Real Estate Information

Interest rates took a slight dip this week as economic uncertainty continued to plague the market, according to Bankrate.com’s national survey of large lenders.

The average 30-year fixed rate mortgages dropped slightly to 4.94 percent for the week. Meanwhile,15-year fixed rate mortgages were 4.32 percent for the week, while 5-year adjustable-rate mortgages held nearly steady at 3.99 percent.

"Unemployment is starting to stabilize. Housing is stabilizing, although there are still soft pockets. Stocks are up, and there are inflationary fears with energy prices going up, so directionally and logically, we're in for potentially higher interest rates," predicts Anthony Hsieh, chief executive of loanDepot.com, a direct mortgage lender in Irvine, Calif.

Source: “Mortgages Dip on Economic Uncertainty,” Bankrate.com (Jan. 4, 2011)

We keep hearing about what’s popular in 2011 for home design — but how about what’s not? Builder Magazine writer Jenny Sullivan asked experts to weigh in on design fads that you won’t likely see in the new year. Here are some of the fading home trends experts mentioned:

1. Trophy space: Forget those two-story grand entrances. Builders are seeking more affordable, energy efficient design so they are getting rid of large, volume spaces in homes.

2. Just for show: Fancy, overdone rooms won’t cut it in the era of the practical, cash-strapped buyer. Lavish industrial-grade kitchen ranges or fancy master bath spa tubs– that are hardly even used anyway–will fall to the wayside.

3. Egocentric houses: It’s not just about the interior of a home that makes a home.  Buyers are caring more about its curb appeal and what’s nearby the home as well.

4. Home flipping: Gone is the trend of buying a “starter” home or a home for short-term investment. Buyers are now buying for keeps and it’s changing the way they view homes.

Do you have any more fading fads to add to the list?

Source: http://styledstagedsold.blogs.realtor.org/2011/01/03

Home owners can trim their monthly mortgage payments by “recasting” or “re-amortizing” their loan, without having to refinance and face hefty closing cost fees, experts say.

When recasting, the borrower pays off a lump sum of the loan’s principal and then resets monthly payments at the loan’s original interest rate and terms.

Since borrowers are not asking for a new loan, they will not have to pay closing costs or submit to another credit check. (Note: “Recasting” is often used in the mortgage industry to refer to interest rate resets on adjustable-rate mortgages. In this case, the interest rate and loan term remain the same. )

“People don’t really know about it, but it’s become more common recently,” Alan Rosenbaum, founder and chief executive of the Guardhill Financial Corporation in New York, said about recasting.

Borrowers who just make extra payments toward the loan’s principal but do not ask the bank to recast the loan will keep monthly payments the same and just shorten the overall time it takes to pay off the loan. Recasting, on the other hand, reduces the principal but then, in turn, lowers monthly payments and interest over the life of the loan.

Source: http://www.realtor.org/RMODaily.nsf/pages/News2011010504?OpenDocument

Paint color is a homeowner’s best decorating tool. You can change the appearance, the perception of size and even the perception of temperature, through the simple use of paint color. 

By incorporating a few new paint colors, either as accent walls or throughout a room, homeowners will be able to enhance their living spaces economically with paint, according to Debbie Zimmer, paint and color expert at the Paint Quality Institute.

Zimmer shares three likely color directions for 2011:

Back to basics
According to Zimmer, “Neutrals provide versatility and allow homeowners to quickly change the look of a room just by adding a few new accessories, without spending time and money to remodel or repaint again. This is the ultimate in practical remodeling, and the time is ripe for it.”

Warm whites, tawny tans, “barely-there” coral, and green are some of the colors that will find their way into countless kitchens, bedrooms, and baths, she predicts.

Well worn hues
Like a pair of favorite jeans, blue will grow in popularity as not just a wall color but also as a ceiling choice. “Well worn hues” are represented by blues across the spectrum, from denim dark to blue-grey.

“Since most blues tend to be calming colors, this hue helps to create a perfect retreat from many of life’s stresses,” says Zimmer. “As a secondary or complementary hue, yellow or yellow-green adds a bit of ‘spunk’ when used in family spaces,” she says.

Shimmer and shine
For thrifty homeowners looking for a bit of sparkle, higher paint sheens and metallic finishes are on the radar for 2011. Don’t be surprised to see spaces such as hallways and living areas painted in a very glossy hue, from top to bottom. Zimmer adds, “More gloss means more reflectivity which means more light. Gloss can subtly create a brighter, more upbeat mood in a home, but at the same time, it adds style and pizzazz.”

Source: www.rismedia.com

Top economists expect that if the job market revives this year, and interest rates rise only moderately, the housing market could experience a boost.

Pending homes sales are already on the rise. The National Association of Realtors' Pending Home Sales Index reports that pending homes sales rose in November by 3.5 percent.

Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. "In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market," he said. "But further gains are needed to reach normal levels of sales activity."

For now, the 30-year fixed rate mortgage remains in the low five percent range, which is near a historical low. The extension of Bush-era tax credits, as well as renewed hopes of job growth could very easily translate into more sales on the housing market horizon.

Source: www.realtytimes.com

Since most taxpayers get income-tax refunds each year, it's tempting to file as early as possible.  But this year, some would-be early birds will have to wait until mid- to late February.

The problem: congressional procrastination.

Lawmakers waited until last month to make last-minute tax-law changes. The Internal Revenue Service said recently those changes will require the agency to "reprogram its processing systems" for a few provisions that were extended in the law enacted in mid-December.

Who will be affected?

First, the IRS said the delays will affect those who "itemize" their deductions on Schedule A. Itemized deductions include such things as charitable donations, mortgage interest, medical expenses and state and local taxes.

About one-third of all taxpayers typically itemize their deductions each year. Nearly two-thirds take the "standard" deduction.

The delay also will hit taxpayers affected by some recently reinstated deductions. "People claiming any of these three items -- involving the state and local sales tax deduction, higher-education tuition and fees deduction and educator-expenses deduction -- as well as those taxpayers who itemize deductions on Form 1040 Schedule A will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February," the IRS said in its recent statement.

The delay affects both taxpayers who file the old-fashioned paper way as well as those who file electronically.

The IRS said it will post updated information on its website (www.irs.gov). This will include an updated copy of Schedule A and updated state and local sales-tax tables.

"Several other forms used by relatively few taxpayers are also affected by the recent changes, and more details are available" on the IRS site.

IRS Commissioner Doug Shulman says "the majority of taxpayers will be able to fill out their tax returns and file them as they normally do."

Source: wsj.com

Over the holidays, many lenders put foreclosures on hold. But that temporary freeze is over now. Industry watchers are expecting thousands of foreclosed properties to hit the market in the weeks and months ahead.

Home foreclosure sales slowed down at the end of 2010 for two reasons: the regular holiday foreclosure freezes, and the remnants of the so-called robo-signing scandal.

In the fall, many lenders put evictions on hold while they reviewed their foreclosure procedures. Rick Sharga of RealtyTrac says that's behind us now — and the pace of foreclosure is about to pick up.  Sharga expects banks to repossess close to 100,000 homes in January alone.

But Lawrence Yun, chief economist at the National Association of Realtors, says it doesn't come as a surprise.

Yun says there is a massive shadow inventory — homes not yet on the market where the owners are more than 90 days behind on their payments.  "It's just inevitable that they will go into a foreclosure," he says.

Yun believes it will be gradual and not all at once. But the question is whether the already fragile housing market will be able to handle them.

"Hopefully the improving economy, job creation, will provide the necessary housing demand to absorb the shadow inventory that will be reaching the market," he says.

Source: http://www.npr.org/2011/01/03/132523689/u-s-home-foreclosures-may-top-100-000-in-january

$184,900

6955 Griggs Drive, Noblesville, Indiana

PRICE REDUCED!! Custom built 2 bedroom, 2 full bath home has huge master suite, great room with cathedral ceilings, bright sunroom, den/office (easily converted to 3rd bedroom), open, neutral floor plan & beautiful kitchen with center island & custom cabinets include all appliances - washer/dryer too!  Move in today!! 

When you decide to make an offer on this home, call Lydia at 317-432-3304

It's just about time for Santa to make his trek to Zionsville, Indiana.  You can follow Santa's journey here.  Be sure to check out all the Christmas games on the NORAD tracking site.  Fun is sure to be had by all!!

The Tony English Group Realty wishes all its readers the happiest holiday season of all.  See you in 2011!!

The Tony English Group Realty wishes you a happy holiday season and a prosperous New Year.  May all your hopes & dreams come true this Christmas season.

Hope to see many of you in 2011!