sales rate was at 4.43 million units.
Distressed homes accounted for 33 percent of the month’s total sales volume. Housing inventory at the end of November fell 4 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace. That’s down from a 10.5-month supply in October.
Paul Ashworth, chief U.S. economist for the research firm Capital Economics, says despite the November gains, sales are running at about the same pace we saw during the worst of the financial crisis in the first quarter of 2009. According to Ashworth, home sales are still down by more than a third from the homebuyer tax credit induced rebound earlier this year and down by 40 percent since the peak in 2005.
“Put in that context, it would be more than a stretch to characterize this latest uptick as a meaningful recovery,” he said. “The more appropriate description is that housing is still bouncing along the bottom.”
Still, Lawrence Yun, NAR’s chief economist, says the numbers bode well heading into the new year. “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,” Yun said.
Yun added that homebuyers 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.”
NAR’s study shows that the median price for existing-homes sold nationwide in November was $170,600, up 0.4 percent from November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share last month, sold at a median discount of 15 percent, while short sales were discounted 10 percent in comparison with traditional home sales, according to NAR.
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in November, the same as in October, but well below their 51 percent share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19 percent of transactions in November, also unchanged from October, but are up from 12 percent in November 2009. The balance of sales were to repeat buyers.
All-cash sales were at 31 percent in November, up from 29 percent in October and 19 percent a year ago. Yun says the elevated level of all-cash transactions continues to reflect tight credit market conditions.
--------------------
Article by Carrie Bay - http://www.dsnews.com/
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