Good news from the Federal Reserve

The Federal Reserve took center stage last week following through with its commitment to become more transparent. The Fed has revealed that it intends to keep rates "extraordinarily low" for a longer period than thought, potentially through 2014. Additionally, the Fed has now officially stated that it will use an inflation target to help control monetary policy. Following the Fed’s announcement, Fed Chair Bernanke revealed that the Fed is considering a QE3, potentially later this year. Mortgage rates had been on the rise, until this statement, which many interpreted as the Fed showing signs that it has significant concerns about the overall state of the economic recovery.

This week is jam packed with economic news and data for markets to digest. We have both ISM Indices due, Consumer Confidence, and the monthly employment data. Should any of these reports reveal signs of economic slowing, mortgage rates are likely to move back toward record lows.  However, a week of positive economic data could nudge rates just slightly higher at the week’s end.

Source: Market Watch Report from Axiom Financial

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American Attitudes About Homeownership

Home Ownership: The Right Move

According to the results of an NAR survey conducted by Harris Interactive, a substantial majority of home owners as well as renters agree that owning a home is a smart long-term decision.

In fact, 95 percent of owners and 72 percent of renters believe that over a period of several years, it makes more sense to own a home. Of those home owners surveyed, 93 percent are happy with their decision to own, and would buy again.

The survey, American Attitudes About Homeownership, also reveals differences between owners and renters. More than half of home owners are “very” or “extremely” happy with the overall quality of their family life, while only one-third of renters reported the same. For more survey results, visit www.realtor.org/statsanddata/homeownership/attitudes_homeown.

Source: Realtor.org

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6 Worth-the-Price Fix-Ups

Simple and affordable do-it-yourself projects can greatly increase a home's resale value, according to HomeGain's annual home improvement and staging survey.


The marketing company surveyed nearly 600 real estate professionals to discover which DIY home improvement projects give sellers the biggest return for their buck. Here are six projects under $1,000 (amounts are estimated) that made the list.


1. Cleaning and decluttering. Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
◦$290 Cost
◦$1,990 Return


2. Brightening. Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
◦$375 Cost
◦ $1,550 Return


3. Smart staging. Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
◦$550 Cost
◦$2,194 Return


4. Landscaping enhancements. Punch up the home’s curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
◦$540 Cost
◦$1,932 return


5. Repairing electrical or plumbing. Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
◦$535 Cost
◦$1,505 Return


6. Replacing or shampooing dirty carpets. Steam-clean carpets, replace any worn carpets, and repair any floor creaks.
◦$647 Cost
◦$1,739 Return


Excerpted from HomeGain’s 2011 Home Sale Maximizer Survey: www.homesalemaximizer.com.

Source: "6 Worth-the-Price Fix-Ups", REALTORMag

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Obama's State of the Union: More Aid Coming to Housing

Obama's State of the Union: More Aid Coming to Housing


President Obama, in his State of the Union address Tuesday, vowed to keep the “American dream” alive, which included several efforts aimed at lifting the economy and the ailing housing market.
Obama said that he intends to submit a plan to Congress that will help more underwater home owners -- those who owe more than their home’s current value -- to refinance.
“No more red tape,” Obama said during the speech. “No more runaround from the banks.”
Obama said he will propose expanding the Home Affordable Refinance Program so more home owners can take advantage of low mortgage rates, which could save home owners about $3,000 a year on their mortgage.
Obama also said he will start a new fraud task force aimed at cracking down on mortgage fraud. He called for more investigations into mortgage fraud and other abusive practices that led to the housing crisis.
"This new unit will hold accountable those who broke the law, speed assistance to home owners, and help turn the page on an era of recklessness that hurt so many Americans," Obama said in his speech.
NAR: Housing Needs to Be Top Priority
Meanwhile, the National Association of REALTORS® in a statement commended Obama for his remarks during the State of the Union in support of home owners and those who are struggling in the housing market.
NAR’s 2012 President Moe Veissi urged the White House to host a national housing summit to further discussions about how to advance policies that could move the housing market toward recovery.
“We must make housing a national public policy priority,” Veissi said in a statement. “REALTORS® believe that more must be done to stem the rising inventory of foreclosed homes and address the lack of available and affordable mortgage financing, which is inhibiting a meaningful housing market recovery.”
Veissi said more needs to be done to help struggling home owners who are at risk of losing their homes, such as by modifying loans and helping home owners significantly reduce their monthly mortgage payments. Veissi also called for changes to the short sale process, which is often “time-consuming” and “inefficient” when it comes to lenders approving “reasonable offers when families can no longer keep their homes.”
“Keeping people in their homes and reducing foreclosures will help minimize the negative impact of distressed properties on home values and neighborhoods,” Veissi said in the statement. “Expanding financing opportunities could also help reduce excess inventories of distressed properties. Increased fees and higher down payments are making it harder for many creditworthy home buyers and investors to obtain financing, thwarting the sale of distressed properties and prolonging the impact those homes have on local markets.”


Source: “Obama Proposes New Mortgage Refinance Program, Fraud Task Force,” HousingWire (Jan. 24, 2012) and the National Association of REALTORS®

10 house-selling secrets

It's a tough market for selling a house. Maximize your chances of a sale at a good price with these house-staging tips from an expert.


Secrets of a house stager
Who knew that getting rid of family photos and clearing off countertops could help you snag top dollar for your house? These are just two secrets from Debra Gould, founder of Staging Diva. Gould, a professional home stager, has helped scores of homeowners clean up, rearrange, and style their homes to command top price.


That can mean anything from putting extra books in storage to getting rid of moldy caulk in bathrooms to renting furniture to fill up too-bare spaces. "The goal is to make your home clean, organized, and welcoming so potential buyers can picture living there," says Gould. Thus the no-family-photos rule: "They make people feel like they're invading your space," she explains.

Some of Debra's other ideas to help your home look more inviting to buyers:

1.  A neglected front door gets fresh paint and new fixtures.

2.  A disorganized corner nook is recast as a reading spot.

3.  A chaotic living room feels larger once the toys are put away.

4.  A too-bare family room benefits from a little more furniture.
5.  A messy, underused space becomes a gathering spot for meals.
6.  A cluttered kitchen feels bigger once the table is gone.
7.  A bathroom with everything in view gets a scrub-down and clean-up.
8.  A neglected guest bedroom benefits from the kiddie treatment.
9.  A messy master bedroom is transformed to an attractive resting spot.
10.  An unfinished basement is revamped into a mini-gym.

Source: “10 house-selling secrets”, CNNMoney.com

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Bathroom Makeover Ideas and Chance to Win $100

Bathroom Makeover Ideas and Chance to Win $100 from HouseLogic

HouseLogic.com, a comprehensive website about all aspects of homeownership from the National Association of REALTORS®, has launched a new online sweepstakes. Readers who leave comments on a blog featured at the site will have a chance to win a $100 Visa gift card. The sweepstakes is part of a special do-it-yourself blog series, “Water-Wise Bathroom Redo.”
HouseLogic is giving away the gift cards to four lucky winners. Anyone who comments on the blog series will be eligible to win. The contest, which runs from January 23 through February 19, is open to all HouseLogic visitors.
“HouseLogic really drives home the value of homeownership,” said Pamela Geurds Kabati, NAR senior vice president for HouseLogic. “The site offers myriad tools to help homeowners plan and organize their home projects, and gives them practical advice that helps them save money and enhance their home’s value. The Water-Wise Bathroom Redo series is a great case study about a homeowner who took on a bathroom remodel to make water-saving upgrades. HouseLogic readers can follow the progress through the four weeks of the series, learning helpful tips they might apply in their own home projects along the way.”
HouseLogic visitors can enter the sweepstakes by leaving a comment on a blog posted by guest blogger Preston Koerner, founder of JetsonGreen.com, about his do-it-yourself, water-saving bathroom makeover. Each contest period will begin when a blog post is published and will continue for seven days thereafter. Readers are encouraged to visit the HouseLogic blog frequently to check for new posts and enter to win once each week. One winner will be randomly drawn from eligible entries received during each period.
"I’ve been a reader and subscriber of HouseLogic since the first time I landed on the site about a year ago. The site has an abundance of information and a binder feature, so I can save ideas and articles for reference later,” said Koerner. “After using the site, I decided it was time to take on a renovation project at home to beautify my bathroom in a way that would conserve water at the same time. I was able to plan my project, learn what other homeowners want in their bathroom, and set realistic budget expectations. I feel confident saying HouseLogic is the best online resource for owners like me looking for practical tips, ideas, and guidance at home.”
For more information on official contest rules and tips on how to make smart decisions and take responsible actions to maintain, protect and enhance the value of your home, visit http://www.houselogic.com/.

Source: RealtorMag, Monday, January 23, 2012

Good Smells, Bad Smells

Sensory research shows that the smell of a home can affect a person’s mood, according to Terry Molnar, executive director of The Sense of Smell Institute, a New York–based organization that focuses on the importance of smell to human psychology, behavior, and quality of life.


A light floral fragrance can put people in a more pleasant mood, while citrus scents, such as lemon and grapefruit, tend to have an energizing effect, he says. "Vanilla is one scent that’s universal around the globe," Molnar says. "People find it comforting and relaxing."

But be careful: When you add smells to a home, it can be viewed as an attempt to cover up a bad odor. And if that’s the intent, it can make the problem worse.

So what if you do need to get rid of a bad smell? Here are some ideas from staging professionals:

•Take the trash out. It’s simple, but it can make a big difference. When the home is being shown, empty the garbage often.


•Snuff out the smoke. Eliminate all smoking inside and even outside, particularly when the doors or windows are open. An ionizer can help remove smoke smells.


•Watch the cooking. The smell of lamb, broccoli, garlic, fish, and eggs can stick around long after the food has been eaten.


•Wash Fido. Pets can be a big source of smells. Limit the pet to an outdoor area or a certain room in the house that can be regularly cleaned. Also, clean the pet’s bedding regularly.


Source: "Good Smells, Bad Smells", REALTORMag

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What will your home be worth in 2012?

What will your home be worth in 2012?

by Bloomberg Businessweek

When BusinessWeek set out to determine what housing prices would be in the year 2012, we knew that there was no way to know for sure. But in working with the Brookfield, Wis.-based research firm Fiserv, we weighed historical data against current trends to get a bead on which way the markets might jump at one-year increments. By combining data, we were able to get a pretty good idea of what home prices would be in three years' time. Across the board, real-estate prices will continue to drop before rising slightly by the fourth quarter of 2011. Why is that important? Given the wretched state of the real-estate market today, both homeowners and potential buyers might be better able to make an informed decision about when, and whether, they should move. Obviously, we can't guarantee that our data will hold up — although we think it will — but what becomes clear is that even the worst-hit markets will begin to see improvement by 2012.

To find out what the median price of a home is forecasted to be in the largest metro areas in the 10 most populous states, read on.

On BusinessWeek.com: Metro areas in all 50 states

Source: MSN Real Estate

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UAR Podcast: November Market Stats

Utah home sales rose for the sixth straight month in November while inventory levels were the lowest since early 2007. Learn more about these indicators and other Utah housing market conditions in this week's Podcast Connection.



Click here to listen: UAR podcast: November Market Stats


Source: Utah Realtors.com

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Results of Survey On Home Valuations

Sellers Overvalue Their Home’s Worth, Study Finds

Source: REALTORMag Daily Real Estate News

About 76 percent of home owners believe their home is worth more than their agent’s recommended listing price -- that’s up from 73 percent last year, according to a new survey conducted by HomeGain of real estate professionals and home owners.

On the other hand, 68 percent of home buyers say homes are overpriced, with 32 percent saying homes are overpriced by more than 10 percent.

“Home buyers and sellers continue to remain apart as to home valuations with the vast majority of home owners thinking their homes are worth more than their agents and the market are telling them,” Louis Cammarosano, general manager of HomeGain said in a statement.

Source: “Three Quarters of Owners Continue to Overvalue,” RISMedia

6 Worst Home Fixes for the Money

Thinking of making some updates to your home in order to make it seem more appealing to potential buyers?  Read this article from Bankrate.com before you pick up the hammer...

6 worst home fixes for the money

  by Dana Dratch of Bankrate.com
It's the magic phrase uttered by almost anyone who's ever considered the cost of home remodeling: "We'll get it back when we sell."

Unless you keep those projects practical, though, you might just be kidding yourself.

For example:

• Steel front door: Good.

• Master suite addition costing more than the average American home: Bad.

Every year, Remodeling magazine looks at the hottest home upgrades and renovations and calculates just how much owners get back with they sell.

Upkeep is more popular than upgrades these days, says Sal Alfano, editorial director for Remodeling. These are the projects that often recoup the biggest slice of expenses at resale. But prices and returns do vary regionally, he says.

Ever wonder what brings the lowest return when you plant that "for sale" sign? Think high-dollar, high-end and highly personalized add-ons that make you drool. Like a totally tricked-out garage built from the ground up. Or a super luxe master suite addition. Or the home office redo designed just for you.

Here are the six improvements that rank dead last nationally when it comes to getting those renovation dollars back at resale.

1. Home office remodel
2. Backup power generator
3. Sunroom addition
4. Upscale master suite addition
5. Bathroom addition
6. Upscale garage addition

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