April, 2009

If you’ve tuned in to our past shows, you’re well informed about the opportunities on the markets right now. Interest rates are low, inventory is high, and if you’ve never bought a home before, you may qualify for an $8,000 tax credit. Now, the power of the bully pulpit is behind the real estate market, too.

President Obama touched on the real value and meaning of home ownership, which is more than a financial investment: “For so many people around this country, the essence of the American Dream is owning your own home”.

The President also urged Americans who already own a home to refinance. Noting that rates on 30-year mortgages have dropped to 4.78%, the lowest rates available since 1971.

What do you think? Will President Obama change your mind? Call us at (877)-55-TODAY; and let us know.

Guy Hand interviewed Ron Bitner, who shares that the development will be themed around wine country — some homes will include “wine pods” — a high-tech machine for the amateur vintner. It works by adding 30 pounds of grapes to the device, hooking it up to your computer… and a month later you’ve got a good chardonnay! This grape-infused lifestyle is sprouting up all over the Northwest: Oregon has developments, as well as Washington, where an application for a new winery is filed every 6 days.

There will be between 20 and 30 acres of active vineyards at “The Vineyards” – where residents can even play golf on the property.

But all this winery-living is giving some long-time Northwest locals a hang-over. Dan Clark, an attorney in Walla Walla, worries about the abrupt cultural changes wine has wrought on his once sleepy town. He says, “There’s excitement through all sectors about the vitality of the community, and yet there’s concern about sprawl into the fields; about being overtaken by a culture that is in effect driving out working people because they can’t afford to live here although they do need to work here.” He asks…“How much is enough?”

Back in Idaho, Ron Bitner thinks the wine-centric development in his area will actually help rural Idaho stay rural. Bitner says roughly half of the nearly 2 square miles slated for the “Polo Cove” development will remain in farm land. And, he believes that the new community will bring more traffic, more people, and become a destination — with tourist hotels that allow people to stay and live.

One thing is for certain: The view from this hill of rolling fields, modest farmhouses, and the occasional magpie, is going to change. Dramatically. And that change will be fueled by wine.

Around the home, you can do quite a bit to reduce your exposure to pollen. Even if you don’t personally suffer from allergies, you still want to be mindful — especially when selling your home — you want to follow good cleaning practices. You don’t want guests, or prospective buyers, to run sneezing out of your house!

Keep windows closed: Avoid the temptation to “air out” allergens. Opening windows only lets more pollen in. Instead, use air conditioning, which cleans, cools, and dries.

Get allergen-screens: Many people would rather suffer the red eyes and runny nose on a beautiful day than be cooped up in a house and paying huge bills for running the A/C. Now, at least one company is now selling “allergy screens,” to put over your windows to filter out grass and pollens. Check out PollenTec

Keep entryway clean, inside and out: Sweep up or vacuum inside your doorway. Keep that area clean, as pollen tends to gather there, and will spread into your home quickly. Hosing down the area outside the front door will cut down on the amount of pollen that gets tracked inside.

Leave shoes by the door: Wiping your feet on a doormat may not be enough.

Invest in a high-quality vacuum: Look for a high-efficiency filter, sealed construction, and balanced suction. Also, make sure to change the bags before they get overly full to cut down on escaped dust.

Don’t move to escape your allergies: Or at least, before you do, make sure to get an allergy test to find out what’s bothering you. Experts say that you’ll find certain allergens no matter where you go.

New allergies may pop up the second year in a new climate. The American Academy of Allergy, Asthma, and Immunology reports that you often don’t get all the symptoms of allergies in the first season, because you have to get “sensitized” – that is, the new pollen has to bother your system for a while — before your immune system recognizes it and fights back.

If that happens? Invest in the vacuum.

The $8,000 tax credit for first-time homebuyers should have an effect on the March numbers, as will interest rates. However, it’s worth remembering that the real dip in interest rates to the current low just happened a few weeks ago, which should spur future mortgages.

But where we are going is also based somewhat on where we are now — in February, the Existing Home Sales numbers were up in every part of the United States.

The biggest jump happened in the Northeast. Sales were up 15.6% over January. Prices too, were up. Although one month doesn’t make a trend, the news is welcome.

The February numbers were also good in the South, where existing home sales rose just over 6%, for the second biggest regional rise in home sales. Prices were also up.

Out West, there were more reasons to be optimistic. Existing home sales in the West increased 2.6% in February over January. As we’ve been reporting here on Real Estate Today, buyers there are looking for bargains. And they’re out there — prices reflect those bargains, and in February, prices in the West were down overall.

Finally, in the Midwest, we saw slower sales than the rest of the nation but still on the up side. Sales in the Midwest rose 1% in February over January, while home prices stayed flat—no rise, but no fall, either.

Overall, nationwide home sales were up 5.1% in February. Still down from a year ago, but always moving.

Facts and figures provided by the National Association of Realtors®.

First up, CNN Money reports that Mark Zandi, chief economist at Moody’s Economy.com, believes that the worst may be over. Based on recent increases in both home sales and the uptick in the stock market, Zandi suggests America may have begun to pull out of the recession.
Other top economists agree, including Joseph Carlson of Alliance Bernstein, who points out that retail sales are also picking up.

But let’s put economists aside: The American People are feeling more optimistic, and that’s what really counts.

According to a new poll by The New York Times and CBS News, many Americans have seen things improve since President Obama took office. Just before Mr. Obama became president, only 7% of Americans thought the economy was getting better. Now? 20% believe things are improving.

Before the inauguration, only 15% said the country was “moving in the right direction” — 39% of respondents are optimistic about the direction, now.

We’ll keep you posted on the latest economic signs—check back with us next week!