Low Prices, Low Rates Mean Opportunity

Housing prices have fallen dramatically all over the country and rates on 30-year fixed-rate mortgages are already close to 5.5 percent. Experts say it’s possible, with government encouragement, that rates will fall as low as 4.5 percent.

Now is the time for first-time buyers to step up. Here are some things to consider:

• Prices have always softened in the winter. As temperatures fall, bargain hunters will have bigger then usual opportunities.
• New homes are likely to become scarce. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, said he believes that a steep drop-off in inventory of new homes is coming soon, due to a rapid decrease in home builder activity.
• Location, location, location. Buying the best-priced house in a really good neighborhood is still smart.
• Will values go up? You may have to live in a house for 10 years, but over time, buyers will almost certainly make money.

Source: The New York Times, Ron Lieber (12/05/08)

Apartment Market to recover quickly?

I was reading an article from Commercial Property News’ website about how they expect the Apartment market to

HERE IS A SMALL EXCERPT FROM THE ARTICLE: go to Commercial Property News to read the full article
The apartment market has softened modestly, but fundamentals remain generally healthy owing to restrained rental construction in recent years, rising residential foreclosure activity and strict home mortgage underwriting. While the return of failed conversion projects to apartment inventory, along with for-rent condominiums and houses, will remain a source of competition for multi-family owners, particularly in the Class A segment, the expanding renter pool has been almost sufficient to counteract the impact on overall vacancy rates.

Economic and demographic trends support a positive long-term outlook for apartments. In stark contrast to just a few years ago, mortgage underwriting standards are tight and first-time home-buyer programs are scarce, reducing attrition from the renter pool. Even higher-quality borrowers are facing tougher mortgage standards, 70 percent of banks are tightening requirements for prime mortgages in recent quarters. At the same time, Echo Boomers, totaling 70 million U.S. residents, are entering their prime renting years. Go to Commercial Property News to read the full article

Source: Commercial Property News, By: Linwood Thompson

Energy Efficiency Tax Incentives Renewed for 2009

President Bush recently signed into law new consumer tax credits for energy efficiency home improvements, as well as purchases of plug-in hybrid vehicles. These provisions were included in H.R. 1424, the Emergency Economic Stabilization Act of 2008, which the president signed on October 3, 2008. The homeowner tax credits are largely the same – but not identical – to those that expired at the end of 2007, and begin again on January 1, 2009.

For details on the consumer tax credits, check out the Alliance of Energy’s recently updated Energy-Efficiency Home and Vehicle Tax Credits web page.

Source: Alliance to Save Energy, Ronnie Kweller

Financing and Mortgage Options

Buying real estate is often the biggest decision in one’s entire life. Before doing so, it’s important to understand all potential financing options available to you. There are many factors that go into buying real estate beyond simply finding a home that fits your needs. You must also decide on a mortgage that is best for you. Gate Arty & the Group want you to be aware of all aspects of the home buying process. Why not begin by receiving you own FREE credit report?

Financing Information

How much home can you afford? There are several loan programs available, and depending on your credit history, debt-to-income ratio, and assets, there is bound to be one that is perfect for you. It is always best to get pre-qualified with a local lender that can assess your needs and long term goals. Your loan officer will evaluate your profile and place you in a loan to obtain the best terms available. They will be able to explain up front what your closing costs and down payment requirements are and also provide you with an anticipated monthly payment based upon what you can afford. A preferred local lender will be knowledgeable of the state and county guidelines to ensure a smooth transaction from application to closing. Find the Ideal Loan for you! Although this list does not encompass all loan options available, it does include some of the more popular programs offered today: http://www.gatearty.com/Finance.asp

Pending Home Sales Holding In Stable Range

Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtors^®. The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007 when it was 89.8.

Conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets, Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas.  To read the whole article go to http://www.realtor.org/press_room/news_releases/2008/phs_holding_in_stable_range?LID=RONav0021

Lakeland Electric Costs Trending Lower – Money saving tips for winter

In July, Lakeland Electric’s rate reached $130.93 per 1,000 kilowatt-hours. The rate has since dipped to $124.39. The average home uses about 1,300 kWh. Lakeland Electric is now down to No. 21 out of 36 Florida utilities surveyed by the Tallahassee-based Florida Municipal Electrical Association.

Lakeland Electric, with a base rate of $58.49 per 1,000 kWh, has one of the lowest base rates among Florida utilities. But at $65.90 per 1,000 kWh, it also has one of the highest fuel costs in Florida.

To read more go to http://www.theledger.com/article/20081211/NEWS/812110437/1410?Title=Lakeland_Electric_Costs_Trending_Lower

Now here in Florida we really do not have to use our heaters too often. But our friends around the country have to use them daily. The Alliance to Save Energy has come out with some Money-Saving Energy Tips for the Winter. They came out with a state by state chart to help get energy cost estimates and savings measures for each state for the winter of 2008 – 2009. To get the special chart for Florida click here to download the PDF from their site.

To help consumers cut costs, the Alliance is sharing these tips:

• Turn down the thermostat. In America, lowering it by just 1 degree can reduce heating energy costs by up to 5 percent–between $35 and $70, depending on the fuel used to heat the home.
• Plug leaks. Gaps between windows and doors may be small, but they can collectively add up to big energy losses. Plugging these leaks with caulk or other materials is the first action home owners should take to combat high heating fuel costs. By sealing those leaks and installing proper insulation, especially in the attic and crawl spaces, American households can reduce home heating costs by up to $180-$340 per year, depending on the fuel used.
• Heat people and pets, not empty space. About 80 percent of space is usually not being used at any given time. Closing vents in unoccupied rooms and using small space heaters to heat occupied areas can save a significant amount of energy and money.
• Use a programmable thermostat. It costs about $100, but if used properly, it can save American households up to 10 percent on their home heating bills–up to $90-$170 a year.
• Set the hot water heater at 130 degrees. Use cold water when washing clothes to save more energy and reduce bills for water heating.
• Replace the four most used bulbs with compact fluorescent bulbs. American households can save about $135 over the lifetime of the bulbs.
• Look for the label. When choosing a new heating and cooling system, windows, or appliances, consumers should purchase models with the ENERGY STAR label.
• Save gas on the road. Vehicle fuel economy can be improved with a few simple measures: tuning the engine (4 percent), using the recommended grade of motor oil (1-2 percent), keeping tires properly inflated (up to 3 percent), curbing aggressive driving such as speeding and rapid acceleration and braking (10 percent on average, but possibly as much as 33 percent), and removing unnecessary weight from the trunk (2 percent per 100 pounds). Even better, carpool, take public transportation, ride a bike or walk to really rack up the savings.

To download fact sheets on 2008-09 heating costs for each of the states in the contiguous United States and for the nation as a whole, visit www.ase.org/statefacts. The fact sheets, which you can distribute to customers, alert consumers on how much their home heating bills are likely to rise or fall compared with last winter’s bills, based on fuel costs in their own states.

Source: Alliance to Save Energy

Does the Fed Rate cut mean anything to home buyers?

Today’s rate cut will have little if any impact on 30-year fixed mortgage rates. The average interest rate on a 30-year fixed mortgage fell to 5.01 percent on Tuesday from 5.06 percent a day earlier.

There is a plus for the home buyer. Home Buyers can get an incredible value right now. There is a lot of inventory and there are many attractive prices to choose from. Falling mortgage rates and the tax incentive for first-time buyers also make this the perfect time to buy a home.

This may also be a good time to refinance you mortgage as they are at a 45 year low right now. Keep in mind that in order to refinance there is a minimum credit score needed because the banks are really tightening up. We offer a free credit report on our site as well as information on the different financing options that are available to you.

Rules for Tasteful Holiday Décor when selling your house

I wanted to share with you this great article from Barbara Ballinger @ Realtor Magazine that tells sellers the best way to display their holiday decorations without turning off potential buyers.

HERE IS A SMALL EXCERPT FROM THE ARTICLE: to read it all click here.
Sellers don’t have to forgo all holiday trimmings just because their home is on the market. But they should decorate in a way that won’t turn off buyers.

Many sellers want to pull out the stops and decorate according to family traditions, but houses that are on the market shouldn’t be overly personalized or cluttered at any time. Your job as a real-estate practitioner is to help sellers strike a balance between enjoying their traditions yet showing restraint. Explain that too much “stuff” camouflages what’s most important when decorations come down: a home’s architectural details, its condition, location, and price.

Amid all of the challenges of listing a home during the holidays, there is one big plus: Most buyers who are actively looking at this time of year are serious. The following tips will help sellers achieve the right decorating balance:

- add tasteful, generic decorations – nothing with monograms on it; one wreath; tall narrow tree to emphasize height.

- staging a kitchen as if the owners were going to throw a cozy holiday party

- select efficient LED bulbs have a fire going in the fireplace

- tells sellers to leave out a plate of cookies, which buyers will associate with the spirit of giving.

- play nonseasonal favorites that appeal year-round, says Sears.

- shovel walks rather than have snow and ice become part of the décor.

To read the entire article go to Realtor.com

Source: Realtor.com – Barbara Ballinger is a freelance writer for REALTOR® magazine.

Did you know Lakeland …

Did you know the City of Lakeland is 28,000 acres & contains 38 named lakes, range from 2.5 acres (Lake Blanton) to 2272 acres (Lake Parker)

Where Will Housing Prices Go Next?

We all realize that we are dealing with a very volitie market in that last year – and of course it is affecting everything around us. The price of food, gas, homes, and just about anything that affects our day to day life. I got this piece from Realtor.com’s news section from today – that hopefully will shed a little light on what the future my bring.
How long will it take for home values to zoom back up. Some prognosticators predict decades. Others say there is a brighter picture.

“We will never see these prices again in our lifetime, when you adjust for inflation,” says Peter Schiff, president of investment firm Euro Pacific Capital of Darien, Conn. “These were lifetime peaks.”

But Wachovia economist Adam York expects home values to recover fairly quickly, beginning in 2010. “The one saving grace is the population is growing by 3 million people a year,” he says. “They need to live somewhere. That means more roofs.”

You be the judge, Here are some historic measures:

Rent. In the last half century, homes have on average sold for 20 times what it costs to rent them for a year. In 2006, at least in some places, they were selling for 32 times annual rent.

Income. From 1950 to 2000, home values sold for three times average household income. In 2006, average household income was $66,500, which should have put median home prices at $200,000. Instead the median was $301,000.

Appreciation. Existing home values rose 0.5 percent annually, adjusted for inflation, from 1950 to 2000. From 2000 to 2006, they rose at the annualized rate of 8.2 percent above inflation and peaked with a 12.3 percent rise in 2005.
Source: USA Today, Dennis Cauchon (12/12/2008)