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Is the Housing Market in Recovery? Why it Doesn't Matter |
The financial picture has gone from bleak to
hopeful to confusing. One headline screams that we
are in a recovery, while another declares that the
unemployment rate continues to climb past record
highs. Since home sales are such a strong indicator
of the economy, it's natural for people to start looking
in that direction when they want some answers.
Are homes moving faster? Is the real estate market
picking up? Technically, yes. Sales have increased
over the past several months. However, the main
reason is the offer of an $8,000 first-time homebuyers'
tax credit, which will be ending very shortly.
Another reason home sales are going up is because
people think that the economy - and home prices -
has hit bottom. All the people who have been sitting
on the sidelines waiting for prices to go as low as they
will ever go have stepped forward and made their
purchases.
While it would be nice to believe that all economic
circumstances follow sound fiscal wisdom, they
actually follow the beliefs and activities of everyday
people. Some people call this reality the "Oprah
Effect." Oprah buys a book and it shoots to the top of
the bestseller list. Oprah raves about a product called
Spanx, and the company can't keep up with its orders.
Real estate sales are no different. No, Oprah does not
announce she is buying a home (even if she did, most
of America is shrewd enough to know their financial
situation is vastly different from Oprah's.) But when
people wonder if it's a good time to buy, they ask
themselves "What is everyone else doing?" I have one
client who admitted to me that she was buying a new
house because she had contracted "house fever" after
learning her friend Eileen was home
shopping.
While watching what others are doing can give you a
good gauge of the market, it is not an indication of
your situation at all. I always tell my clients: "Keep your
eyes on your own paper. Don't worry about what your
neighbor is doing." Instead of using your friends and
relatives as a guide, ask yourself these important
questions:
- Is it a good time to buy?
This
obviously depends on your financial situation. Yes,
prices have fallen from the highs that they reached 4
or 5 years ago, but they haven't stabilized.
- Is it a good time to refinance?
Like
any financial question, the answer depends on
several factors such as your current rate, term, and
years left on the mortgage. Your job and income
situation are major factors, too. What about points?
No matter what the headlines are saying, I will always
ask my clients the same important questions when
they ask about refinancing:
- What is your situation? Sure, the bigger picture of
the overall economy might be interesting, but it may
have no relevance to your situation at all.
- Why are you trying to refinance? Do you want a
lower payment? Are you looking to cash out?
- Do you have and know your monthly budget?
- What are your long-term and short-term goals?
While it is important to watch the state of the economy,
nothing is as important as your own set of financial
realities and goals.
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Debbie Interviewed on Money Matters Radio |
Debbie was interviewed this month by Chuck
Nilosek of Money Matters Radio. She offered
insights for homebuyers and homeowners who are
hearing the hype about a housing recovery and
wondering how to respond.
Debbie also will be interviewed next Monday,
November 2
on Women for Women at 11:45 AM. This
program,
designed for women by women was launched on
September 14, 2009 and features four women in
business each Monday.
Don't miss this great interview with Debbie - Visit 980 WCAP
and click Listen Live!
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October's Home Value Improver |
Time for a Fall Cleanup!
It may be getting time to hunker down and spend
more time indoors, but you can't ignore that mess in
your yard. Dried leaves, branches from storms, and
whatever is left of your outdoor furniture are not exactly
increasing your curb appeal.
Of course, a call to your local landscape company
would cure your cosmetic issues, but those are not
the only things to consider.
Gutters
If you decide to do this yourself, it will require reaching
some heights. Remember to have someone hold the
ladder, and don't try to scoot the ladder along while
you're on it. Get down to move the ladder. If climbing a
ladder sounds too unappealing, you could try getting
an extension for your leaf blower to blow the leaves
out from the where you are standing. Be sure to clear
out the gutter joints. Another option is to order some
permanent protection from the leaves with a gutter
guard type product.
It's also a good time to check how well your gutters
are working. Pour some water into them at the top,
and watch the route the water takes. Be sure the water
is not running into your foundation or into an area
where you will be walking.
Leaf Removal
It's the time of year that many of us remember the
drawback of living in a leafy suburb - the leaves! You
can put them in your yard waste disposal or dump
them in your compost pile. To speed along the
composting, run the mower over your dried leaves.
Cutting the Lawn
For your final lawn cutting of the season, cut the grass
as short as possible. To speed up the compost
process, dump the leaves in a metal barrel and stick
the weed whacker in.
Be sure to run the lawn mower until the gas runs out,
and perform general maintenance on it - sharpen
blades, change the oil, etc. before you put it away for
the season.
Check the Snow Blower
If you've ever gone to grab the snow blower after a
storm, only to find it doesn't start, you know the perils
of not maintaining your snow blower in the off season.
Clear the Sprinkler System
If you have an automatic sprinkler, have
someone "blow it out" for the season. This is
absolutely necessary. If you don't have a sprinkler
system, get all the water out of your hoses. Put them
on a downward slope and coil them. Then, inside your
house, shut off the water supply to the outdoor spigots.
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As we talk this month about a housing recovery, it's a
good
time to think about your own financial situation and
any recovery steps you've taken this year. As 2009
winds down, consider whether you've consolidated or
paid down debt, created and stuck to a budget or
started saving more aggressively.
If you've taken positive steps toward your own financial
recovery, congratulate yourself. If you still have things
to do, now is a great time to put your 2010 plan
together to keep moving forward.
As you think about your overall financial picture, I invite
you to call or email anytime to talk about your home
financing options.
Best regards,
Debbie Siegel
President
Westchester Mortgage
P.S. You're receiving this E-Newsletter because you have a prior relationship with me or with Westchester Mortgage. If I've sent this to you in error, or if you want to remove yourself from the list at any time, just click the "SafeUnsubscribe" link at the bottom of this e-mail.
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