Posts Tagged ‘NATIONAL ASSOCIATION OF REALTORS’

A Good Investment
Most Americans are still convinced that buying a home is a good investment over the long term. According to a new report called the Mortgage Index Study conducted on behalf of the Bank of America, 62 percent of Americans are confident they’ll be making a good decision to buy a home over the next ten years.

But we’re an optimistic lot, and the truth is that home affordability is better than at almost any period in our history. For those considering buying a home over the next year, 62 percent reported contacting a lender or using online tools to determine what would be an affordable monthly mortgage home payment for them, according to the survey. 74 percent say they’ll use their personal savings for a down payment on a home, certainly a sign of confidence in the long-term investment worth of a home purchase.

Meanwhile, though sales activity was up, the median condo selling price for the country, the median being the point at which half the homes sold for more and half for less, was very similar in October as it was in September, at $165,000. We’ve seen pretty steady statewide prices for a few months in a row now and It’s really rather good to see those median prices holding as steady as they have been because it gives us a better idea of what regular sale prices are compared to when they’re up and down from month to month.

Taking a quick look at how condos and co-ops sold by region in October, sales were good almost across the board both month to month and year to year. The Northeast was the only place where we saw a drop from September, but only by about 5 percent, though sales are still way higher than a year ago. The Midwest saw some of the best month to month sales, rising 11 percent from September, and that puts them at a very respectable 27 percent higher than the same time last year. The South was dead even on condo sales from the month before but up 14 percent from last year. The West was another place where we saw great gains, up 11 percent from September. And that’s almost a 10 percent rise from a year ago.

One of the reasons we might be seeing such strong condo sales is that prices continue to remain at affordable levels, and are still downright bargains in some parts of the country. Prices in the Northeast stayed on an even keel at about $224,000. And we saw prices inch up a hair in the South to $110,000. The Midwest saw the biggest price drops, showing a median of $120,000, but we’ve been seeing a lot more action at the lower end of the market in the Midwest over the past couple of months. But prices in the West are on the rise again, all the way up to $178,000.

So looking at October’s sales of existing condos and co-ops, they continue to be a strong arm of the nation’s real estate market. If prices persist in remaining affordable, we could see sales carry on at this pace and perhaps even a bit more as we head on towards the winter.

Surprisingly though, some folks stop short of all that. They do the bare minimum. They’ll just make a tiny path so they can get to their car – and they shovel as little as possible on the driveway…just enough to get the car out. As far as the public sidewalk goes? Some people ignore it – and figure, hey, I pay taxes – let the city do it!

But while that sidewalk usually is the property of the city, in most jurisdictions the responsibility to keep the path clear belongs to you. That’s right – you – not the city.

That means not shoveling that public sidewalk in front of your home could land you in some deep trouble. Many municipalities have adopted ordinances that give home owners a specific amount of time after a snowstorm to clear the snow or ice from the sidewalks. Sometimes it’s 24 hours – sometimes it’s as little as 6 hours!

If you don’t comply, you could face a fine…and in some cases jail time!

In the city of Chicago, one alderman has proposed a system to use a mobile electronic ticketing system–he wants city workers to be able to start photographing any snow-covered sidewalks found in violation so they can start issuing more tickets.

And other municipalities are cracking down even harder on snow-covered sidewalks. Consider Middletown, New Jersey. Where, if you live within 1000 feet of a school, you have 24 hours to clear the walk – or face a fine up to $2000, and 90 days in jail!

Why do cities care so much about the sidewalk in front of your home? Well, when sidewalks are covered in snow, children walking to the school bus have nowhere to go except to tread carefully through it, and risk slipping and falling, or dangerously walk in the street.

And obviously, it’s not just kids. The elderly also have tremendous trouble navigating icy, slippery paths, covered with the snow you didn’t shovel.

So, before you get the first big storm of the season, it’s smart to check with your city to see what your responsibility is when it comes to snow removal on your sidewalk. Some cities specify how much distance you have to cover, and as we said, other cities require the work be done within a certain time frame.

You might also want to check with your insurance company. Because even if you’re a good citizen, and you quickly remove all the snow on the sidewalk, if someone slips and falls, on say, black ice that develops overnight – -who’s liable? The city or you?

You may be surprised to learn that it may very well be–you.

More municipalities are shifting the responsibility to you–not only for keeping the sidewalk clear but also making it so that you can be held liable if someone slips and falls and gets injured on a sidewalk near your home. This may make you want to consider boosting your liability coverage on your home owner’s insurance to cover potential accidents on that sidewalk in front of you.

But, this is where being a good neighbor comes in. After all, the best reason to shovel your sidewalk isn’t just to comply with the law, and it’s not just to avoid an insurance liability. Rather, it’s just the right thing to do.

As we said, kids may rely on that sidewalk to go to school. The elderly might have to walk down that stretch to get to the bus. Others may be walking their dog, or they might be headed out to work. And every one of them will sure appreciate a clean pathway after a heavy snow.

And consider also – maybe you have your house up for sale–do you really want to risk a potential buyer slipping and falling? That’s not a good impression.

So, you might want to think it all through, and make sure you’re ready. For one thing, figure out if you’re actually able to do the job, or not. After all, shoveling snow is extremely strenuous…hundreds of people suffer heart attacks and other serious health issues every year when they’re out shoveling. According to the Harvard Health blog, shoveling snow is more strenuous than going full throttle on a treadmill. And it turns out that pushing a snow blower can be as strenuous as shoveling.

So, if you can’t do the shoveling, find someone who can. And try to line it up before the first blizzard. You might be able to find a neighborhood teenager looking to make some money. Or, you might live in the kind of neighborhood where everyone chips in, and helps each other clear the sidewalks, pathways and driveways.

Or of course, you might be able to do it yourself! If so – warm up your muscles first, just like you would before any strenuous exercise. Then take frequent breaks, drink plenty of water, and remember smaller shovelfuls are safer than large.

If you use a snow blower, you might want to fire it up – and make sure it’s working right. Check to make sure it starts on the first or second pull, then test out the self-propelling motion, if it has that, and also test out the auger to make sure it turns correctly. Test out the chute, by turning it right and left, up and down. And finally, if you have pneumatic tires – make sure they’re not flat, after sitting in the garage all year.

And one more thing – whether you’re shoveling by hand or with a snow blower – if you’re expecting some really heavy accumulation – you might think about doing it a few times while the snow is falling. After all, clearing eight inches three times – is less strenuous than having to clear 24 inches all at once!

So as we said, if you live up North – we hope that we’ve given you some good information here – as the winter weather approaches. But if you’re in the sunny south, and you never get a single flake of snow – we hope we’ve contributed somewhat to your bragging rights when you say ‘I haven’t shoveled for years!’

Susie knew the value of home ownership from age 8–a place to create memories, build a foundation, a place she associated with happiness. She knew home ownership was the greatest gift of all, even if it can’t fit under the Christmas tree.

You know, gift-giving a house actually isn’t all that far-fetched nowadays–well at least the down payment to pay for one. As we mentioned earlier, a recent study shows that two-thirds of the baby boomer generation–that’s adults aged 45 and up–say they intend to help their children and grandchildren with a home down payment. In fact, one in five say they’ve already loaned their children money for one, co-signed on a mortgage, or have given a cash gift for a down payment–that’s according to a recent study conducted for Better Homes and Gardens Real Estate.

Why are they so giving? Because 75 percent of the boomers say they believe owning a home is a good investment, and the majority say home ownership is still a big part of achieving the American dream–What Susie already knew way back in the 1940s.

Nowadays, gift registries are popping up to make it easier to ask for a house. For example, one company called Deposit a Gift is helping couples set up wedding registries. The company says that about 15 percent of its wedding registries are to raise down-payment funds for a home, and another 15 percent is for home-improvement funds to pay for home upgrades. Forget the champagne flute glasses for a wedding gift, these engaged couples are saying, bring on the house.

Now keep in mind there are some IRS gift-giving rules when it comes to monetary gifts for down payments on a home–don’t forget to check if the gift is taxable. And if you’re the “giftee” who plans to use the money to buy a home, realize your lender will likely want to know all about where you got that money–and they don’t always have a sense of humor when you tell them it was Santa Claus.

One of the biggest roadblocks to home ownership right now is coming up with a down payment. For more first-time home buyers, these down payment gifts are making wishes come true, bringing home ownership closer within reach. According to a 2010 National Association of Realtors survey, about 27 percent of first-time home buyers use gift money from relatives and friends for a down payment on a home.

OK, so we don’t all have the guts to put a house on our wedding registry or on our holiday gift list, nor do we all have a rich Uncle Joe to call upon and the “bank of Mom and Dad” may officially be closed on hand-outs. But don’t stop dreaming. Take a visit to go sit on Santa’s lap–or send your kid to do the work. Tell Santa you want a Cape Cod, or a Victorian, or maybe a timeless Tudor for Christmas this year. See what the Jolly ‘ol man says. He may just give you a candy cane and send you on your way. But take it from little Susie: Never stop believing.

Happy Holidays from all of us here at Real Estate Today–may the magic of home ownership be with you this holiday season and always.