It’s hard to remember what your home needs throughout the year. Use this home maintenance checklist to prevent unnecessary and expensive problems down the road.
Do safety checks: smoke detector, carbon monoxide detector, fire escape routes, fire extinguishers, door and window locks.
Clean or replace furnace filter.
Check, clean and repair any screen damage.
Great News!
Congress has passed the Home Buyer Tax Credit extension and President Obama is expected to sign the bill today. Below are two links to more information:
Readers, do you think Congress' decision to extend, and even expand, the tax credit is a good or bad decision?
Late Wednesday afternoon, the U.S. Senate approved a bill which extends and expands the federal tax credit for home buyers. The bills calls for the first-time home buyer $8,000 tax credit to be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. Existing homeowners will be eligible to receive a credit of up to $6,500 if they've lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.
Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns and don't have to repay the credit provided the home remains their primary residence for 36 months after purchase. Repayment is waived for active duty military personnel who move prior to the 36-month requirement if the move is due to a military order.
The bill now will go to the House, where action may be taken as early as today and possibly on President Obama's desk by Friday.
According to the State of the Nations Housing: 2009 report, compiled by the Joint Center for Housing Studies of Harvard University, social and economic trends have given women a more powerful presence in housing markets. Between 1980 and 2000, the number of households headed by unmarried women increased by almost 10 million." The same study, however, also states that, because women still earn less on average than men do, they are more likely to face housing problems than either married-couple households or households headed by unmarried men.
The Senate is nearing a compromise that would extend the tax credit for first-time home buyers and expand it to include current homeowners.
Who would get the credit and how much could they claim? First-time home buyers would be eligible for up to $8,000 on the tax credit, which is the same as the current credit. The Senate version of the bill creates a new credit of up to $6,500 for homeowners who have lived in the homes for five years and would raise the income limits to $125,000 for individuals and $225,000 for couples.
How long will it last? The tax credits would expire on April 30, 2010 but home buyers under contract by April 30 would be able to qualify as long as they complete the sale within 60 days.
What does this mean for home buyers? First many more people will now qualify. After all, two-thirds of American families own their own home and most earn less than the proposed income limits.
So will the expanded tax credit help sales? That's a point of debate among housing analysts and economists. Alex Phillips, economist at Goldman Sachs, notes that expanding the credit to people who all ready own homes doesn't necessarily make a big dent in the supply of housing on the market. "If these 'step-up' buyers all ready own a home and sell it ot finance the new one, that hasn't reduced the amount of inventory for sale," he says.
But Mark Zandi, chief economist at Moody's Economy.com, thinks the extension is a big deal. "The tax credit is not a very efficient tax cut, but not extending it would do significant damage to the still fragile housing market," Mr. Zandi said.
Readers, what do you think? Is this tax credit going to help the real estate market?
While the economic crisis has dampened household growth, the sheer size of the echo-boom generation will give a powerful boost to long-run housing demand.
Rapid growth in the population under age 45 and over age 65, as well as the rising minority share, will shift the composition of housing demand over the next 20 years. These changes in the age
distribution will mean greater demand for both starter homes and rentals, and for seniors housing.
Source: State of the Nation's Housing 2009 (Harvard University - Joint Center for Housing Studies)
A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis.
Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:- Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
- Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
- Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
- Include a maintenance budget. Even new homes need upkeep and repairs.
- Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want.
- Consider a property that can be expanded and improved down the road when money is available.
- No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.
Source: The New York Times, Ron Lieber (09/12/2009)
The 2009 Coldwell Banker
® Home Price Comparison Index (HPCI) released today found a price gap of more than $2 million between the most expensive and most affordable U.S. housing markets. In the annual comparison of similar 2,200-square foot homes in 310 U.S. housing markets, La Jolla, Calif. led the list as the most expensive real estate market in the country with an average home price of $2,125,000. Grayling, Mich., also known as the “canoe capital of the world,” ranked as the most affordable market in America, where a similarly sized home costs $112,675. La Jolla was joined on the most expensive list by 13 other California markets while Grayling was one of 20 Midwest communities on the most affordable list.
Differing from most housing reports that compare median prices, the annual Coldwell Banker HPCI, provides an apples-to-apples comparison of similar 2,200 square foot, four-bedroom, two-and-a-half bath homes in the United States, Puerto Rico, Canada and a sampling of countries/territories outside of North America where Coldwell Banker Real Estate has a presence.
While price differentials are interesting to compare, it's most intriguing to see the affordability levels across much of the nation. The four-bedroom, two-and-a-half bath home is one we deem ‘aspirational’ and usually purchased by move-up buyers experiencing lifestyle changes. Thirty percent of the markets show this type of home to be below $200,000, illustrating the opportunity to take advantage of price declines, interest rate levels, and increased selection of homes.
Want to approximate what your home might cost across America? Please click here.
Despite all of the bad news in the media about homeownership and mortgages, most Americans still believe buying a home is a great investment, according to a new study commissioned by
Bankrate.com.Among the findings from the study:- 92 percent say that a home is a good investment for the future.
- 48 percent worry about losing or being unable to afford their homes.
"These results provide an interesting illustration of the public's mindset in a difficult economy," says Julie Bandy, editor in chief at Bankrate. "While nine out of 10 still believe in the American dream of homeownership, nearly half worry about losing their homes.”Source: Bankrate.com (08/18/2009)
Every housing market is unique. This report reflects the Fargo metro area data available through March 2009.
Homes are affordable. - A smaller share of our income is going to monthly mortgage payments than in the past.
- The ratio of monthly mortgage payments to income is down and the ratio of median home price to average income is good, especially when compared to national averages.
Although prices are down compared to last year, our area has held on to a modest improvement in equity despite the decline. The declining prices are due to a number of factors.
Foreclosure sale prices have negatively impacted mortgage appraisal values.
A few jobs have been lost.
The flood situation slowed home sales yet the number of homes coming on the market didn't slow proportionately.
The construction of new homes is weak compared to the rest of the nation. This is important to reducing the number of homes available for sale.
There has been a large increase in foreclosures since last year, but less than the national average. Even in the best of times a small number of homeowners fall behind on their mortgage payments, in some cases resulting in foreclosure. Since the beginning of 2007, however, the foreclosure rate has risen in every state in the country. Fortunately North Dakota has fared much better than others.
Bucking the national trend, Fargo's economic outlook is stable. Our job growth rate is respectably stronger than most metro areas.
Overall, this report confirms what residents of the Fargo-Moorhead metro area all ready know - this is a great place in which to live and invest!
Question: Given the boom, then the bust, in real estate, what's the best way to think about my house: as an investment or just a place to live?
Answer: Your home may be your most valuable asset. But it's unlikely to deliver bigger gains in the long run than a diversified portfolio of stocks and bonds. And that was true even before real estate values started sinking. Over the past 20 years -- a period including the headiest days of the housing bubble -- home prices have averaged gains of just 3.6% a year. Stocks, despite their recent pummeling, were up 8.4% over the same period.
THE LONG-TERM ADVANTAGES: Owning a home, however, offers other important financial benefits. There are the tax breaks: deductions for mortgage interest and property taxes (plus, the first $500,000 that couples make after selling is tax-free.) Home ownership is also a stellar savings tool -- every mortgage payment forces you to sock more money away, the key reason most homeowners have a higher net worth than renters. And real estate hisotrically has been a good hedge against inflation.
ACTION PLAN:
Be realistic about gains. Expect the value of your home to rise about 1-2% over inflation in the long run.
All real estate is still local. Keep up with trends in your area.
Don't "over-invest" in renovations, assuming you'll recoup when you sell. Focus on projects that add functionality and fix problems.
To learn more, visit CNN.com/moneyand mainstreet
Curb appeal can make or break a sale in today’s market. Here are six landscaping tricks that wow buyers:
1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. It's best to use one or two and repeat them. Use one backdrop that blooms in spring, summer and fall; in front plant a contrasting punch of a colorful plant that will flower at the same time. As an accent, add a tree that provides changing leaf colors in the fall and interesting branches come winter.
2. Size trees and shrubs to scale. They should be planted so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a big oak tree but a one-story rambler is better paired with a flowering crabapple or little leaf Linden. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.
3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure your lawn doesn't have brown spots. Some rocks, drought-tolerant plants, and ornamental grasses will generate more kudos in dryest areas.
4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.
5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.
6. Use decorative architectural elements. Replace the mailbox with a newer one and put some nice plantings at its base to dress it up. Colors should complement the landscape and home. Just don’t overdo it: Too much can seem like kitschy lawn ornaments.
Here are some other low-cost ways to increase your home’s curb appeal.
- Clean up beds by weeding and pruning shrubs. Add mulch for a high-end look.
- Invest in pots. A couple of attractive ceramic (or ceramic look-alike) pots filled with attractive plants can really make an entrance look classier.
- Install landscape lighting on the path to the front door.
USA TODAY, Christine Dugas - This spring, as the national economy sputtered, Fargo, ND endured the biggest flood in its history. A double whammy that sent the housing market and local economy into free fall, right? Not so much - the Fargo housing story is not what you might think.
After floodwaters receded, the local economy rebounded. By May, home sales seemed back on track, with sales up 22% compared with May 2008. The city of about 90,000 residents survived the flood, and it has largely escaped the recession, too. The unemployment rate is less than half of the national average, says David Flynn, director of the Bureau of Business and Economic Research at the University of North Dakota. "Fargo has a very balanced and well-diversified economy," he says. Its housing market avoided the boom and bust seen elsewhere.
Yet Fargo is not in a bubble. It has experienced some job losses. In May, California-based Alien Technology said that it's closing its Fargo plant, which employed about 30 people. "Maybe there was a hiccup, but that was just a brief downturn," Flynn says.
"First-time home buyers are driving the bulk of the current home sales," says Scott Breidenbach, president of the Fargo Moorhead Area Association of REALTORS. The $8000 tax credit, low interest rates, and a healthy job market are attracting them. Homes for $160,000 and less are being scooped up. But homes for $400,000 and higher are moving much slower. "we have an overabundance of the high-end inventory," Breidenbach says.
If that's the area's major problem, Fargo's housing market is fortunate. Unlike many other cities, it has hardly suffered from home foreclosures. During the surge in subprime loans, local lenders remained conservative. "At the time, we weren't excitied about that," Breidenbach says. "But we now are thankful."
The cities of Bismarck, Fargo, Minot, Grand Forks, and Mandan all showed growth in the U.S. Census Bureau's 2008 estimates.
· Fargo's estimated population: 93,531 (up from 92,513 in 2007)
· Bismarck's estimated population: 60,389 (up from 59,483 in 2007)
· Mandan's 2008 estimated population: 18,091 (up from 17,697 in 2007)
Grand Forks reported 51,313 people and Minot reported 35,419, both up slightly from the previous year.
The complete listing of ND cities and their populations for each year from 2000 to 2008, go to http://www.census.gov/popest/cities/tables/SUB-EST2008-04-38.xls.
So Nice to Come Home To
• 1,241 sq. ft., 2 bath, 5 bdrm single story - 
MLS® $169,900
North Fargo - Located near Elephant Park, Edgewood Golf Course, and the Veterans Medical Center, this home has been well maintained and updated with neutral décor. The wood-burning fireplace adds warm ambience to the living room; a daylight window lets the sun shine in to the family room; and built-in cabinetry transforms one of the five bedrooms into an efficient home office. Vinyl siding and aluminum soffits, gutters, and downspouts maximize leisure time by minimizing maintenance.
Low interest rates and $2500 paid by seller for your financing costs or to reduce monthly mortgage payments make this home truly affordable. Plus, if you're a first-time home buyer, you can take advantage of an $8000 tax credit! Call a REALTOR today to see this home and learn how affordable it truly is.
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