Carpe Diem.Buying a home won't get much cheaper

Buying a home won't get much cheaper

 

Several housing experts are predicting that this year will be the last chance for homebuyers to cash in on the weak housing market.

NEW YORK (CNNMoney) -- Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.
With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer.
Stuart Hoffman, chief economist for PNC Financial Services (PNC, Fortune 500), said he expects home prices to flatten out by the third quarter and start climbing by next year.
A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.
Some economists, like Trulia's Jed Kolko, expect home prices to pick up even more quickly. Trulia's data shows that the national average for asking prices already increased 1.4% in the first quarter of 2012, compared with the last three months of 2011.

Mortgage payments at lowest level in decades

"This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer," he said.
Prospective homebuyers who've been sitting on the fence shouldn't worry if they aren't quite ready to make the leap. Analysts are predicting that the initial price gains will be modest, at least, in most markets.
Hoffman, for example, is forecasting a 2% increase in 2013 compared with 2012. Meanwhile David Stiff, chief economist for Fiserv, predicts that prices will turn in the last quarter of 2012 and will rise 4.2% for the 12 months through September 2013.
Foreclosures start to fade. One major factor that will drive the trend is the cooling of the foreclosure crisis. Stan Humphries, chief economist for Zillow, said that the percentage of mortgage loans 90 days or more late, a good predictor of future foreclosures, is "falling fast."
That percentage dropped 15% year-over-year to 3.1% through the end of 2011, according to the Mortgage Bankers Association. And the decline is accelerating: More than 70% of the decline came in the last three months of the year.
Before things slow down, however, buyers should brace themselves for a temporary spike in the number of foreclosures as banks start expediting the processing of hundreds of thousands foreclosures that were stuck in the system following the robo-signing scandal. That backlog should move more quickly now that new guidelines for processing foreclosures have been outlined in the $26 billion foreclosure settlement.
Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations.

Home buying much cheaper than renting

"That could have a significant impact on the market overall in terms of providing a rising floor to home values," he said.
In some markets hit hard by foreclosures, the turnaround in prices is already underway. Phoenix recorded an 8.4% jump in home prices during the three months ended April 30, compared with the three months ended January 31, according to Clear Capital.
"It's crazy," said Tanya Marchiol, founder of Team Investments, a Phoenix real estate investing firm. "Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000."
Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.
Goodbye 3.8% mortgage. In addition to home prices, mortgages could also move higher.
Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.
But rates aren't expected to remain at these record-low levels much longer. As the economy continues to recover, rates will move higher, said Doug Lebda, CEO of LendingTree, the online lending site. Although, he said, they will "stay very reasonable."
The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year.
Greater demand for loans will help fuel the increase, according to Lebda.

6 Ways to get a great mortgage deal

Even though mortgage rates have been cheap, borrowing for home purchases has been sluggish. The Mortgage Bankers Association estimates that homebuyers will take out mortgage loans totaling about $415 billion this year, an increase of less than 3% compared with 2011. Next year, however, it forecasts that amount will almost double to $706 billion.
As housing markets stabilize and prices stop falling, homebuyers will be even more confident about buying, said Humphries.
"People can now see the light at the end of the tunnel," he said. "And that can be enough to get them off the fence." 

Jobs & Homes..Movin' Along..Carpe Diem.May RE update

Carpe Diem...Real Estate Update

General Real Estate News & Views AS HOME RENTS HEAD HIGHER, OWNING REGAINS ITS APPEAL Climbing rents for apartments are combining with a continued decline in home prices to push once-reluctant home buyers into finally taking the plunge, say economists and real-estate agents.   MORE FHFA DIRECTOR RETHINKING PRINCIPAL REDUCTION Fannie Mae and Freddie Mac have refused to write down loan amounts for underwater homeowners. New incentives from the Treasury could change that.   MORE NATIONAL HOUSING SURVEY 2012 Each quarter, Fannie Mae releases their National Housing Survey on a multitude of questions concerning today’s housing market. We like to pull out some of the findings we deem most interesting each time it is released.   MORE         A rising trend of super-efficient, solar powered new homes allows homeowners to combat rising energy costs by giving back to the power grid.     BUYER Down Payment Grants SELLER Hide Decorating Problems AT HOME A/C Maintenance Copyright NewPanda - All rights reserved. Ron Goldstein MBA, EcoBroker, QSC phone: (312)264-5846 mobile: (312)771-7190 listing update Featured Properties 2664 North Hermitage Avenue 711 South Dearborn Street 711 South Dearborn Street 2089 West Wabansia Avenue HOW MUCH TIME DO YOU SPEND CLEANING EACH WEEK? 0-1 HOUR 1-2 HOURS 2-4 HOURS MORE THAN 4 HOURS Featured Videos Housing Sales Surge Virtual Decorating Tips Tiny Homes and Happiness

FALLOUT FROM A POOR CREDIT SCORE...

Carpe Diem...Real Estate Update

FALLOUT FROM A POOR CREDIT SCORE IF you want to see how quickly you can ruin a great credit score, just skip a mortgage payment. In a study last month, FICO looked at how choices would affect three hypothetical mortgage holders: One with a spotless 780 score; another with a good 720, who may have missed a couple of credit card payments three years ago; a third with a not-great, not-toxic 680, who has sometimes fallen seriously behind on credit cards or a car loan. (Most lenders consider poor credit about 650 and below) 30 days late: The gold-plated 780 drops to 670-690, the middling 720 becomes 630-650, and 680 is now 600-620. Effects are most significant for the strongest borrower. “A continued progression is going to have less and less impact on a score,” Ms. Gaskin said. 90 days late: This is seriously delinquent, and brings the onetime best borrower down to 650-670, the midlevel one to 610-630, and the weakest to 600-620.  Short sale, deed in lieu of foreclosure, or settlement, assuming the balance has been wiped out: The result is just a bit less serious. The 780 score deteriorates to 655-675; 720 to 605-625; 680 to 610-630. Foreclosure, or short sale with a deficiency balance owed: For either, 780 is 620-640; 720 is 570-590; and 680 is 575-595. At a certain point it might seem as if there was not much difference between bad and worse, but remember that the lower the score, the longer it takes to climb back. Please read the full article on The New York Times Copyright NewPanda - All rights reserved. Ron Goldstein MBA, EcoBroker, QSC phone: (312)264-5846 mobile: (312)771-7190 listing update Featured Properties 2664 North Hermitage Avenue 711 South Dearborn Street 711 South Dearborn Street 2089 West Wabansia Avenue

Container Gardening. Raising Healthy Plants in your Home..

CONTAINER GARDENING

Whether you want fresh flowers, veggies or simply some greenery, spruce up your terrace, balcony, deck or other space.
Gardens for All
Organic gardening is a great way to enjoy fresh, healthful produce, as well as get outdoors and learn a little something about nature. But not everyone has the benefit of plantable land, or even access to community gardens. Luckily, there's an easy, time-tested way to bring a cheery splash of color or handful of fresh veggies right to your doorstep: container gardening.

Raising Healthy Plants in Containers
Many different types of plants can do well in containers, though there are some points to keep in mind. It's usually more stressful for plants to be in containers versus in the ground, and they tend to dry out much quicker, so you'll have to water them often. Potted plants are also more susceptible to temperature changes, either too hot or too cold.
It's also tempting to crowd plants closer together in containers, particularly for that full look, although that can stress them out. It's also important to fertilize potted plants regularly, since they have less opportunity to receive nutrients from the Earth. Either use a time-release fertilizer such as Osmocote or add a quarter-strength dose of soluable fertilizer every third or fourth time you water.
Remember that the smaller and more tightly packed the container, the more water it will need. The old gardener's rule of "1 inch of rain or watering per week" must often be exceeded. However, there are also plants that are less water intensive, such as morning glories, nasturtiums, poppies, calliopsis and haageana zinnias.

Proper Pots
In order to retain moisture and provide more nutrients and a stable environment, it's almost always best to choose as large a pot as possible. The material of the pot itself isn't terribly important, though each type has its advantages in terms of cost, weight, durability and beauty. Pay attention to your potting mix: it should be light and fluffy, like Pro-Mix from a nursery. It should be replaced if it shrinks down or if a thorough watering takes too long to percolate, or if water runs right through, a sign that the soil's packed tight and can't absorb anything. Soil used in containers doesn't last forever, and will need to be changed or at least heavily fortified with organic matter and fertilizers after a season.
Remember too that plants often have different requirements for moisture and fertilizer. So it's a good idea to choose compatible plants, just as anyone who has ever kept an aquarium knows to select fish that get along. It's also possible to nest smaller containers within a larger one, so each plant can get more targeted doses of resources.
It's worth mentioning that many tropical houseplants can be placed outside during the warm months, where they add beauty and charm to outdoor spaces.

Rediscover Window Boxes
Most garden or hardware shops can help you get set up with a window box (measure the width and length of your sill before you browse). It's also a good idea to check with materials refurbishers, such as Habitat for Humanity's ReStores. Window boxes come in a number of different materials — wood, plastic (including recycled), terra cotta, fiberglass, etc. — although you should steer clear of metal, which rusts and can damage fragile plants by retaining too much heat. Whatever you use, make sure the box is secured to the sill with bolts or wire.
Then cover the bottom with a layer of landscape fabric to hold the soil in place, while allowing excess water to drain. Fill the box about three-quarters full with soil, then stir in several trowels of perlite and organic matter, such as leaf mold, properly aged manure or compost. For the most attractive look, plant a mix of bushy, tall and draping plants.

Whimsical Pots
One needn't necessarily invest in a traditional clay pot or window box to grow things. In fact, many seasoned container gardeners prefer to mix in the occasional odd object: the more unusual, the better! This could be an old boot, a busted watering can, a used tire, a piece of worn furniture, a broken microwave...whatever you have lying around.

How to Make Potting Soil
There are many recipes for good potting soil, including tweaks for specific plants and regions. Here's an all-purpose container soil from Leslie Land's 1000 Gardening Questions & Answers:
1 part perlite
1 part moisture-retentive filler such as shredded coconut fiber or peat moss
1 part all-purpose potting soil
1 part compost or composted cow manure
Don't forget to fertilize and water as your plant grows!



Flowers That Thrive in Containers:
Try some of these beauties:
Sun-lovers: marigolds, petunias (pictured), geraniums, African daisy, California poppy, verbena, globe amaranth, strawflower, love-in-a-mist, calendula, gazania, nasturtiums, licorice plant, dwarf dahlias, heliotrope, lantana, miniature roses, zinnia, artemisias, lavender, coreopsis
Partial Shade: ageratum, begonia, ferns, fringed bleeding heart, lady's mantle, wishbone flower, English ivy, coleus, Boston fern
Shade Tolerant: fuchsais, begonias, Jacob's ladder, coral bells, dead nettle, small hostas, wishbone flower, impatiens, browallia, vinca, English ivy
 
Veggies That Do Well in Containers:
Grow your own food, right on your patio or balcony! Yields are often not as good as from true garden plots, but you gain flexibility. Shallow-rooted veggies like radishes and lettuce can be grown in window boxes. Tomatoes need big tubs, at least 16 inches high, wide and deep. In general, veggies need rich soil that drains well.
These veggies also do particularly well in containers: Swiss chard (multicolored varieties are especially pretty!), "patio" cherry tomatoes, fennel, dill and many other herbs, including rosemary, thyme, parsley, cilantro, oregano, mint, basil (pictured), bay and much more.

High Winds and Screens
If you have a windswept area you'll have to take extra care with container plants: you don't want your carefully tended veggies to end up as projectiles! So make sure your plants are well anchored (large pots often do the trick, especially if they're made of heavy terra cotta). Wind is drying, so keep an extra eye on soil moisture, including through the winter if you leave your plants out.
There are some evergreens, in every size from tree to groundcover, that tend to do particularly well in high winds, and they have the added bonus of keeping their color all year long. Try rockspray cotoneaster, Japanese holly, wintercreeper, yews, wild ginger or wintergreen.
Here's another tip: tall plants in pots (or vines trained up trellises) make great screens, hiding trash cans or dividing up outdoor space into "rooms." It's not hard to make a trellis out of reclaimed materials. It's also a good idea to place smaller pots at the base of larger ones, and to have a mix of different heights and sizes, to add variety and interest.


Drought-Tolerant Rooftop Gardens
If you live in a dry area, or won't be available to keep a close eye on your plantings, consider going with drought-tolerant plants, both for patio containers and for larger-scale rooftop gardens. Here are some examples:
Herbaceous perennials: artemisia, spurge, coreopsis, sedum, moss mullein, yarrow and yucca
Woody plants: barberry, beach plum, cotoneaster, shrub honey locust, tamarisk, rugosa rose, juniper and yew



Get a Secret Garden Look
Get an enchanted feel, or just take advantage of limited space, with espaliers, which are woody plants trained to grow flat against a trellis or wall (often in a fan shape). The technique is believed to date from ancient Egypt, and has long been popular in Europe, particularly in formal and royal gardens.
It isn't difficult to train an espalier, though the process usually takes a few years. Any slow-growing shrub or herb can work, as long as the container is large enough. Many nurseries also sell plants in the form. Look for cotoneaster, crab apple, forsythia, holly, juniper, quince and yew as especially fine espaliers.

Get Weepy
If you've got a lot of space, manage a large building or are feeling particularly ambitious about containers on your roof or patio, you might consider going for an elegant, peaceful look with weeping plants. Avoid weeping willows, however, which are rapid growers. Better choices include weeping varieties of the blue Atlas cedar, Nootka false cypress, willowleaf pear or crab apples or cherries. You can also try bonsai weeping trees, such as this Scots pine.

Be warned, however, that you'll have to "go Jaws" and get a "bigger container," at least 18 inches in each dimension, with bigger being better. You'll also have to prune the trees yearly to keep them from growing too large.


What to Do in Winter
Pots are particularly sensitive to freezing and thawing cycles, which can make plastic brittle and crack clay and even cement eventually. You can store potted perennials in an unheated garage or shed if temperatures stay between 32 and 40 degrees F. Check the soil often and make sure it stays moist (not wet, which can promote rot and suffocate roots).
Huge "estate-size" pots can usually be left out, however, because their mass serves as insulation. If you're working with annuals, empty out small and medium-sized pots and bring them inside when the growing season is done.


Vertical Gardens
A number of urban designers are taking container gardening to the next step, with the idea of creating sustainable vertical gardens, or even farms, to revitalize neighborhoods and bring the food to the people. Besides decreasing food miles, urban gardens can sequester carbon dioxide and pollutants and provide natural cooling, as well as relaxing places to hang out in.