Birkey Homes

Encouragement from a friend

doug — Tue, 12 May 2009 20:32:57 +0000

Keeping you updated on the market!
For the week of

May 11, 2009

MARKET RECAP

Recoveries are often imperceptible in their earliest stages, which has us wondering about the status of the housing-market recovery. It seems to be one that’s no longer imperceptible. In fact, the prices of residential properties listed for sale rose in 22 of 26 major markets during April, with prices in 18 markets posting three months of sequential listing price increases, according to a report published by Altos Research and Real IQ,

Meanwhile, pending home sales offer hope that the sales pace will continue to accelerate through the summer months. The National Association of Realtors’ pending home sales index, a forward-looking indicator based on contracts signed in March, increased 3.2% in March, posting its own three-month sequential increase.

The one notable piece of negative housing news is the number of borrowers who are underwater on their mortgages, which climbed to 20.4 million at the end of the first quarter of 2009, according to Zillow.com, an on-line real estate information company. Thomas Lawler, an independent housing economist, stated the obvious by noting that borrowers who owe 30% or more than their homes are worth are more likely to walk away than those who owe just 5% or 10% more. It’s also worth noting that the borrowers who owe 30% or more are still a relatively small percent of mortgages outstanding, and most are concentrated in Las Vegas , sections of North California, sections of Florida, and Phoenix .

The employment situation could also be viewed as a potential negative. Payrolls fell by 539,000 in April, while the jobless rate jumped to 8.9 percent, the highest since September 1983. But the fact that employers cut fewer jobs in April compared to March is viewed as a sign that the worst of the recession has passed. Granted, many economists still expect the unemployment rate to rise to 9.5% by year’s end, but that suggests the rate of increase is abating

Speaking of rate of increase, mortgage rates – relatively stable for the past month – are creeping higher, which should be expected given that yields on Treasury securities have been rising at an increasing rate over the past two weeks. In fact, the 10-year Treasury note – a benchmark for the 30-year fixed-rate mortgage – jumped over half a percentage point last week, posting one of its biggest increases in months. We’ve been beating the drum over the past month to lock in mortgage rates ASAP. Now we are beating that drum even harder.

Economic
Indicator

Release
Date and Time

Consensus
Estimate

Analysis

International Trade
(March)

Tues, May 12,
8:30 am, et

$28.5 Billion
(Deficit)

Moderately Important. Lower energy prices and a sputtering economy have halved the U.S. trade deficit over the past 12 months.

Mortgage Applications

Wed, May 13,
7:00 am, et

None

Important. Increased purchase activity is an encouraging sign for the housing market.

Retail Sales
(April)

Wed, May 13,
8:30 am, et

0.2%
(Increase)
Important. The increase in sales is a sign of renewed consumer confidence.

Import Prices
(April)

Wed, May 13,
8:30 pm, et

0.4%
(Increase)

Important. Rising import prices raises the risk of inflation.

Producer Price Index
(April)

Thurs, May 14,
8:30 am, et

All Goods: 0.2% (Increase)
Core: 0.1% (Increase)

Very Important. Producer prices remain stable, but some economists are wary of signs of future increases.

Consumer Price Index
(April)

Fri, May 15,
8:30 am, et

All Goods: 0.3% (Increase)
Core: 0.1% (Increase)

Very Important. Recent oil-price spikes are raising the likelihood consumer prices will rise in coming months.

Stressed, But Still A Success

It’s official: Our financial system isn’t going to collapse after all. I think we all knew that, but the Federal Reserve went out of its way to prove everything was okay by “stress testing” the banks. The Fed’s test measured bank reserves based on what’s known as common equity, the value of a company’s common stock and profits. The test revealed that some of the banks have sufficient reserves by traditional measures, which include other credit-related assets, but fall short by this narrower standard. The bottom line is the nation’s biggest banks are regaining their health, which should translate into a greater willingness to lend.

The stress test was a part of the Obama administration’s plan to fortify the financial system. As home prices fell and foreclosures increased, banks took huge hits on mortgages and mortgage-related securities they were holding. The stress test has been criticized as a confidence-building exercise whose rosy outcome was inevitable. But the information, which leaked out all week, was enough to provide a much-needed dose of market confidence.

The stress test result is yet another sign that we are well on our way to an economic recovery. We begin this year saying we expect January 2010 to look a lot better than January 2009. Our prognostication appears to be headed in the right direction. It’s also worth remembering that recoveries mean markets start tilting more toward the seller’s side, so this unprecedented buyers market in housing we’ve witnessed over the past 18 months is less likely to last much longer.

Is Buying a Home in Today’s Economy a Good Idea?

cassie — Wed, 22 Apr 2009 14:30:17 +0000

As a long-term investment, homeownership is still one of the best investments for individual households.

“Why” you may ask? After all, the headlines say the housing market is down and out, with defaults rising at an alarming rate, and mortgage markets so frozen that buyers can’t get a home loan at any price.

What buyers need to realize is that housing markets, like all markets, inevitably have their ups and downs. And homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits.

Despite the turmoil in mortgage lending, if you have good credit, a job and steady income, you will find there is still plenty of mortgage credit to be had at good rates. For well-qualified buyers, rates are running at near historical lows.

Homeownership’s Real Value

Here are a few examples of why, dollar for dollar, homeownership is a solid stepping stone to a future of financial security and the single largest creator of wealth for many Americans.

Over the long-term real estate has consistently appreciated, even through periodic adjustments in local markets in response to economic conditions. On a national level, home appreciation has historically increased 5-6 percent annually, report economists at the National Association of Home Builders.

Five percent may not seem much at first, but here’s an example that will put it into perspective: Say you put 10 percent down on a $200,000 house, for an investment of $20,000. At a 5 percent annual appreciation rate, that $200,000 home would increase in value $10,000 during the first year. Earning $10,000 on an investment of $20,000 is an extraordinary 50 percent annual return.

In contrast, putting that $20,000 down payment into the stock market and getting a 5 percent gain would only yield a $1,000 profit.

Compared to Stocks

Looking at it another way, over a longer period of time, if someone put $10,000 into the stock market in 1997, the average annual S&P return would make that investment worth $21,500 today—an increase of $11,500. The median home price in 1997 was $140,000.

Today, that same home would have gained nearly $100,000 in value.

Don’t miss out on the benefits of homeownership.

Thanks to National Association of Home Builders for these tips

HOME MAINTENANCE QUIZ

cassie — Wed, 22 Apr 2009 13:58:12 +0000

It’s the weekend and you have a whole list of household chores to do. Oh, we know you’d rather be golfing or playing tennis or watching TV, but keeping your home in good shape is important. Your home may be the biggest investment you will ever make. Taking good care of it with regular maintenance is necessary to maintain its value and ensure it will provide a comfortable, safe shelter for you and your family for a long time.

Here is a home maintenance quiz that will test your maintenance knowledge. While this quiz does not address every home maintenance project, it does provide helpful tips and reminders for chores you may have overlooked.

1. How often do forced-air furnace filters need to be changed?
At least every three months during the heating season.

2. What part of the faucet usually needs to be replaced when you have a water leak?
The washer.

3. Should you run hot or cold water through your garbage disposal?
Cold water.

4. How often should the moving parts of garage doors be oiled?
Every three months.

5. What tools can you use to unclog your drains?
A plunger and a plumber’s snake.

6. What tool can be used to unclog a toilet?
Coil spring-steel auger.

7. What faucet part needs to be cleaned every three to four months?
Aerator—the screen inside the end of the faucet.

8. What can you use for traction on icy sidewalks, steps and driveways?
Cat litter or sand—never use salt because it damages the pavement.

9. Where should the fire in your fireplace be built?
On the andirons or grate, never on the fireplace floor.

10. What will prevent soot and add color to the fire in your fireplace?
Throw in a handful of salt.

11. Where should your firewood be stored?
Outside, away from your house and not directly on the ground.

12. What helps keep unpainted concrete floors easy to keep clean?
Concrete sealer.

13. What should you use to clean unpainted concrete floors?
A solution of 4 to 6 tablespoons of washing soda in a gallon of hot water. Mix scouring powder to the solution for tough jobs.

14. When can you clean hardwood floors with water?
When the floors have a polyurethane finish.

15. Do hardwood floors need to be waxed?
Hardwood floors that do not have a polyurethane finish probably will need to be waxed periodically. Use liquid or paste “spirit” wax.

16. What is the best polish for vinyl floors?
Water emulsion wax.

17. When is basement condensation at its maximum?
In new homes because gallons of water went into the concrete of basement walls.

18. Why should noisy water pipes be fixed promptly?
The condition that causes noisy pipes may be accompanied by vibration that can cause fittings to loosen and leak.

19. Why should frozen pipes be thawed slowly?
Frozen pipes should be thawed slowly to prevent the formation of steam, which could cause the pipe to burst.

20. How often should your roof be inspected?
A qualified roofer should inspect your roof every three years.

21. What should be regularly checked on your security system?
The alarms and circuit breakers should be checked to make sure they are in working order and the sensors should be inspected one by one.

22. To ensure your safety, what household equipment uses batteries that must be checked regularly to make sure they are operable?
Smoke and carbon monoxide detectors.

23. What do you use to fill nail holes and cracks in plaster walls and gypsum wallboard?
Spackling.

24. What is the white powdery substance that develops on masonry walls?
Efflorescence sometimes appears on masonry walls. It is crystallized soluble salts that can be removed by scrubbing with water and a stiff brush.

25. At what temperature should your water heater be set?
120 degrees Fahrenheit

26. How often do skylights need to be inspected?
Skylights should be inspected each time your roof is inspected so leaks don’t develop from cracks and interruptions around its seals, caulking and flashings.

27. What is a simple solution you can use to wash extremely dirty exterior windows?
A solution of equal parts vinegar and water or 3 tablespoons of denatured alcohol per quart of warm water. Use a piece of crumpled newspaper to wash the glass to avoid lint left behind by papertowls.

28. What can you use to help a window slide easily?
Rub the channel with a piece of paraffin.

29. What should you look for when you inspect your siding yearly?
Determine if wood-sided homes need to be repainted; check to see if the caulking around the windows and doors has split and cracked, and replace the caulk; clean the mildew; trim shrubbery away so it does not touch the siding.

Thanks to National Association of Home Builders for these tips

Carpet Care

cassie — Wed, 22 Apr 2009 13:54:13 +0000

Day-To-Day Care

How can I maintain my new warranted carpet?

There are three things to do to maintain your new warranted carpet:

1. Vacuum frequently.

2. Clean spills promptly.

3. Have periodic professional carpet cleaning.

Why is vacuuming important?

The most important thing you can do to keep your carpet looking great is to vacuum it thoroughly and frequently, particularly in high-traffic areas. Vacuuming helps remove dirt particles, which dull the carpet’s appearance. Use walk-off mats to entrances to minimize the dirt particles being tracked onto the carpet and reduce soil accumulation.

What is important to know about choosing a vacuum?

For best results, use a vacuum cleaner with beater bars and good suction. Change bags and filters routinely.

Cleaning Your Carpet: What You Should DO

Why is cleaning my carpet necessary?

Regular cleaning and maintenance are needed to keep your carpet looking great year after year. During everyday use, soil clings to carpet fibers and dulls carpet beauty. These particles accumulate and dull the carpet’s original color.

Thanks to Cloud Bros., Inc. for these tips

Mike Silveus

doug — Mon, 06 Apr 2009 21:47:56 +0000

Service Department

mike@birkeyhomes.com

Ph: 574-272-2892 ext 205

Fax 574-277-0932

Ron Humes

doug — Mon, 06 Apr 2009 21:42:33 +0000

New Home Consultant

ron@birkeyhomes.com

Ph: 574-272-2892 ext 204

Fax 574-277-0932

Cassie Isza

doug — Mon, 06 Apr 2009 21:38:34 +0000

Secretary

cassie@birkeyhomes.com

Ph: 574-272-2892

Fax 574-277-0932

Ken Swindler

doug — Thu, 02 Apr 2009 19:35:54 +0000

New Home Consultant

Assoc. Broker

ken@birkeyhomes.com

Ph: 574-272-2892 ext 208

Fax 574-277-0932

Doug Birkey

admin — Thu, 02 Apr 2009 19:25:29 +0000

Vice President

New Homes Consultant

Assoc. Broker

doug@birkeyhomes.com

Ph: 574-272-2892 ext 203

Fax 574-277-0932

Veronica

doug — Wed, 01 Apr 2009 20:10:38 +0000

Economic Indicator	Release Date and Time	Consensus Estimate	Analysis
International Trade (March)	Tues, May 12, 8:30 am, et	$28.5 Billion (Deficit)	Moderately Important. Lower energy prices and a sputtering economy have halved the U.S. trade deficit over the past 12 months.
Mortgage Applications	Wed, May 13, 7:00 am, et	None	Important. Increased purchase activity is an encouraging sign for the housing market.
Retail Sales (April)	Wed, May 13, 8:30 am, et	0.2% (Increase)	Important. The increase in sales is a sign of renewed consumer confidence.
Import Prices (April)	Wed, May 13, 8:30 pm, et	0.4% (Increase)	Important. Rising import prices raises the risk of inflation.
Producer Price Index (April)	Thurs, May 14, 8:30 am, et	All Goods: 0.2% (Increase) Core: 0.1% (Increase)	Very Important. Producer prices remain stable, but some economists are wary of signs of future increases.
Consumer Price Index (April)	Fri, May 15, 8:30 am, et	All Goods: 0.3% (Increase) Core: 0.1% (Increase)	Very Important. Recent oil-price spikes are raising the likelihood consumer prices will rise in coming months.