Hope Leitner, Realtor®, CRS

After the mortgage payment, the largest homeowner expense is for utilities and the major component is energy.  Contributing factors include air leaks, insulation, heating and cooling equipment, water heaters and lighting. Computers, monitors, TVs, cable and satellite boxes, DVRs and power adapters are spinning your electric meter even when they’re not being used. Even though they only represent a small percentage of a home’s total energy consumption, about 3/4 of the electricity is used when the products are turned off. Unplugging devices can actually make a difference in the size of your electric bill. Plugging several of these offenders into a power strip with a single on/off switch may make the task easier. Most computers have options to put them into sleep mode or even turn when not in use. The Department of Energy has an Energy Saver Guide and do-it-yourself suggestions.

It’s much easier to play a game when you know the rules so you can avoid mistakes that may keep you from winning. Homeownership isn’t a game but there are some rules that will protect your investment and increase your enjoyment. Most people want a home of their own to raise their family, share with their friends and to feel safe and secure. In most cases, it is also their largest asset. These suggestions can help protect your investment and make homeownership more enjoyable. Don’t overpay for your home Maintain your home to protect its value Minimize your assessed value to lower property taxes Make extra contributions to save interest and build equity Validate the insured value of improvements and contents Be aware of current surrounding property values Make mortgage interest payments deductible Invest in capital improvements that increase market value Don’t over-improve the neighborhood comparables ...

The real estate market is moving more and more into a complete recovery. Home values are up. Home sales are up. Distressed sales  (foreclosures and short sales)  have fallen dramatically. It seems that 2017 will be the year that the housing market races forward again. However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the summer, supply is not keeping up. Here are the thoughts of a few industry experts on the subject: Lawrence Yun,  Chief Economist  at  NAR : "Sellers are in the driver's seat this spring as the intense competition for the few homes for sale is forcing many buyers to be aggressive in their offers. Buyers are showing resiliency given the challenging conditions. However, at some point — and the sooner the better — price growth must ease to a healthier rate. Otherwise sales could slow if affordability conditions worsen."...

In a blog post published last Friday,  CNBC’s  Diana Olnick reported on the latest results of the  FAU Buy vs. Rent Index . The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers at  FAU  use a  “‘horse race’ comparison between an individual that is buying a home and an individual that rents a similar-quality home and reinvests all monies otherwise invested in homeownership.” Having read both the index and the blog post, we would like to clear up any confusion that may exist. There are three major points that we would like to counter: 1. The Title The  CNBC  blog post was titled,  “Don’t put your money in a house, says a new report.”  The title of the press release about the report on  FAU’s website was  “FAU Buy vs. Rent Index Shows Rising Prices and Mortgage Rates Moving Housing Markets in the Direction of Renting.” Now, we all know headlines can attra...

According to a  recent report  by  Trulia ,  “buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.”  The report may have some people thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective? Ralph McLaughlin,  Trulia’s Chief Economist   explains : “Owning a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account. Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on a house.” The article listed five reasons why owning a home makes financial sense: Mortgage payments can be fixed while rents go up. Equity in your home can be a financial resource later. You can build wealth without paying capital gains. A mortgage can act as a forced savings account. Overall, homeowners can enjoy greater wealth growth than renters. Bottom Li...

Every year,  Gallup   surveys  Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds. For the fourth year in a row, Real Estate has come out on top as the best long-term investment! This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26%. The full results are shown in the chart below. The study makes it a point to draw attention to the contrast of the sentiment over the last four years compared to that of 2011-2012, when gold took the top slot with 34% of the votes. Real estate and stocks took second and third place, respectively, while still in recovery from the Great Recession. Bottom Line As the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.

To start the year, housing experts all agreed on one thing: 2017 was going to be the year we would see mortgage interest rates begin to rise. After years of historically low rates, and an improving economy, the question wasn’t  if they would increase  but instead  how much they would increase . Some thought we could see rates hit 5-5.5% by the end of the year. However, the exact opposite has happened. Instead of higher rates as we head into the middle of 2017, we now have the lowest rates of the year (as reported by  Freddie Mac ). Here is a graph of mortgage rate movement since the beginning of the year: Projections still call for an increase… Four major entities ( Freddie Mac ,   Fannie Mae , the  Mortgage Bankers Association  and the  National Association of Realtors ) are still projecting that rates will increase by the fourth quarter of the year. Bottom Line No one knows for sure where interest rates will be in six months....