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Vacancy Rates Drop to Lowest Since 2006

The national vacancy rate among single-family non-rental homes fell to 2.3 percent in the fourth quarter of 2011, according to data released Tuesday by the U.S. Census Bureau.

That’s down from 2.7 percent at the beginning of last year, and the lowest homeowner vacancy rate since early 2006.

Undoubtedly, the decline in vacancies is an offshoot of fewer foreclosures in 2011 combined with a slight uptick in home sales for the year.

RealtyTrac reports foreclosure starts were down 39 percent from 2010. And while new home sales had their worst showing in recorded history, the National Association of Realtors tracked a 1.7 percent annual increase in existing-home sales.

Paul Diggle, property economist with Capital Economics, says it’s another sign that excess inventory – at least the visible inventory – is slowly but surely being cleared. It

“leaves the visible inventory at a level consistent with house prices bottoming out later in the year,” according to Diggle.

The Census Bureau also reported that the nation’s homeownership rate dropped to 66.0 percent – its lowest level in nearly 14 years – as the housing downturn has eaten away at the share of Americans who are willing and able to own their own home.

The fourth-quarter homeownership rate gave up almost all of the previous quarter’s gain, Diggle noted.

“What’s more, despite median mortgage costs being more affordable than ever and early signs that mortgage credit is becoming more available…the seven-year downturn in homeownership may still have further to run,” he warns.

The flipside, Diggles says, is there are more households in the rented sector and fewer properties lacking tenants, which is helping to drive rents, and therefore landlords’ returns, higher.

He expects rental value growth is to hit 3 percent this year and average rental yields to rise to around 5.5 percent.

With house prices still falling for now, Diggles says it will be a while yet before homeownership is once again seen as an essential part of the American Dream, and that’s despite the fact that owning now seems to make greater financial sense than renting.

The drop in the homeownership rate pushed the share of households in rented accommodations up, from 33.6 percent at the beginning of 2011 to 34.0 percent in the fourth quarter. The ratio of homes in the rental sector that were vacant also fell, to 9.4 percent.

(Homeownership and Vacancy Rates Drop article courtesy of DSNews.com)

Protect Your Home From Water Damage

April showers are just around the corner so it’s time to protect your home from the water. Caulking can be challenging the first time you try it but you will quickly get the hang of it. By caulking the areas around your doors and windows at least once per year you will protect your home from water damage. To get started you will need the following tools:

  • Putty knife
  • Tube of caulk
  • Caulking gun

1. Start by using a putty knife to scrape the joint where the window frame and wall join to remove any old caulk or dirt.

2. if you have a wire brush, go over the area you just cleaned. This will help the caulk adhere.

3. Grab your caulk gun and open up the end to insert the caulk tube into the gun. Cut a small diagonal hole at the end of the tube, using a razor knife or utility scissors.

4. Use a nail and push it into the opening you just cut to break the seal (if it isn’t broken). Squeeze the caulk gun trigger until caulk starts to come out through the tip. Press the release latch at the other end to stop the flow of caulk.

5. Set the flat part of the tip at the end of the window frame where it meets the wall. Squeeze the trigger slowly, pulling the caulk gun along the joint, making a thin, flat, even line of caulk. Don’t stop moving the gun as you lay the caulk. Press the release latch when you get to the end of the line to stop the flow of caulk.

6. Repeat for each area around the window, everywhere that two different materials meet, whether there is a gap or not. Immediately wipe up any extra caulk with a damp cloth. Let the caulk set overnight. You can also use you finger or a tool to smooth out the caulk and ensure all gaps are covered.

 

2012 Homes Sales Looking Up

National Association of Realtors has released their latest home sales information and things are looking up.

According to the “Pending Home Sales Index”, homes under contract are up 7.3%, the second straight month with an increase.

This is the first time since the Homebuyer Tax Credit that the Pending Home Sales Index has gone above 100, a great sign for the market. The best part of these figures is the growth is occurring organically through great affordability and job creation.

So what are the sales trends showing? Lower priced homes are moving quickly while the upper end market is still sluggish. New home sales and new construction starts are both up, a great sign for the months ahead.

Through the broader economy, we are seeing increased job growth from 100,000 per month and may even increase to 150,000 jobs created per month, which will continue to grow the real estate market.

For the full interview with Lawrence Yun, National Association of Realtors Chief Economist, view it below:

Houses Are On Sale Across the Country


InfoGraphic

The graphic depicts pricing of all homes from their ‘peak through current declines’ as per Case Shiller. This index looks at prices in 20 major metropolitan areas.

Each market peaked at different times. Therefore, the InfoGraphic doesn’t cover one segment of time. Here is a site where you can see when each market actually peaked:

http://www.housingviews.com/2011/11/29/how-the-cities-did-in-the-latest-release/how-cities-did-september-2011/

Courtesy of KCMBlog.com.

 

Congress Raises Limits on FHA Loans

WASHINGTON—U.S. lawmakers moved Thursday to increase the maximum size of loans that can be guaranteed by the Federal Housing Administration.

Congress passed a broad spending bill that included a provision to restore to $729,750 the maximum size of mortgage that can be backed by the FHA, giving some borrowers the option of putting less money down to obtain a mortgage in expensive cities.

FHA-backed loans currently account for a third of new mortgages for home purchases and can be made with down payments of as little as 3.5%, compared with the 20% industry standard.

The bill goes next to President Barack Obama to be signed into law.

The loan limits fell to $625,500 on Oct. 1 in expensive markets like New York, San Francisco and Washington. They declined in around 250 counties for loans guaranteed by mortgage-finance companies Fannie Mae and Freddie Mac, and in around 600 counties for FHA-backed loans. In some cases, the FHA loan limits fell below those of Fannie Mae and Freddie Mac.

The housing lobby pushed for Congress to reinstate loan limits for Fannie, Freddie and FHA, citing concerns that any steps to raise borrowing costs might be too much for fragile housing markets to bear. Limits for Fannie and Freddie loans were not restored.

Sen. Robert Menendez (D., N.J.) said that restoring the loan limits will benefit the housing market at a time when it is weak. Doing so, he said, “won’t cost taxpayers a dime” and will benefit the housing market in many other parts of the country besides those cities.

Courtesy of WSJ.com

Cheap Ways to Remodel Your Bathroom

Some people view remodeling as a major effort, and wallet depleting act that  will leave you tired and broke. Fortunately, that is not the reality of  remodeling, which is why today, more than ever before homeowners are taking on  the tasks of do-it-yourself jobs, like remodeling the bathroom or kitchen, or knocking down some walls to create a larger,  more open space. Here are a few ways to inexpensively remodel your bathroom,  without breaking the bank.

1. Lighten Up! If your room is drab or plain, a great and cheap way to spruce it up is to add some color, and a new paint job. This is an extremely  cheap way to get a new look, and add some life to your bathroom. Just be  cautious when choosing your new color, because the darker the color, the smaller  your room will look. So, while you may love the rich maroon color, if you have a  small bathroom, it’s going to appear even smaller with the darker paint. On the  flipside, if you have a small wash room, and decide to try a lighter color, like  a pale yellow, you will automatically notice the drastic change in the amount of  space it feels like.

2. Keep it neat! Though, it might sound like a reminiscent argument  between you and your mother when you were a child to clean up your room, it  really is important. If a space is neat and clean, it’s going to look bigger,  and you’re going to feel happier with the space. If it is cluttered and messy,  you’re not going to feel pleased, and it’s going to make the space seem tighter  and more restricted. If you’re lacking storage space, try investing in a new  piece of furniture, like a vanity. They are great ways to update your room while  also providing ample storage space, making it a breeze to keep your space neat  and uncluttered.

3. Do it right! Upgrading your bathroom can really make a huge difference in  the overall appearance of your room. Everyday, we use this space, and it’s  important that we appreciate it and are happy with it. If you can start your day  off on a better note, by having a great jetted bath or tub, you should do  it.

Article courtesy of http://EzineArticles.com/1566175

How To Store Firewood For The Winter

Firewood is a good alternative to other home heating methods. The storage of firewood is important to protect both your home and investment. You must have the appropriate space and equipment to access and care for your firewood.

1. Wood Shed

Choose your storage location wisely.

The key to keeping firewood seasoned and dry is to allow for air circulation. The most ideal place for firewood is an open ended wood shed that allows for stacking off of the ground.

Remember to choose a location that gives you easy access. On the coldest day of winter, how far will you have to go to get the firewood?

2. Fireplace Log Rack

It may be tempting to keep firewood inside of your home but be very careful. Inspect wood thoroughly for bugs before you bring it inside.

It is okay to have a small log rack near your fireplace to stack wood that you are currently using. But keeping large amounts of wood inside the house will leave you vulnerable to pests such as termites.

Basements can be used if there are no air connections to the living areas or ways for pests to be transferred from the basement to the living areas. The same with garages.

The absolute best place to store firewood is outside and away from the home.

3. Log Rack

Outside of your house or shed, stack the firewood off the ground. A homemade or store bought log rack should be kept a few inches off the ground. This will keep the wood dry and further protect it from insects. If you put the log racks on the ground (rather than on cement or a patio) it needs to be staked into the ground in order to stay stable. If the log rack begins to lean the whole pile can come falling down.

Log racks should be kept a good 30 feet from the house. Firewood attracts a lot of insects and it is best to keep these pests away from your home. If you don’t have the space to keep the wood far from the home, be sure not to stack the firewood against your home’s wall. Leaving some room will give the firewood better air circulation and give your house a bit of protection.

Tips & Warnings

  •  Use old firewood first. If you have wood left from last winter take it out of your storage area and place the new firewood at the bottom of the pile.
  •  When storing firewood inside of your house on a small log rack, you can treat that area of your floor with insecticides. Be careful if you have pets or children.
  •  Log racks and covers can be purchased at retail stores and online. They are generally sold to hold a cord of firewood or 1/4 cord, 1/2 cord etc…
  •  Do not add insecticide to your firewood. When you burn the firewood inside of your home the fumes can be harmful and dangerous.
  •  In addition to pests, placing firewood against the side of your house will lead to the possibility of staining, rotting, or permanently damaging the siding or wall.
  •  Before burning firewood be sure that your chimney or wood stove is clean and in working condition. Improperly cleaned chimneys can lead to house fires.

Read more: How to Store Firewood for the Winter

 

How to Protect Your Home From a Zombie Invasion

If the slew of recent TV shows, movies, and books are any indication, zombies are everywhere these days. So whether they’re fast, slow, or riddled with rigor mortis, here’s a few ways to keep the undead out of your house. But three tips won’t be nearly enough to stop the undead masses, so check out the rest of our zombie-proof strategies at thisoldhouse.com.

1. Install Doors of the Dead


When dealing with old-school, Night of the Living Dead-type zombies (also known as “Romero zombies,” after that 1968 film’s director) keep in mind that—since rapid muscle deterioration is par for the postmortem course—these guys have less muscular strength. One of the simplest ways to combat them is to retrofit your house with stainless-steel doors. Affordable and impenetrable, steel doors can be a living-dead dude’s worst enemy. Best of all, any dents or dings caused by your heathen invaders can be pulled and puttied with an auto-body repair kit. For added security, forgo sidelights or transoms and install triple-point locks.  Zombies friggin’ hate triple-point locks.

2. Make Sure Windows Are Also Walking-Dead-Proof


While the Winchester Pub seemed like the perfect safe house in 2004’s Shaun of the Dead, it didn’t take more than a few broken windows to cause one buzz kill of a safety breach. Houses with tempered-glass windows rated for hurricane zones, or wrought-iron security bars, will be far better off than those with unguarded single-pane windows. Either way it’s never a bad idea to reinforce windows with plywood for maximum zombie protection.

3. Remember: Good Fences=Good Zombie Neighbors

Along with Pittsburgh’s three rivers, the only thing that protected the living from the undead in George Romero’s 2005 film Land of the Dead was a giant electric fence. Well, if it’s good enough for the Iron City, it’s good enough for your house, too. If you can’t afford an electric fence, consider building a tough, tall chain-link, wrought-iron, or cinderblock version (at least eight to twelve feet high) around your property. The local zoning board might take offense, but, seriously, man; this is a zombie invasion. Who cares about zoning? See even more zombie-proofing tips at thisoldhouse.com.

Wall Street Journal & Forbes: It’s Time to Buy A Home

We believe very strongly that now is the time to buy a home. Some will say we are just saying this to create real estate transactions and commissions. Because of that, today we will quote what those outside the real estate profession are saying to the people who look to them for financial advice.

The Wall Street Journal

Last week, in an article entitled It’s Time to Buy That House, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:

“Now could be the best time in history to buy a home.”

Forbes.com

In a report to their subscribers, Capital Economics reported that:

“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

Why is this important? Last week, Forbes explained to their readers:

“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation).”

They went on to explain the advantages of homeownership during retirement:

“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…

At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage.  How much less would you have to save for retirement if you didn’t pay the mortgage?”

Bottom Line

When the iconic financial newspaper and the iconic financial magazine say that it now makes financial sense to purchase a house, perhaps it’s time to buy a home.

 

Post courtesy of KCMBlog.com

10 Ways to Winterize Your Home

So you’ve pulled your sweaters out and found your mittens at the bottom of the coat closet. But what about your house — is it prepared for the cold months ahead? You’ll be a lot less comfortable in the coming months if you haven’t girded Home Sweet Home for Old Man Winter. With the help of several experts, we’ve boiled down your autumn to-do list to 10 easy tips:

1. Clean those gutters
Once the leaves fall, remove them and other debris from your home’s gutters — by hand, by scraper or spatula, and finally by a good hose rinse — so that winter’s rain and melting snow can drain. Clogged drains can form ice dams, in which water backs up, freezes and causes water to seep into the house, the Insurance Information Institute says. As you’re hosing out your gutters, look for leaks and misaligned pipes. Also, make sure the downspouts are carrying water away from the house’s foundation, where it could cause flooding or other water damage.

“The rule of thumb is that water should be at least 10 feet away from the house,” says Michael Broili, the director of the Well Home Program for the Phinney Neighborhood Association, a nationally recognized neighborhood group in Seattle.

2. Block those leaks
One of the best ways to winterize your home is to simply block obvious leaks around your house, both inside and out, experts say. The average American home has leaks that amount to a nine-square-foot hole in the wall, according to EarthWorks Group.

First, find the leaks: On a breezy day, walk around inside holding a lit incense stick to the most common drafty areas: recessed lighting, window and door frames, electrical outlets.

Then, buy door sweeps to close spaces under exterior doors, and caulk or apply tacky rope caulk to those drafty spots, says Danny Lipford, host of the nationally syndicated TV show “Today’s Homeowner.” Outlet gaskets can easily be installed in electrical outlets that share a home’s outer walls, where cold air often enters.

Outside, seal leaks with weather-resistant caulk. For brick areas, use masonry sealer, which will better stand up to freezing and thawing. “Even if it’s a small crack, it’s worth sealing up,” Lipford says. “It also discourages any insects from entering your home.”

3. Insulate yourself
“Another thing that does cost a little money — but boy, you do get the money back quick — is adding insulation to the existing insulation in the attic,” says Lipford. “Regardless of the climate conditions you live in, in the (U.S.) you need a minimum of 12 inches of insulation in your attic.”

Don’t clutter your brain with R-values or measuring tape, though. Here’s Lipford’s rule of thumb on whether you need to add insulation: “If you go into the attic and you can see the ceiling joists you know you don’t have enough, because a ceiling joist is at most 10 or 11 inches.”

A related tip: If you’re layering insulation atop other insulation, don’t use the kind that has “kraft face” finish (i.e., a paper backing). It acts as a vapor barrier, Lipford explains, and therefore can cause moisture problems in the insulation.

4. Check the furnace
First, turn your furnace on now, to make sure it’s even working, before the coldest weather descends. A strong, odd, short-lasting smell is natural when firing up the furnace in the autumn; simply open windows to dissipate it. But if the smell lasts a long time, shut down the furnace and call a professional.

It’s a good idea to have furnaces cleaned and tuned annually. Costs will often run about $100-$125. An inspector should do the following, among other things:

Throughout the winter you should change the furnace filters regularly (check them monthly). A dirty filter impedes air flow, reduces efficiency and could even cause a fire in an extreme case. Toss out the dirty fiberglass filters; reusable electrostatic or electronic filters can be washed.

5. Get your ducts in a row
According to the U.S. Department of Energy, a home with central heating can lose up to 60% of its heated air before that air reaches the vents if ductwork is not well-connected and insulated, or if it must travel through unheated spaces. That’s a huge amount of wasted money, not to mention a chilly house. (Check out this audit tool for other ideas on how to save on your energy bills this winter.)

Ducts aren’t always easy to see, but you can often find them exposed in the attic, the basement and crawlspaces. Repair places where pipes are pinched, which impedes flow of heated air to the house, and fix gaps with a metal-backed tape (duct tape actually doesn’t stand up to the job over time).

Ducts also should be vacuumed once every few years, to clean out the abundant dust, animal hair and other gunk that can gather in them and cause respiratory problems.

6. Face your windows
Now, of course, is the time to take down the window screens and put up storm windows, which provide an extra layer of protection and warmth for the home. Storm windows are particularly helpful if you have old, single-pane glass windows. But if you don’t have storm windows, and your windows are leaky or drafty, “They need to be updated to a more efficient window,” says Lipford.

Of course, windows are pricey. Budget to replace them a few at a time, and in the meantime, buy a window insulator kit, Lipford and Broili recommend. Basically, the kit is plastic sheeting that’s affixed to a window’s interior with double-stick tape. A hair dryer is then used to shrink-wrap the sheeting onto the window. (It can be removed in the spring.) “It’s temporary and it’s not pretty, but it’s inexpensive (about $4 a window) and it’s extremely effective,” says Lipford.

7. Don’t forget the chimney
Ideally, spring is the time to think about your chimney, because “chimney sweeps are going crazy right now, as you might have guessed,” says Ashley Eldridge, director of education for the Chimney Safety Institute of America.

That said, don’t put off your chimney needs before using your fireplace, Eldridge advises. “A common myth is that a chimney needs to be swept every year,” says Eldridge. Not true. But a chimney should at least be inspected before use each year, he adds. “I’ve seen tennis balls and ducks in chimneys,” he says.

Ask for a Level 1 inspection, in which the professional examines the readily accessible portions of the chimney, Eldridge says. “Most certified chimney sweeps include a Level 1 service with a sweep,” he adds.

Woodstoves are a different beast, however, cautions Eldridge. They should be swept more than once a year. A general rule of thumb is that a cleaning should be performed for every ¼ inch of creosote, “anywhere that it’s found.” Why? “If it’s ash, then it’s primarily lye — the same stuff that was once used to make soap, and it’s very acidic.” It can cause mortar and the metal damper to rot, Eldridge says.

Another tip: Buy a protective cap for your chimney, with a screen, advises Eldridge. “It’s probably the single easiest protection” because it keeps out foreign objects (birds, tennis balls) as well as rain that can mix with the ash and eat away at the fireplace’s walls. He advises buying based on durability, not appearance.

One other reminder: To keep out cold air, fireplace owners should keep their chimney’s damper closed when the fireplace isn’t in use. And for the same reason, woodstove owners should have glass doors on their stoves, and keep them closed when the stove isn’t in use.

Check out CSIA’S Web site for a list of certified chimney sweeps in your area.

8. Reverse that fan
“Reversing your ceiling fan is a small tip that people don’t often think of,” says Lipford. By reversing its direction from the summer operation, the fan will push warm air downward and force it to recirculate, keeping you more comfortable. (Here’s how you know the fan is ready for winter: As you look up, the blades should be turning clockwise, says Lipford.)

9. Wrap those pipes
A burst pipe caused by a winter freeze is a nightmare. Prevent it before Jack Frost sets his grip: Before freezing nights hit, make certain that the water to your hose bibs is shut off inside your house (via a turnoff valve), and that the lines are drained, says Broili. In climes such as Portland, Ore., or Seattle, where freezing nights aren’t commonplace, you can install Styrofoam cups with a screw attachment to help insulate spigots, says Broili.

Next, go looking for other pipes that aren’t insulated, or that pass through unheated spaces — pipes that run through crawlspaces, basements or garages. Wrap them with pre-molded foam rubber sleeves or fiberglass insulation, available at hardware stores. If you’re really worried about a pipe freezing, you can first wrap it with heating tape, which is basically an electrical cord that emits heat.

10. Finally, check those alarms
This is a great time to check the operation — and change the batteries — on your home’s smoke detectors. Detectors should be replaced every 10 years, fire officials say. Test them — older ones in particular — with a small bit of actual smoke, and not just by pressing the “test” button. Check to see that your fire extinguisher is still where it should be, and still works.

Also, invest in a carbon-monoxide detector; every home should have at least one.

Courtesy of MSN.com.