The Pending Home Sales Index, a forward-looking indicator, rose 5.2% to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1% below July 2009 when it was 98.1. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, cautioned that there would be a long recovery process. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said. “But the recovery looks to be a long process. Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”

Yun added, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget.”

The PHSI in the Northeast rose 6.3% to 62.5 in July but is 21.1% below a year ago. In the Midwest the index increased 4.1% to 66.7 but remains 25.7% below July 2009. Pending home sales in the South rose 1.2% to an index of 86.3, but are 15.6% lower than a year ago. In the West the index jumped 11.6% to 95.0 but is 17.6% below July 2009.

The national index had fallen 29.9% in May and another 2.8% in June.

For more information, visit www.realtor.org.

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Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.

“In this example, the home buyer would lose $59.55 per month, or $7,146 over a ten year timeframe,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so home buyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”

Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan. “Home buyers with a short term time horizon may actually benefit from this change because the upfront premium will be reduced to 1% from 2.25%,” Nicholas said. This change will impact over 30% of the home buyers in today’s market who use FHA-insured financing. Home buyers considering an FHA loan should find and contact a CMPS professional in their area to discuss their options and what this means for their situation. Also, you can follow CMPS Institute on Twitter to stay updated on these and other mortgage and housing industry developments.

For more information, visit www.cmpsinstitute.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Be sure to check out these headlines on RISMedia.com:
Housing Starts Rise 1.7 Percent in July
Federal Reserve Issues Final Rule on Loan Originator Compensation

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All of the projects listed in “8 DIY Projects To Add Value To Your Home By Labor Day” can be as simple or as elaborate as you want them to. Even though the article is very informative, it doesn’t tell you how to do them. That’s where we come in Here are several videos to help you out if you plan on some weekend warrior DIY.

Replace Faucets

 

Install Backsplashes

 

Install a Bathroom Vanity and Sink

 

Paint Door and Window Trim

 

Paint Roller Techniques

 

Install a New Door

 

Add Some Curb Appeal

 

Plant Low-Maintenance Perennial Gardens

 

Plant Trees and Shrubs

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“This is the first book of its kind to cheer people on and up when their home isn’t selling,” says Frank, a long-time real estate investor domestically and abroad. “It also provides hundreds of practical tips on how to sell a home faster using buyer/seller psychology.”

When her own Arizona home didn’t sell for a year, Frank gathered extensive home selling advice from top real estate experts, home stagers, landscape artists, psychologists and marketing whizzes. Her research paid off. Frank said, “I was able to pinpoint potential buyers and appeal directly to them, which helped sell my house faster. I also discovered how to be happy instead of miserable while waiting for a buyer.”

Home Seller’s Blues was created to share Frank’s findings with other frustrated home sellers. It features comprehensive home selling tips, including quick, inexpensive ways to make a house memorable, attracting more buyers, finding the best Realtor, win/win pricing, easy ways to get a house ready to show in minutes and identifying little problems that cause home rejection.

Several chapters of the book are dedicated to overcoming negative emotions ranging from fear and frustration to insomnia and helplessness. The book also emphasizes how to enjoy life during the entire home selling experience. “Ms. Frank’s insights into the emotions, psychology and real estate strategies of home selling are right on,” says Alexis Halmy, a Portland, Oregon Realtor.

Home Seller’s Blues is available for $9.99 at the Apple iBookstore, on Amazon’s Kindle, and at http://www.homesellersblues.com. Frank also provides inspiration and often humorous home selling advice on her blog, http://www.housesellingblues.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Don’t miss these headlines on RISMedia.com:
Harvard Researcher Shares Insights on Housing Comeback
The Real Estate Book Introduces New Search Tool for House Hunters on the Go, Launches App for iPhone, iTouch, iPad

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Rattermann provides expert advice that will help protect consumers from abuse, explains biases that exist in the real estate industry and provides clues to possible problems, potentially protecting home buyers from significant financial losses.

In the book’s introduction, Rattermann writes: “The goal of this publication is to help home buyers ask the right questions. In many cases, people wish they had asked a few more questions before making significant decisions. Because the real estate industry is constantly changing, buying real estate requires you to stay current, research popular trends and attitudes and become an informed buyer.”

A real estate appraiser and agent in Indianapolis, Rattermann has worked in the real estate industry since 1979. He has written seven books about real estate and appraisals, some of which have been translated into Korean, Greek and other languages, and has lectured on a variety of real estate topics in 45 states and five countries. He has written 15 real estate training seminars and also writes on residential topics for The Appraisal Journal, the Appraisal Institute’s quarterly technical and scholarly publication. The Appraisal Institute is one of the nation’s largest professional organizations of real estate appraisers.

For more information, visit www.appraisalinstitute.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

For more real estate related headlines on RISMedia.com, be sure to see:
Reverse Mortgages Pros and Cons
‘Fundamental Change’ for Fannie and Freddie, Geithner Says

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Among the key findings of the survey: Of the 60% of individuals moving into rentals, 24% were previous homeowners who are renting temporarily while they look for a new home to purchase. Underscoring this finding is the fact that for many of these families, foreclosure was not the reason for moving—in fact, the number of consumers who moved due to foreclosure dropped by 70%.

Furthermore, many of these families stayed in the area (one in three made a short distance move of 100 miles or less), opting to remain in a location where they already know their schools, shopping districts and prime neighborhoods.

“While the housing market continues to flux from month to month, we’re seeing strong, continued interest as consumers looking to move start their research with us,” said Relocation.com Chairman and Founder Sharon Asher. “These findings suggest that more Americans may be poised to re-enter the housing market this year.”

The Relocation.com survey was conducted in early June 2010 and is a continuation of consumer surveys conducted since March 2009 to gauge moving and relocation attitudes and behaviors.

For more information, visit www.relocation.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

For more real estate related headlines on RISMedia.com, be sure to check out:
An Unlikely New Business Buzzword: Why It’s Time to Stop Obsessing Over Numbers and Start Nourishing Your Culture
HUD Secretary Donovan Announces That over 8,000 Affordable Homes Will become More Energy Efficient as a Result of the First 100 Recovery Act Green Retrofit Awards

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This Week’s Redding Real Estate Update:

Residential Market Statistics

Active Listings:  1,654 (from 1,640 last week and 1,635 two weeks ago)

Pending Listings:   457 (from 441 last week and 438 two weeks ago)

Closed so far in August: 105

Closed in July: 168

Closed in June: 201

Closed in May: 182

Closed in April: 173

Closed in March: 187

Closed in February: 125

Closed in January: 117

Total Closed Escrows in 2010: 1,287

Total # of Homes that closed escrow during 2009: 2,060

December 2009: 185

November 2009: 170

October 2009: 216

September 2009: 213

August 2009: 174

July 2009: 181

Information provided by Clint and Mindy Cronic of Next Generation Real Estate Services DRE license #01314114/01458166.

We’d love to assist you with any questions you have about the market!  Just call us at 530.227.0345 or email contactus@sellingredding.com

Join the forum discussion on this post – (1) Posts

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Nationally, sales of previously owned homes plunged 25.5% from July 2009—numbers the National Association of Realtors said had not been so low since 1999. Single-family home sales were at their lowest since May 1995, during the last housing bust.

Wall Street took the announcement by the Realtors’ association badly, and at the close of the trading day, the Dow was down 133.96 points.

“We knew that there would be payback for the government’s incentives but we didn’t think it would be so bad,” said Joel L. Naroff, of Naroff Economic Advisors in Holland, Pa.

The end of the tax credit “hit with full force” in July, said economist Nigel Gault, of IHS Global Insight in Lexington, Mass. “The most worrying feature of the recent housing data is the absence of evidence of any underlying improvement in sales,” Gault said. “All of the action earlier this year appears to have been driven by the tax credit. Mortgage applications for purchase have been moving sideways since June, even as 30-year mortgage rates have headed into the low 4s.” A sustained housing upturn “will depend on an improvement in the jobs market, which at the moment is slowing down rather than gathering pace,” he said.

Realtors’ association economist Lawrence Yun acknowledged the downturn, but also offered perspective.

“Since May, after the April 30 deadline, contract signings have been notably lower,” he said, “and a pause period for home sales is likely to last through September.”

Still, Yun said, annual sales are expected to reach five million in 2010 because of the healthy activity in the first half of the year. “To place that in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years.”

Thanks to the tax credit, home values have been stable for 18 months, Yun said.

In July, the nation’s median price rose 0.7% over July 2009, to $182,600. The median is the middle value; half the homes sold for more, half for less.

Yun insisted that record-low mortgage interest rates, now averaging 4.5% would encourage the wary to get back into the hunt.

In fact, rate-conscious buyers are just about the only ones in the market these days. They waited for rates to dip even further, more eager to save thousands over the life of their mortgages than to snag a one-time tax credit available only to qualified buyers.

Michelle Nnolum recently closed on her first home, a condo purchased for $195,500 with a $5,500 seller’s assist at Chanticleer in Cherry Hill, N.J. She signed the agreement of sale in July. “I never thought I could qualify to buy, but I kept hearing about these low rates,” said Nnolum, whose home-based business, ClassiFit, does custom alterations of gowns and evening wear.

She looked at four houses for sale with her agent, Giovanni Judenic of Long & Foster, before settling on a completely renovated two-bedroom, 2 1/2-bath condo that had been on the market for just three days.

Her rate: With a 20% down payment, 4.75%. But thanks to a “buydown” incentive from the mortgage broker, she will pay 3.75% for the first year, “which equals what I was paying for rent,” she said.

“I think values will go up,” said Nnolum. “With 20 percent down, I’ve started with a lot of equity already.”

Chris Bolli of Bristol, Pa., is equally interest-rate-conscious as he searches for a house.

A Navy veteran who sells prosthetic devices to area hospitals, first-time buyer Bolli has been looking for a three-bedroom, two-bath house with a garage for six months.

“Buying a house is a long-term investment, and finding the lowest fixed rate over 30 years is more important than $8,000 up front,” he said. “I wasn’t going to be pressured into buying something.”

One problem with his search has been that “sellers haven’t caught up yet with the realities of the market,” said Bolli, who considers $250,000 the middle of his price range.

“We looked at a house in an area where renovated houses were selling for $270,000, but the owner, who bought at the height of the market, wanted $380,000 for a house with 1950s fixtures,” Bolli said. “It wasn’t worth it.”

Anthony Sanders, professor of real estate finance at George Mason University in Virginia, said many sellers were “holding on to their overpriced housing, hoping that they won’t get damaged even further. There’s been a change in consumer psychology, and it’s difficult to reverse.”

Naroff, who recommends waiting until the fall before making judgments, said that “unless households and businesses have confidence about the future, they are not going to buy homes or invest, regardless of the interest rate.”

Housing’s double dip should not cause a double dip in the broader economy, said Mark Zandi, chief economist at Moody’s Analytics.

“The recent weakness in housing won’t be severe or long enough to undermine the rest of the economy,” Zandi said. “It will be close, however, and it will be very uncomfortable through the remainder of the year. Nothing works all that well in the economy when housing is struggling.”

(c) 2010, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

For more top stories on RISMedia.com, be sure to see:
Beware of Foundation Problems When Getting Your Home Ready for the Market
Government to Spend $3 Billion to Help Homeowners

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“While there has been some stabilization in the housing market, it remains clear that we have more work ahead,” said HUD Assistant Secretary Raphael Bostic. “Through the Obama Administration’s efforts over the past 16 months, we have seen increased price stabilization and improved home affordability for prospective, qualified homebuyers. At the same time, we know that we must continue to provide support to underwater borrowers, unemployed homeowners, and to the nation’s hardest hit neighborhoods.”

The August Housing Scorecard features key data on the health of the housing market including:

• Stabilizing housing prices drive improving expectations in some regions. After 30 straight months of decline, home prices have leveled off in the past year; futures indices have shifted upward since January 2009 as signs of recovery continue, although overall housing outlook measures remain mixed.

• More than twice as many modification arrangements begun compared to foreclosure completions. More than 3.15 million modification arrangements were done from April 2009 through the end of June 2010. This includes more than 1.3 million trial Home Affordable Modification Program (HAMP) modifications started, over 472,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and 1.4 million proprietary modifications under HOPE Now. The number of agreements offered continues to more than double foreclosure completions for the same period (1.24 million).

• More than 4.2 million families have benefited from housing counseling since April 2009. Working with a HUD-approved housing counselor can help borrowers manage debts apart from a mortgage – car payments, credit cards and personal loans, for example – and help them avoid falling into default.

• More than 37,000 homeowners received a HAMP permanent modification in July. While the pace of program entry has slowed due to upfront documentation requirements in place since June 1, this policy change streamlines the process to help more eligible homeowners convert to a permanent modification. Homeowners in permanent modifications are experiencing a median payment reduction of 36 percent, or more than $500 per month.

“HAMP, which represents just one, targeted piece of the Administration’s larger efforts on housing, has so far offered more than a million and half responsible homeowners the chance to modify their mortgages. This program has helped to stabilize a housing market that remains fragile and has redefined the modification standard for the industry – both of which are delivering real benefits to struggling homeowners in communities across the country,” said Treasury Assistant Secretary for Financial Stability Herb Allison. “Currently servicers are working through their pending modifications, and while Making Home Affordable works for a number of homeowners, many others are offered other means of avoiding foreclosure. As careful stewards of the scarce resources of the American taxpayer, we see this as prudent progress – and we will keep working to help the Americans hardest hit by this crisis.”

Data in the scorecard show that the recovery in the housing market continues to remain fragile, with some measures suggesting recovery will take place over time. For example, foreclosure starts went up slightly in July from the previous month, but remain well below July 2009 levels.

Foreclosure completions also inched upward as the volume of serious delinquencies continues to work through the pipeline.

Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration’s unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP.

The Obama Administration’s complete Housing Scorecard available at: www.hud.gov/scorecard

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.

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Instead of using a beam compass, or a nail, string, and pencil, use a thin piece of stock or rip a thin strip. I like to keep thin strips ripped from 8-foot stock because I design many projects that call for 2 1/4-inch parts. Once a 1 x 3 (which measures 2 1/2 inches wide) is ripped to 2 1/4 inches I’m left with a 1/8-inch strip. (This will vary depending on the kerf of your table saw blade). Keeping 8-foot lengths of these strips gives me plenty to work with in nearly any size arc I might need. And of course, I cut some of them shorter – 8 feet gets a bit unwieldy.

I mark my end points and the peak of the arc on the workpiece. Then I drive brads near these points (allowing for the strip and pencil thicknesses). I fit the strip against the end points, then “bow” the strip to reach the arc peak. Then I simply use the strip as my guide for marking the arc.

I make sure to apply even pressure on the strip at the arc peak, and I don’t put any additional pressure on the strip when I make the mark. Sometimes I’ll add a third brad at the arc peak to hold the strip steady.

If you don’t want the brad holes on your workpiece, place the part on a large piece of scrap plywood and drive the brads into the scrap instead of the workpiece. You’ll need to make several adjustments to get the positioning right. If you’re handy enough, I’ve bet you’ve already figured out that you could make jigs out of scrap material to accomplish the same thing.

It will take some practice, but it creates a quick arc when you’ve got the hang of it. Then all you have to do is have a steady hand when cutting the arc.

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Red oak is a very open-grained wood. It can leave a rather rough finished feel if you just sand, stain, and walk away. Here are some tips that have worked for me that should give you a finish that will feel great to the touch.

• Sand your project to 180 grit.
• Apply stain with a cloth, working it in by rubbing it. Wipe off the excess.
• With the stain still wet, sand the project using 220 grit zirconium oxide (black) sandpaper. This creates a slurry with the sawdust and stain and will help fill in the open grain.
• Wipe down the project with a finishing cloth.
• Allow to dry.
• Apply a coat of polyurethane. Allow to dry and rub with steel wool, or lightly sand with a fine-grit sandpaper.
• Apply a second coat of polyurethane. Allow to dry and very lightly rub with steel wool or sand with a fine-grit sandpaper. This is mostly to knock down any bubbles that may have formed with the poly (most usually settle themselves), or any bits of dust/debris that may have settled on the finish.
• Apply a coat of paste wax. The wax will fill in any marks from the steel wool. Wax on, wax off – don’t allow the wax to sit 10-15 minutes as the manufacturer may recommend. Buff it like crazy. It will go on hazy, but the more you wipe, the more luster you’ll achieve.  Allow this coat to dry, and apply additional coats if you prefer.

Experiment with this technique on a piece of scrap red oak until you’re comfortable doing it on a completed project.

Chris Hill
SPC Woodworking Editor

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The main reason for the increase, according to Bankrate: Lenders are giving more accurate estimates because they now must pay to cover the difference if they underestimate the costs, according to Bankrate.

In other words, the good-faith estimates are, well, being made in better faith.

Before Jan. 1, there was no penalty for giving bad estimates, so lenders battling for mortgage business had more of an incentive to give lowball quotes.

Lenders told Bankrate that actual closing costs rose modestly this year, in part because regulators and loan buyers Fannie Mae and Freddie Mac are requiring mortgage firms to do far more fact-checking than during the boom years.

Consumer advocates say the report demonstrates how lenders took advantage of lax regulation during the housing boom by often keeping borrowers in the dark about costs until they were faced with nasty surprises when their loans closed.

“Why is transparency such a challenge for them?” said Alan Fisher, executive director of the California Reinvestment Coalition.

According to Bankrate’s survey, which obtained online good-faith estimates for loans of $200,000, estimates of closing costs charged directly by lenders are up 23 percent from a year ago. Estimated charges for third parties such as appraisers and title insurers soared 47 percent.

California was among the highest-priced states in the survey.

The only states with higher fees than California were New York, with costs averaging $5,623, followed by Texas at $4,708 and Utah at $4,605.

Arkansas was the least expensive state, with costs averaging $3,007.

The most expensive component of closing costs was a title search and insurance to protect the lender from the possibility that title is not held free and clear.

These title costs averaged just $1,011 in Arkansas and $1,141 in North Carolina but set Los Angeles borrowers back an average of $2,391 and San Franciscans an average $3,181, Bankrate said.

The increase in estimates of closing costs stems from regulations issued by the U.S. Department of Housing and Urban Development.

(c) 2010, Los Angeles Times.

Distributed by McClatchy-Tribune Information Services.

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Beautiful home located in Cottonwood on 3+ acres. 3 large bedrooms and 2 nice bathrooms with double vanities plus a 3 car garage. A large enclosed sunroom with ceiling fans is just off the livingroom and boosts great views of the surrounding mountains and oak covered hills. The master suite comes with a private covered patio with views as well as a good sized bathroom with a walk in shower. the property’s landscape was professionally designed and now has mature shade trees and beautiful shrubs. There is a full alarm system that is wired for an automatic entry gate. The Koi pond is just off the enclosed patio and is outstanding with lights and a waterfall. The list goes on with a fenced, raised bed garden area, 3 storage sheds and a dog kennel. The original owners are offering this place to the market for the first time, after years of loving care.

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Details

Large home in Pacific Heights nestled on a cul-de-sac lot on 1/3 acre. Built in 2003, this home features, 4 full bedrooms + an office with a closet and 3 full baths with over 3,000 square feet. Huge kitchen and pantry, 3 car garage. 2 HVAC units make for efficient heating and cooling. Great covered patio to enjoy those summer evenings.

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Details

Foxwood at Lower Springs Lot #10. Great views of Mt.Shasta in an upscale westside development. Electricity and phone are at the lot line! OWNER WILL CARRY!!!

Offered by Shirlene Bramson of Next Generation Real Estate Services DRE License #01500303.

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