As the housing market improves across the country, certain cities are emerging as relative bargains. Some areas, like Miami, were hit hard by the recession, and other areas are buoyed by good school systems and strong labor markets.
In this 5-minute video from The Today Show, 10 cities are highlighted for their home prices. And they’re not “small towns”, either.
Among the featured cities:
Miami, Florida
Akron, Ohio
Tuscon, Arizona
Minneapolis, Minnesota
Trenton, New Jersey
Now, this piece is about finding gems on a national scale. They exist locally , too. You just need to know what to look for.
With mortgage rates low and tax credits available, it’s not likely that bargains will last.
Despite the headlines, it’s important to remember that December’s jobs report wasn’t all bad news.
Sure, the economy shed 85,000 jobs last month and the Unemployment Rate failed to dip below 10%, but for home buyers and rate shoppers , the news was just fine.
The soft employment data led mortgage rates lower, making homes more affordable for buyers.
There is two sides to every economic coin.
Since early-2008, the U.S workforce has been closely tied to home financing. As the economy slowed and jobs were lost, Wall Streeters pulled money from the risky stock markets and moved it to of the relative safety of bond markets, instead.
Safe haven buying led mortgage bond prices higher which, in turn, caused rates to fall. Mortgage rates fell to 6 all-time lows in 2009. In a related statistic, 4.2 million jobs were lost last year.
And this is why Friday’s non-farm payrolls report was so good for buyers.
See, in November, the economy added new jobs for the first time since 2007, housing looked strong, consumer confidence was growing. The safe haven buying reversed and mortgage rates took off. Analysts believed the nation’s economic turnaround was complete.
But now, after December’s jobs report returned to the red, Wall Street is forced to rethink its position. Safe haven buying is back and mortgage rates are lower because of it.
Over the next few months, expect a lot of this back-and-forth action in rates. In general, positive news for the economy will be met with higher mortgage rates and negative economic news will be met with lower mortgage rates. There will be exceptions, but the general rule should hold.
If you’ve ever used a plastic Chip Clip and been miffed that your chips went stale anyway, you have to see the Banana Seal. Its beauty is its simplicity.
Similar to the tongue-in-groove seal created by zip-top bags, the Banana Seal creates an airtight seal on bags of all sizes. Chips stay crunchy, vegetables stay fresh, and freezer-burned food becomes a problem of the past.
The people of Banana Seal made a promotional video that shows the product in action. It’s a little bit over-the-top in “sales mode”, but gives some good ideas on how the Banana Seal works. Aside from the obvious refrigerator, freezer and pantry uses, the video shows how Banana Seal can be used outside of the kitchen, too.
FHA home loans are federal assistance mortgages made by lenders, and backed by the government. The FHA doesn’t make loans to homeowners — it insures loans made to homeowners by federally-qualified lenders.
By all accounts, FHA home loans are surging in popularity.
A major reason for the increase can be tied to guidelines.
As compared to its conforming mortgage cousins Fannie Mae and Freddie Mac, FHA home loans have lower downpayment requirements and looser credit standards. The FHA allows downpayments of 3.5 percent and Fannie Mae and Freddie Mac do not, as an example.
Another reason is that FHA home loans aren’t subject to credit score fees the way that conforming mortgages are. Through Fannie or Freddie, a home buyer with a 650 FICO and 20% down is subject to 3% in risk fees. Via the FHA, the fee is zero, making FHA the better “deal”.
The FHA published its 2010 loan limits. There’s no change from 2009.
We say “base” because these loan limits don’t apply to all areas equally. Higher-cost regions get higher loan limits, based on typical home values. Homes in Los Angeles County, for example, can be FHA-insured up to $729,750 in 2010, and there are special exceptions made for Alaska and Hawaii.
The official FHA announcement included a complete, county-by-county FHA loan limit list. The first spreadsheet shows each county at or above the $729,750 maximum; the second list is everyone else.
If your home’s county is on neither list, use the “base” numbers above.
Both mortgage rates and home affordability took a turn for the better Wednesday after the Federal Reserve released its December 15-16, 2009 meeting minutes.
The Fed Minutes is a follow-up piece to the post-FOMC meeting press release. But whereas the press release is succinct and to-the-point, the minutes are lengthy and often meandering.
As a comparison, December’s press release contained 535 words. December’s minuteshad 6,260.
But these “extra words” aren’t superfluous. They’re actually very important to homeowners. Because the Federal Reserve’s internal debates help to shape Wall Street expectations, it doesn’t take much for those conversations to have a trickle-down effect on Main Street.
For example, after the December meeting, the Fed said that economic growth is steady, inflation is in check, and an orderly wind-down of mortgage market support was underway. A look at the minutes, though, showed some disconnect.
Some Fed members believe rising commodity prices could lead to stronger-than-expected, and others think that improvement is housing could be “undercut” by a pull-back in government stimulus.
Overall, the Fed appears optimistic about the economy, but not as optimistic as on December 16. Mortgage markets responded favorably to the minutes and mortgage pricing improved.
Although rates remain higher as compared to early-December, pricing has been on a good run this week. If you’re under contract for a home or just looking to refinance, now may be a good time to lock.
Just one month after touching a 3-year high, the National Association of Realtors® Pending Home Sales index plunged in November. A “pending” home sale is a home that is under contract to sell, but has yet to close.
The 16 percent drop marks the first retreat in Pending Home Sales since January of last year.
The weak Pending Home Sales data is an indication that Existing Home Sales data will be soft this month. This is because, historically, 80 percent of Pending Home Sales convert to “closed sales” within 60 days, and most of the rest close within 120.
With Pending Home Sales down, the housing market should lose some of its momentum. For today’s home buyers, this kind of slack can represent a terrific opportunity.
Home prices are a function of supply and demand; of buyers and sellers. When buyers outnumber sellers, competition leads to bidding wars, ultimately, and higher home prices overall. The imbalance can also create a sense of urgency that results in over-paying for a home.
When buyers are sparse, on the other hand, the psychology of real estate shifts.
Home sellers are keenly aware of foot traffic and requests for second and third showings. Without buyers, their homes can’t sell. They also note a lack of general feedback from the market.
It’s at this point that seller fear can creep in and it becomes a buyer’s best time to buy.
Based on November’s Pending Home Sales data, it’s clear that home sellers are in abundance right now. Home buyers have leverage.
It may not last.
With mortgage rates easing lower this week, the federal home buyer tax credit still in effect, and the Holiday Season officially over, buyers are getting back to business everywhere.
Plus, with the tax credit deadline of April 30, 2010 fast approaching, buyer activity should increase over the next 4-6 weeks.
The market looks ripe for a buy but don’t rush it. Take your time and bid right. But when you’re ready, be ready — once the market momentum shifts back to sellers, you might lose all that leverage you built up through the winter.
Given how varied their outlooks, it’s clear that the professionals have no better view of the future than the amateurs. An expert can make an educated guess, but it’s a guess nonetheless.
Last year, Wall Streeters predicted a 25% pullback in home prices. 12 months later, we know prices didn’t fall. Wall Street also predicted higher mortgage rates for 2009. That prediction was fulfilled.
There’s a lot of talk on CNBC and elsewhere about what’s coming in 2010. Before you take those predictions to the bank, just remember that analysts do a much better job interpreting data from the past than projecting it into the future.
The only thing that’s certain right now is that mortgage rates are historically low, the government is giving tax credits to qualified buyers, and there’s a lot of good “deals” in housing. Make the most of what’s out there today because it will take 12 months for us to look back and know which predictions were right and which were wrong.
Until then, predictions are just opinions and guesses.
Self-watering plant containers are the ultimate in laziness or convenience, depending on your perspective. You can buy them on Amazon.com for $26 a piece, or you can watch this 3-minute, step-by-step video from Video Jug and build one all on your own.
You’ll only need a few basic supplies in addition to fresh soil and some tools:
The video is broken down with easy-to-follow instructions. You don’t need handyman skills or a green thumb to finish the job. Your end-result will be well-functioning self-watering pots and plants that require less time and attention.
More positive signals from housing — home values are still on the rise.
According to the Federal Housing Finance Agency, after posting its first quarterly increase since 2007 this past September, the Home Price Index rose by another 0.6 percent in October.
Prices are up in 4 of the last six months.
But before we take the stats to the proverbial bank, it’s important that we recognize the Home Price Index for its shortcomings.
HPI only accounts for homes with mortgages backed by Fannie Mae or Freddie Mac
HPI only accounts for re-sold homes — newly-built homes are excluded
HPI aggregates national data whereas real estate markets are local phenomena
On a broad scale, the Home Price Index can be useful, but it doesn’t specifically apply to any specific U.S. market. For that, analysts tend to turn to the Case-Shiller Index, a privately-produced report that assesses home values in 20 cities nationwide.
The good news for home sellers is that Case-Shiller’s most recent report corroborates the government’s conclusion — home values are creeping back.
Home buyers should pay attention. When public and private sector data is in accord, markets tend to go along and, looking back, housing likely bottomed in February 2009. Since then, home sales are up, home supplies are down, and values have increased in most U.S. markets. Furthermore, so long as mortgage rates remain low and government stimulus is in place, the trend should continue through at least the first quarter of 2010.
If you’re on the fence about buying a home right now, or wondering about timing, consider your options vis-a-vis today’s market. Into the new year, homes won’t likely be as cheap to buy, nor to finance.
It’s not only the real estate markets that differ from town to town — the Cost of Living does, too.
Insurance costs, tax bills and just plain, day-to-day living will dent a household budget differently depending on where that household is. It can be a nerve-wracking fact for families moving across state borders.
As an aid for the budget-aware, Bankrate.com keeps a Cost of Living Comparison Calculator on its website. The calculator asks 3 questions: (1) Where do you live now, (2) To where you are moving, and (3) What is your salary. It then spits out a detailed, 58-item cost comparison list between the two cities.
Some of the key costs compared include:
Everyday groceries
Energy bills
Routine healthcare
Home ownership
Clothes
Sporting goods
The Cost of Living Comparison Calculator is thorough, with data culled from the ACCRA. You’ll be surprised at how granular the list can get. On the ACCRA website, you can buy a similar report for $5.
The front-loading washing machine is a popular home appliance choice. As compared to its top-loading counterpart, a front-loader can handle larger clothing loads, is gentler on garments, and uses about 1/3 less water.
However, because its design prevents water from fully draining, a front-loading washer can be a haven for mold and bacteria if not cared for properly. It’s the story the salesman doesn’t often talk about and is the reason why products like Affresh exist.
If you own a front-loading, here’s some steps to keep in-washer mildew at bay and your clothes smelling fresh.
Leave the door slightly open after every cycle. This allows water to evaporate.
Use low-sudsing, high-efficiency detergent. If your local store doesn’t carry it, try Amazon.
Every week, pull back the rubber seal and wipe the inner ring with a cloth.
Clean the drain pump filter monthly, at least.
Run a bleach-and-hot-water cycle monthly, at least.
Front-loaders are good products, but require special care. Follow the steps above and your washer should remain mildew- and mold-free.
One day after November’s Existing Home Sales report blew away estimates, the Census Bureau’s related New Homes Sales report failed to impress.
A “new home” is a home that is newly-constructed; not bought as a resale.
In a lackluster showing, New Home Sales dropped 11 percent in November, falling to the lowest levels since April. Furthermore, the all-important “months of supply” climbed by a half-month to 7.9.
The press pounced on the figures and if you only read the headlines, you’d think that housing had cratered. Some of the angles were quite bold, even:
Weak U.S. Home Sales Show Recovery’s Shakiness (Reuters)
Housing Forecast : Off Life Support, Still In Critical Care (CBS News)
These headlines, although technically accurate, only tell half the story, however. The other half relates to November 30’s role as the original First-Time Home Buyer Tax Credit ending date.
See, different from home resales, when a contract is written on a newly-built home, the home is rarely finished. According to the Census Bureau, just 1 in 4 new homes are sold “move-in ready”. The other 3 of 4 are in various stages of construction when a buyer signs on the dotted line.
Some have yet to break ground, even.
Regardless, it’s at this date of signing that the Census Bureau counts the home as “sold” — not at the actual closing. This is the main driver of the November New Home Sales data dip.
First-time home buyers would have risked up to $8,000 in federal tax credits if they bought a newly-built home and it wasn’t ready for move-in by November 30, 2009. And it wasn’t until November 5 that the credit was officially extended.
Suddenly, first-timers representing more than half of last month’s Existing Home Sales isn’t so shocking. Buying new carried a lot risk.
There’s always more to the story than the headline. Sometimes, you have to dig deeper. Looking back over 10 months, the housing market is on a steady course of improvement. November’s New Home Sales data — although weak — is not terrible.
For the 4th consecutive month, the Existing Home Sales report revealed what today’s buyers and sellers already know — there’s a lot of buyer activity right now.
Existing Home Sales surged 7-plus percent in November, posting its largest number of recorded sales in 33 months. Sales volume is up 44% higher versus last year.
It’s another example of the housing market in recovery.
There were other interesting statistics buried in the November data, too. According to the National Association of Realtors:
51 percent of home buyers were first-timers
Distressed properties accounted for one-third of all sales
The median home sale price rose slightly
But of all the stats from the November Existing Home Sales report, perhaps the most important one is the one showing home supplies falling to 6.5 months. It’s nearly half of the home supply available last November.
The rapid run-off of inventory throughout 2009 is more than a trend at this point and suggests higher home valuations in 2010. Especially because mortgage rates are low, tax credits are available, and the press is giving housing positive coverage.
You shouldn’t feel rushed to buy, but you probably don’t wait too long, either. The best deals of 2010 may be gone before that Spring Buying Season even starts.
Mortgage pricing worsened Monday, driving mortgage rates to their highest levels since October.
The day’s action was drastic, too.
Some banks issued as many as 3 rate sheets Monday — each worse than the preceding and one reason why rates got so bad, so quickly, is because this week marks the beginning of mini-Vacation Season on Wall Street.
Between now and January 4, 2010, be prepared for big swings in pricing from day-to-day. Shopping for a mortgage could be a challenge.
The relationship between vacation days and mortgage rate volatility is rooted in how mortgage rates are “made”.
Conforming mortgage rates are based on the price of mortgage-backed bonds, a security that is sold on Wall Street
Mortgage-backed bonds can’t sell without a bond buyer and a bond seller agreeing to a specific sale price
So, during vacation week, when the total number of market participants are less, there are fewer opportunities for buyers and sellers to meet at a specific price. As a result, bond prices rise and fall with a higher velocity than on a “normal” day. Rallies and momentum plays are exaggerated, too.
Now, mortgage market action like this can work in your favor, or it could work out of your favor. Unfortunately, on Monday, rates moved out of favor.
This rest of this week is stacked with market-moving economic data. The data could be better-than-expected, or worse-than-expected. Either way, markets will react a little more feverishly than normal. Therefore, if you have a chance to lock a favorable rate, consider taking it.
The U.S. Consumer Product Safety Commission has issued a recall on 50 million window coverings, specifically Roman and roll-up blinds. 8 million such products are sold annually.
According to representatives of the CPSC, the danger of Roman and roll-up blinds relates to stangulation — specifically of young children. The blinds’ design has led to 8 deaths and 16 near-strangulations this decade.
Despite the relatively small number of incidents as compared to the 125 million blinds sold since 2001, the Window Covering Safety Council is embracing the recall, offering safety tips and free retro-fit kits.
Move cribs, beds and furniture away from window cords
Keep window pull cords out of the reach of children
Lock cords into position whenever possible — even if resting on a windowsill
Despite the headlines, it’s important to remember that December’s jobs report wasn’t all bad news. 
If you’ve ever used a plastic Chip Clip and been miffed that your chips went stale anyway, you have to see the Banana Seal. Its beauty is its simplicity.
FHA home loans are 
Both mortgage rates and home affordability took a turn for the better Wednesday after the Federal Reserve released its December 15-16, 2009 meeting minutes.
2010 is just a few days old and already the “experts” are making predictions for the year.
It’s not only the real estate markets that differ from town to town — the Cost of Living does, too.
The front-loading washing machine is a popular home appliance choice. As compared to its top-loading counterpart, a front-loader can handle larger clothing loads, is gentler on garments, and uses about 1/3 less water.
One day after November’s Existing Home Sales report 
Home resales are soaring.
