New Homes Sales Increased 2.6% in March

Here is an article from Real Trends, Inc., a online real estate news journal. Read what they have to say about the current market.

"Purchases of new homes in the U.S. rose for the first time in three months in March as unusually warm weather and sales incentives brought out more buyers. Purchases rose 2.6 percent to an annual pace of 858,000 last month from the 836,000 rate in February that was lower than previously reported, the Commerce Department said this week. Sales of new homes were off 23.5 percent compared with March 2006.

The median price of a new home rose 6.4 percent last month to $254,000 from $238,800 a year earlier, the report showed.

The increase in sales in March came in two regions that saw much improved weather in March compared with February. Sales fell in the other two regions. Sales jumped 50 percent in the Northeast after falling 21 percent in February. Sales rose 9.8 percent in the Midwest in March after falling 23 percent in February. In the West, sales fell 0.9 percent in March. Sales dropped 2.7 percent in the South, the seventh consecutive decline in the biggest region for new home sales.

The number of homes for sale at the end of the month rose to 545,000 from 544,000 in February. That left the supply of homes at the current sales rate at 7.8 months' worth, compared with 8.1 months in February, which was the highest in 16 years. The inventory is down 1.4 percent compared with a year earlier, the biggest year-over-year decline ever recorded.

Completed homes for sale were 33 percent of the inventory, while units still under construction represented 50 percent of the inventory and units for sale that were permitted but not yet started represented almost 17 percent of the inventory level. The median length of time that completed homes were on the market was 5.6 months in March, up from 5.2 months in February."

Courtesy Real Trends, Inc.

When to Refinance

I hope your home is everything you wished for and that you are enjoying your environment. If you've have been in your home for a while, you might want information on refinancing options for down the road.

You may want to consider refinancing at some point for a variety of reasons. The two most common reasons people refinance are to:

* Lower their mortgage payment
* Access the equity in their home for cash

If you are interested in lowering your payment, experts recommend refinancing when you can lower your interest rate by 2%. The other way to lower your payment significantly is by switching from a 15-year loan to a 30-year loan.

On the other hand, refinancing from a 30-year to a 15-year loan won't lower your monthly payment, but it can save you thousands of dollars over the life of your loan.

New Website Launched!

I have recently launched a new website that includes even more information on home buying and selling. The name of the website is The Hennepin Homes. You will be able to get information on all the homes in the Minneapolis/St. Paul metrowide area. There is also even more information on the home buying and/or selling process. Check it out at www.TheHennepinHomes.com or click here.

Time is Money

Are you thinking of making some home improvements?

With large home improvement centers offering “do it yourself” classes on home repair and maintenance, homeowners are tackling big home improvement projects more and more.

Here are a few helpful tips to consider when deciding whether to take on home projects yourself or hire an expert for the task:

* Compare your own hourly wage to what you would pay per hour to have the job done.
* Consider how much longer it would take you to get the job done compared to an expert.
* Take into consideration the value of the time you would spend on the project. (Could that time be spent with family or on hobbies?)
* Determine whether you have the necessary equipment, or if you would need to rent tools for the project.
* Always think of the cost/benefit ratio when you plan a home improvement project.

If you would like more information on what improvements have the greatest rate of return, please feel free to contact me.

I hope you find these tips helpful.

Smoke Gets In Your Eyes

Have you checked the batteries in your smoke detector recently? Fire experts say that almost all fire-related deaths can be avoided by having a working smoke detector. A good rule of thumb is to change your batteries twice a year. Perhaps you should schedule the change for the Spring and the Fall, whenever you reset your clocks for daylight savings time.

That way your smoke detector will always run like clockwork! And your family will always be protected.

So remember to check your batteries.

Shopping for the Best Mortgage

Mortgage rates are on the rise, but historically speaking they are still fairly low. As a result of the favorable mortgage market, lenders have produced several new creative financing options for purchasing or refinancing. Don't let the confusion of mortgage options keep you from a new home or lower interest rate. Here is an introductory lesson to the four most common types of home loans.

Fixed-rate Mortgages
Fixed-rate mortgages have a fixed interest rate over the lifetime of the loan, usually between 10 and 30 years (40-year fixed-rate mortgages are also slowly increasing in popularity). This means that the amount you pay each month is fixed, too. It's a great mortgage choice if you want the reassurance of predictable loan expenses for the life of your mortgage.

Adjustable-rate Mortgages
This type of mortgage usually starts out with a lower interest rate (and therefore lower payments) than with a fixed-rate loan. However, your interest rate and monthly payments are dependent on market interest rates. The interest rate is usually adjusted annually, but depending on your loan package the adjustment period on your ARM may be as low as one month.

Increases in the interest rate are capped for each year, and for the lifetime of the loan. For example, an ARM interest rate might have an annual cap of 1.5% and a cap over the lifetime of the loan of 6%.

Adjustable-rate mortgages are a good option if you're planning to own the property for only a few years, or if you expect your income to increase over the years so you can comfortably afford higher payments if interest rates should rise.

Balloon Mortgages
Balloon mortgages typically have a lower interest rate than fixed-rate mortgages (and hence may be easier to qualify for), however the loan is payable in full after five to seven years.
A balloon mortgage is a great option if you know you'll be selling the property before the balloon payment is due, and you're not comfortable with an adjustable-rate mortgage.

Jumbo Mortgages
A jumbo mortgage is simply one which is larger than a typical mortgage. The 2006 limit for a traditional (or conforming) loan is $417,000, and any amount over this figure is considered a jumbo (or non-conforming) mortgage. This type of mortgage usually has a higher interest rate than a conforming loan.

Getting Mortgage Quotes
To get the best possible rates, aim to contact a dozen lenders or more. Keep all your inquiries to within a 14-day period to prevent your credit score (also known as a FICO score) from being negatively impacted by too many credit inquiries. Most inquiries that take place within a 14-day stretch of time are counted as one inquiry.

It's wise to shop for a mortgage before you start house-hunting. Mortgage pre-approval is one of the best bargaining tools you can have when it comes to negotiating a sales price. Plus, it'll save you valuable time at closing.

Luxury Home Trends

One of the best ways to update your home and ensure a good resale value is to adopt trends from the luxury home market. These cutting edge trends eventually find their way into the new construction market and become mainstream styles. While most households can't afford in-home elevators or a custom wine cellar, here are a few of the affordable latest luxury home must-haves that are well on their way to new homes across the nation.

In the Kitchen
Warming drawer — Better than the warm setting in your oven, warming drawers keep foods hot and moist until guests arrive or the rest of the meal is ready.
Refrigerating oven — Program it to refrigerate during the day then log on remotely to start the cooking and have your meal ready when you get home.
Multi-level islands — A raised portion of a kitchen island adds dimension, a comfortable eating surface and, if placed strategically, can mask the clutter around a sink or stovetop area.
Three-door refrigerator — Two French doors on the top and a large one-drawer freezer on the bottom make for easier access to the items you use most.
Food prep sink — An extra sink doesn't need to take up a lot of precious counter space but in a large kitchen it can improve the work flow and even encourage others to participate in the food preparation.

In the Bath
Vertical spas — One of the hottest trends in today's baths, these incorporate multiple showerheads, water diverters and sophisticated temperature control systems into your shower.
Heated tile floors — Add to the spa feeling with cozy radiant heat under tile flooring. If you're considering new flooring, this is easy to install and a big selling point.
Towel warming drawers — This luxury trend started in the kitchen and is taking electric towel bars to a new level by warming up your robe and slippers.
Stone countertops — Granite, marble and soapstone come in natural colors that complement most bathroom cabinets. They're also easier to keep clean compared to traditional tile.

In the Master Suite
Fireplace — Gas fireplaces are quickly becoming fixtures in luxury homes. Builders are maximizing their effect by constructing them into a wall adjacent to the master bathroom so they can be seen from both sides.
Walk-in closets — Walk-ins are almost required in new homes today, but the luxury market has taken them to a whole new level with the addition of extravagant cabinetry and center islands with storage drawers.

Outside
Outdoor kitchens — More and more homeowners are taking their cooking and entertaining out back with the addition of fully functional kitchens that include grills, custom cabinets and worktops, and even wood-fired ovens.
Heated patios — An emerging trend in cooler climates, radiant-heated patios and driveways melt snow and ice and keep walkways safe.

Whether you are thinking of selling soon, or simply want to enjoy the benefit of upgrading your home while you're still living there, these affordable luxury trends are certain to hold their appeal for years to come.

Keeping Good Records

If you haven't done this already, it is a good idea to keep copies of your transaction paperwork.

Keep these records and documents in a safe place:

* Warranty information
* Property deed
* Closing statements
* Loan papers
* Insurance policies

Keep your home improvement receipts as well. When it comes time to sell your property, you'll want to document the improvements you made.

I hope these tips are helpful. I am always here to serve your real estate needs.

Home Improvement

Most homeowners want to put their own personal touches on their new home. They may update paint, carpets, kitchens, and baths. Unfortunately, though, home improvement problems are now the fastest growing category of consumer complaints.

Home improvement complaints often relate to inferior work or work paid for but not completed. Complaints on household items usually involve defective goods and refund policies.

Here are some suggestions to make sure you get your money's worth:

* Check that anyone doing home improvement work is licensed and registered.
* Get everything in writing. Always purchase household goods from reputable, well-established stores and outlets.
* Save your receipts and warranty information.

These are just a few of the things to keep in mind when making home improvements. For more home improvement tips, you may contact me by clicking here.

Match Maker

I specialize in matching people with homes!

Throughout my career in real estate, I've come to discover that making a perfect match requires a little extra effort. That's why I'm writing now. At present, I have an abundance of qualified buyers, which means I'm in hot pursuit of qualified sellers.

Do you know of anyone who may be moving in the near future? If you do, would you please pass along my name and number? As you know, I have years of successful 'matchmaking' experience in this area. Your help in the process would be very much appreciated by me, and by the happy customers as well.

Warranty Information

Wouldn't it be nice if you could always findyour warranty information on everyhome appliance,garage door opener,vacuum, TV, VCR, DVD playerand the like?

If you're like most people you don't always return the warranty card, do you? So when it's time to call for needed service, you may not get what you need. And you may have to pay too much for service that otherwise could be 'under warranty.'

When its time to sell your home, the new buyer would appreciate all the information on the equipment in the house, too. So my suggestion is to keep all the manuals, receipts, and warranty info in one drawer in the kitchen, Or, get a single file box and get all the information together in one place.

When it's time to get everything together to sell your home, you don't need a file box, a warranty, or even a manual. Just call me, and I'll reschedule time to put together a complete marketing plan. In fact, I'll provide good service every step of the way. So, relax, and call me whenever you need me. There's no charge for a 'service call!'

Home Maintenance

Whether you have recently moved into your home or have lived in it for many years, one of the most important things you can do is develop a home maintenance plan. Your home is likely to be your single most important and most valuable investment. Routine maintenance can help you protect your investment and prevent you from encountering costly problems later. It will also help you get top dollar down the road when you decide to sell.

Here are some items to include in your annual maintenance plan:

* Interior: Fresh paint is an inexpensive way to give your home a face-lift.
* Exterior: Check the roof for loose shingles or tiles. Check the gutters and downspouts. Inspect the exterior walls for cracking or weather-damaged siding.
* Water: Check pipes for cracks and leaks. Test the water pressure and drains to make sure the pipes aren't clogged.
* Electricity: Check the breaker box and fuses. Look for signs of wear. Make sure there are no exposed wires.
* Heating/Air Conditioning: Have your system serviced every year. Clean and vacuum dust from vents.
* Basement and Attic: Check for signs of dampness, leaking, or flooding. Look for dry rot and termites.

Your home's annual checkup is important. Based on that, you can schedule the actual maintenance and repairs seasonally to make the job easier.

If you ever come across anyone who is thinking of buying or selling a home, please forward their name and number to me. I will be happy to follow up and take care of their real estate needs.

Recycle Electronics

Because homeowners tend to get rid of old items when they make a move, I often hear questions about how to dispose of things. Here are some of the most popular ways to handle unwanted and gently used items:

* Have a garage sale. Advertise your sale in a local newspaper. Make sure to include your address and what time and days the sale will take place. Post directional signs at nearby key intersections. Put price tags on everything, but be flexible and ready to negotiate.
* Donate household items and clothes to a local charity. Call first to see if it will accept larger items such as refrigerators or couches. Obtain a receipt for your tax records.
* Recycle or donate electronic equipment to reduce the environmental impact of electronics disposal. Recycle TVs and monitors, computers, audio/video equipment, fax machines, and cell phones.

By the way, I am never too busy to help your friends and family with their real estate needs. Please have them contact me or send me their name and phone number. I will follow up with them promptly and help them in any way I can.

Appreciation

Property values have risen fairly dramatically over the last decade. We have become used to selling our homes for a profit. During a slower economy, though, property values may not appreciate as rapidly, if at all.

Here are some suggestions on how to maximize your home's value:

* Remodeling the kitchen and/or baths is one of the best ways to add value.
* Adding a room or garage is an expensive improvement, but can pay off if it is carefully designed and seamlessly executed.
* Adding or improving decks and patios can add value, depending on the part of the country.
* Improving landscaping often adds appeal, but not necessarily value.