Report Finds Healthy Pace of Price Appreciation in Existing-Home Sales

Median prices for existing homes in metropolitan areas continued to climb in the third quarter of 2015, but at a healthier pace that could entice more home buyers into the market, according to a report on Thursday by the National Association of Realtors®.
The report suggests an “encouraging lift-off” in existing-home sales, despite the low supply of available dwellings. Slower overall price appreciation is contributing to the rosier outlook.
The median price for an existing single-family home in the third quarter rose in 87% of the metropolitan statistical areas surveyed by NAR, compared with the same period last year. That’s a dip from the second quarter’s more robust 93% gain.
In all, 154 out of 178 metro areas saw year-over-year price gains in the third quarter; 24 areas posted lower median prices. The national median price for an existing single-family home was $229,000 in the third quarter, up 5.5% from the same quarter last year. (The second quarter saw an 8.2% year-over-year increase.)
According to NAR’s chief economist, Lawrence Yun, this translates to a housing market that had its best quarter in nearly a decade.
“The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies,” he said. “While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales.”
Jonathan Smoke, chief economist of realtor.com®, echoed the sentiment. And he sees even better days ahead.
“The fourth quarter will be stronger than the third,” Smoke said, “because overall metrics for this quarter point to more robust growth than in the second quarter. And [mortgage] rates are rising again, which should encourage any fence-sitters to act before they go up much more.”
This summer’s buying was fueled by pent-up demand by homeowners tired of their current digs, favorable rates, good prices, and better incomes, Smoke said.
Sales of existing homes, including condos and single-family dwellings, jumped 3.4% to a seasonally adjusted annual rate of 5.48 million in the third quarter compared with the second quarter—but up 8.3% from the third quarter of 2014.
In fact, the third quarter could have been even stronger, Yun suggested, because of declining mortgage rates and better economic conditions. But a lack of homes for sale remained a problem.
“Unfortunately, the lack of any meaningful gains in housing supply pushed prices in some areas above what some potential buyers—especially first–time buyers—are able to afford,” Yun said.
At the end of the third quarter of 2015, there were 2.21 million existing homes available for sale, down from the 2.28 million in the third quarter of 2014.
The hottest housing markets can be found in the South and the West, where population and job prospects are growing fastest, Smoke said. He noted that economic and population growth is igniting substantial demand in emerging hot markets in Raleigh, NC, and Nashville, TN.

Please, Mr. Postman

Florida, in particular, had some of the strongest price appreciation, Yun said: “A combination of solid job gains, above average shares of vacation and foreign buyers, and little new construction being added was behind these areas’ faster price growth.”
Meanwhile, the five most expensive markets were again out West. The San Jose, CA, area posted the highest median price for an existing home: a throat-lumping $965,000. San Francisco’s median price was $809,400, followed by the Anaheim-Santa Ana metro area in Southern California, which posted a median price of $715,300. In Honolulu, HI, the median price was $714,000, and in San Diego, CA, it was $554,400.
Head to Cumberland, MD, if you’re looking for the lowest median price: $82,400.
Here’s a regional breakdown of the year-over-year gains for the third quarter of 2015:
Sales of existing homes rose 6.4% in the Northeast, with the median price at $269,400, up 3.5%.
In the Midwest, sales rose 2.1%, with the median price increasing 4.8% to $181,100.
The South posted a 3.0% rise, with the median price at $200,700.
In the West, existing-home sales jumped by 3.9%, with the median price at $324,300— a 7.3% rise.

Why First Time Buyers Are Crazy Not To Buy A Home Now

With some of life's milestones, there may not be a picture-perfect time to take the plunge. But when it comes to buying your first home, the combination of good market conditions and your own financial situation can dictate timing. If you've got the credit and down payment, you'd be crazy not to buy now. Want to know why?

Rates are still low      The Federal Reserve was expected to raise rates this summer, but so far they have stayed put. There is still talk that rates could go up before the end of 2015. So what does that mean for buyers? Well, if you're a millennial, a rise in interest rates could spell bad news.
"If mortgage rates hit 6%, a third of millennials (people younger than 35 years old) wouldn't be able to afford homes as they're currently listed, according to an analysis by HouseCanary, a housing-data analytics company," said Money magazine. "Mortgages are huge loans, so a seemingly small shift in interest rates can change a borrower's monthly payment by hundreds of dollars (though going from the current 4.08% rate to 6% is in no way a small shift)."
Investopedia's example using a $215,000 home with 20 percent down (leaving a $172,000, 30-year mortgage) figures a monthly payment of $821.15 at an interest rate of four percent and $923.33 at five percent. Is that $100 a month enough to get you moving?

Millennial Couple New low down payment loans
First-time buyers have typically gravitated toward FHA loans for their low credit score requirements and down payments of just three and one-half percent. But new loans from Fannie Mae require as little as three percent. Known as the 97% LTV (Loan To Value) loan or Conventional 97, it can be more affordable for first-time buyers because "the Conventional 97 program does not require an upfront mortgage insurance premium, and because its annual mortgage insurance rates are cheaper, too," said The Mortgage Reports.

Rising rents
In many market, home prices are up significantly from their lowest levels several years ago, but are still within range of many buyers. Rents, on the other hand, continue to go up, pushing household spending to new, uncomfortable, heights.

NMS Properties "Payments on a mortgage used to purchase a three-bedroom home were more affordable than paying rent on a similar home in 66 percent of the counties recently analyzed by RealtyTrac," said Mortgage News Daily. "Across all 285 counties analyzed, the average percentage of median household income needed to rent was 29.96 percent while the average percentage of median household income needed to buy was 29.00 percent."

Tax deductions
When you pay rent, the entirety of your payment goes to the landlord or property owner, and all you get in return is a temporary place to stay. When you own your home, the government essentially pays you money back for your investment.
"Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest," said Bankrate. "And all that interest is deductible, unless your loan is more than $1 million."
Any points you paid on your loan are also deductible the year you paid them, as are your property taxes. "These taxes will be an annual deduction as long as you own your home," said Bankrate. "But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned the home. Your share of these taxes is fully deductible."

Lower PMI
First-time homebuyers who put less than 20 percent down on an FHA loan will have to pay Private Mortgage Insurance (PMI). It's one of the drags of having limited cash. For the past several years, those payments have cost buyers an annual premium of 1.35% of the loan balance, but a recent change dropped the premium to 0.85%.
"This change is expected to save more than 2 million FHA homeowners about $900 a year and allow about 250,000 consumers to buy their first homes in the next three years," said Credit.com.
Remember also that your PMI may also be tax deductible, subject to a few restrictions (and remind yourself again what portion of your rent is deductible: none).

Fall Home Maintenance Checklist

Written by LeafFilter on Tuesday, 29 September 2015

With autumn here it is time to get your house in shape for the cooler months ahead. Fall is a great time to take care of the little things that can make a big difference for you and your home. Getting ready for colder weather means checking, repairing, and prepping your home to withstand the upcoming rain, wind, and snow.
Here are some helpful tips that every homeowner should do before hibernating this winter.

1. Stow Your Mower      With the cooler months ahead, it's time to start thinking about how you are going to stow your lawn mower. Before saying goodbye to your lawn mower for the winter season, there are a few things you should consider. First, it will be a good idea to sharpen the blade of your lawn mower to ensure that it is in tip-top shape for the spring. You'll also want to empty your gas tank before putting your lawn mower to rest. Taking simple steps like these before putting your lawn mower into storage will help increase the longevity of your equipment.

2. Perform an energy audit
Performing an energy audit is really important because it will tell you where heat is escaping, so you can correct the problem and save money on utilities. If you are doing an energy audit yourself, first make a list of all air leaks in your home by seeing where there are drafts. You can learn how to detect air leaks by following these simple steps. Seal the air leaks that you have identified by applying caulk or weather-stripping. Potential energy savings by detecting and fixing drafts can range from 5% to 30% and will make your home much more comfortable.

3. Replace Your Storm Windows
Before it gets too cold, replace your screen windows and doors with energy-efficient storm windows. Consider a proper storage space for your screen windows so they do not get damaged over the winter months. You'll want to give them a good cleaning, along with your storm windows, so that they are ready for the upcoming colder months!

4. Check your Furnace
Home heating systems that aren't properly maintained may be less than 50 percent efficient. A dirty filter will increase your heating costs and reduce the life of your equipment. For these reasons, it is important to check your filter once a month and replace or clean if necessary. Have a professional take a look and perform any adjustments to your furnace during this time if needed.

5. Install Gutter Guards
Homeowners often overlook the importance of gutters, but they protect your home by diverting rain water safely away from your home. Gutter cleaning is a temporary solution to a permanent problem, but it is important to keep your gutters clear and clean in order to prevent home issues like foundation and structural issues.
If neglected long enough, these types of concerns can be serious and costly. One way to combat clogged gutters and eliminate gutter cleaning is to have gutter guards professionally installed to your home. Installing a micromesh gutter protection system, will help save you the time and hassle of cleaning your gutters when the leaves begin to fall.

6. Maintain your Home's Exterior
Trim back trees and branches that are hanging too close to your home. Fall and winter are known for unexpected weather conditions, so it is important to prevent any type of debris from falling on your home and producing serious damage. Seal driveways, brick patios, and wood decks. For long term care of your home exterior, it is important to apply a layer of sealant to prevent weed growth, repel stains, and increase the longevity of these areas.

7. Chimney and Fireplace
You'll want to call in a professional to inspect and clean your chimney. Annual cleaning of your chimney is important to prevent dangerous chimney fires. Test your fireplace flue to ensure that it is tightly sealed when closed.

8. Test smoke/carbon dioxide detectors
This is a simple task for homeowners, but it is often forgotten about. Detectors should have a "test" button. If the alarm sounds -- you're good to go! If not, try replacing the batteries and test again. If the alarm still doesn't fire, you may need a new detector. Testing these systems is a quick, but very important quarterly test to perform.
Taking these steps will not only lower your utility costs, but they will protect your largest investment, your home, from the unexpected weather conditions ahead.

Clever Home Staging Tricks You Can Steal

 Written by Jaymi Naciri on Sunday, 30 August 2015

Getting ready to sell your home? It would be awesome to hire a home stager.
Home stagers are paid to furnish a home and help it look its best. What they create isn't so much the ideal living environment but rather the idealized one—one in which there are no awkward furniture arrangements, toys on the floor, crumbs on the countertops, or surprises in the toilet. It's not maintainable for most people everyday, but boy, does it work when selling your home!

Stagers typically have furniture and accessories at their disposal—not to mention interior design degrees. But they can cost hundreds—even thousands—of dollars. Fortunately, you can achieve great results by using some of their tricks.
Clear it out and clean it up
The first step in preparing any home for sale is to clear it out and clean it up, getting rid of clutter and personal items and scrubbing it down.
"De-cluttering -- and having a pristine home from top to bottom -- are the no-brainers that can make your real estate look better than the house down the block," said Better Homes and Gardens. "Your home must be cleaner and less cluttered than it's ever been. You need to banish not just the day-to-day buildup (the mail, the shoes, last season's clothes, the dog hair), but also several years' accumulation."
Removing kids' toys, outdated furnishings, and excessive knickknacks can help. Whatever you can't sell or donate, box up and store at a friend or relative's house, or rent a storage unit for a couple of months. Or, if you can do so neatly and without compromising your garage space, stack them along a wall.

Houzz Depersonalize
A house that reflects your personal style from floor to ceiling and all over the walls (and every other surface) will have a hard time appealing to buyers.
"Prospective buyers won't be able to picture themselves in the house if they're surrounded by dozens of photos of your children and grandparents," said Bankrate.
Update the bathroom
Not everyone has the funds for a big bathroom renovation prior to selling. Smart changes can make a big difference.
"Avoid dated tile by painting. Bathrooms sell houses, but dated tile in a bathroom doesn't. A low-cost alternative to replacing the tile is to use paint," said HGTV. "First coat the tiles with a high-adhesion primer.
Next, brush on a special ceramic epoxy covering. For a fraction of the cost of new tile, you will have an up-to-date bathroom that brings in big bucks."
Pay attention to design details
After you've cleared away the clutter, you want to focus on creating simple, elegant designs. It's easier than it seems.
"For a visual impact on a table without a lot of fuss, remember a design basic: Groupings of odd numbers always do the trick! Three of a kind, like…hurricane jars, filled with something as simple as pinecones, makes a ridiculously easy and dynamic table scape," said Katie Jane Interiors.

Katie Jane Interiors Up your curb appeal
Make sure you make a great first impression, or you might not have an opportunity to make a second impression.
"You may have spent hours making sure the kitchen is clean, and doing so is worth the effort," sad Bob Vila. "But remember, the facade is the first part of your house a potential buyer will see. A little landscaping can go a long way. Strapped for time? Potted plants placed around the front door will add welcome charm to your entryway."
Pay attention to odors
We get used to our environment, so we might notice that musty smell or cat box aroma. Have your realtor or a trusted friend do a walk through and give you an honest assessment—not just of the way the house looks, but how it smells. Then take action to improve it. Start by steam cleaning the carpets and any upholstered pieces that need it.
Don't ignore the windows
Windows that are cloaked by outdated or heavy window coverings can negatively impact the image your home projects. Open the blinds and replace drapes with inexpensive versions that will let the light in and frame the views.

Pinterest "Need to dress up a window but don't want to shell out big bucks for window treatments? Here's a trick: Use place mats," said HGTV. "First, apply a hook-and-loop fastener to the place mats and attach them in a row to a basic curtain rod. Now that the place mats are attached to the curtain rods, pin them together at the bottom, and you'll have a stylish valance that costs about $12."
Upgrade the Furniture
Giving your home a fresh, clean look with new furniture can make it feel more modern and appeal to more buyers. Don't have money for new stuff? "Try giving worn-out pieces a pick-me-up with new pillows or a slipcover," said Bob Vila.
While you're at it, take a look at your furniture layout too. "Your preferred setup may not be the most appealing one to would-be buyers. Where logical, opt for a social layout that makes it easy to envision the space being enjoyed among family and friends."
Give rooms a single purpose
That home office that doubles as a guest room is useful, but when it comes time to sell your home, pick one and run with it. "Potential buyers are confused by extra rooms that have a mishmash of uses," said HGTV.

10 Ways To Get That Down Payment

 Realtytimes.com Written by Jaymi Naciri


Buying a house has always been a dream. And with rising rents across the country, you know you might even save a few bucks every month as a homeowner. Not to mention the tax write off and the long-term equity. If it weren't for that whole down payment thing, you'd be having a housewarming party right now.
If you're a first-time homebuyer or have not purchased a home in the last two years, an FHA loan may be your best bet because you only need to come up with 3.5 percent down. On a $250,000 house, that's $8,750. Seem impossible? Here are 10 ways to come up with the cash.

1. Side work
Now don't give the idea of side work the side eye. We don't mean anything untoward here. The reality is you can take on some extra work in your field or make money by monetizing a hobby.
"No matter how mundane or insignificant your talents seem, there are other people out there who don't have those talents — and they might be willing to pay you for your skills," said Forbes. "If you're good at making things, look into selling your wares on Etsy. Woodworking, knitting, sewing, and graphic design are all in demand. Check out Taskrabbit, a site that hires you out to do household chores and errands for people in your community. Things like assembling IKEA furniture, shopping, pet sitting, and more can yield a surprising amount of money to add to your down payment fund."

2. State down payment assistance programs
States like Colorado and California offer programs for down payment assistance that are typically tied to income limits. California's CalHFA agency offers CHDAP, "a deferred-payment junior loan -- up to 3% of the purchase price, or appraised value, whichever is less" for down payment and/or closing costs.
Colorado's CHFA program is a grant of up to three percent of "up to 3 percent of your first mortgage loan to help cover some of your down payment and/or closing costs."
The U.S. Department of Housing and Urban Development's (HUD) website has a state-by-state list of programs.

3. County and city down payment assistance programs
"At least one down payment program is available in all 3,143 U.S. counties, and more than 2,000 counties have more than 10 down payment programs available to prospective homebuyers," said HousingWire. For the report, RealtyTrac looked at 2,290 down payment programs from Down Payment Resource's Homeownership Program Index and found out of more than 78 million U.S. single family homes and condos, more than 68 million would qualify for a program. That equates to an average of $11,565.
You can get more information and check eligibility here.
Individual cities may also have programs. For example, the city of Austin, TX offers down payment assistance for qualified applicants in the form of a 0 percent deferred loan.

4. Family Hope you're in good graces with your family, because they might just give you the funds you need to buy your home. "Parents can give up to $13,000 annually to their children without having to pay gift taxes," said Money Crashers. A family member or friend can also give you a loan, but you'll have to "draw up specific repayment terms" to avoid tax issues. And, there are documentation requirements and lender specifics with either option.
Slate "If a parent, grandma or whoever gives you the money, you need to fill out a gift letter, validate it with a copy of the check and your deposit receipt into your bank account," said My Mortgage Insider.
5. USDA Mortgages
Getting down payment assistance from an agency that exists to support and promote rural areas might not sound relevant if you're looking to buy in the ‘burbs, but the USDA offers a zero-down loan known as a Section 502 mortgage that is "not just a ‘rural loan' — it's available to buyers in suburban neighborhoods, too," said The Mortgage Reports. "The USDA's goal is to reach ‘low-to-moderate income homebuyers,' wherever they may be. College towns including Christiansburg, Virginia; State College, Pennsylvania; and even suburbs of Columbus, Ohio meet USDA eligibility standards. So do the less-populated suburbs of some major U.S. cities."
6. Friends and loved ones
If you have a birthday, anniversary, or other special occasion coming up, forgo the expensive dinner out, the birthday cake, and the new socks you don't need. Register instead on Down Payment Dreams, and create a place where people can help you get the funds together.
7. Your IRA
Money you've already put away could be the answer to your down payment conundrum. "Tax laws allow you to use up to $10,000 in IRA funds as a down payment if you've never owned a house," said Bankrate. "If you're married and you both are first-time buyers, you each can pull from your retirement accounts, meaning a potential $20,000 down payment."
There is no penalty for early withdrawal, they added, "but you may owe tax on the money depending on the type of IRA," so ask your tax advisor before pulling the trigger.
8. Your 401(k)
If you have a 401(k), you can tap it to pull out funds for a down payment. But, you'll need to pay them back. The 401(k) loan "typically allows a person to borrow up to 50 percent of his or her account balance up to a maximum of $50,000 but requires it be repaid within five years—though the repayment schedule may be extended if you're using the money for a down payment on a home," said Forbes. "The loan doesn't have to be approved by a bank, which means you can usually get your hands on the money quickly and without a credit check. Plus, interest rates may be lower than on standard bank loans."
9. VA loans
Are you a veteran or currently serving the country? If so, you may be able to get a zero down payment loan from the U.S. Department of Veteran Affairs (VA). The VA offers a "basic entitlement" to "each eligible veteran" of $36,000. "Lenders will generally loan up to 4 times a Veteran's available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price," said the VA.
10. Good ‘ole savings
You may have been trying to save enough money to buy a house for years. But some smart strategies and strict cutbacks can make a real difference. Trade your cable for Netflix. Take your lunch instead of buying. Trade your gas-guzzler for a hybrid. You'll be surprised how much money you can save. Click here to see how more about how two different people saved $30,000 in a matter of months.
Still not where you need to be? Check out Movoto for some more creative ideas for saving money toward your down payment. 

5 Easy Ways To Add Character To Your Home

Written by Jaymi Naciri on Sunday, 24 May 2015

If you're buying a newer home, or one that was built in the last 50 or so years, it may be lacking the charm you're looking for. Thankfully, there are ways to add charm into your home that will give you the function - and the form - you want.
"With little time and little money, you can add lots of charm all around the house," said HGTV.
Here's how.

1. Moldings
Crown molding is among the easiest ways to bring some character and architectural interest into your home, and it's inexpensive, especially if you do it yourself. But if the idea of mitering corners is making you hyperventilate, a handyman can quickly transform your blah space into something beautiful.
Houzz doesn't stop at crown molding. They recommend transforming all the trim in your house.
"When it comes to architecture, details count. They also define," they said. "The places where floors, doors, ceilings and windows meet the walls are usually accompanied by trim. The way that trim is executed has refined and defined our houses throughout history. Trim adds character and flavor to a home, the way pearl buttons finish off a shirt or cinnamon completes a coffee cake. And it helps distinguish one style of architecture from another."

Houzz See Houzz for detailed examinations of how to add Victorian, Colonial, Georgian, Craftsman, or Contemporary trim to your home.

2. Cabinetry that looks built-in
Those charming built-ins you see in old Craftsman homes—you know, the ones that flank an old fireplace or create a great hutch in the dining room—are lovely. Although it would be hard to find a home built nearly 100 years ago with perfect—condition built-ins. You know what would be easier? Creating your own built-in-looking cabinetry. It's not as hard as it sounds, and it doesn't have to cost much either.
"It's still possible to add character, charm, and storage space into our homes without hiring a carpenter or moving into a historic home," said Infarrantly Creative. "In fact, getting a few built-ins of your own is as easy as getting creative with inexpensive shelving from a big-box store."
This library wall was created by Centsational Girl using four IKEA BILLY bookcases and some trim molding.

3. Lighting
You may be able to find charming period lighting if you scour second-hand stores, antique shops, or flea markets. Or, you can pick up a reproduction piece and instantly transform a space.

PW Vintage Lighting
4. Cozy reading nook
Is there anything more charming, really, than an inspiring space to curl up with a book?
"Give an awkward area a purpose and appeal. Transform a basic bay or boxy window into a reading nook," said Better Homes and Gardens.
This can be easily achieved by building a platform or with in-stock cabinets from Lowe's and a DIY cushion. See some great ideas here.

Newlyweds in New York   5. Think Hardware
"Reinvent your entry or interior doors with antiqued brass, crystal, porcelain, or colored-glass doorknobs," said Better Homes and Gardens. The same can be done with hardware in your kitchen and bathroom to bring in a vintage or retro touch.

How to Buy a Home When You Can't Afford It

Ian Boyd started to think about buying a home in his late 20s, as he and his friends completed graduate school, coupled up, and started to think about children.

During that time in 2009, Boyd knew that purchasing a home would pose a financial challenge. He had about $35,000 in student debt and another $5,000 on credit cards. Plus, he made only about $34,000 a year as an academic adviser at a community college in Vermont. In other words, his debts exceeded his income.

 

"I remember going to the bank to see about getting a mortgage and hoping for the best. I left deflated," he says.
The bank approved him for a mortgage of $50,000 -- a sum that does not go far enough in Burlington, the college town where Boyd lives. There, the median sale price of a home is $265,000, according to real-estate website Trulia.
Through a co-worker, Boyd learned about Champlain Housing Trust, a nonprofit that offers financial education and innovative housing programs geared toward low- and middle-income people. Now, six years later, Boyd owns a four-bedroom, two-bath fully renovated home with an apple tree and a backyard.
"I feel a connection to this city that I didn't feel when I was renting," he says. "I could see expanding my family here."


Boyd went from debtor to homeowner in just three years -- from 2009 to 2012-- thanks to an innovative homeownership plan called the shared-equity program. It works like this: Champlain Housing Trust offers a down payment for a home, paid for with government funds. Then CHT screens potential buyers, who are members of the trust, based on their assets and income. (To qualify, a family of four must earn $80,200 or less in gross annual income, they must not own another home, and they must not have significant assets outside of savings for retirement.)
The homeowner then gets a mortgage from a bank and pays the principal each month. Usually, the homeowner also pays for the closings costs and any upkeep and maintenance. When the homeowner decides to sell the property, he first must offer it back to the housing trust. Both the homeowner and housing trust share in the home's appreciation. (That's why it's called "shared equity" -- 25% of the appreciation goes to the homeowner and 75% to CHT.) The homeowner also recoups all of the equity he built up each month through making principal payments, as well as any money he has spent on capital improvements (a figure determined by an independent appraiser).

Housing experts like this shared-equity model, also known in housing circles as community land trusts, because "the potential is that, if it's done well, it occupies the middle rung between renting and owning," says Brett Theodos, a senior research associate at the Urban Institute, a nonpartisan think tank in Washington. "This is a market hit solution."
The shared-equity model also accomplishes two key goals for its beneficiaries and for communities. First, it helps low- and middle-income people save money by requiring mortgage payments month to month without having to worry about the down payment (often, the sticking point for first-time buyers). Second, it helps to preserve affordable housing throughout the community. Any money the housing trust earns through appreciation gets plowed back into the homes. "We use this to keep these homes permanently affordable," says Emily Higgins, director of Home Ownership for the Champlain Housing Trust.
The shared-equity model of housing came out of the civil rights movement in the South in the late 1960s, says John Emmeus Davis, a private housing consultant who works with community land trusts across the country. Activists realized that fighting for African-Americans' political and legal rights was only one step. To fully tackle racial inequality, they also needed to ensure economic independence; hence, the emphasis on homeownership among African-Americans: a policy that remains one of the best ways to encourage people to build up assets.

The first shared-equity housing program started in the rural area of Albany, Georgia, in 1967. Then, in the 1980s, activists launched the first urban iteration in Cincinnati, Ohio. Now, more than 200 nonprofits and groups work in this space.
Even the global financial recession didn't dampen housing experts' enthusiasm for the program. The rate of foreclosures among homes in shared-equity programs was 0.46% at the end of 2010, compared with 4.63% among owners of market-rate homes.
The Champlain Housing Trust currently offers about 550 homes in its portfolio. The group also places great emphasis on financial education and money management; after all, there's little benefit in buying a house if a person can't afford to hold onto it.
As for Boyd, he moved into his new home in January 2012 with the help of the Champlain Housing Trust. His house was appraised at $230,000, but he borrowed roughly $160,000 because the housing trust had already put so much money into the place. He paid $9,000 in closing costs. The monthly mortgage payment is roughly $1,150 -- just $150 more per month than he paid for a one-bedroom rental.

Should something go awry with his home, Boyd feels that the Champlain Housing Trust will support him. The group does not micromanage its homeowners, or their renovation or upkeep decisions, he is quick to say. But they will help if people run into trouble paying for a major outlay like a new furnace or roof. They also offer free programs for their homeowners, like tax workshops.
The ultimate goal of the Champlain Housing Trust is to ease low- and middle-class individuals into homeownership by helping them save money and, eventually, prepare them to buy a home on the open market. For now, though, Boyd plans to stay in his charming, two-story house on North Champlain Street. "I would be fortunate to live my life in this house," he says.
This article originally appeared on The Next Economy, a joint project of The Atlantic and National Journal.

Raise Your Home's Value Instantly

Written by Blanche Evans 18 February 2015

Your real estate professional is advising you to de-clutter, stage your home, plant new flowers, and make repairs and updates. You may be reluctant because of the costs, but according to HomeGain, your real estate agent is giving you sound investment advice that can actually make you more money when you sell your home.
Through its Home Sale Maximizer feature, HomeGain, an agent referral website, identified the top 10 home improvements under $1,500 that add the most to home sellers' bottom line, as recommended by real estate professionals across the nation.

The top 10 home improvements are listed by the greatest return on investment (ROI):
1. Cleaning and de-cluttering ($290 cost / $1,990 price increase / 586% ROI)
2. Lightening and brightening ($375 cost / $1,550 price increase / 313% ROI)
3. Home staging ($550 cost / $2,194 price increase / 299% ROI)
4. Landscaping ($540 cost / $1,932 price increase / 258% ROI)
5. Repairing electrical or plumbing ($535 cost / $1,505 price increase / 181% ROI)
6. Kitchen and bathroom ($1,265 cost/$3,435 price increase/172% ROI)
7. Replace or shampoo carpets ($647 cost/$1,730 price increase/169% ROI
8. Paint interior ($1,012 cost/$2,112 price increase/109% ROI)
9. Repair floors ($931 cost/$1,924 price increase/107% ROI)
10. Paint exterior ($1,467 cost/$2,222 price increase/51% ROI)

What's interesting is how consistently listing agents recommended the same home improvements. Nearly 100% of listing agents recommend cleaning and de-cluttering, while 97% recommended lightening and brightening and 80% recommended staging. These top three categories cost just a little over $1,000, yet netted sellers as much as $5,734 at closing.

As defined by HomeGain, the top three money-makers for sellers are:

Cleaning and de-cluttering: Remove personal items; wash and clean all areas inside and outside of house; freshen air; remove clutter from furniture, counters and all areas of the home; organize closets; polish woodwork and mirrors, etc.

Home staging: Add fresh flowers; remove personal items; reduce clutter; rearrange furniture; add new props or furniture to enhance rooms; play soft music; hang artwork on walls, and more.

Lightening and brightening: Open windows; clean windows and skylights inside and outside; replace old curtains; remove other obstacles from windows that block out light; repair lighting fixtures; make sure windows open easily, among other suggestions.
It takes money to make money, and that's never been truer than when you're selling your home.

Home prices grow at slower pace

 

By Ben Rooney  January 27, 2015

 

 

 

Home prices nationwide rose in November, but the growth slowed, raising concerns about the strength of the housing market recovery.

The S&P/Case-Shiller index of home prices in 20 major U.S. cities showed Tuesday that prices were up 4.3% in November, compared with last year. In October, the annual growth rate was 4.5%.

 

On a month-to-month basis, home prices actually edged lower in November from October, extending a slowdown that's been going on for months.
The report points to continued weakness in 2015, according to David Blitzer of S&P Dow Jones Indices.

Related: What to do with a dying neighborhood
"The housing recovery is barely on first base," said Blitzer. "Prospects for a home run in 2015 aren't good."

Blitzer said the housing market faces challenges such as low inventory of homes for sale and "stiff" mortgage qualification standards.
Despite the overall trend, home prices remain strong in certain hot markets.
Miami and San Francisco had the largest home price gains, along with Tampa, Atlanta, Charlotte, and Portland.

Related: Boomerang home buyers are coming back
Detroit was among the cities where prices fell the most.
Some others are more optimistic.

"The housing market is heading in the right direction," said Stan Humphries, chief economist at online real estate listing company Zillow (Z). Though home prices are slowing down, the gains are "at a level more in line with historic norms."

Humphries added that home prices for more affordable homes have been ticking higher, suggesting that conditions are ripe for first-time home buyers.

FHA to lower cost of mortgage insurance

In an effort to make owning a home more affordable, the Federal Housing Administration will dramatically cut the costs associated with the mortgages it backs.

Premiums for FHA mortgage insurance, which is designed to protect the agency in case a borrower defaults on a loan, will be cut from 1.35% of a loan's value to about 0.85%, the White House said in a statement Thursday.

As a result, a typical first-time homebuyer will save $900 a year on their mortgage payments. Existing homeowners who refinance into an FHA loan will see similar savings.
"Too many creditworthy families who can afford -- and want to purchase -- a home are shut out of homeownership opportunities due to today's tight lending market," the White House said.
The White House estimates that the lower premiums will enable up to 250,000 new buyers to purchase a home.

Related: Five biggest threats to the housing recovery

In the wake of the financial meltdown and ensuing foreclosure crisis, FHA raised its mortgage insurance premiums to shore up its finances. But now home values are on the rise, the jobs picture is improving and foreclosures have fallen to their lowest level since 2006.

Last March, the FHA announced it would not need another bailout due to improving financial conditions. The White House said that even after lowering premiums, reserves in the fund are projected to grow by $7 billion to $10 billion annually.

Related: Fannie, Freddie to offer 3% down payment mortgages

FHA loans have been an important lifeline for low-income and higher risk borrowers in the wake of the financial crisis. As private lenders tightened their lending standards, FHA-backed loans became the only mortgages available to many of those buyers, given their tiny down-payment requirements and easier credit-score hurdles.

By Chris Isidore   @CNNMoney January 7, 2015: 3:39 PM ET

 

First-Time Buyers Face Rosier Prospects in 2015

Real Estate News |  Jan 9, 2015 |  By: Jonathan Smoke

It’s official: 2014 was the best year for total job growth since 2000. The housing market now has a confluence of several important demand-boosting factors that should make 2015 a big year for growth in home sales.
First, mortgage rates remain—at least for the time being—at near historic lows. The latest reprieve from higher rates is thanks to the bond market’s reaction to global economic concerns. Yet, as the jobs data indicate, the U.S. economy is on much better footing than the rest of the world.

Key factors for first-time buyers

But the key issue for first-time buyers has not been rates, which have been historically low for several years. Their employment situation, overall level of confidence, ability to qualify for credit and ability to afford the down payment have been the larger issues.
December data show that employment for younger households, in particular, has improved dramatically in the past year. For example, more civilian jobs for 25- to 34-year-olds were created in 2014 than in any other year since 1987.
Mortgage backers Fannie Mae and Freddie Mac clarified their credit qualification standards in the fall, which had been murky since 2009 legislation enacted in reaction to the housing bust. This should make it easier for many would-be home buyers to get a loan with slightly lower FICO scores and slightly higher loan-to-income and debt-to-income ratios.
The new low-down-payment programs announced in December from Fannie Mae and Freddie Mac will make conventional mortgages more accessible to first-time buyers.

FHA change could save borrowers almost $1K a year

The latest important factor was announced this week: The Federal Housing Administration intends to lower the annual mortgage insurance premium rate that applies to FHA-insured loans from 1.35% to 0.85%.
That may not seem like a lot, but it can make a tremendous difference to the very people that FHA mortgages are intended to help.
For example, the median price on an existing home sold in November was $205,300, according to the National Association of Realtors. Assuming a 3.5% down payment, the higher fee amounted to $222.88 a month on top of the mortgage payment. The new monthly fee would be $82.55 lower, or just shy of $1,000 a year. For a median household in the U.S., that difference is almost 2% of its annual income.
That 2% could make a critical difference to falling within the income qualification ratios required for a loan.

Counties where households could save 6% of income

We analyzed the local median incomes, median home prices, and applicable mortgage, insurance and property tax rates for each county in the U.S. We found that in some counties, the change in the FHA fee could be as high as 6% of annual income.
The county with the highest impact from the fee change is Greene County, GA, where a median-income household would save 6% of its income. The most affected counties can be found in states such as Hawaii, Idaho, California, Colorado, Washington, and New York. In these areas, housing tends to be less affordable. That’s why the FHA fee has such an impact.
Consumers should work with knowledgeable local REALTORS®, lenders or mortgage brokers to review the pricing and qualification details to decide if the FHA loans are appropriate for them. With the proposed fee change, the pricing of the FHA mortgages should be more attractive to more consumers at various credit score and down payment levels. However, there are still some aspects of the FHA-insured mortgages that could make the conventional mortgages more attractive.
It is a clear positive for the residential real estate market that all of these demand-increasing factors are coming together just as the employment picture is much better. First-timer buyers now have a much better chance of qualifying and buying, and would-be sellers should be encouraged to think about this being the year to list.

Predictions for 2015 in real estate

With the D.C. area among many analysts’ top markets for 2015, the area should see above-average growth throughout the year compared to a somewhat average 2014. (Washington Blade photo by Michael Key)

Let’s be honest about the 2014 real estate market: It wasn’t exactly the greatest year for growth in Washington, D.C. As of the end of November this year, the number of units sold in Washington, D.C. has increased 4.13 percent. Sure, growth is always great, but when compared to the same time last year, the area had seen a 14.14 percent increase in total real estate units sold compared to 2012; albeit, 2013 was a year that was overall much more productive than 2012, perhaps explaining the sluggish 2014.

As we look forward to 2015 it is essential to associate the mild 2014 as an indicator for the positive direction the Washington, D.C. market will turn next year. Nationwide, the National Association of Realtors (NAR) predicts that the number of sales of existing single-family homes will increase by 5.8 percent in 2015 with the median price rising by 5.2 percent. Compared to the current D.C. climate, this is already an increase in the percent change from 2013 to 2014 (assuming an average over 4.2 percent growth through the year’s end). However, when shifting from the national market to the D.C. market, many analysts predict that the local market will be one of the top markets in the country for 2015 due in large part to the equity that has been built up through a market with limited inventory than comparably size metro areas.

Besides a greater growth in the number of properties sold, other indicators will likely continue to recover in 2015. Overall, 2014 saw a near 14 percent decrease in the average days on market for all properties (from 43 days in 2013 to 37 days in 2014). Due to a market that will likely surpass the national growth, it may be safe to assume this decrease in average days on market will continue. Furthermore, with a more balanced market between the buyer and the seller, we can expect much more equitable deal making across the board according to Coldwell Banker’s top agent James Braeu. This means good news for new buyers to the market as D.C. has often been associated much more with a seller’s market.

What about the individual, taste-specific market trends for real estate in D.C.? According to the MLS, the greatest appreciation for home purchases in the city has been outside of the downtown area. From the Southwest Waterfront to Cleveland Park to Hillcrest (the area with the greatest appreciation), home values are generally appreciating more outside of the traditional downtown neighborhoods (though this trend has been predicted for years because of a limited inventory in the most urban settings). Another predictor of this growth in a more suburban setting is the presence of a boomer generation upgrading from a 1-2 bedroom condo to a much more spacious single-family home. As predicted by Michael Marriott and Stanton Schnepp, two of Coldwell Banker’s top real estate agents, sellers are cashing in on their condominium’s equity and taking advantage of low interest rates in order to purchase a fee-simple house. Their new mortgage is normally equal in value to their condo when factoring in the cost normally associated with a condo fee.

Now, what about paying for your next home? One standout in 2014 was truly the drop in interest rates. From January of this year, rates were averaging at or around 4.3 percent. Over the course of the year, the national interest rate has dropped for most to at or below 4 percent. For 2015, rates are predicted to increase sometime in the next six months and continue this cycle for the next two years. Thus, for buyers hoping to lock in a great low rate on a mortgage, the time to buy is truly in 2015.

In summary, perhaps it is somewhat safe to have optimism for the 2015 real estate market when compared to our mild 2014. With the D.C. area among many analysts’ top markets for 2015, the area should see above-average growth throughout the calendar year compared to a somewhat average 2014.

 

Tim Savoy is a real estate agent with Coldwell Banker Residential Brokerage, Dupont Circle. Reach him at 202-400-0534 or timothy.savoy@cbmove.com.

How Homeownership Serves as a Steppingstone to Wealth

Real Estate News   |  Dec 5, 2014 |  By: Jonathan Smoke

A recent editorial in the New York Times focused on homeownership and wealth creation, drawing on research from the Joint Center for Housing Studies at Harvard University and concluding that “as a means to building wealth, there is no practical substitute for homeownership.”
But just why is homeownership so important to building wealth? Here’s what the researchers at Harvard found in their 2013 research, and what it means for you today.

A Mortgage Forces You to Save

Buying a home through a mortgage forces savings through the form of the monthly payments of principal. Rent vs. buy arguments normally focus on the monthly payments, and the buying cost is a function of the monthly mortgage payment as well as escrows (insurance and property taxes).
But the mortgage payment comprises an interest component and a principal component, and the way the payments are split between interest and reduction of principal (the total amount borrowed) changes over time. In general, more interest is paid at the beginning of the mortgage. The longer you have the loan, the greater the share of your payments that is going to pay it down.
The payment of principal as the loan ages is, therefore, a forced savings plan whose deposits are growing—without any more being taken out of your pocket.

Homes Deliver Real Appreciation Over Time

We now have lived through periods of abnormal price increases as well as periods of abnormal price declines. Even so, when you take the long view, the compounded annual return of home prices has exceeded inflation by close to a full percentage point. In other words, while there are periods of above normal and even negative changes in value, home prices increase faster than inflation over time.
And those increasing values compound over longer periods of time. For example, the Harvard study highlighted that if an owner had experienced the average gain in home prices from 1975 to 2012 as measured by a common home price index, that owner would see have seen a real, inflation-adjusted gain of 26% over 30 years.
That means that after adjusting for inflation, at the end of a 30-year mortgage, a typical home would be worth 26% more in current dollars.

Buying With a Mortgage Increases the Returns of Owning a Home

The Harvard paper used the example of a buyer putting down 5% and experiencing 4% appreciation. After five years, the house would be worth 22% more—or more than five times what the owner put down.

Homeowners Enjoy Multiple Tax Benefits

Many homeowners enjoy the benefit of the mortgage-interest deduction, which enables them to deduct the annual interest paid on a mortgage along with property taxes. Furthermore, substantial gains (up to as much as $500,000) are exempted from capital gains upon the sale of a home.

Homes Protect the Owners From Rising Costs

As discussed above, home prices historically outpace inflation—the result of prices rising over time. But buying a home with a mortgage actually provides even more of a protection from a very real threat in the form of rising rents.
A mortgage locks in the majority of a homeowner’s housing costs. As time goes by, the monthly payment remains the same, yet because of inflation the real payment, cost actually declines. That means that over time, homeowners pay an increasingly smaller share of income on housing.
The Harvard study cited these stats: Assuming a 30-year fixed rate mortgage, inflation of 3% and 1% growth in real (inflation-adjusted) home prices, property taxes, insurance and maintenance costs, real monthly housing costs would decline by about 10% after five years, 15% after 10 years and 30% by the last year of the mortgage. Then when the mortgage is paid off—and the home is owned free and clear—the costs of owning in real terms are less than half the payments made at the time of purchase.
The alternative to owning does not have such a pleasant long-term outcome. Rents would at least keep pace with inflation, meaning that the renting household would never see their real housing costs decline.
Homeownership remains a key part of the American dream for many quality-of-life reasons—like simply having a place to call your own. But as this research indicates there is also a clear financial benefit as well: Owning a home over time enables growth in household wealth.

Should You Remodel or List Your Home For Sale?

Realty Times, by Blanche Evans on Wednesday, 19 November 2014

If you've been watching a lot of HGTV, you may be in the mood to make changes. Is it time to remodel? Or is it time to sell?

Just like anything that gets a lot of use, homes show wear and tear after a few years. Certain color schemes and decorative styles begin to look outdated. And there are some improvements that you may have put off as a new homeowner that you can afford to do now.

     

Some market conditions are in your favor -- interest rates are still extremely low and below where they were a year ago and the economy is improving, so you'll likely get much of what you spend to improve your home back when it comes time to sell.
The question to answer is this: If you improved your home the way you want, would you want to stay in it for a few more years, or are you ready for a complete change?
Home improvements can be substantial, such as adding a bedroom and bath to the existing footprint of your home or outfitting a kitchen with new countertops, cabinets and appliances. You want your home to support the standards set by your neighborhood, but you also don't want to end up with the most lavish house on the block.
To get started, put together the right team. If you' aren't moving walls or pouring a new foundation, you probably won't need an architect, but you will need the right contractors, kitchen planners and interior designers to help you put it all together.
You'll also need to talk to your lender to learn how much you can borrow and whether the current market value will support the facelift.
As you're putting together bids, you may find more work is required that you weren't expecting. Plan for problems to come up, change orders and delays on materials, so you won't get upside down with expenses or sideways with your contractor.
Before you make a decision on remodeling, make sure you are going to get what you want at the price you want to pay and that you'll be happy with the results for at least several years to come.
If you're not sure the remodel is the way to go, you can talk to your real estate professional. Be honest with your agent that you are considering remodeling, but that you are also open to finding another home. Your agent might know of homes for sale that have the size, features and finishes you're wanting. After you view a few homes, you should have a better idea of what you want and what you like.
You and your agent will also discuss selling your home. He or she will create a comparative market analysis of similar homes to yours that have sold recently and are currently for sale so you'll know what you can reasonably expect to net from the sale of your home. From these homes, you'll learn how long homes are staying on the market and if other sellers are getting their asking prices. Together you and your real estate professional can discuss a price range for your home, based on its location and condition.
Keep in mind that all markets have ups and downs so what your agent can show you is only a snapshot of what's true today. If you're happy with where your home ranks amid the competition, then it should be a good time to list your home for sale.
Change is an evolution, and will bring some upheaval to your life. You'll either have to open your home to workers or to buyers. But if you come out on the other side with what you and your household desire, it will all be worth it.

THE MOST EXPENSIVE HOME IN AMERICA: Billionaire real estate mogul Jeff Greene lists Beverly Hills compound for staggering $195M

NEW YORK DAILY NEWS

By Katherine Clarke; Friday, November 7, 2014

America's most expensive home has hit the market for a staggering $195 million.
The massive 25-acre Beverly Hills compound, known as the Palazzo di Amore or Palace of Love, has its own vineyard, a bowling alley, a 50-seat movie theater, a discothèque with a rotating dance floor, a supersize reflecting pool and even a spa.
Billionaire real estate mogul and Mike Tyson bestie Jeff Greene spent nearly eight years developing the estate as an investment property and married his wife Mei Sze Greene there in 2007 with the former boxer as his best man.

He bought the site of the home in 2007 from Saudi business magnate Mishaal Adham, who almost lost it to foreclosure midway through construction. The property has a total 53,000 square feet of interior space, including 12 bedrooms and a whopping 23 bathrooms. The vineyard even has its own private wine label and churns out up to 500 bottles a year.

Listing brokers Joyce Rey and Stacy Gottula of Coldwell called the home “one of a kind.”
“We think the buyer is likely to be international,” Rey told the Daily News. “A compound like this is ideally suited to someone with an entourage.”

Unlimited Style Real Estate Photography/Marc Angeles

Unlimited Style Real Estate Photography/Marc Angeles

Unlimited Style Real Estate Photography/Marc Angeles

 

Greene said he spent around $25 million completing the construction and is selling to capitalize on the strength of the international market for uber-luxury properties.
The rerord for the most expensive home sale in the U.S. was set earlier this year by the sale of an 18-acre beachfront property on Further Ln. in the Hamptons. That home was purchased by hedge fund honcho Barry Rosenstein for $147 million.
“True to its name, Palazzo di Amore, this estate has been a labor of love for me,” Greene said of the home, the listing for which was first reported by the Wall Street Journal. “I can honestly say that this property is an incomparable crown jewel without an equal.”

Boomers and Engineers a Good Sign for Housing Markets

By: Realtor.com Team 

 

Metropolitan areas that are home to larger populations of math and science professionals and baby boomers are bucking the usual seasonal trend of a real estate slowdown as summer ends, realtor.com® research shows.

Properties in 12 major metro areas are spending less than two months on the market, according to the realtor.com® September National Housing Trend Report, released today.
The 12 markets include the greater Seattle, San Francisco, Austin, TX, and Washington, D.C. areas.
“When we see homes moving quickly in a particular market, we expect the trend to be supported by signs of local health like growth in industrial production and employment,” said Jonathan Smoke, chief economist for realtor.com®.

The high proportion of math and science professionals in these fast-moving housing markets likely has to do with the higher incomes found in those professions, which also attracts job seekers from other areas, Smoke added.

“So, assuming the portion of people moving in have above-average jobs, you have a recipe for strong demand up against tight supply,” he said.

As for the baby boomers, Smoke pointed out this is a huge generation and the one with the most wealth. Many of them are approaching or will soon be thinking about retirement, a major life event that spurs housing transactions—whether they’re downsizing because the kids are gone, upsizing to their dream home or selling to move to senior living communities.

All of those decisions support local construction and economic activity, providing a strong base for housing demand, Smoke said.



“As the technology industry grows and aging baby boomers decide to make housing moves to support their retirement, we’ll continue to see strong housing demand associated with these factors.”
On a national level, median age of inventory is lower than last year, with a reduced number of homes on the market. In September, homes spent approximately 90 days on the market, which is three days less compared to this time last year.

Median listing prices held steady for the fourth consecutive month, maintaining a 7.7% gain year-over-year. According to the National Association of REALTORS®, inventory continued to demonstrate persistently low months’ supply at five and a half months as compared with normal levels of six to seven months.

New homes months’ supply was even lower at nearly five months in August.
“To truly relieve the inventory shortage on a sustained basis, new home construction needs to rise by at least 50% from the current levels,” said Lawrence Yun, chief economist and senior vice president of research for the National Association of REALTORS®.

11 amazing real estate facts to entertain your brain

By Seth Williams, Inman News, Oct 20, 2014
        

Source: Flickr, Seeking Alpha

Source: Flickr, Wikipedia, HuffingtonPost

Source: Flickr, Wikipedia, Houselogic

Source: Flickr, LifestyleProperties

Source: Flickr, OneRedPaperClip

Source: Flickr, Wikipedia

 Source: Flickr, WashingtonCityPaper

Source: Flickr, HomesOfTheRich

Source: Flickr, CrazyFacts, Wikipedia

Source: Flickr, Gizmodo

Source: Flickr, Cnet