Real Estate: No Light in Sight

For those in the real estate industry and for those looking to buy or sell a home, it could take until 2009 to catch a break.

That's the forecast from Doug Duncan, chief economist for the Mortgage Bankers Association (MBA).   Duncan expects national median home prices to fall between 2 percent and 4 percent both this year and next. Prices will be held back by an oversupply of homes for sale, an increase in foreclosures and continued uncertainty among mortgage investors.

For this year, Duncan is predicting a 22 percent drop in new home sales and a 12 percent drop in existing home sales, followed by a 10 percent drop in each next year.

What? No good news?

There's one group of home buyers, home sellers and loan originators who will have an easier time of it than everyone else: those dealing with "anything that's conventional and conforming," Duncan said. In other words, 30-year fixed rate mortgages for borrowers with good credit under the "jumbo" cutoff of $417,000.

Home Heating Bills Will Increase

No matter how you heat your house, this year will cost you more than last, according to a government report issued recently.

Americans will spend $977 to heat their homes this year, averaging for all fuels across all sections of the country, according to the Energy Information Administration.

That's nearly 10 percent higher than the $889 spent last year and the highest amount ever, not adjusted for inflation.  The previous record was $948 in 2005-2006, according to EIA.

Those heating with oil can expect to pay $319 more this year compared to last.  Natural gas users, accounting for more than half of U.S. households, can expect to pay 10 percent, or $78 more this winter.

In addition to citing higher fuel prices, EIA said this winter is projected to be 4 percent colder than last - although still about 2 percent warmer than the 30-year average. Colder temperatures this winter compared to last account for some of the rise in heating costs.

Will the Fed Cut Rates Again?

Federal Reserve Chairman Ben Bernanke said the central bank's rate cut in September has shown signs of success, but cautioned that lenders and investors must bear responsibility for financial decisions that caused the subprime mortgage meltdown.

The Fed slashed the federal funds rate, a key short-term interest rate that impacts rates on consumer loans, by a half of a percentage point on September 18. Bernanke said the rate cut, combined with an earlier cut to the symbolic discount rate in August, helped to "reduce some of the pressure in financial markets" and that "the improved functioning of financial markets is a positive development."

Investors looking for a sign that the Fed may cut rates again at the conclusion of a two-day meeting on October 31 may be disappointed though. Bernanke indicated that the Fed "was prepared to reverse the policy easing if inflation pressures proved stronger than expected."

What do you think?  Do you think the Fed will lower rates again on October 31st?  Or do you think they will sit tight for now?  Tell us what you think by clicking the Comment link below.

Home Builders vs Home Buyers in Dayton OH 

The National Association of Home Builders reports that the confidence of United States homebuilders in the market for new single-family homes fell in October to its lowest levels since the series began in Jan. 1985.  The reason: continuing problems in the mortgage market, large inventories of unsold units, and the perceived effect of negative media on potential buyers.

NAHB Chief Economist David Seiders said in a statement recently that "consumers are still trying to get the best deals they can and many may have unrealistic expectations as to prices for new homes as well as what they can get for their existing homes.

The good news Seiders said is that builders expect sales conditions to remain stable in the next six months instead of decline further.  NAHB’s housing forecast indicates the second half of the year will show significant improvement.

Federal Reserve Chairman Ben Bernanke said recently that the weak housing market will be a “significant drag” on economic growth into next year.

What do you think?  We'd love to hear your opinion on the future of the real estate market.  Leave us your comment below.amortizing a loan21 day loan paydaycash loans 500online 9 loan paydaycar alabama loan refinancingloans $1000 online casha loan motorcycleloan programs affiliate Map

Staging Your Home

With the number of homes for sale out numbering the amount of home buyers, your home needs to be clearly the better choice and priced competitively with the competition.  You should think about the home for sale next door and making sure it doesn't shine brighter than yours.

Your home needs to appeal to all the senses of potential home buyers.  Proper staging will help it to stand out from the crowd and get it sold.

Staging doesn't just mean minor repairs, remodeling or getting rid of the clutter.  It means making your home appeal to visitors, feel inviting and comfortable.  Proper staging can help achieve good results.

Staging itself may cost you several hundred to several thousand dollars depending on many factors.  It is a short term investment in the sale of your home which can help it sell faster and for top dollar.  Proper staging is vital to selling your home.

The techniques for staging your home vary.  Many times it is a simple process that only takes a couple days.  Remove unnecessary items that clutter your home to create space and create an open feel.  Move furniture or replace it to create themes that are welcoming to prospective home buyers.  Open blinds, add brighter light bulbs, paint, clean the carpet, prune bushes and play soft music for showings.

Staging needs to be evaluated on an individual basis, but it's critical in selling your home in a shorter time for top dollar.

Have you ever staged a home for sale?  Leave us your comment and experience and any other things you might suggest to someone who is thinking of selling their home.  Just click the comment link below.

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