Applications for primary home mortgages are down to level not seen since May 1997. The Mortgage Bankers Association, the trade group for mortgage bankers, is attributing this to the expiration of the federal tax credit and overall slow economic revival. The data points to the week ending May 14.
To be completely fair, what the tax credit did was encourage people who would have purchased a home in the summer make an earlier decision. The tax credit was an incentive and it front-end-loaded the sales activity in the housing market. As I predicted and explained in our January post the first time home buyer tax credit impacted the real estate market cycle, accelerating sales activity by nearly 2 months!
What I am seeing is that the market in Cincinnati is still active despite the tax credit expiring. Buyer are still looking for homes and some made the decision that in their price point $8,000 was not enough of an incentive to purchase a home they really did not love. I am also working with a lot of buyers who did not qualify for the credit for one reason or another. They still want to buy.
The Tax credit was an economic stimulus measure to create economic activity in the market to boost the economy. It was not a subsidy for home ownership, in my opinion. When people buy homes they need ancillary services like movers, painters, contractors, plumbers, and carpenters. Home sales generate a lot of economic activity outside of the sale and that is what the tax credit was designed to do, I think, and from the numbers it looks like it served its purpose.
At the end of April the EPA issued new regulations for contractors who work in homes built before 1978. Before 1978 paint was made with lead as a base ingredient, and therefore the EPA has issued a mandate that all contractors receive proper training on how to safely work in homes that may have Lead based paint in them.
If you have been thinking about doing a bathroom renovation, or possibly have dreams of a new kitchen it is important for you to now make sure that your contractor is certified by the EPA to work in an environment with Lead based paint. The contractor must take a course and pass an exam to be certified, or be supervised by someone who is certified in order to do the work.
In real estate transactions bank underwriters are requiring bids come from EPA certified contractors before they will approve home loans. Currently the contractors I work with are all signing up for the EPA course, but it will take time for all of the local Cincinnati contractors to get this certification. This is slowing down a number of the transactions that are in process thanks to the tax credit.
The best advice I have for my clients is to be patient. The contracting, real estate, and lending communities are all aware of the regulations and we are all cooperating to serve our clients as best we can. Please watch the video above for more information about the EPA rules and how it is designed to protect you.
Every year trends in bathroom renovations change. Materials, technologies, and even the color palates change with the year and season. RSI media interviewed a number of renovation contractors and architects to better understand the demand for renovation and the types of renovations home owners are looking to do.
According to the interviews with architects requests for kitchen and bathroom renovations are on the rise compared to last year. 28% say there is greater interest in kitchen and bath remodels compared to the same time last year!
In addition the trends seem to be thoughtful, modest improvements. Unlike in years past, homeowners are being careful not to over improve their homes and they are considering the amount they will recoup when they do decide to resell. In the bathroom gone are the days of towel warming bars, steam showers, and glitzy fixtures. The most popular improvements are:
-Water-saving toilets
-Radiant heated floors
-Accessibility/universal design, or features that are adaptable and allow homeowners to age in place
-LED lighting
-Doorless showers
If you are thinking about renovating your bathroom call me at 513-518-1140 for contractor suggestions and ideas on how to improve your bathroom without over-improving your bathroom!
When I get a house undercontract with either a buyer or a seller I expect to have a whole home inspection done by a certified inspector. Part of the job of the inspector is alert the home owners of needed repairs. In some cases the home inspector recommends that a certified contractor come to the home and evaluate the repairs and provide a binding bid.
Recently I have had a number of roof inspections due to the snow cover and the rain. In talking with a number of the roof inspectors I have come up with a list of the things they are actually looking at when they do a roof inspection. I was impressed to find out how detailed they are when looking at the structure. When you are inspecting a roof it is important to use a certified and licensed contractor. If you need a recommendation call me at 513-518-1140.
1. Proper shingle overhangs at gutters, and eves.
2. Measure for, and calculate for proper attic ventilation.
3. Inspect attic intake vents for blockage.
4. Interior attic inspection for moisture, or dry rot.
5. Inspect attic insulation for proper R-Value.
6. Inspect all storm collars at pipes for proper seal.
7. Inspect all valleys for cracks, and determination.
8. Inspect roof for missing shingle granules.
9. Check gutters, and downspouts for blockage.
10. Inspect fasten method used from original installation.
11. Inspect flashings at all walls.
12. Check for loose shingles.
13. Inspect seals on shingles to help prevent wind damage.
14. Inspect all pipe flashings for cracks.
15. Inspect all Attic vents for holes or cracks detraction.
16. Inspect all rubber boots at top of pipes for dry rot.
17. Check to see if shingles are curled brittle, or deteriorated.
Just because it snows does not mean that the real estate world slows down. The current buyers looking for homes and are in a hurry. Today when I was making appointments to see houses I was actively asking the listing agents if they had plowed the driveway, and shoveled the walk way. Part to a buyer’s first impression is seeing that a homeowner is caring for the property by having the driveway and walkway cleaned and clean.
As a Realtor it is important that you work with your sellers to maintain the properties in the best possible condition. With the amount of snow we have had in the last few days it I have been calling all of my listings to make sure the occupied properties are being cleared, and that the vacant properties have someone going to them.
We use Zane Rubin for our plowing. If you have plowing needs feel free to call and schedule him. 519-3200
I had an opportunity to speak with a representative from Lucke Homes today at our weekly staff meeting. She provided me a list of tips for helping our buyers are educated on builders they are hiring. Here are some questions that you should ask your builder to determine how
1. Check with the Cincinnati Home Builder Association (HBA) to see if the builder is in good standing.
2. Are they paying their subcontractors on time?
3. Are they in good standing with the Better Business Bureau and do they have complaints filed against them?
4. Call the last 3 to 4 home owners for a reference regarding the on-time completion and quality of their last few home constructions?
5. Is the home warranty through the builder or an insurance company and does it follow HBA standards?
6. How many employees manage construction of your home?
7. Do they have an in-house selection center to make your choices?
8. Does the builder have a Service Department to service the home after construction is completed and you are living there?
9. Is the builder in good standing with the State of Ohio?
Remember that although there are real estate agents present at most new subdivisions, those agents represent the builder. It is important to have buyer representation when building a new home. Please remember that builders have already figured in a buyer’s agent commission so you will not be penalized for having a buyer’s agent. If you are in the market for a new construction home contact me Alison.Moss@Comey.com for a free consultation and representation.
Many people are wondering where their money will be safest during these uncertain economic times. Investing in your home still pays off.
NATIONAL ASSOCIATION OF REALTORS® statistics show that home prices have fallen by an average of 7 percent nationally in the past year. But the value of home owners’ investment in remodeling projects has declined only 3.86 percent on average between 2007 and 2008, according to Remodeling’s 2008–2009 Cost vs. Value Report.
Remodeling produces the Cost vs. Value Report each year in cooperation with REALTOR® magazine. REALTORS® responding to a survey in midsummer said home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, home owners could expect to recoup a national average of 86.7 percent on projects.
For more specific information on how much you can recoup on select home improvement projects. Please click here.
As we settle into winter everyone we know is thinking about their heating bill. We gave tips about winterizing a home in Cincinnati in a previous post, and hope everyone took that advice. If you are still interested in energy savings you could get a home energy audit from a company like Energyque in Cincinnati 513-319-7382.
Energyque spends one to two hours doing a thermal scan of your home and can provide you with some in depth knowledge about how you can improve your home’s energy efficiency. Making certain can save significant amounts of money over the long term. Their pricing starts at $95 for homes up to 1,500 square feet, $145 for home up to 3,000 square feet, and $195 for home up to 4,500.
The National Association of Realtors is supporting this unprecedented government investment in financial institutions and the housing market. The truth is that consumers everywhere already are feeling the impact of the credit crisis. Many buyers can no longer find financing they need to buy a home, contracts are being pulled off the table, and sellers are taking their listings down. Without swift and substantial intervention, all REALTORS and the consumers we serve will soon face a market where:
- Getting a mortgage, small business, or short-term loan becomes extremely difficult, even for good credit consumers and businesses.
- Consumer and business bankruptcies rise significantly, as refinancing options are shut down.
Lines of credit are reduced and interest rates on personal and business credit cards rise, adding to the burden on families.
- Consumer and business spending declines, further depressing the economy.
Unemployment increases significantly.
- Budget deficits increases noticeably due to declining revenue collection at all levels of government.
REALTORS know better than anyone else how important housing is to our local and national economies. Like it or not, the housing market can’t rebound until we resolve the problems in the financial markets. Now is the time to act before they move beyond repair.
Despite what you may have heard from the news media, the laws and policies that Congress is considering will directly benefit Main Street, by making financing more available and helping to stabilize home sales and prices. Additionally, the cost of such a plan is likely to be below the figures that have been widely reported. In fact, as our own Chief Economist, Lawrence Yun, has explained, there is a very good chance that taxpayers will reap a positive return on this investment over the long term.
For a more detailed explanation of the Economic bailout plan in lay terms please click here.
Experienced home inspector Wayne Jones provides the following information so that you can properly care for your foundation in the upcoming summer months.
It’s not too early to create a support plan for your house foundation. Remember how dry it was last summer? Foundations and footers cracked and failed because of dry clay soil conditions. Watering your basement foundation (keeping the soil damp) is a good way to help reduce foundation/footer movement during dry conditions. Foundations with shallow footers, such as garages and crawl spaces can settle and crack first. Placing a soaker hose about a foot or so away from the foundation and letting the water trickle for several hours helps keep the soil damp. Remember, if you wait too long, it may take almost a day of watering for the moisture to reach down deep to the basement wall footer. Be aware that normal foundation wall cracks can seep or leak if the water is applied too fast or too close to the walls.
