US Housing Starts Rose
US housing starts showed a surprise increase of 4.5 percent in December, according to new government figures.
As reported by the Commerce Department, the number of housing starts spiked to a seasonally adjusted rate of 1.642 million units.
Most economists had forecast that starts would fall to around 1.570 million units.
Starts from November were revised lower to 1.572 million units, compared with an initial estimate of 1.588 million units, but remained higher from October's clip.
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Tips for Home Buyers in 2007
Real estate in 2006 turned a corner - and not a good one. In the past year, home prices have dropped 2.2%. In this kind of a market, once you've found the house you want, start the bidding at least 15% below the asking price. Barry Miller, a broker and owner of Denver-based Buyers Only America Realty, says that's the average discount his clients are getting. Paying a buyer's agent an agreed-upon fee, if you can in your area, makes sense as well. Having a negotiator who is working for you will probably lead to a lower price.
Other ideas Buy from a builder. Many homeowners will wait out the bust. Builders can't afford to. Besides a lower price, many are offering thousands in upgrades. Skip the stuff and ask the builder to buy down your mortgage rate. That's worth more than any perk in the long run.
Get a second opinion. If you are still not sure you got the best deal, spend $350 to hire your own appraiser. Often the appraiser brought in by the lender is motivated to inflate the price so the bank can make the largest loan possible. If your appraisal comes in at less than the agreed price, renegotiate. And if the seller won't budge, walk. You can find another house.
Please leave us your comments on this story, we'd love to hear from you.
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Make Your New Year Happier
A new year has arrived. So it's time to get started on that January to-do list for your home.
- Check your insurance coverage
The new year is a perfect time to check your flood insurance coverage. If your area is prone to flooding, you'll want to get insurance. Contact the National Flood Insurance Program at (888) 379-9531 or www.floodsmart.gov.
Remember, it won't cover everything. In fact, you'll pay $400 to $500 for only about $250,000 worth of coverage. Floods aren't the only reason you might need to buy more insurance protection.
Home values have risen over 50% over the past few years. That means you'll need more insurance for your home in case it needs to be rebuilt. To get a grip on how much coverage you need, get a contractor to estimate the cost of rebuilding your house using materials at today's costs.
Oh, and while you're at it, snap a few photos inside your home. That may prove more valuable than you think when it comes to making insurance claims.
Read about other tops tips that will make your new year happier…
Then leave us your comment on the article. What are your plans for this year? Do you have your own way for making a new year happier?
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In economics, recessions are sometimes defined as periods of economic contraction marked by an extended decline in general business activity, typically two consecutive quarters of falling real gross national product.
It can safely be said that at the beginning of 2006 America entered into a real estate recession and despite all rhetorical pumping and dumping of real estate inventory by mortgage bankers, brokers, Realtors, agents, builders and developers, the statistics show that we are now at the beginning of a long and protracted real estate depression.
Anyone capable of doing math and adding two plus two could see that a real estate recession was coming back at the tail end of 2005 when numerous savvy writers began to publish statistics stating their concerns about the oft repeated concept of a “real estate bubble”. Unfortunately if your job, your income, your net worth, your assets and your life are totally dependent upon the real estate market two things may happen to you.
What is your opinion about the real estate market now? Please leave us your comment about the article.
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Tips for Home Sellers in 2007
The reason so many people are stuck with a house they can't sell is that they haven't priced it right. Most of us grow attached to our home, and good memories and ego distort how much we think it's worth.
Go to open houses of similar properties in your neighborhood and decide how much you'd pay. Then list yours for that price. You may know that your house is better for entertaining, but that won't get a buyer to pay more. That's knowledge you gained only after living there.
And forget about charging more than a neighbor because you have a new kitchen. "These days upgrades will get your house sold, but they won't get you any more money," says Lars Fahlberg of Prudential California Realty.
Other ideas Put on a show with a stager. With so many houses for sale, it pays to get help to stand out. Stagers will tell you how to make your home more attractive, and some will do the redecorating, even renting furniture. A hands-on stager can run about $1,500.
Rent to sell. If you still can't sell, consider renting. While sale prices are falling, rents are expected to rise nationwide by 5% next year, according to the NAR. What's more, renting can be a good way to snag a buyer.
Real estate investor Andy Heller, author of Buy Even Lower, says many potential buyers would like to take advantage of the soft market but haven't saved enough. A lease-to-own agreement can help both of you. Heller offers a three-year exclusive right to purchase to his renters for a 1% down payment on an agreed price, then puts 10% of rent toward the eventual sale. An added bonus: A tenant who might buy your house is much more likely to treat it well.
Please leave us your comments on this story, we'd love to hear from you.
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The first commercial citywide cellular network was launched in Japan by NTT in 1979.
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