Home Sweet Home, Insider-Tips on Minnesota real estate.

A Housing Double-Dip?

Home prices appear to have stopped falling, but are we out of the housing woods yet? Robert Shiller, a founder of the S&P Case-Shiller home-price indexes, joins the News Hub panel.

To view video click here

Rules to Clarify Cost of Mortgages

Americans have long struggled with the complexities of shopping for home mortgages. Now Uncle Sam is trying to help.

Federal rules that take effect Friday require mortgage lenders and brokers to give consumers better estimates of the barrage of costs they incur when taking out home loans.

The rules, announced by the Department of Housing and Urban Development in November 2008, are an update of the Real Estate Settlement Procedures Act, a 1974 law known as Respa. Though the changes come too late to help the millions of Americans who made poor loan choices during the housing boom, "it's going to be a help," said Jack Guttentag, a retired Wharton School finance professor who operates a mortgage advice Web site www.mtgprofessor.com.

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Read more from the Wall Street Journal

Mortgage Rates Rise

Rising yields mean loan rates are likely to end 2010 almost 0.75 percentage point higher than they are currently, based on forecasts for government bonds and spreads, adding to challenges for a housing market struggling to recover from its worst slump since the 1930s.

The Fed may decide to continue purchasing mortgage bonds if the rebound in the property market proves short-lived, Invesco’s Anzalonesaid. Bernanke said in Dec. 3 testimony to Congress that officials “will have to see how the economy is evolving and whether or not we need to do more.”

Read more at Wall Street Journal

2010: New year, new Minnesota laws

Yard bags go green  For other new laws which may affect you click here

By BAIRD HELGESON, Star Tribune

There's A Very Good Reason Why The New Home Sales Data Plunged In November

One day after November’s Existing Home Sales report blew away estimates, the Census Bureau’s related New Homes Sales report failed to impress.

There’s always more to the story than the headline.  Sometimes, you have to dig deeper. Looking back over 10 months, the housing market is on a steady course of improvement. November’s New Home Sales data — although weak — is not terrible.

Despite what the papers might say.

Read more . . .

Re-posted from Bob Philips Broker/Agent Social

Twin Cities home sales figures give little solace

The recovery in home prices is hanging on in the Twin Cities. But looking ahead, experts fear the housing sector could start slipping again.

By STEVE ALEXANDER, Star Tribune

Read more . . .

Houses of the Year around the World

Take a look at homes, featured as the House of the Day that were the most-viewed in 2009.

• Visit the House of the Day homepage

Wall Street Journal

Interest Rates Predicted to Reach 6%

Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5 percent is a gift at this point."

Source: Washington Post, Dina ElBoghdady (12/26/2009)

Personal opinion . . .

During 2010 Interest rates are likely to rise; home prices are likely to rise; qualification criteria is likely to rise. When is the best time to buy a home? Before all the above occurs.  Tom

10 Trouble Spots to consider when buying a Foreclosed Home

It’s easy pickings out there for many potential homebuyers. Housing prices are at their lowest in more than a decade, inventories are high, analysts are predicting a new wave of foreclosures and the government is offering two substantial tax credits for which many homebuyers qualify.

But bargain buyers beware, warns Vince Mastronardi, whose property preservation business has been busy preparing foreclosed homes for sale.

“Buyers need to educate themselves about the potential pitfalls of purchasing distressed property,” says Mastronardi, president of On-Site Specialty Cleaning & Restoration. “It’s not so much what damage occurred, but the source of that damage and how long before the problem was addressed.”

These 10 signs may indicate that trouble is around the corner.

1. Unheated house in winter months. If the home has been properly winterized, there’s no need for heat. But if the home has not been properly winterized, pipes will burst and cause water damage.

2. Missing sinks, toilets and other fixtures. Make sure they’ve been properly removed and not ripped from walls and floors.

3. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms) or a musty odor all indicate water damage and, potentially, the presence of moisture and mold.

4. Fungus growth inside cabinets, behind drawers and built-ins. Fungus could mean that there has been water damage. Since water falls down, look for the source above the mold.

5. Blocked drains or pipes will cause future problems and may have already created sewage backups.

6. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This could point to potential soot damage or a malfunctioning furnace.

7. An older home with extensive renovations. Check with the city for pulled permits in order to get remolding details. If asbestos is present and has been disturbed, be sure it’s been remediated by a certified specialist.

8. Excessive painting of every nook, cranny, door and floor may mean that the seller is covering up mold.

9. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.

10. Air Quality. The air quality within a home tells a lot about the home’s condition. Be sure to include air and surface testing in your home inspection. It’s a few hundred dollars well spent.

“Time and technique are the most important factors of effective clean-up and preventing future problems like mold or contamination,” Mastronardi explains. “Ideally, professional cleanup begins within a few days of the damage; technicians are trained, certified or licensed; and equipment is specialized and up to date.”

Ask the seller to explain how the damage was fixed. Plus, check out the company that performed the repairs to ensure it has industry-recommended certification. If needed, follow-up with the seller or repairing company for specific repair details.

For more information, visit www.on-sitecorporation.com.

Read more: http://rismedia.com/2009-12-20/10-trouble-spots-to-consider-when-purchasing-a-foreclosed-home/#ixzz0b0EiozeL

New Housing Crash Looms as Shadow Inventory Climbs past 7 Million: Analysts

The housing crash is about to come back with a vengeance, as 7 million new foreclosure properties are about to hit the market, analysts at Amherst Securities Group LP said this week. 

One cause of the problem, the Journal says,

By: Adam Weinstein DSNews