It seems in many different industries people talk about “a perfect storm”. The last couple of years were one of those times with the advent of sub-prime mortgages coupled with defaults from builders and creating a really bad environment for the housing market. However, as in every storm there also is a silver lining, if you’re willing to look. Right now is the best time we have seen in a long time to purchase a home, if you are ready.
By ready I mean you will need to have a work history of at least 2 years, a mid credit score of at least 620, decent income to cover a debit to income ratio of 45% and a down payment; though there are still programs that can help you with your down payment if you have everything else together. This is a good time because rates are still lower than normal and the government is offering a tax credit for those who have a property under contract by April 30, 2010 that will close by June 30, 2010. If you are one of those buyers it is important to start the process of getting pre-qualified with a lender and looking for homes you can afford. There is more competition than you would think right now so act quickly so you don’t miss out!
Every New Year, we make resolutions to improve our lives. This is not a bad thing, even if we sometimes come up short. Along with quitting smoking, healthier eating and more exercise, cutting coffee intake is one of the most common resolutions.
We now have more up to date research that suggests coffee might be quite good for you in moderate amounts. Decreased instances of Type 2 Diabetes and Liver Disease have been found in coffee drinkers. There is also some evidence that suggests coffee drinkers have a reduced risk of Alzheimer’s, dementia, Parkinson’s and some types of cancer. Coffee does have it’s risks, however. Caffeine is one of the more addictive drugs, and you can become immune to the “boosts” after continued use. Also, pregnant women should severely reduce caffeine consumption.
Regardless, if you enjoy the taste, go ahead and drink your favorite cup of coffee. One of my favorite things to do is enjoy a nice cup of joe at a local cafe with friends.
After weeks of getting ready for Christmas with the decorations, presents and all, it passes ever so quickly in only a day and a half. Now that it is over, if we are lucky, we get to continue visiting with family and friends, eat some additional good meals and relax before the start of another year.
Looking back on this time last year it was a time filled with fear of the future and the unknown wrapped up with promises of changes from a new president that would be sworn in by the end of January. No matter what your political affiliation, we seem to be at a better place this year than last. The economy isn’t exactly rocking along but it is much better than it was at this time last year. And though there are still many out of work, let’s all be hopeful that jobs will be the present for many in 2010.
I wish you all the best for the week remaining in 2009 and continued success and happiness throughout 2010! Let’s make it the best year ever!
When it comes to inflation, our economy seems to be on a schizophrenic thrill ride. Just last week it looked like inflation was picking up at the wholesale level so the mortgage market tanked in response. But inflation never appeared at the retail level so we gained all the losses back toward the end of the week and ended up right back where we started! So while interest rates have ticked up a bit due to the overall market, we are doing much better than it looked like we would be doing last week.
Many experts believe that the news from the Fed in regard to inflation and moving out of securing mortgage loans is a precursor to rates rising throughout 2010, making early 2010 a good bet for the lowest rates of the year. This coupled with the tax credits for both first time home buyers and those moving up in a house or downsizing makes early next year a great time to consider purchasing a home. Maybe the best Christmas present to yourself and your family is to buy a house. If you are waiting for a good deal to do so, this would be the time to get it!
Open houses are a very important part of the selling process. A great house can languish on the market if it is not prepared properly for each open house. I have come up with some suggestions for preparing your home for an open house.
- Clean/De-Clutter.
- Open shades and window blinds.
- Turn on all lights.
- Turn TV to classical music station.
- Turn down answering machine.
- Leave the house; take pets with you or put them in a crate in the garage.
- Put out fresh flowers on dining room table.
- Bake cookies just before you leave the house.
- Put out small bottles of water with a note to invite visitors to help themselves. (You could also leave them some cookies.)
Follow these simple steps, and you’ll provide a warm, inviting atmosphere for your potential buyers.
I recently read an article in the Tennessean about a woman who came up with an ingenious idea. Use potting soil in paper or plastic bags to plant your garden. You no longer have to worry about improving your soil or pulling weeds. The bag creates an all-encompassing environment for the plants to grow in, because you fill them with nurturing, healthy soil. Then, all you do is cover the bag with mulch. This type of gardening can be especially helpful for the elderly or the infirm, since they usually aren’t able to handle the rigors of normal gardening.
The value of this type of gardening:
- Cost – All the materials are inexpensive.
- Ease – Put down the bag, add some drainage holes, then cover with mulch.
- Flexibility – You can change position of the bags periodically for maximum sun exposure.
The word has arrived from the GNAR (Great Nashville Association of Realtors) that Greater Nashville home sales are up more than 50% in November. There were 1,973 home closings in the area which represented a 58.7% increase over the number of closings in November 2008. The median residential price in November 2009 was $158,500 and for condos it was $144,400. Compare that to November 2008 which had $165,500 and $150,000 respectively. Inventory is also down compared to the same period one year ago.
Here is a comparison of sales data for the month of November:
|
November 2008
|
November 2009
|
| Closings |
1,243
|
1,973
|
| Residential |
1,029
|
1,621
|
| Condo |
155
|
262
|
| Multi-Family |
21
|
16
|
| Farms/Lands/Lots |
38
|
74
|
Though things are improving and no one can say they aren’t, we do need to keep prospective. During 2009 there has been a very nice tax credit given to first time home buyers and the amount of foreclosures has had a direct reflection on keeping home prices low. These two things coupled with interest rates that have continued to be some of the lowest in history has had a very positive affect on housing. What we don’t know is how these things changing in 2010 will affect housing in our market.
It is the opinion of many economists that jobs will have more to do with the housing recovery than anything else. However, if you are employed and are ready to purchase a house as a first time home buyer or not, there are still tax credits available. Call me and I can give you the particulars and see if this is a good time for you to be purchasing a home.
Recently the head of the Federal Housing Administration went before congress with some recommended changes for qualifications to get a FHA loan as well as some guideline changes. While nothing will happen until congress votes on these changes, it is believed across the industry that some, if not all, of these changes will happen in some form or fashion. Since we cannot do anything but abide by the new changes, most people just want to know how it might affect them.
For sellers, it looks like the amount you can contribute will be reduced from 6% down to 3%. This means that buyers will have to cover more of their down payment and closing costs in the future and won’t be able to rely totally on seller concessions. It also looks like buyers might have to have up to 5% to put down on the home, which is 1.5% higher than is currently required. There are also some changes in the mortgage insurance and that will most likely raise MI both on the front end and monthly but I have been told that the monthly will be reasonable; we will see.
There are some other provisions that will affect the lenders as well so it will be very important going forward to have a lender that is FHA approved under the new guidelines. As always, if you need some additional information, please give me a call and I would be more than happy to answer any questions you might have or send you to someone who can. In the mean time, we will all have to wait and see what the final results on FHA will be.
Like most homeowners, I’ve had times where the toilet is running non-stop, a drawer is off track or a towel rack has come off the wall. When you rent, it’s an easy fix. Just call the landlord. However, homeowners don’t get that luxury. These are simple fixes, unless you’ve never had to do them before. Now the internet has made that lack of experience no big deal.
There are a plethora of articles and videos that allow you to learn at your own pace. Besides the money savings, doing it yourself is also quite empowering. Here is a sampling of sites that provide help with household projects:
- Diy.com – Here, you’ll find step by step guides on home projects and tool selections.
- ehow.com – This site isn’t geared toward just home improvement, but it does have a large home and garden section.
- Handymanclub.com – This is the official website for Handy Magazine, and offers many do it yourself guides.
- Lowes.com – You’ll find a bunch of helpful videos by following the how-to tab on the home page.
Doing it yourself has never been easier. All you have to do is look online, and you’ll get the answers you need.
No, It’s Goodlettsville. That’s the beginning of a new ad campaign the city of Goodlettsville is using to attract more visitors, residents and businesses. This is part of a growing trend of smaller cities that are using creative ways to spread the word about themselves. Thompson’s Station, White Bluff and Franklin are other smaller cities similarly working on their branding.
Goodlettsville, just 15 minutes north of Nashville, is a terrific city that offers every convenience of it’s larger southern neighbor. In addition, it offers a slower pace and a rich southern tradition. Places like historic Mansker’s Station offer plenty to see and do. You no longer have to sacrifice the practicality of city life for the peace and quiet of rural life.
If you’re looking for a great place to live, check out Goodlettsville. You’ll be glad you did.
