Increase Your Home’s Value
through Energy Efficient Upgrades
www.homepages.com/debbiecassity
Increasing energy efficiency in the home is becoming more important for several reasons. It is, of course, a great way to reduce your monthly utility bills, but it’s also important because the world’s sources of energy are not infinite, and more people are recognizing this and looking at ways to make their homes more energy-efficient. Lastly, remodeling your home with energy efficiency in mind increases its value due to the resulting lower monthly utility costs.
Insulation
Good insulation is perhaps the most effective way of improving the energy efficiency of your home. However, some insulators are better than others. Fiberglass, once the most commonly-used insulator, is no longer as popular as it once was. Most fiberglass insulators are made using formaldehyde, and can release gas which decreases your air quality. Cellulose is a more efficient option; however some cellulose insulators may be treated with formaldehyde, so it pays to check before you buy. Superior cellulose insulators are treated with ammonium sulfate or borates, both of which are non-toxic. Cotton insulation has been increasing in popularity, due to its efficacy and the fact that it is environmentally-friendly. Cotton insulation is treated with boron, and is fire-retardant, pest-repellant, and completely non-toxic.
Windows and Doors
The average home loses up to 30% of its heat (or air-conditioning) energy through windows. Well-sealed windows and exterior doors are just as important as insulation for preventing energy loss. However, many frame materials require maintenance and choosing framing material that provides greater energy efficiency is often a trade-off in which more frequent maintenance is required. Wood frames are the most efficient in terms of energy loss and cause less condensation than other materials, however they will require painting or staining to keep them looking attractive. Aluminum frames, on the other hand, need very little maintenance but they are at the bottom of the list in terms of energy efficiency. Aluminum-clad windows are much more efficient. These are wood frames with an aluminum exterior, and combine the efficiency of wood with the low maintenance requirements of traditional aluminum frames.
Cooling
Many of the measures you take to prevent heat loss in your home will also help keep it cooler during warm weather. In addition, consider installing ceiling fans in your home. These are a more energy-efficient way of cooling than air-conditioners.
Efficient Lighting
When it comes to installing energy-efficient lighting, there are two main options – light dimmers and motion sensors. Light dimmers are switches which allow you to control the intensity of lighting in a room. Motion sensors turn lights on and off automatically by sensing when people enter and leave a room. These are particularly effective in rooms which are used irregularly, and in outdoor areas.
Outdoors
In the outdoors, trees and large shrubs are a less obvious way of making your home more energy efficient. With the additional advantage of adding appeal to your yard, careful planting of trees can add windbreaks which shield your house from wind, helping to prevent heat loss. Trees can also provide shade during the summer months, and help keep your home cool.
Using an Energy-Efficient Mortgage to Finance Remodeling
Major remodeling jobs that are planned with energy efficiency in mind can be expensive. This kind of remodeling will save you money in the long term, but the start-up costs are high. One way of financing such remodeling is with an Energy-efficient Mortgage. To qualify for an EEM, the money you save on your monthly utility bills must be greater than the monthly repayment of the EEM, and your total savings must also be more than your total costs (including maintenance). When you are granted an EEM, you have 90-180 days to carry out the remodeling work. Additionally, you cannot be granted an EEM if you apply after remodeling has started, or if you apply after any other financing has been granted.
Friday, August 22, 2008
Thursday, June 19, 2008
10 Must-Do Repairs Before Selling!
10 must-do repairs before selling
Tackling these basic, inexpensive improvements will help your home stand out from the crowd in a difficult market.
By Marilyn Lewis, MSN Real Estate
When you put a home up for sale these days, you're facing stiff competition. In most parts of the country, buyers are faced with huge numbers of homes for sale. Before asking strangers to trade hundreds of thousands of their hard-earned dollars for your little palace, make all the little repairs you've always meant to do but never had the time for.
These 10 basic repairs will help prepare your house for a buyer's white-glove inspection:
1. Repair sagging screen doors and other entry red flags.
The entrance to your home is the key to first impressions. Carolyn Brake, a home-staging expert in Aurora, Colo., near Denver, prepares about 10 to 12 homes a week for market and she stresses the importance of creating a great impression right off the bat. "We're not so much selling the house as we're selling the experience of living in this house," Brake says. Buyers will be alert to signs of neglect or deferred maintenance, since they want to avoid expensive hidden problems down the road.
Make sure everything at the entrance is in working order. If the screen door is sagging, you'll probably have to install a new one, as aging aluminum parts often become too bent or broken to repair, says Charlie Hudson, a remodeling professional and owner of Hudson Remodeling, in Lynden, Wash. But first, try replacing any missing or corroded hinge screws and tightening the rest.
Patrol the perimeter of your home, inspecting it with the critical eye of a stranger, advises Katherine Carroll, agent with Century 21 Mountain Lifestyles in Weaverville, N.C. Clear dead plants from flower beds, clip dead blossoms and stems, rake and haul the yard waste far away.
A fresh coast of paint on the front door goes miles toward establishing a great first impression. What color? Drive around for some inspiration and to see what colors prevail in your community. In some towns, a bright red door, or a deep plum, looks great. In others, it'll seem over the top. Forest green, navy blue and black can be great door colors. The front door need not match the exterior colors of your house and trim, only look good alongside them.
2. Spiff up the roof.
Missing shingles and hanging gutters broadcast a loud, scary signal to potential buyers. "You want the house to look as presentable and nonproblematic as possible," says Cathy Cowan, an agent with Windermere Real Estate Co. in Seattle. "There's a great deal of fear when people go out to look at property. You want them to be able to focus on 'Where does my bed go?' and 'Can we live here?' rather than, 'Oh my God, there's a problem with the roof.'"
Get a roofer to replace any missing or broken shingles or roofing tiles. Moss growing on the roof signals neglect, so it's important to get it cleaned off. Ask a roofing expert to remove moss or to recommend someone who can. Roofing professionals may suggest treating the surface of your roof with a chemical to kill moss or they may recommend installing zinc strips on the roof ridge. Water running over the zinc washes minute amounts of zinc carbonate over the roof, killing algae and moss, according to Z-Stop, which manufactures the strips. When hiring someone to work on your roof, it's crucial to check their recommendations. Amateurs can damage your roof with the careless use of a high-pressure power washer.
3. Clear and caulk gutters.
On a dry day, climb up on a ladder and clear all the debris out of the gutters so water can flow freely. While you're up there, recaulk the gutter end caps, advises Hudson. Seamless gutters are finished at the ends with a cap that's crimped and caulked. Aging caulk allows leaks to drain water down your home's siding.
Get started by drying the clean gutter; the drier the aluminum, the better caulk will bond to its surface, says Hudson. He recommends using flexible butyl caulk made for outdoor conditions. Its color doesn't matter, since you're caulking inside the gutter. Squeeze out a generous amount and use your finger to smear the stuff around inside the gutter cap seams. Don't worry about appearances, since no one will see your work.
4. Patch nail holes and repaint.
Moving inside the house, you'll want to patch up nail holes in the walls. Ask at a hardware store for lightweight putty. Apply it with a putty knife and fill in each hole, scraping the excess off the wall. Following directions on the package, wait for it to dry. Then sand the putty until it's smooth and flush with the wall. Paint the repaired spots with primer. Call a handyman for anything bigger than a nail hole, as it's not easy to blend bigger repairs into the wall and obvious patches telegraph the message, "I'm hiding something," says Hudson. Repaint the entire wall -- you're unlikely to be able to hide a touched-up patch, otherwise -- from one corner to the next.
5. Divorce your smoker and ship kitty to Siberia.
All right, just kidding. Sort of. The thing is, smells are a serious deal killer. When strangers enter a home, the first thing they notice is the smell. Don't even try hiding behind scented candles, potpourri and plug-in room fragrances. Buyers, ever suspicious to problems, catch a whiff of those and conclude that you're hiding something.
In the kitchen and bathrooms, deep clean with bleach, then regrout tiles and recaulk cracks between sinks, tubs, toilets, counters and floors to seal out the moisture that encourages the growth of smelly mold, mildew and bacteria.
If you've had smokers in the house, you've got extra work to do. To rid walls of smoke and nicotine film, some experts suggest washing the walls with cleaners using an alkaline builder, such as ammonia, and a glycol solvent (found at paint stores). Brake recommends painting an undercoat of Kilz primer onto clean, dry walls to seal in nicotine smells. Finish the job with a fresh coat of paint and change the furnace filter to further freshen the air in the house.
Then, "send smokers down the street," says Brake. She's not kidding: Ban smoking, even in the garden, because the smell clings to porches, decks and clothing. Gardens lose their appeal when littered with cigarette butts. If possible, board your cat off-premises while you're showing your home; at minimum, clean the litter box daily.
6. Replace damaged vinyl flooring.
Inspect the vinyl flooring in your bathrooms. If it has discolored spots or is loose, moisture may be damaging the floor. You'll probably want a professional to lay the actual flooring, which could cost $400 or more. But you can save as much as half of the cost by preparing the floor yourself.
Remove the baseboards by pulling them away from the walls with a small pry bar. Next, pull up the flooring using a larger pry bar -- it will be glued and nailed or stapled. Also remove the next layer, called the underlayment, made of particleboard or layered plywood.
While your new floor is being installed, you can sand and repaint the baseboards so the whole job will look terrific when it's finished. Another good choice for flooring material is linoleum, a green product made from linseed oil, pine resin, sawdust and other natural binders. It can add 30% or 40% to the cost of a $400 job.
7. Reseal the toilet.
Not all flooring installers will remove and reinstall the toilet, something that must be done to replace the floor. Pulling the toilet yourself can save you money. With plumbers' fees running about $85 an hour (with a minimum hour and a half charge for a house call), you could save yourself $200 or more (for two trips) by pulling the toilet yourself.
Even if you aren't replacing flooring, the seals may need replacing. How to tell? If the toilet rocks when someone sits down, or if the floor at the base is moist or discolored, the seal could be broken. Corroded nuts that hold the toilet to the floor are another sign that the toilet needs to be reinstalled. Before you begin, shut off the water supply at the faucet behind the toilet. Flush the toilet, holding down the handle to drain as much water as possible. Use a wrench to unscrew the bolts holding the toilet to the floor.
Don't move the toilet alone. Get a friend to help, because toilets are heavy and cumbersome, and the tanks are easily cracked. Prepare a bed of old cushions or towels in the bathtub and set the toilet there gently so any drips drain into the tub. At a hardware store, find two wax toilet seals (also called gaskets, about $3 apiece). One seal is conformed to fit into the sewer pipe; the second is a plain wax circle that you'll stack directly on top of the first. (Also at the store, purchase two new bolts -- about $1.50 each.) Back home, remove the old gaskets. Fit the new shaped gasket into the mouth of the sewer pipe first; put the second seal directly over it so the toilet fits into the space with no gaps. Lower the toilet over the seals. Screw in the new bolts, tighten them, reconnect the water supply and caulk the base of the toilet.
8. Stop faucet drips.
A dripping faucet calls attention to itself, and it's not hard to fix. Shut off the water supply to the faucets by turning the valves under the sink to the right. Then, test the faucet to make sure you've shut the water off completely. While you're looking under the sink, check for moisture on the wall around the valves and on the floor of the sink cabinet. Also check the supply lines leading to the dishwasher and disposal. If those areas are wet, get a plumber.
If you've got a newer, rotating, single-arm faucet (through which both hot and cold water run), note the brand and purchase a faucet rebuild kit (roughly $50) at the hardware store. Inside the faucet arm is a metal ball on a stem that lets the handle swivel while allowing water to flow in any direction. The kit contains the six to 12 parts most likely to fail, including that metal ball, O rings, springs and gaskets. The idea is to replace them all rather than trying to diagnose the exact source of the problem. Dismantle the faucet, laying the parts out in order on a paper towel. Snap a photo or draw a sketch to help you with reassembly. Replace the old parts, put the faucet back together and turn the water back on.
For older faucets with independent hot and cold water faucets, shut off the water under the sink as before then dismantle each of the sink's faucets separately. Remove the washers (rings made of rubber, plastic or brass), put them in a plastic sandwich bag and bring them to the hardware store to find replacements. Reassemble the faucets and turn the water back on.
If this seems like more trouble than you're willing to tackle, call a plumber. With no complications, a plumber can install the new parts in an hour, though most will bill you for an hour and a half minimum.
9. Renew dinged baseboards.
Beat-up baseboards detract greatly from the appearance of your home, and they're easy to spiff up. "All those little things tend to stand out," says Carroll. First, clean them to remove scrapes and smudges left by clawing pets and toddlers on wheels. Brake says a Mr. Clean Magic Eraser sponge works great on painted surfaces. Fill in dents with spackle, sand the baseboards smooth and repaint them. If you've lost the name of the original paint color, chip off a coin-sized bit, slip it into an envelope and bring it to the paint store where you can have the color computer matched.
Use primer before painting. Don't just retouch small areas; paint the entire piece of baseboard, from one end to the other. Choose a washable eggshell finish. White is a great choice for making baseboards and trim look crisp and clean.
10. Repair cabinet scratches.
You can quickly improve the look of unpainted woodwork and worn cabinets with an application of products that even out the surface color. Brake covers scratches on woodwork and cabinets with Old English Scratch Cover or a Tibet Almond Stick, a tight roll of cotton saturated in chemicals that the manufacturer, Zenith Chemical Works, says is a 100-year-old family formula. (You can find these at hardware and home-improvement stores.)
The almond stick goes on clear but covers scratches. "It's amazing," Brake says. Zenith owner Kim MacInnes says the almond stick works best with shallow surface scratches on dark finishes. It doesn't work in every case, he says, and even a good result may fade with time and need to be reapplied periodically.
Old English makes separate formulations for light or dark wood. These are oily stains, so use them carefully. Try out any products first in a corner where results will not be noticed. Do not use the dark stain on light wood. Finally, polish wood cabinets to a glow with lemon oil.
Tackling these basic, inexpensive improvements will help your home stand out from the crowd in a difficult market.
By Marilyn Lewis, MSN Real Estate
When you put a home up for sale these days, you're facing stiff competition. In most parts of the country, buyers are faced with huge numbers of homes for sale. Before asking strangers to trade hundreds of thousands of their hard-earned dollars for your little palace, make all the little repairs you've always meant to do but never had the time for.
These 10 basic repairs will help prepare your house for a buyer's white-glove inspection:
1. Repair sagging screen doors and other entry red flags.
The entrance to your home is the key to first impressions. Carolyn Brake, a home-staging expert in Aurora, Colo., near Denver, prepares about 10 to 12 homes a week for market and she stresses the importance of creating a great impression right off the bat. "We're not so much selling the house as we're selling the experience of living in this house," Brake says. Buyers will be alert to signs of neglect or deferred maintenance, since they want to avoid expensive hidden problems down the road.
Make sure everything at the entrance is in working order. If the screen door is sagging, you'll probably have to install a new one, as aging aluminum parts often become too bent or broken to repair, says Charlie Hudson, a remodeling professional and owner of Hudson Remodeling, in Lynden, Wash. But first, try replacing any missing or corroded hinge screws and tightening the rest.
Patrol the perimeter of your home, inspecting it with the critical eye of a stranger, advises Katherine Carroll, agent with Century 21 Mountain Lifestyles in Weaverville, N.C. Clear dead plants from flower beds, clip dead blossoms and stems, rake and haul the yard waste far away.
A fresh coast of paint on the front door goes miles toward establishing a great first impression. What color? Drive around for some inspiration and to see what colors prevail in your community. In some towns, a bright red door, or a deep plum, looks great. In others, it'll seem over the top. Forest green, navy blue and black can be great door colors. The front door need not match the exterior colors of your house and trim, only look good alongside them.
2. Spiff up the roof.
Missing shingles and hanging gutters broadcast a loud, scary signal to potential buyers. "You want the house to look as presentable and nonproblematic as possible," says Cathy Cowan, an agent with Windermere Real Estate Co. in Seattle. "There's a great deal of fear when people go out to look at property. You want them to be able to focus on 'Where does my bed go?' and 'Can we live here?' rather than, 'Oh my God, there's a problem with the roof.'"
Get a roofer to replace any missing or broken shingles or roofing tiles. Moss growing on the roof signals neglect, so it's important to get it cleaned off. Ask a roofing expert to remove moss or to recommend someone who can. Roofing professionals may suggest treating the surface of your roof with a chemical to kill moss or they may recommend installing zinc strips on the roof ridge. Water running over the zinc washes minute amounts of zinc carbonate over the roof, killing algae and moss, according to Z-Stop, which manufactures the strips. When hiring someone to work on your roof, it's crucial to check their recommendations. Amateurs can damage your roof with the careless use of a high-pressure power washer.
3. Clear and caulk gutters.
On a dry day, climb up on a ladder and clear all the debris out of the gutters so water can flow freely. While you're up there, recaulk the gutter end caps, advises Hudson. Seamless gutters are finished at the ends with a cap that's crimped and caulked. Aging caulk allows leaks to drain water down your home's siding.
Get started by drying the clean gutter; the drier the aluminum, the better caulk will bond to its surface, says Hudson. He recommends using flexible butyl caulk made for outdoor conditions. Its color doesn't matter, since you're caulking inside the gutter. Squeeze out a generous amount and use your finger to smear the stuff around inside the gutter cap seams. Don't worry about appearances, since no one will see your work.
4. Patch nail holes and repaint.
Moving inside the house, you'll want to patch up nail holes in the walls. Ask at a hardware store for lightweight putty. Apply it with a putty knife and fill in each hole, scraping the excess off the wall. Following directions on the package, wait for it to dry. Then sand the putty until it's smooth and flush with the wall. Paint the repaired spots with primer. Call a handyman for anything bigger than a nail hole, as it's not easy to blend bigger repairs into the wall and obvious patches telegraph the message, "I'm hiding something," says Hudson. Repaint the entire wall -- you're unlikely to be able to hide a touched-up patch, otherwise -- from one corner to the next.
5. Divorce your smoker and ship kitty to Siberia.
All right, just kidding. Sort of. The thing is, smells are a serious deal killer. When strangers enter a home, the first thing they notice is the smell. Don't even try hiding behind scented candles, potpourri and plug-in room fragrances. Buyers, ever suspicious to problems, catch a whiff of those and conclude that you're hiding something.
In the kitchen and bathrooms, deep clean with bleach, then regrout tiles and recaulk cracks between sinks, tubs, toilets, counters and floors to seal out the moisture that encourages the growth of smelly mold, mildew and bacteria.
If you've had smokers in the house, you've got extra work to do. To rid walls of smoke and nicotine film, some experts suggest washing the walls with cleaners using an alkaline builder, such as ammonia, and a glycol solvent (found at paint stores). Brake recommends painting an undercoat of Kilz primer onto clean, dry walls to seal in nicotine smells. Finish the job with a fresh coat of paint and change the furnace filter to further freshen the air in the house.
Then, "send smokers down the street," says Brake. She's not kidding: Ban smoking, even in the garden, because the smell clings to porches, decks and clothing. Gardens lose their appeal when littered with cigarette butts. If possible, board your cat off-premises while you're showing your home; at minimum, clean the litter box daily.
6. Replace damaged vinyl flooring.
Inspect the vinyl flooring in your bathrooms. If it has discolored spots or is loose, moisture may be damaging the floor. You'll probably want a professional to lay the actual flooring, which could cost $400 or more. But you can save as much as half of the cost by preparing the floor yourself.
Remove the baseboards by pulling them away from the walls with a small pry bar. Next, pull up the flooring using a larger pry bar -- it will be glued and nailed or stapled. Also remove the next layer, called the underlayment, made of particleboard or layered plywood.
While your new floor is being installed, you can sand and repaint the baseboards so the whole job will look terrific when it's finished. Another good choice for flooring material is linoleum, a green product made from linseed oil, pine resin, sawdust and other natural binders. It can add 30% or 40% to the cost of a $400 job.
7. Reseal the toilet.
Not all flooring installers will remove and reinstall the toilet, something that must be done to replace the floor. Pulling the toilet yourself can save you money. With plumbers' fees running about $85 an hour (with a minimum hour and a half charge for a house call), you could save yourself $200 or more (for two trips) by pulling the toilet yourself.
Even if you aren't replacing flooring, the seals may need replacing. How to tell? If the toilet rocks when someone sits down, or if the floor at the base is moist or discolored, the seal could be broken. Corroded nuts that hold the toilet to the floor are another sign that the toilet needs to be reinstalled. Before you begin, shut off the water supply at the faucet behind the toilet. Flush the toilet, holding down the handle to drain as much water as possible. Use a wrench to unscrew the bolts holding the toilet to the floor.
Don't move the toilet alone. Get a friend to help, because toilets are heavy and cumbersome, and the tanks are easily cracked. Prepare a bed of old cushions or towels in the bathtub and set the toilet there gently so any drips drain into the tub. At a hardware store, find two wax toilet seals (also called gaskets, about $3 apiece). One seal is conformed to fit into the sewer pipe; the second is a plain wax circle that you'll stack directly on top of the first. (Also at the store, purchase two new bolts -- about $1.50 each.) Back home, remove the old gaskets. Fit the new shaped gasket into the mouth of the sewer pipe first; put the second seal directly over it so the toilet fits into the space with no gaps. Lower the toilet over the seals. Screw in the new bolts, tighten them, reconnect the water supply and caulk the base of the toilet.
8. Stop faucet drips.
A dripping faucet calls attention to itself, and it's not hard to fix. Shut off the water supply to the faucets by turning the valves under the sink to the right. Then, test the faucet to make sure you've shut the water off completely. While you're looking under the sink, check for moisture on the wall around the valves and on the floor of the sink cabinet. Also check the supply lines leading to the dishwasher and disposal. If those areas are wet, get a plumber.
If you've got a newer, rotating, single-arm faucet (through which both hot and cold water run), note the brand and purchase a faucet rebuild kit (roughly $50) at the hardware store. Inside the faucet arm is a metal ball on a stem that lets the handle swivel while allowing water to flow in any direction. The kit contains the six to 12 parts most likely to fail, including that metal ball, O rings, springs and gaskets. The idea is to replace them all rather than trying to diagnose the exact source of the problem. Dismantle the faucet, laying the parts out in order on a paper towel. Snap a photo or draw a sketch to help you with reassembly. Replace the old parts, put the faucet back together and turn the water back on.
For older faucets with independent hot and cold water faucets, shut off the water under the sink as before then dismantle each of the sink's faucets separately. Remove the washers (rings made of rubber, plastic or brass), put them in a plastic sandwich bag and bring them to the hardware store to find replacements. Reassemble the faucets and turn the water back on.
If this seems like more trouble than you're willing to tackle, call a plumber. With no complications, a plumber can install the new parts in an hour, though most will bill you for an hour and a half minimum.
9. Renew dinged baseboards.
Beat-up baseboards detract greatly from the appearance of your home, and they're easy to spiff up. "All those little things tend to stand out," says Carroll. First, clean them to remove scrapes and smudges left by clawing pets and toddlers on wheels. Brake says a Mr. Clean Magic Eraser sponge works great on painted surfaces. Fill in dents with spackle, sand the baseboards smooth and repaint them. If you've lost the name of the original paint color, chip off a coin-sized bit, slip it into an envelope and bring it to the paint store where you can have the color computer matched.
Use primer before painting. Don't just retouch small areas; paint the entire piece of baseboard, from one end to the other. Choose a washable eggshell finish. White is a great choice for making baseboards and trim look crisp and clean.
10. Repair cabinet scratches.
You can quickly improve the look of unpainted woodwork and worn cabinets with an application of products that even out the surface color. Brake covers scratches on woodwork and cabinets with Old English Scratch Cover or a Tibet Almond Stick, a tight roll of cotton saturated in chemicals that the manufacturer, Zenith Chemical Works, says is a 100-year-old family formula. (You can find these at hardware and home-improvement stores.)
The almond stick goes on clear but covers scratches. "It's amazing," Brake says. Zenith owner Kim MacInnes says the almond stick works best with shallow surface scratches on dark finishes. It doesn't work in every case, he says, and even a good result may fade with time and need to be reapplied periodically.
Old English makes separate formulations for light or dark wood. These are oily stains, so use them carefully. Try out any products first in a corner where results will not be noticed. Do not use the dark stain on light wood. Finally, polish wood cabinets to a glow with lemon oil.
Friday, February 22, 2008
Southeast MN Market Trends
Looking for information on Southeast MN real estate market?
Click on the link below and check out the market trends over that last 10 years.
Friday, February 8, 2008
Foreclosure Process in MN
Foreclosures are on the rise, and each state's process is different.
Below is a link to the MN foreclosure process.
Minnesota Foreclosure Process
Below is a link to the MN foreclosure process.
Minnesota Foreclosure Process
Monday, January 28, 2008
Real Estate & the Economy
REALTORS® and the U.S. Congress are working together to create vibrant communities in which to live and work. Today’s housing market is more important than ever. The housing market is facing big challenges with soft sales activity, falling home prices and rising foreclosures. Nonetheless, the market can turn around with favorable public policies. The health and revival of the housing market are the key to the overall health of the U.S. economy. REALTORS® continue to promote the policies conducive to homeownership. Consider the facts:
Because the housing market is a vital contributor to economic activity, the current housing market contraction has negatively impacted the broader economy. Existing and new home sales fell 12.8% and 26.5%, respectively, in 2007 following sales declines in 2006. Jobs in the residential construction sector have fallen by 291,000 from peak conditions in 2005. As a result the U.S. economy expanded at a sub-par rate of only 2% in 2007. A further weakening in the housing market has the potential to tip the economy into a recession in 2008.
Despite the slowdown, the housing sector still contributed nearly $2.1 trillion to the national economy in 2007, accounting for 15 percent of overall economic activity. The construction of new homes, value-added contributions of REALTORS®, and mortgage banking activity all directly add to economic output, job creation, and income generation. In addition, commercial real estate, which expanded solidly in 2007, contributed an additional $483 billion to the nation’s economy.
The national median price fell 2% in 2007, its first nationwide decline since the Great Depression. All real estate is local and home prices in two-thirds of the country continued to show positive gains. Despite the decline in the national median home price, housing has provided significant wealth buildup for most U.S. families who have a long-term commitment to homeownership. A typical homeowner would have accumulated $52,600 in housing equity over the past five years. The aggregate housing valuation was $23.2 trillion as of the third quarter 2007. After subtracting the mortgage debt value, U.S. homeowners now have $10.6 trillion accumulated in their housing equity. Consequently, consumer spending has remained surprisingly resilient despite high oil prices and uneven consumer confidence.
The rising delinquency and foreclosure rates are raising concerns. The foreclosure rate on subprime loans with adjustable re-setting rates has been particularly troubling, more than doubling to 6.9% from just two years ago. Abusive lending problems have begun to surface as refinance opportunities dissipate in a stagnant home price environment. Problems can be mitigated by adopting sounder lending standards and raising the loan limit on GSE and FHA loans, which NAR favors. A boost to home sales lowers housing inventory, which in turn, helps strengthen home prices. Higher prices lessen the likelihood of a foreclosure.
Both conforming and government-backed FHA and VA mortgages are widely available at historically low interest rates. With the risky subprime lending out of the picture, FHA will become an ever more important factor in helping to revive the housing market. Measurable gains in FHA market share are anticipated in 2008.
Real estate clearly is America’s greatest tangible asset, touching millions of people in countless ways. Serving as the pillar of our nation’s economy, a recovery in the real estate market will be critical. And, as in the past, the economy will inevitably follow in the direction of the housing market.
Because all real estate is local, market conditions vary greatly by region. In Alabama, for example, home sales are 5% below a year ago. Construction jobs accounted for 5.7% of all jobs in the state and the 21% reduction in housing permits portends a fall in construction jobs in the upcoming months. The foreclosure rate on subprime mortgages with adjustable rates is high at 7.4%, representing an increase of 134% from just two years ago.
~National Association of Realtors, Jan 2008
Because the housing market is a vital contributor to economic activity, the current housing market contraction has negatively impacted the broader economy. Existing and new home sales fell 12.8% and 26.5%, respectively, in 2007 following sales declines in 2006. Jobs in the residential construction sector have fallen by 291,000 from peak conditions in 2005. As a result the U.S. economy expanded at a sub-par rate of only 2% in 2007. A further weakening in the housing market has the potential to tip the economy into a recession in 2008.
Despite the slowdown, the housing sector still contributed nearly $2.1 trillion to the national economy in 2007, accounting for 15 percent of overall economic activity. The construction of new homes, value-added contributions of REALTORS®, and mortgage banking activity all directly add to economic output, job creation, and income generation. In addition, commercial real estate, which expanded solidly in 2007, contributed an additional $483 billion to the nation’s economy.
The national median price fell 2% in 2007, its first nationwide decline since the Great Depression. All real estate is local and home prices in two-thirds of the country continued to show positive gains. Despite the decline in the national median home price, housing has provided significant wealth buildup for most U.S. families who have a long-term commitment to homeownership. A typical homeowner would have accumulated $52,600 in housing equity over the past five years. The aggregate housing valuation was $23.2 trillion as of the third quarter 2007. After subtracting the mortgage debt value, U.S. homeowners now have $10.6 trillion accumulated in their housing equity. Consequently, consumer spending has remained surprisingly resilient despite high oil prices and uneven consumer confidence.
The rising delinquency and foreclosure rates are raising concerns. The foreclosure rate on subprime loans with adjustable re-setting rates has been particularly troubling, more than doubling to 6.9% from just two years ago. Abusive lending problems have begun to surface as refinance opportunities dissipate in a stagnant home price environment. Problems can be mitigated by adopting sounder lending standards and raising the loan limit on GSE and FHA loans, which NAR favors. A boost to home sales lowers housing inventory, which in turn, helps strengthen home prices. Higher prices lessen the likelihood of a foreclosure.
Both conforming and government-backed FHA and VA mortgages are widely available at historically low interest rates. With the risky subprime lending out of the picture, FHA will become an ever more important factor in helping to revive the housing market. Measurable gains in FHA market share are anticipated in 2008.
Real estate clearly is America’s greatest tangible asset, touching millions of people in countless ways. Serving as the pillar of our nation’s economy, a recovery in the real estate market will be critical. And, as in the past, the economy will inevitably follow in the direction of the housing market.
Because all real estate is local, market conditions vary greatly by region. In Alabama, for example, home sales are 5% below a year ago. Construction jobs accounted for 5.7% of all jobs in the state and the 21% reduction in housing permits portends a fall in construction jobs in the upcoming months. The foreclosure rate on subprime mortgages with adjustable rates is high at 7.4%, representing an increase of 134% from just two years ago.
~National Association of Realtors, Jan 2008
Wednesday, January 23, 2008
Happy New Year 2008!!
Local Rochester MN Market Statistics for 2007...
Currently there is 929 residential homes listed in the city of Rochester with an average list price of $237,370. In 2007, 2224 homes sold in the city of Rochester alone, with an average sale price of $195,750.
With all the gloom and doom surrounding the national real estate market, Rochester is in a good position. In 2007, sales were only down only 7% compared to 19% nationally. It is a prime time to get into that new home, with a large inventory of homes to choose from and interest rates still at all time lows, there are some great investment opportunities.
Every real estate market is different, to truly understand the current Rochester MN market and the investment potentials that are out there, contact your Realtor.
Have a wonderful, fun filled 2008! Happy House Hunting!!
Currently there is 929 residential homes listed in the city of Rochester with an average list price of $237,370. In 2007, 2224 homes sold in the city of Rochester alone, with an average sale price of $195,750.
With all the gloom and doom surrounding the national real estate market, Rochester is in a good position. In 2007, sales were only down only 7% compared to 19% nationally. It is a prime time to get into that new home, with a large inventory of homes to choose from and interest rates still at all time lows, there are some great investment opportunities.
Every real estate market is different, to truly understand the current Rochester MN market and the investment potentials that are out there, contact your Realtor.
Have a wonderful, fun filled 2008! Happy House Hunting!!
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