Negotiate your way into your dream home

Whether you are buying your first home or looking to downsize after retirement, negotiation skills are crucial in getting what you want. Here are some tips for homebuyers trying to negotiate with sellers.

1. It is always advisable for buyers to get preapproved, not just prequalified. Pre-approved buyers have an edge over potential buyers who have only prequalified for a loan. Preapproval means the buyer has attained a conditional commitment in writing for an exact loan amount from a lender. This saves time and a quick closing may be appealing to a seller.
2. Do your homework before you make an offer. Confer with your qualified real estate agent to decide how much a property is worth. After researching comparables, crime statistics, local schools and considering the length of time the property has been on the market-make an educated and realistic offer. If you come to negotiations with facts to back up your offer, the seller may be more willing to meet your price.
3. Find out the seller's motivation. Do your due diligence when it comes to finding out as much as you can about why the home is for sale. If a property is vacant, perhaps the owners are anxious to unload the property. It is important the sellers see a human face on the other end of the sale. This may work in your favor, though be careful not to over share with the sellers, exposing your motivation or finances.

Housing Market Heats Up in Warmer Climates

Because of tight inventory, states in the West and South are expected to see home prices jump by 4 to 8 percent over the next 12 months, according to the latest data from the REALTORS® Confidence Index Survey. iStock_000008460347Small

The highest price growth in the next year is expected in California, Nevada, Arizona, Texas, Utah, Florida, Louisiana, Georgia and South Carolina, according to the survey of about 3,000 REALTORS®.

Nationally, prices are expected to increase by about 4 percent in the next 12 months, according to the data gathered in November.

A few states in colder climes are also expected to see larger price jumps as the housing markets are expected to warm up in places such as North Dakota, Minnesota, Michigan and Massachusetts.

The recent confidence index survey is the latest evidence that the U.S. housing market is in a completely different position than at this time in 2012. This fall saw solid price increases, steady inventory and strong demand, according to realtor.com® monthly data.

Written By Rachel Stults, NAR

Real estate: Look for value in 2014

The good news for housing is that price gains next year are expected to be only about half as strong as in 2013, when sellers stayed on the sidelines. Yes, that's good news. "For a sustainable recovery you want to see more balance between buyers and sellers," says David Stiff, chief economist at CoreLogic Case-Shiller, which is forecasting a 6.8% rise in the median home value for 2014.
 

Inventory is already improving. Nationwide, the number of homes for sale in September rose 1.8% vs. a year earlier, according to the National Association of Realtors. That's the first increase since late 2011. In Los Angeles, Atlanta, and Orlando, inventory was 10% or higher than a year earlier.
 

"It will still be a sellers' market in 2014, given how far we have before inventory is back to normal," says Jed Kolko, chief economist at Trulia, noting the supply of homes in September was still about 15% below historical norms. "But it will not be as extreme as 2013," he says.
 

Buyers will also enjoy an advantage next year as real estate investors are expected to be less of a factor. Why? In an improving market, there are fewer distressed homes, which they covet. According to the Campbell/Inside Mortgage Finance HousingPulse Tracking survey, the investor share of residential home purchases fell from 23% earlier this year to 17% in September. In a more balanced market like this, here's what you can do to get an edge:

BUYERS
Waiting for more inventory can make sense if you have a dream home in mind. But in 2014 there will be a price for delay -- 30-year fixed-rate mortgages are forecast to climb from today's 4.5% to more than 5%.
 

Work with a fast closer. Qualifying for loans is easier now, but speed is another issue. Franklin, Tenn., agent Patty Latham says she will not work with buyers using a particular lender that has missed several deadlines. For speed, Virginia agent Rob Wittman suggests sticking with local lenders with ties to nearby appraisers.
 

What's fast? John Wheaton at Guaranteed Rate says, "Where 45 days was the norm, you can get an express closing in 20 days and even faster."
 

Lead with a credible offer. At a time of multiple bids, low-balling isn't the way to go. "The reality is, sellers don't have to come back to you with a counter if they've got better bids," Wittman says. Of course, you don't want to overpay either. Even in markets that are starting to experience bidding wars, such as L.A. and Boston, final sales prices are still typically about 1% below asking. Use that and your agent's local knowledge and go in with a respectable bid.

OWNERS
If you like your home and are not in a rush to sell, you have great flexibility. For instance, your rising home equity will make it easier to borrow against the property. That can help pay for deferred maintenance or home renovations you've been eyeing for years -- which will only add value when you eventually put your home on the market.
 

Remodel within reason. Home-improvement spending is expected to grow by double digits through mid-2014, according to Harvard's Joint Center for Housing Studies. Atop the wish list: bathroom and kitchen jobs.
 

Keep resale in mind. While the focus was on value at the market lows, today "homes with all the fixings are the ones attracting multiple buyers," says McLean, Va., real estate broker Jon Wolford. So, yes, you can splurge a bit, but don't go crazy. Remodeling Magazine's cost-vs.-value survey found that moderate kitchen remodels ($57,500) recouped 69% of their cost, close to what minor jobs paid back. Over-the-top projects ($111,000), though, recouped less than 60%.
 

Take advantage of low home-equity rates. While 30-year mortgages rose nearly a point this year, rates on home-equity lines of credit have fallen a bit to 5.1%. That's because HELOCs are tied to short-term rates that the Fed isn't likely to hike until 2015.
 

If you'll need to repay your loan over many years, though, go with a fixed-rate home-equity loan. Today's 6.25% average is about 0.25 points lower than a year ago, as lenders are now more interested in doing deals, says Keith Gumbinger at HSH.com. Credit unions can be the best place to shop for home-equity loans. The average credit union rate is 5.75%.
 

SELLERS
List too early and you'll leave gains on the table. Wait too long and rising borrowing costs might put an end to bidding wars. You can't time the market perfectly, but you can keep an eye on inventory trends. Ask your agent to give you a monthly report on the number of listings compared with closings. Housing trends play out gradually.
 

Once you see a big uptick in listings relative to closings, you'll know price gains are getting ready to slow -- and that it's time to act.
 

Price it right the first time. Don't waste your time by listing too high only to have to wait and lower the price. "Buyers are smart these days -- they know where the market is, and now that rates are higher, they aren't going to bite on a list price above recent comparables," says Sara Fischer, an agent with Redfin based in San Diego. The real estate site Zillow reports that about one-third of listed homes in August had a price drop, up from 26% earlier this year.
 

Play tour guide for the appraiser. If your buyer's lender gets an appraisal that comes in lower than the agreed-upon price, you're in for plenty of headaches -- even in an improving market. You'll have to lower the price, the buyer will have to cough up a bigger down payment, or worst case, the deal might collapse, sending you back to square one.
 

Fischer recommends that sellers be present when appraisers come by. "They don't want to listen to the agent," she says. "But if you're the owner and can walk them through all the improvements, that can help the appraiser better understand what has gone into the home." She recommends handing the appraiser a spreadsheet of all upgrades, listing when they were done and the scope of each project.
 

By Carla Fried - CNN Money

Multifamily housing in transition

The condo and townhome markets, looked upon as the redeeming grace to single-family home ownership when pre-bubble housing prices were smoking hot, is beginning to come into its own again in Inland Southern California.

Condos had taken a back seat when Wall Street investors, squeezed-out buyers, second-home hunters and bargain shoppers looking to augment low-earning retirement portfolios snatched up a glut of houses in distress.

Now, with single-family home price appreciation in Riverside and San Bernardino counties marching into 2014 with year-to-year gains of 20 to 30 percent, Inland homebuyers are gravitating toward condo and townhouse sales in bigger numbers.

Condominium and townhouse sales in key multi-family markets - Fontana, Ontario, Rancho Cucamonga, San Bernardino, Moreno Valley, Murrieta, Perris, Temecula, Chino, Corona and Riverside - have risen 2.7 percent during the first six months of 2013, from a near standstill position in 2012.

The gain translates to an increase of only 31 sales to 1,178 units. But it comes at a time inventory is tightly crimped.

For Riverside and San Bernardino counties combined, existing condo sales are up 9.2 percent January through October, said Andrew LePage, analyst for San Diego-based DataQuick.

The 5,953 sales haven't hit that mark since 2005, when 8,762 sales were recorded over the same 10-month period.

"We are at the very beginning of a new trend," Steve Johnson, regional director for real estate research firm Metrostudy, said. "There was so little attached product built in the last seven years, this is a logical next step."

TRENDING UP

Real estate watchers agree condo and town-home sales could begin to play a more prominent role in real estate in 2014.

"If we don't see another debacle in Washington, D.C., early in the year, the economic recovery stays on track and mortgage rates remain relatively low, it's likely single-family home prices will increase," LePage said. "With those prices on the rise, I think we'll see relatively healthy condo sales because some people will be priced out of the single-family home market."

October sales numbers point to a tipping point.

Across Southern California, condo sales in October were up 3.3 percent while all home sales took a 4.4 percent tumble.

"Condos are an attractive product for the Gen-X and Gen-Y generation, the between 20- to 34-year-olds who want to celebrate life, devote more time to recreation and education and not be tied down to their residence," Johnson said. "They want a lock-and-leave lifestyle."

The pent-up factor for families or young adults who have been cooped up in a parents' home or shared living with others also comes into play.

With employment rising in core cities, Johnson say he is already seeing movement in urbanized, densely populated areas and key commuter corridors.

KEY PROJECTS

DR Horton's Pacific Trails in Rancho Cucamonga, Lennar's project in the College Park area of Chino and a second project built by Standard Pacific have performed well, Johnson said. In Riverside County, the BelVista multi-family home development in Temecula has been described by senior sales manager Diane Rogers as the perfect storm.

Designed to accommodate 210 total units, Rogers said 144 are already sold. The units that she says appeals to workers in San Diego, including military or civilian workers at Camp Pendleton, as well as the empty nesters.

"We are three-quarters sold out," she said of BelVista by Woodside Homes, which opened at prices beginning at $187,990 in April 2011. Today, prices begin in the range of $245,000 to $297,000, she said.

With Woodside proposing a second condo development in Temecula, she said: "We see the rental and condo component as the next wave in California."

With continued population growth, and household growth, along with a group of people today who do not trust the single-family, detached housing market as an investment tool, this is the alternative.

Rising rent has also been altering the landscape.

Beacon Economics, in a recent report, said buyers of existing single-family homes would pay $983 per month for housing costs in San Bernardino County, while a homebuyer in Riverside County would pay $1,260 per month.

ASSOCIATION VIEW

Leslie Appleton-Young, chief economist with California Association of Realtors, said in a recent 2014 forecast the move to multi-family makes sense when it begins to cost $3,500 a month to rent a 2-bedroom unit in Los Angeles. "With a 900-square foot apartment costing that much money, you begin to look at housing in a very different way."

For decades, condos have been the first foothold in the market for first-time buyers, LePage said.

Johnson says the sparse detached housing inventory has driven investment in existing condos, too. "There's demand for it, especially with vacancy rates running at about 6 percent," he said.

With some forecasters projecting a repeat performance on single-family price gains in 2014, the move to a product that remains affordable may already be pushing up condo prices.

The median sale price in October for existing condos grew 13.6 percent in Riverside County and 22 percent in San Bernardino County in the second quarter of 2013 from the same quarter in 2012.

"People could be very disappointed at how much prices go up over the next year for detached houses," Rogers said. "Builders aren't going to deliver homes because they are running out of land in close-in locations."

Lot sizes are shrinking. With the cost of materials and labor going up, Johnson foresees double digit price gains for condos and town homes in 2014.

"In the Inland region, attached housing comes into play when detached housing becomes very expensive."

RISING PRICES

Price growth has been highest in multifamily communities with a large population of retires, students and low-income wage earners.

Prices on condos in Rancho Cucamonga, Corona, Murrieta, Ontario and Riverside ranged from $137,000 to $218,000 over the first six months of 2013.

With metro areas beginning to report traction in the job market, Rogers said she thinks this will be a market that grows over the next several years.

LePage generally sees an upward trend on both price and sales in 2014

LePage said rhetorically, before adding the view that housing prices appreciated so dramatically, a repeat may not come in 2014. Inventory is rising, too, and fewer homes are underwater. That might soften condo sales, too.

For now, LePage said 2014 could be another year of surprises. "I could be easily wrong if the economy is building more steam than we realize now."

Written by Debra Gruszecki

5 things to know about home security systems

New technology means that you have many more options for boosting your home security. You can use a variety of home protection services, a mobile phone app, or even a low-tech solution such as an automated dimmer switch.

1. New players mean fresh options

With cable and Internet providers now offering security systems, the industry is changing. Many of these firms sell simple install-it-yourself services that eliminate the usual upfront fee of $1,000 or so.

Prices also vary based on whether the provider levies an equipment charge, the level of monitoring, and more, so total all costs before you buy, says Kevin Brasler of rating site Consumers' Checkbook.

In the first year, expect to pay between $250 and $1,500.

2. Your phone can help keep you safe

A basic security system (alarm, control panel, and series of motion sensors) costs about $20 to $30 a month, but many companies now offer a mobile app for a few dollars more.

Michelle Schenker of security tip website ASecureLife.com, recommends springing for the app, which allows you to use your smartphone or tablet to arm your system, see alerts, and turn off false alarms, even when you're far from home.

3. Someone must call the cops

With mobile tracking tools taking off, some firms do not offer monitoring services, which alert the police when an alarm is triggered. Yes, going with a non-monitoring option will save you $10 to $15 a month.

Still, Robert Siciliano of BestHomeSecurityCompanys.com, which rates security systems, advises against it: "You want that call made to protect you."

4. Customer service is the key

Many companies use similar technology, so it's service -- say, how quickly they fix faulty systems and respond to calls -- that makes firms stand out, Brasler says.

Before you choose a provider, check its reviews on sites like Angie's List (subscriptions are $3 a month) and Yelp. Keep in mind that national firms, such as ADT, "are only as good as the dealer in your area," says Schenker. And since break-ins don't always happen during business hours, look for 24/7 support.

5. The pros aren't your only choice

If you're among the 80% of homeowners without a security service, there are steps you can take to help fend off break-ins.

Trim any shrubbery that could shelter someone trying to get in through a window. Security company stickers, often sold on eBay, could dissuade a potential intruder, says Siciliano.

Thieves typically look for vacant homes, so when you're out, set an automated dimmer switch ($40 to $75) to turn on lights at odd times.

10 Reasons to List Your Home During the Holidays

1. People who look for a home during the holidays are more serious buyers.
2. Serious buyers have fewer houses to choose from during the holidays, so you have less competition.
3. Houses "show better" when decorated for the holidays.
4. Buyers are more emotional during the holidays.
5. Buyers have more time to look for a home during the holidays.
6. Many people want to buy before the end of the year for tax reasons.
7. January is traditionally the month for transfers. Transfers can't wait until spring to buy. You must be on the market to capture the market.
8. You may still restrict showing during your personal family events.
9. You can sell now, but specify a delayed closing or extended occupancy until early next year if you so desire.
10. By selling now you have an opportunity to buy during the spring, when many houses are on the market.

Bottom Line? By listing now, you may have fewer actual showings, but more qualified and motivated buyers.

The Reason? You have less competition, resulting in a quicker sale and a better price for you.

Earning RAVE Reviews in Tough Situations

Homebuying in Fall: Keys to Negotiating the Autumn Housing Market

So, you're finally off the fence and ready to buy a home before prices -- and mortgage rates -- rise any further. Here's what you need to know about jumping into the market at this time of year.

Know Your Market: The bottom line is that different markets behave differently during the fall. According to Zillow's August Real Estate Market Reports, national home values rose 0.4 percent from July, marking the third consecutive month in which monthly home values rose more slowly than the month prior. However, markets in California, Las Vegas and Minneapolis are still seeing an extremely brisk pace of home value appreciation (2 percent or higher). As we exit 2013's selling season, we will start to see a slowdown in home value appreciation.
 

Selection Is Limited: Many frustrated sellers who weren't able to unload their properties during the busy peak spring/summer buying season may take their homes off the market, particularly as the holidays approach and the action comes to a screeching halt. This means you can expect the selection to be even more limited than it currently is in some markets.
 

There's Room to Negotiate: Was there a home you saw and loved a few months ago? Is it still on the market? If it hasn't sold after one of the hottest real estate summers since the economic downturn, you likely have room to negotiate. While some buyers will pull their homes off the market, others who have been holding out for the best possible price may now be ready to come down. While some homeowners are determined to get a set price, others may simply want out at this juncture.
 

Check Maintenance Areas: Fall is the ideal time to check things such as gutter drainage and the general upkeep of the yard. How does everything look? Does anything need repair? Visit the home on a rainy day and see for yourself. Then go inside and check out the furnace, looking for drafts, leakage issues and other possible structural/maintenance problems. If they're apparent, determine how much money it's going to take to get everything up to snuff and factor that into your offer, adjusting your price accordingly.
 

By Vera Gibbons

Simple ways to ensure your identity is protected

The 2013 Identity Fraud Report released in February by Javelin Strategy & Research found 12.6 million victims of identity fraud in the United States over the past year. That equates to 1 victim every 3 seconds. Protect your identity using these simple steps.

1. All your wireless devices, including your cell phone should require a password. Passwords should include capital letters and symbols and be updated regularly. Be sure to lock your desktop every time you step away from your computer.
2. Don't opt in or give companies permission to share your information.
3. Be cautious of what you share on social media and do not post information that someone can use to authenticate your identity.
4. Sensitive documents should be shredded.
5. Store all your credit card information in a safety deposit box so you can cancel them in case your information is stolen.
6. Never give out personal information over the phone, through the mail or online unless you are absolutely certain of the source.
7. Only work with reputable online companies that have secure lines when making purchases.
8. Monitor bank and credit card statements and get a free credit report annually.

Why Location Matters in Real Estate

Ask just about any real estate agent to list the three most important things a property should have, and you'll likely hear: "location, location, location." That phrase has been in use at least since 1926, according to The New York Times, and is just as relevant now as it was then.
 

But why does location matter so much? For starters, you can't move a home - at least not easily or inexpensively. When you buy a home in a good location, it's usually a solid long-term investment.
 

Real estate agents often advise their clients to buy the worst house - a property that could use some TLC - on the best block. Why? Because fixing up a home in a great neighborhood will give you the best return on your investment. Quite simply, it will be easier to sell later on. Conversely, you can buy a beautiful home that doesn't need any work. But if the block is sketchy or just plain bad, you could have a hard time selling the property at a decent price.
 

So if "location, location, location" is so important, what makes a location good? Here are five characteristics to look for when buying a home. If you can get all five, chances are the home's a great investment.

1. A safe neighborhood
People want to live where there's little or no crime. Naturally, they want to feel safe in their homes and will pay extra for it. A safe neighborhood means people will feel free to walk around, be outdoors and interact with their neighbors. Communities still exist today where people don't lock their doors, and they know their neighbors are there for them in a pinch.

2. Good schools
Being in a good school district is important, even if you don't have school-age kids and never plan to have any. Fact is, young families always will be buying their first or second homes. They will do their home search based on location in general and good school districts in particular. The better the school district, the higher the values of the surrounding homes can be.
Found a home you love but the school district is subpar? Be aware of that issue for resale down the road. Bottom line: When you buy a home, you should always think like a future seller.

3. Convenient access to popular places, shops and restaurants
Everyone wants to be near the best commercial districts. The closer to the hubbub of a particular town or the best parts of a city, the better the location - and the more someone is willing to pay for a home. In beach communities, the closer to the beach, the more valuable the property.

4. Water access and views
No matter which town or city, someone will always pay for a great view or to be on or near the water. Put a home right on a waterway or on a hill with panoramic views and you've got a great location.

5. Access to public transit and/or freeways
In major cities, the farther you live from the bus, subway or other types of mass transit, the less valuable the home. A good location means being very close, and having easy access, to public transportation. Being near a train or bus can get you anywhere in a short amount of time. In some towns, where a commute by car is inevitable, easy access to the freeway makes for a good location. Adding 20 minutes to a commute just to get to the freeway never helps a location.

What makes a bad location?
There are some common characteristics that make a location "bad," no matter where you are.

Ever see a home with a backyard that faces the freeway? Whether the home is in Denver, Dallas or Dubuque, such a location is likely always going to be considered undesirable. Is the home on a busy intersection or a four-lane road? Again, it's probably considered a bad location, no matter which town it's in or what the nearby neighborhood is like.
 

Other factors that can make for a "bad" location: very close proximity to a fire station (good if your house is on fire, not so good if you're trying to sleep); a hospital (frequent ambulance sirens); an airport (sounds of jet engines 18 hours per day) or a school (traffic from buses or parents dropping off children or kids yelling and playing).
 

Some "good" and "bad" qualities simply vary by community. If you know your local community, you know which parts of town are less or more desirable. It's always smart to rent in a new community before committing to a home purchase. Renting allows you time to become familiar with the location.
 

All these things matter when you're considering the location of a home for sale. But never lose sight of what matters most to you about the location. If you're crazy about baseball, for instance, you might love owning a condo near your city's professional baseball team ballpark. Someone who doesn't like baseball, on the other hand, would probably not want to live near all the commotion.
 

Location, location, location really does matter - a lot. But as always, the most important thing is to buy the right home for you, at the right time.
 

By Brendon DeSimone | Zillow

Garage Door Safety

Automatic garage doors have become a common convenience, found in countless homes around the world. However, garage doors are often overlooked as a potential safety hazard. The Consumer Product Safety Commission (CPSC) reported over 20,000 injuries in 2010 alone from automated garage doors. See below for tips on how to prevent garage door injuries in your home.

1. Child's play. Garage doors are not toys. When initially installing the control pad, it should be mounted out of reach from a child, usually five feet above the floor.
2. Dry run. Test the reversing system periodically to ensure the sensors are still working properly.
3. Knowledge is power. Practice, or at the very least, become familiar with the emergency release feature.
4. Call in the pros. Do not attempt to fix cables or remote controls yourself. Let the professionals maintain your systems to avoid mistakes.
5. Close calls. Do not stand under an operating door and never attempt to race under the door while it's in motion.
6. Keep your eye on the ball. When operating the door, always keep the door in full view until it opens or closes.

Visit cpsc.gov for more information.

Small home repair jobs with a big payoff

Maintaining a home is like eating a healthy diet. Everyone knows there's a whole list of things that should be done, but nobody really wants to spend the weekend painting the guest room, snaking out a slow sink drain, or cleaning out the gutters.

Still, just as some delicious, low-carb dinners are easy to prepare, not all maintenance tasks are onerous either. Some of the smartest upkeep projects you can do require less time than it takes to grill a salmon steak.

Even if you're lucky enough to have a great handyman's number programmed into your smartphone, these jobs are just too quick and effortless to hire out. Says Gino Goe, a property manager in Santa Barbara: "The most meticulous weekend warriors don't think to do these things, yet anyone can knock them out in minutes for virtually no cost, even if you don't have a basement workshop -- or own a flannel shirt."

And they'll make your house more comfortable, efficient, and beautiful.

Increase efficiency
Whether your mechanical equipment is state of the art or aging and inefficient, you can reduce your energy costs by ensuring that it's operating at peak effectiveness.
 

Start by taking a leaf blower to your air conditioner's condenser (the box sitting outside) or the outfacing end of your window units to remove the muck and debris within, recommends Biddeford, Maine, plumber Jim Godbout. That move alone could knock 10% to 15% off your cooling costs, he says.
 

Also, slide your clothes dryer forward, pull off the vent hose, and vacuum out the built-up lint (get directions at ThisOldHouse.com). That can cut the laundry-related portion of your electric or gas bill by as much as 25% to 30%, estimates Godbout, the former president of the Maine Plumbing and Heating Contractors Association.
 

And if your heating system uses radiators, buy a "key" for a few cents from your favorite hardware retailer and use it to bleed the air out of the system (see FamilyHandyman.com for a step-by-step guide). That could slash next winter's heating bills by as much as 20%, Godbout says.
 

Make things last
A few simple moves can also prolong the life of costly-to-repair elements of your house. Windowsills are extremely prone to rot, for instance, so peek out each window to check for any cracks in the sill paint, says Castle Rock, Colo., contractor Dean Bennett.
 

Use a few dollar's worth of exterior caulk to seal any fissures that you find and keep rainwater out. If the paint damage is extensive, the problem has unfortunately moved beyond a quick fix: Hire a pro to scrape and repaint them or do the job yourself.
 

Similarly, pruning back shrubs to leave a foot of air space around your building -- checking your lawn irrigation system to ensure that the spray isn't hitting the house or garage -- will help delay your next $6,000 to $10,000 paint job.
 

To keep your garage door tracks, casement window gearboxes, and balky doorknobs working smoothly -- and without annoying creaks and groans -- simply spray them with WD-40. "It not only lubricates moving parts but also cleans them and makes them moisture-resistant," says Fran Carito, a handyman in Watertown, Mass.

Use it or lose it
Like muscles and gray matter, your home's mechanical equipment will age a lot more gracefully if you put it through its paces now and then.
 

"If you tend not to use your garbage disposal, for example, running it occasionally will help prevent it from freezing up when a guest or caterer -- or homebuyer -- tries to turn it on someday," says Carito.
 

Do the same with forgotten Jacuzzi pumps, the plumbing fixtures in a rarely used attic bathroom, and the emergency shutoffs for your water and electrical supply lines. Find the valves under your sinks, behind your showers, and on the mains in your basement, and gently turn them closed and then open them again to help ensure they will work when you really need them someday. (One caveat: If your plumbing is more than 50 years old, don't touch the valves. Hire a plumber to check and replace them, if needed; likely cost: about $100 to $200 apiece.)
 

To "exercise" your circuit breakers, flip each one into the off position and then back on again. You'll have to reset all your digital clocks, but this breaks up any corrosion on the contacts, which could otherwise prevent the safety device from doing its essential job: shutting off the power if there's ever a dangerous overload on the wiring.

Maximize beauty and comfort
The persistent problems that can make a home feel outdated and unkempt needn't be such a struggle. Take, for example, that relentless black mildew that forms on your shower grout.
 

"The bathroom vent fan isn't powerful enough to prevent it," says Jeff May, an indoor air quality professional in Tyngsborough, Mass. "The only way to really dry things out is to direct an oscillating fan into the open shower after the morning rush to evaporate all of the moisture."
 

You can also increase fading shower pressure by removing the showerhead (gently turn it counterclockwise like a screw, using a Crescent wrench if necessary), then soaking it in white vinegar, which breaks up mineral buildup that clogs the holes over time, turning your once invigorating shower into a trickle.
 

And here's a restaurant secret that will brighten your tarnished stainless-steel sink: Barkeeper's Friend ($5 at Amazon), a specialty nonbleach cleaner, will remove water marks and stains so the sink looks new again. As with all the best maintenance jobs, no elbow grease is required.

Written by Josh Garskof @Money

The Pros/Cons of Buying a Fixer Upper

A fixer upper can be very tempting when you are looking to buy a home. Whether you are a first-time homebuyer or real estate veteran, here are some pros and cons to consider before purchasing a property that needs major renovating.

Pros:

1. A less-than-perfect house often allows buyers to own in a neighborhood they otherwise couldn't afford. A fixer upper located in a desirable neighborhood may often sell for less than the surrounding homes.
2. When redoing a home there is the opportunity to create a space all your own and make it exactly how you would like.
3. There are a lot of variables specific to each property, but often, there is a possibility for profit in resale once the property is renovated.

Cons:

1. You may be overwhelmed with the amount of work, time and money it takes to renovate. Always have a back up plan to access funds or credit if any unforeseen hurdles are discovered during the renovation.
   •Tip: It may be wise to bring professionals with you to walk through the property before you buy to avoid underestimating the work and cost.
2. There is always a possibility that you could lose money on your investment. It is common to go over budget on repairs and renovations. The housing market is another variable that can be unpredictable.
3. Whether you're hiring a contractor or doing the work yourself, the renovation process is often stressful. Consider the commitment before you buy, especially if you plan on living on the property while doing the renovation.

Home shoppers advised to stay patient amid overheated housing market

Experts advise home buyers to take their time. Within a year, the inventory of homes is likely to improve and it should get easier to qualify for financing.

Be patient. Hang in there. Keep trying.

In one form or another, that's the advice some real estate experts give buyers in dealing with this overheated housing market.

Yes, it is a good time to buy in terms of house prices and mortgage rates. If you find a good house at a good price and a loan at a good rate, go for it.

But the inventory of available homes for sale is extremely low, for any number of reasons.

In many markets, regular buyers are competing with investors who are willing to pay cash to turn properties into rentals. At the same time, some home builders are "metering," or constraining sales, to take advantage of rising prices. That's one reason that the inventory of new homes is at a 30-year low.

Even the number of distressed properties has shrunk because lenders are slow at processing foreclosures. And on top of all this, the expected rush of pent-up sellers who were thought to be waiting to put their places on the market hasn't materialized.

Yes, this is a seller's market and the typical buyer is at a disadvantage. Some buyers are being rushed to make decisions, which can quickly lead to remorse over paying too much for a house. Or the place's condition may not be as good as expected.

Hence the admonition: Take your time.

"It is important to stay patient," said Svenia Gudell, senior economist at real estate website Zillow.

And don't get "over-invested" or obsessed with just one house, "because a lot of times," Gudell said, "you'll get involved in a bidding war. It gets so crazy that [some buyers] end up at a price they aren't comfortable with."

Six months to a year from now, as the market shakes out, the inventory of unsold homes should improve markedly, experts say. Investors probably will have left the market at that point. Financing may be a little more expensive, but it should be somewhat easier to qualify. And appraisals may not be the deal breakers they are now.

For now, the housing sages say, leave the market to local and Wall Street-backed investors, who are driving prices up in many places because they are willing to pay more than list price.

It may seem counterintuitive, but that may actually help buyers in the longer term, said Rick Sharga, executive vice president at Auction.com.

Although investors are accelerating the housing recovery, Sharga pointed out that appraisals generally trail rising values, a fact that borrowers discover when the valuation on the property they intend to purchase comes in too low.

At the same time, cash buyers are resetting property values every time they buy a house. And as comparable property values reset, borrowers will be able to obtain a higher-value loan on subsequent sales. "It will make it easier for them to compete," Sharga said of patient purchasers.

Once prices reach a point where it doesn't make sense for the big investors, they will move on to other markets. But "they are not causing a bubble," the longtime mortgage industry executive added. "The [higher] prices are sticking after they leave the market."

In the midst of this strange market, buyers need to be patient for one more reason: It is going to take some time for the inventory of homes for sale to reach more normal levels. Lawrence Yun, chief economist at the National Assn. of Realtors, said it may take two years before that happens.

Currently, according to many sales indices, prices are rising at an annual rate of 10% or so. But Yun expects sales and prices to moderate next year.

"It will be less hectic," the economist said, noting that buyers should not be hurried into undertaking such a large financial transaction as buying a house.

"This time next year, there will still be a shortage in inventory but not the degree of tightness we have been experiencing. It will provide consumers with additional time to make that decision," Yun said.

That doesn't mean you should stop looking. If you are not turned off by the current state of things, Joan Patterson in Rancho Cucamonga is one of many realty pros who suggest that you need to be persistent. "Be ready, willing and available to look at homes" as soon as they hit the market, she said.

Steve Bachman in Chantilly, Va., noted that it has become the norm for buyers to make several offers on different properties before one is accepted. "Buyer patience combined with a willingness to act decisively when the right home becomes available is critical in today's challenging market," he said.

"Every year, buyers who are patient and monitor the market will find a certain amount of new listings in each price range that are superb values," Kanare said. "Being patient and waiting for the rare gem to come on the market is only half the battle. Equally critical is being decisive."

Written By Lew Sichelman

Make your house look bigger to potential buyers

No matter what the square footage is of your home, there is always potential to make it appear larger and more appealing to potential buyers. An offer can depend on whether your property is interpreted as a cozy bungalow or cramped old cottage. The difference between these two descriptions often depends on staging and utilizing the space effectively. Here are some tips on how to make the most of a small space.

1. Crisp and clean. First and foremost, your home should be clean and free of any fingerprints, scuffmarks and dust. Dirt and grime can detract from even the most spacious of rooms.
2. Let in the light. Natural light is a major selling point. Open curtains and blinds to illuminate every room and make sure those windows are streak-free.
3. Eliminate clutter. Clutter on countertops can make a space feel cramped. Even if you ordinarily store the blender, knife set and toaster oven on the kitchen counter, store these items away when potential buyers are viewing the property. The same goes for bathroom counters.
4. Invest in built-ins. Built in shelves, bookcases and wall units provide both a showcase and storage without seeming clunky. Built-ins often add interest to a small space with architectural detail.
5. Think neutral. Bold paint color can make a room seem smaller, consider white or neutral tones to enlarge the space.
6. Minimize for maximum results. An oversized couch or extra wing chair can overwhelm a room. Don't cramp an averaged-sized room with unnecessary furniture.

Mortgage Rates Hold Steady

Average rates on U.S. mortgage loans are now in a holding pattern. The leveling off comes after a rise of more than a full percentage point from early May until June.

The home-loan settling can be attributed not only to cooled concerns regarding the Federal Reserve's massive bond-purchase program, but also to a decline in the number of people looking to refinance. Despite the previous spike in rates, home loans remain low by historical standards and continue to fuel demand for mortgages to purchase homes.

The average rate on a 30-year fixed loan remained unchanged, staying pat at 4.4 percent week over week, according to the latest survey by mortgage buyer Freddie Mac. The 30-year fixed has risen by just 0.01 percentage point over the past three weeks. It previously hit a two-year high of 4.51 percent in July, a spike that correlated with concerns over the Fed's bond-buying program. One year ago, the average rate on a 30-year fixed mortgage loan was 3.62 percent.

"Fixed mortgage rates have been bouncing around over the past few weeks on market speculation that the Fed will taper some of its monetary stimulus," Freddie Mac vice president and chief economist Frank E. Nothaft said in a statement. "In fact, 65 percent of economists surveyed by Bloomberg expect the Fed to reduce the amount of bond purchases at its September 17-18 monetary policy committee meetings."

"Currently, mortgage rates on 30-year fixed mortgages are 1.1 percentage points above their all-time low set on November 21, 2012, which translates into $125 more per month in mortgage payments on a $200,000 loan."

A year ago, the average rate on a 15-year fixed mortgage was trending at 2.88 percent. This week, the average on a 15-year fixed loan saw a slight increase of 0.01 percentage point. After remaining static at 3.43 percent over the past two weeks, the 15-year fixed is now at 3.44 percent. It previously achieved a historic low in early May, when it dropped to 2.56 percent, but has remained above the 3 percent mark since June.

Surveying this morning's bond and stock markets, mortgage expert Al Bowman opines that it would be in the best interest of the Federal Reserve to continue its massive stimulus policies - a bond-purchase program involving $85 million worth of Treasury notes and mortgage-backed securities. Despite concerns that the Fed will begin to scale back its program, Bowman is under the belief that the tapering is still a way off:

"I still think that the Fed is going to need further economic growth to support the start of winding down QE3, not just status quo of the past several months. In fact, in my opinion there are some red flags and indicators that hint of new problems that make further economic growth less likely without help from the Fed. I strongly believe that Chairman Bernanke and friends need to get it right the first time and will not pull their support or stimulus until they are certain they won't have to step back in again. I just don't feel we are at that point yet."

Both the one-year and the five-year hybrid adjustable rate mortgages registered a slight increase week over week. Previously at 2.62 percent, the one-year ARM rose 0.05 percentage point to 2.67 percent this week. The five-year ARM saw a 0.04 percentage point increase, climbing to 3.23 percent from 3.19 percent a week ago.

Looking ahead, home buyers looking to lock in a low rate may want to act fast. In the latest Mortgage Rate Trend Index by Bankrate.com, 67 percent of the loan experts and analysts polled believe rates will trend upward over the course of the week. Another 22 percent foresee little or no change in mortgage rates over the next week. "Rates are range-bound, but where they move within that range is dependent on what the market thinks of tapering," says Bankrate.com senior financial analyst Greg McBride. "Right now, talk of a September tapering is heating up, so rates are moving to the upside."

Written By Neal J. Leitereg

Southern California home prices up 25% over last May

Southern California's housing recovery barreled forward last month, pushing prices and sales to levels not seen in years as buyers faced stiff competition during the spring home buying season.

The median price reached $368,000 for all homes in the six-county Southland, which marked a 24.7% increase from the same month a year earlier and the highest price in five years. The number of sales, 23,034, hit the highest level for a May in seven years, real estate information
provider DataQuick said Tuesday.

Historically low inventory and mortgage rates have ignited bidding wars and helped turn the housing market into an economic bright spot — in the Southland and nationwide. Investors have also played a major role in the recovery that began last year, purchasing run-down, lower-cost properties to fix up and then rent out.

Home prices in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties all posted double-digit increases last month compared with May 2012. In Los Angeles, the median skyrocketed 30.2% to $410,000.

"We're deep into uncharted territory: Amazingly low mortgage rates, a razor-thin inventory of homes for sale, and the release of years' worth of pent-up demand," John Walsh, DataQuick president, said in a statement. "How this all plays out is educated guesswork at this point."

The swift price increases have raised bubble concerns among some, but many experts note prices remain far from the peak and say the spikes will likely ease as inventory increases from new home construction and as more owners — lured by higher prices — place their homes on the market.

Still, May's median price was 27.1% below a peak of $505,000 in 2007.

The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general rise or fall in values. DataQuick said that most of May's increase could be attributed to a general rise in value, while about a quarter came from a change in the types of properties sold.

Homes priced $500,000 or more increased to 31.3% of all home sales, the highest percentage since February 2008.
Meanwhile, homes selling for under $200,000 declined as investors flush with cash have already scooped up many of those properties.

Sales declined in Ventura, Riverside and San Bernardino counties but increased in Orange, Los Angeles and San Diego counties.

The sales of distressed properties also continued to fall. Homes that had been foreclosed upon within the last year comprised an estimated 10.8% of resold homes in May, a decline from 26.9% a year earlier.

Written by Andrew Khouri, Money & Co

Economy Watch: Fewer Homes Underwater in Q1, SoCal Housing Sales

CoreLogic reported on Wednesday that about 850,000 U.S. residential properties were no longer underwater as of the end of the first quarter of 2013 or, as the company put it, "returned to a state of positive equity." All together, the owners of roughly 39 million mortgaged residential properties have at least some equity in their properties.

That leaves about 9.7 million properties as of the first quarter of 2012 that do not have any equity, or 19.8 percent of all properties with a mortgage. That's still a high percentage, but at least it's down from the fourth quarter of 2012, when 10.5 million property holders were underwater, representing 21.7 percent of the total, according to CoreLogic.

In other words, the underwater mortgage problem is still bad, but not quite as bad as it has been, mainly because of the recovery of many housing markets. Nevada still has the highest percentage of mortgaged properties in negative equity at 45.4 percent, followed by Florida (38.1 percent), Michigan (32 percent), Arizona (31.3 percent) and Georgia (30.5 percent). These top five states account for nearly a third of all negative equity nationwide, the company calculates.

"The impressive home price gains of 2012 and the beginning of 2013 have had a big impact on the distribution of residential home equity," Mark Fleming, chief economist for CoreLogic, said in a statement. "During the past year, 1.7 million borrowers have regained positive equity. We expect the pent-up supply that falling negative equity releases will moderate price gains in many of the fast-appreciating markets this spring."

SoCal Housing Sales Up

DataQuick, a real estate data specialist in southern California, reported on Wednesday that the sales velocity of residential properties in that part of the state — Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties – was at its highest level in seven years. Also, median sales prices were at a five-year high. The SoCal residential market is an important bellwether for the national market because of its size, but also because it took such a pummeling during the housing crash.

A total of more than 23,000 new and resale properties traded hands in the six counties in May, up 7.6 percent compared with April, and 3.8 percent compared with May 2012. The most recent total is the highest May total since May 2006, when more than 30,000 units were sold, but it's still well below the long-term average sales each May since 1988, which is more than 25,600.

A good many of the recent sales seem to be investors – or speculators – so it's hard to say exactly what the run up in sales portents. "We're deep into uncharted territory: Amazingly low mortgage rates, a razor-thin inventory of homes for sale, and the release of years' worth of pent-up demand," John Walsh, DataQuick president, said in a statement. "Plus there's a seemingly endless stream of investors and non-investors … How this all plays out is educated guesswork at this point. Understandably, speculation continues over whether another housing bubble is forming."

Buyers paying with cash accounted for 31.9 percent of May's home sales, compared with 34.4 percent the month before and 32.1 percent a year earlier. The peak was 36.9 percent this February, and since 1988 the monthly average is 16.1 percent.

Written by Dees Stribling, Contributing Editor, Commercial Property Executive

Southland home prices surge in April as inventory tightens

Homes in Southern California sold at the fastest clip for April in seven years. The median price for the region reached its highest level since June 2008.

A frustrating housing market for Southland buyers swelled in April as prices surged and inventory tightened.

Homes sold at the fastest clip for that month in seven years, as regular buyers and investors snapped up more than 21,000 homes in the six-county region, real estate firm DataQuick reported Tuesday. That was a 4.1% increase from March and a 9.5% jump from a year earlier.

Demand for move-up and high-end homes surged as mortgage interest rates remained near historic lows. Investors remained a significant force, and for-sale inventory remained well below last year's levels, underscoring the competitiveness of the market.

"You are seeing strong demand against very limited supply, and that's putting upward pressure on prices," said Esmael Adibi, director of Chapman University's A. Gary Anderson Center for Economic Research.

The median price for a Southland home last month reached $357,000, up 3.3% from the previous month and 23.1% from April 2012. It was the highest level for the region's median home price since June 2008, when it hit $360,000.

The median price is the point at which half of homes sold for less and half for more. The data represent completed sales, meaning the increases are representative of buyer demand in early April and previous months.

The market has heated up even more since then, real estate agents said.

"If anything, it seems like things have gotten more crazy," Lakewood real estate agent David Emerson said.

The median has increased year over year for 13 consecutive months, with double-digit gains in every month since August. The median nevertheless remains 29.3% off its peak of $505,000, from summer 2007.

"From an affordability perspective, this remains an excellent time to buy," said Stuart Gabriel, director of UCLA's Ziman Center for Real Estate. "The price movements in the middle to upper ranges is consistent with a market that is normalizing."

Median prices are rising in part because higher-end properties are selling faster than entry-level homes. But other price measures that seek to account for the mix of homes sold have also confirmed a fast-rising market. The Standard & Poor's/Case-Shiller index indicated that prices in the Los Angeles metro area, which includes Los Angeles and Orange counties, had risen 14.1% year over year in February.

The eye-popping price gains have unleashed a debate about how long they will last.

Syd Leibovitch, president of Rodeo Realty, predicts home prices will post significant increases into 2015.

"You haven't seen anything yet," Leibovitch said. "We are still just correcting."

Others predict price gains will slow as more inventory comes onto the market. Glenn Kelman, chief executive of online broker Redfin.com, said he's seeing more inquiries from potential sellers.

"People we are talking to about selling their homes are getting more interested in it," Kelman said. "We are starting to see bidding wars ease slightly. They were very intense a month ago, with usually more than 10 offers, and now it's more like three or four."

The number of listed homes increased slightly in April but remained low, according to Realtor.com. In Los Angeles County, listings were up 1% from the previous month but down 45% from the same period a year earlier. In Riverside and San Bernardino counties, inventory was down 1% from the prior month and 36% from the same month a year earlier.

Written by Alejandro Lazo, Los Angeles Times

O.C. home sales, prices see double-digit gains

Momentum continued to build in Orange County's housing market last month, with home prices and sales reaching levels last seen five to six years ago.
The median price - the price at the midpoint of all sales - of an Orange County home hit $535,000 in April, DataQuick Information Systems reported Tuesday.

That's up by $30,000 from March and $115,000 - 27.4 percent - from April 2012's median. It was Orange County's highest median home price since December 2007.

Meanwhile, sales increased 14 percent year over year, climbing to 3,327 transactions last month. That's the highest sales tally for an April since 2006.

A lack of homes for sale was the biggest reason for recent price gains, fueling competition among buyers, industry observers said.

But experts warned not to take last month's 27.4 percent appreciation rate - the fourth highest on record - too seriously. Prices are climbing from still very depressed rates a year ago, when the market was plagued by the lingering foreclosure crisis, they said.

Also, a changing mix of the homes being sold artificially inflated the appreciation rate. Foreclosed homes and "short sales," or sales for less than what's owed on the mortgage, have almost disappeared from the market, giving way to sales of move-up homes and newly built dwellings.

Cheaper, distressed listings fell to 6 percent of the market last month, down from 25 percent in April 2012, according to Steve Thomas of ReportsOnHousing.com.

"Twenty-seven percent sounds crazy to me," said housing economist G.U. Krueger. "It's just too much." He said continued price gains at that pace are "not sustainable."

"If this goes on for a year with 30 percent or 35 percent appreciation, we'd have some concern that there's some irrational exuberance out there," Krueger said.

As of last month, the local housing price was up $165,000, or 45 percent, from the price reached at the bottom of the market crash in January 2009. April's median still was $110,000, or 17 percent, below the housing boom's June 2007 price peak of $645,000.

Home values are, nonetheless, rising by double digits, industry observers said.

DataQuick Analyst Andrew LePage estimated that half to three-fourths of median price rises are due to actual increases in home values, as opposed to the composition of home sales. Jock Patterson of Coldwell Banker in Laguna Beach said Orange County's true appreciation rate is in the 10 percent to 15 percent range.

Despite a recent uptick in homes coming on the market, April's inventory was down 41 percent from a year earlier, Thomas reported. As of May 9, Orange County had 3,776 homes in the multiple listing service, a database of properties on the market. The county has averaged 10,200 listings since 2004.

While some homeowners have been lured to the market by higher prices, others are holding off, waiting for prices to go even higher.
"The story line so far this year has been a real estate market with very little inventory meets insurmountable buyer demand," Thomas said.
Among the buyers are first-time home shoppers as well as investors, many from overseas, local agents said.

DataQuick reported that absentee buyers - most likely investors or second-home purchasers - accounted for 23.1 percent of last month's buyers. While that's down slightly from a peak of more than 27 percent in January, the average is 13.4 percent since 2000.

Cash was used to buy homes in 31.7 percent of last month's transactions, DataQuick reported, compared with an average of 12.1 percent going back to 1988.

Twenty or more offers are common for homes selling for $750,000 or under, said Brian Kamenca, an agent with Re/Max TerraSol in Huntington Beach.
"We're seeing a lot of cash offers with a lot of money coming from investors," Kamenca said. "The first-time buyers are having a rough time. They're just getting bumped because sellers have so many options. There's buyers galore."

Cash buyers can waive requirements that homes be appraised for at least as much as the sale price. Since prices have been going up so quickly, appraisals - based on past sales - often don't keep up, killing many sales to buyers who need a mortgage.

"Our biggest problem is we can't get the properties to appraise because appraisers always are looking through the rear-view mirror," said Orange broker Al Ricci, president of the Pacific West Association of Realtors.
The hot market is drawing some younger buyers who fear getting priced out if they wait too long, said Patterson, the Laguna Beach agent.

At the same time, fast sales and rising prices are luring sellers who are "fishing": overpricing homes to see what they can get, Thomas and Kamenca said.

"This is a market that is still rebalancing," said DataQuick President John Walsh. "It's catch-up time, with a healthier economy spurring more demand and rising prices tempting more people to put their homes up for sale."

Written by Jeff Collins - Orange County Register

Five spring home improvement projects

Now that spring is here, it's finally time to get to those do-it-yourself projects. Give your home a mini makeover and increase your curb appeal with these DIY-friendly projects.

1. Clean your gutters. After a rough winter, remove any debris or obstructions from your rain gutters to prevent any water around your foundation. For the true do-it-yourselfer, consider replacing your gutters if you notice any rotting or cracking.
2. First impression. Your entryway is the focal point of your facade and leaves a lasting first impression on guests. Consider painting the front door and adding or updating light fixtures on either side of the entryway.
3. Snail mail. Replacing your mailbox is a quick and easy way to improve your front yard. House numbers can be purchased and added for a minimal expense.
4. Refresh and refinish. Stain outdoor wood decking and furniture. Remember to sweep and scrub surfaces before applying the stain. The fresh coat will make wood look like new.
5. Pave the way. Budget-friendly stones can be purchased at most garden supply stores. Line either side of your driveway to achieve a crisp look without the expense of pavers.

Millennials Get House, Then Hitched

Mortgage: Step toward marriage.

There's love and marriage and then there's love and a mortgage.
Millennial couples are more likely to buy a house together before they take their wedding vows than their parents and grandparents were, according to a new Real Estate survey.

Almost a quarter of married homeowners aged 18 to 34 bought a home together before they were married, compared with 14% of those aged 45 and older.

It's good news for the housing industry that has fretted about a steadily growing trend: Every year, men and women are waiting longer to get married. In 2012, the median age of men who married for the first time was 28.6, up from 26.1 in 1990. Women: 26.6, up from 23.9.

Since buying a home often follows nuptials, delaying marriage could delay homeownership.

"We didn't expect to find that couples committed to each other to buy homes before they were married," says Robi Ludwig, a psychotherapist who works for Coldwell on lifestyle surveys and buyer habits. "It's almost like buying a home is the new engagement ring."

Married homeowners said buying a house did more to strengthen their relationship than any other purchase they made together.

"Increasingly, Americans and especially Millennials see marriage as something that should be entered into only after you've taken several steps toward showing your maturity," says Stephanie Coontz, co-chair of the Council on Contemporary Families. "It's not something you jump into."

Two-thirds of couples getting married these days lived together before they walked the aisle. Buying a home together is a big proof of commitment.

"The purchase of a home is a monumental step in their relationship," Ludwig says.

The online survey of 2,116 adults March 8-12 found that couples who bought homes before marriage were all planning to tie the knot.

Their decision to buy a home first "was based on being financially savvy," Ludwig says. "Opportunities were coming up in the real estate market and with low mortgage rates, and they take advantage of these ideal conditions and didn't feel they had to wait till they got married."

That's why Lauren Farris, 28, and her boyfriend Mark Sieckman, 30, of Chicago are house hunting. They're not living together and not yet engaged. But they're committed to spending their lives together and determined to buy a condo they can move into when her lease runs out June 1.

"The timing is right," says Farris, a senior media buyer at A. Eicoff & Co. ad agency. "Things are moving so quickly that listings that come on today could be gone tomorrow."

Her parents are helping them make an all-cash offer and are no longer concerned that the two haven't set a date.

"We get along really well and want the same things out of life," Farris says. "We know we're going to be married one day. ... We really don't have any concerns. We need to take advantage of the situation and get a head start in life."

By delaying marriage, some couples can afford to buy big - as long as they have good jobs and clean credit, and interest rates are low.

Detroit-area engaged couple Bryan Carter, 28, and Lisa Valesano, 30, are building their starter home: a $300,000, four-bedroom house with granite countertops. Carter's parents "were definitely surprised that we were building a house at such a young age," he says.

Other findings in the survey:

Southerners are more likely to take the traditional route. Almost three-fourths of married Southerners got a marriage license first, a mortgage second, compared with 60% in the Northeast.

Only 16% of married Americans have not bought a house with their current spouse.

Written by Haya El Nasser, USA Today

Orange County Active Inventory

Since the start of the year, the record low inventory has only increased by 47 homes.

The active inventory will not budge. In the past two weeks, it has increased by 25 homes and now totals 3,208. It has been bouncing around the 3,200 market for the first few months of 2013. Since tracking the market nine years ago, these levels are drastically less than the prior record levels established in March of 2005 at 4,912. To say that the current active inventory is low or anemic is an understatement. It is almost impossible to convey just how ridiculously low the levels are for comparison purposes. The inventory is simply unprecedented and does not show any signs of letting up.

Last year at this time, there were 3,407 additional homes on the market and they were flying off the market. With buyers on the sidelines waiting for new inventory to hit the market, pent up demand is astronomical. If there were an additional 3,400 homes on the market today, they would sell almost overnight.

The real issue is that the housing market is in transition across Southern California and across the United States. Distressed homes have faded as the market recovers and more equity sellers place their homes on the market. Thus far in 2013, there have been 1,094 short sales listed for sale thus far in 2013, down from 2,838 during the same timeframe last year; that is off by 1,744. Similarly, there have been 334 foreclosures listed for sale so far this year, down from 1,095 last year, a 761 home difference. The only increase has been in equity sellers. There have been 7,800 homeowners with equity in their homes opt to enter the fray thus far this year compared to 6,604 in 2012. There just have not been enough equity sellers to overcome the loss in distressed listings this year. Overall, there have been 12% fewer homes placed on the market in 2013 compared to 2012.

Demand: With not enough new inventory, demand, as measured by pending sales, dropped by 2%
In the past two weeks, demand, the number of new pending sales over the past month, decreased by a negligible 69 homes, and now totals 2,811. Compared to last year at this time, there are 1,029 fewer pending sales today. Until more homeowners realize how much homes have appreciated and are more apt to sell, demand will remain muted compared to last year. Distressed homes have faded and equity sellers have been slow to replace them.

Distressed Breakdown: the distressed inventory remained unchanged over the past couple of weeks.
Within the past two weeks, the distressed inventory, short sales and foreclosures combined, dropped by 2 homes, virtually unchanged, and now totals 224. Only 7% of the active listing inventory is distressed and 18% of demand. Compare that to last year when it represented 28% of the inventory and 49% of demand, more proof that the market is in transitioning away from distressed sales having such a tremendous impact on housing.

Written by,
Steven Thomas

HOMES FOR SALE IN LOW SUPPLY

As spring buying season starts, prices likely to keep rising

The supply of homes for sale is still unusually tight as the spring buying season opens, turning up the heat on already- rising prices.

The number of homes listed for sale on real estate website Zillow was down almost 17% in late February vs. a year earlier. In some California markets, it was down more than 40%.

The supply crunch is likely to last all year, says IHS Global Insight economist Patrick Newport. “We’re still not building enough homes.”

The U. S. is creating about 1.1 million new households a year, but housing starts in January came in at an 890,000 annual rate, the government says.

As prices rise, though, more owners will be motivated to sell, easing supply shortages, economists say. The tight inventory is a big driver of rising prices.

Home prices were up 7.3% in the fourth quarter from a year before, Standard & Poor’s Case- Shiller data show. That was much faster than most economists expected for 2012.

Nationwide, the supply of homes for sale — based on the pace of sales — fell in January to 4.2 months, the National Association of Realtors says. That’s an almost eight- year low. A six- month to seven- month supply is considered balanced between buyers and sellers.

The availability of the most expensive homes in the markets Zillow tracks has tightened more than those at lower price levels.

Homes for sale in what Zillow defines as the top price tier in each market fell by almost 21% in February vs. a year earlier. The inventory of homes in the middle tier dropped 17%; those in the bottom tier fell 9%.

Five California cities in Zillow’s survey are among those seeing the biggest inventory drops, from a 48% decline in Sacramento to a 36% falloff in Riverside. Other cities are also seeing significantly fewer listings. New York is down almost 19%; Dallas/ Fort Worth, nearly 21%; and Orlando is off 27%.

Only five of 99 metros showed an increase in listings, led by El Paso, up 19%, and Albuquerque, up 8%. Little Rock, Fort Myers, Fla., and Youngstown, Ohio, also saw increases.

Written by Julie Schmit USA TODAY

Ways to save for a new home

A home is often the biggest investment most people will make in a lifetime. Saving for a down payment can be a lengthy and disciplined process. Taking advantage of federal tax incentives and low interest rates are great ways to reach your goal of owning a home. Here are some small ways that can really add up to big savings.

1. Make coffee at home instead of buying a daily brew. Prices on lattes, coffee and espresso have gone through the roof.
2. Eat at home instead of going out. When you dine out, consider lunch instead of dinner and avoid purchasing alcohol at meals.
3. Consider taking on a roommate or smaller apartment to cut down on rent.
4. Eliminate extras like premium cable, expensive DVD rental plans, and excessive cell phone plans.
5. Use coupons at the grocery store and look for sale items. Shop for groceries and household cleaners at retailers that offer major discounts on items sold in bulk.
6. Cancel your overpriced gym membership fee and work out on your own.
7. Program your thermostat so heat is lowered at night or during the day when occupants are not home. Turn off the lights when you leave a room and use fans instead of air conditioning to keep your electricity bill low.
8. Carpool to work, buy low octane fuel and avoid taking costly taxis.
9. Purchase generic medications and toiletries instead of brand names, often, the same active ingredients are used and the items are a lot less expensive.
10. Pack a sandwich and bring it to work. Work lunches and office take out can be a drain on your budget.

Keep your home safe while you're away on vacation

Ways to protect your home and its contents while you're away range from simple to high tech. Here are some ideas to secure your home when you're on vacation.

1. Consider a house sitter. It may be an added expense, but having a trusted person stay at your home is a great defense against burglars.
2. Don't advertise you're away. Don't leave an outgoing voicemail stating you're out of town. Also, refrain from listing vacation dates on social media, such as Twitter and Facebook.
3. Invest in an alarm system.
4. Put all lights on timers, so it appears someone is home. A lighted home is a deterrent for break-ins.
5. Have the post office hold your mail and put your newspaper delivery on hold. An overstuffed mailbox and unopened newspapers on the lawn are a signal you are not at home.
6. Leave all doors and windows locked. When possible, utilize dead bolts and secure sliding glass doors by placing a rod in the door groove.
7. Alert police and a trusted neighbor to be on the lookout for any suspicious activity.
8. Remove any spare keys that are hidden outside the house. Instead, give a key to a trusted neighbor or family member to regularly check the house.

Cosmetic changes that can transform a home

There are cost-effective ways to transform your new home. Perhaps you want to change the look of your home but a major remodel or professional construction project is out of the question. Here are some DIY ideas that won't break the bank and will revamp your new property.

1. Repaint and revitalize. Never underestimate the difference a coat of paint can make in a room or even one wall.
2. Update your hardware. Replacing the fixtures on dresser drawers, kitchen cabinets and bathroom vanities is simple. Accessories like doorknobs, and even hinges can look dated. Spice up a space by swapping out the existing hardware and make it your own.
3. Sand and stain. Don't like your kitchen cabinets but aren't ready to completely renovate? No problem, as long as they are in good condition, you can paint or stain your existing cabinets. Be sure to do a test on the inside of a cabinet that won't be seen to make sure you get desired results.
4. Counterculture. New countertops drastically change a space and are available at most home improvement stores in standard sizes at a reasonable price. They are precut and ready to install.
5. New stream. Faucets in the kitchen, tub, and sinks can be changed. They should correlate with the rest of the style in the specific room.
6. Get floored. Tiles can be inexpensive and transform a kitchen, bath or mudroom.
7. Kitchen views. You can switch out a kitchen backsplash without moving cabinetry or appliances, and the sky's the limit in terms of color and style.