Grayson Hodge

For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of REALTORS®.

Existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.

Lawrence Yun, NAR chief economist, said he is encouraged. "The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales," he said.

The monthly sales gain was the largest on record for the total existing-home sales series dating back to 1999.


Source: The National Association of REALTORS

Beware of 8 Spots Where Germs Lurk in Your Home

By Vanessa McMains

RISMEDIA, August 20, 2009-(MCT)-Wash your hands. That's a common mantra-and a worthy one-as the H1N1 flu continues to spread around the globe.

But all the hand-washing in the world may not be a match for the germs and viruses lurking on household surfaces.

"There is a big appreciation for influenza that you can get it from your hands, but a lack of appreciation that viruses can be picked up on surfaces," said John Oxford, who heads the Hygiene Council and is a professor of virology at St. Bartholomew's and the Royal London Hospital. The Hygiene Council-comprising global experts in the field of public health and infectious diseases- recently released the results of its second annual International Home Hygiene Study. The 2009 survey of bacteria found on home surfaces in eight countries, including the U.S., shows that the kitchen remains the source of the most germy surfaces. Kitchen cloths and sponges were the biggest source of bacteria, followed by sink faucets.

Oxford and Joe Rubino, members of the Hygiene Council and director of research and development in global surface care and protection at Reckitt Benckiser-a corporate sponsor of the council and the maker of Lysol identify the dirtiest places in the home and tell us how to keep them germ-free.

1. Kitchen cloths and sponges
People frequently use sponges or cloths to wipe germs from surfaces in the kitchen. As a result, 70% of kitchen sponges in U.S. homes failed the hygiene test by having high levels of bacteria, according to the Hygiene Council. The council recommends running sponges through the dishwasher regularly and washing kitchen cloths on the hot cycle in the washing machine.

2. Kitchen faucets
Typically people wash their hands after handling raw meat in the kitchen, but they touch the faucet to turn on the water and do not think about the bacteria that they leave. The Hygiene Council found more than half of faucets in American homes are covered in bacteria. Use a disinfectant spray on faucets to kill germs.

3. Tub and shower
Rubino identified the shower as the third germiest place in the home. The bathtub may have 100 times more bacteria than the trash can, according to an in-home bacteria study conducted by the Center for Hygiene and Health in Home and Community at Simmons College in Boston. The Hygiene Council recommends that showers and tubs be disinfected twice a week to get rid of dead skin cells left in the tub that can carry germs too.

4. Pet food dish
Most pet food dishes stay on the floor and do not get washed regularly. Rubino said "it's not practical to disinfect it every time, but wash your hands after you touch it. Pets - we love them - but they don't practice good hygiene."

5. Microwave touch screen
This spot is notorious for not getting cleaned. "You can put something in the microwave that is raw to cook it and could leave behind E. coli or Salmonella" Rubino said. He added that even though the food comes out cooked, the germs that can make you sick are left on the outside of the microwave for the next person to touch. It is important to wipe down the touch screen regularly, especially after cooking raw meat.

6. TV remote
Imagine the typical couch potatoes - watching TV while they absent-mindedly chew their fingernails, snack on food and flip through channels, leaving all kinds of bacteria on the remote. "Anything in your home that you touch a lot leaves germs behind," Rubino said. Make sure to sanitize the remote control regularly to prevent sickness.

7. Light switches
Touching the light switch is practically unavoidable, but keeping it clean is not. The bathroom light switch can have as many germs as the trash bin, according to the Simmons College in-home bacterial study. Disinfect light switches twice a week or every day if a member of your household is sick.

8. Baby changing table
"When changing a baby's diaper, in all likelihood bacterial contamination will occur" Rubino said. He likens the changing table to a "dirty toilet seat" that the baby's whole body touches. During diaper changes, the baby wipes container, the diaper packaging, the trash can and anything around the changing area get contaminated with bacteria through touching after handling a dirty diaper. The baby changing table area should be cleaned often.

(c) 2009, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read more: http://rismedia.com/2009-08-19/beware-of-8-spots-where-germs-lurk-in-your-home/#ixzz0OpIXKuFr

Washington, August 04, 2009

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. "Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines. Activity has been consistently much stronger for lower priced homes," he said. "Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30."

The Pending Home Sales Index in the Northeast rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago. In the Midwest the index increased 0.8 percent to 89.9 and is 11.6 percent above June 2008. The index in the South jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago. In the West the index rose 2.9 percent to 100.4 but is 0.2 percent below June 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. "Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise," he said. "This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we'll see an even closer relationship between contract activity and closed transactions."

McMillan said NAR is continuing to press the appraisal issue. "We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines," he said.

NAR's Housing Affordability Index² remains very favorable. The affordability index stood at 159.2 in June, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7 percent of gross income to mortgage principal and interest, well below the standard allowance of 25 percent.

The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

"A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970," Yun said. "Because housing is so affordable in today's market, job security and the first-time buyer tax credit are bigger factors in influencing home sales."

A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600.

Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. "It appears home sales are on a sounder footing and inventory is gradually being absorbed."

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

¹The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

²The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers.

The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income.

Monthly publication of the index began in 1981 with annual data calculated back to 1970.

Existing-home sales for July will be released August 21; the next Pending Home Sales Index will be on September 1.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.

At times I feel like a broken record - our market is different, we haven't been like the rest of the country, we are seeing houses sell, etc. It looks like other areas are beginning to experience what we are experiencing here in Raleigh, North Carolina. In a recent article on MSNBC it was reported that existing home sales are up 3 months in a row - check it out here: http://www.msnbc.msn.com/id/32104105/ns/business-real_estate/from/ET. I am not sure if other markets are experiencing the number of multiple contract situations that we are facing in the lower and middle price ranges, but we will find out. However, I am sure they are having challenges with HVCC (see blog 6/27/09) as it is a nationwide problem and they will experience the same problems we will have with H.E.R.A. (see blog 7/23/09). Please be sure to review the H.E.R.A. rules to give our clients the right advice with timing on closings. The new rules will be implemented July 30.

In addition to the great news on existing home sales, new home starts were revised and reported to be up 3.6% in June over May 2009 numbers to an annualized rate of 562,000. It is our hope that with more good news like this, the media will start to report more positive information on the housing market as was the case in The News and Observer today. The Raleigh market has seen increases over each previous month for the past 5 months, not just 3 and it seems to be climbing still with July being stronger than June.

The advice for the day is to continue staying positive, find the good in each situation and keep the ball moving down field and we will get the results we are looking to achieve.

Just when you thought you knew the business and what is happening in the business, a new regulation gets implemented that very few agents are aware of and that will impact our business. The Housing and Economic Recovery Act (H.E.R.A.) requires that lenders provide the borrower with a Truth-in-Lending statement (nothing new) and that the borrower has 3 days to review it and no fees (other than credit report) can be collected from the borrower until the review period is over. Assuming the lender sends this out immediately, 3 days are allowed for mail and 3 days are allowed for review, then the lender can receive payment for the appraisal. Under the HVCC - appraisals can't be ordered until payment for the appraisal is received - hooray! This is up to a 7 day delay in ordering appraisals up front. So be sure to make a special note of this scenario.

The next potential delay that can occur is closer to settlement. If the Truth-in-Lending form changes by more than an 1/8 tolerance of accuracy (used to be a ¼) a new Truth-in-Lending form needs to be reissued and, once again, the buyer needs 3 days to review after receiving it by mail, 3 days later for a potential additional 7 day delay. It is necessary to get your purchasers locked in early to avoid any delays or penalties for delays in closing. Also, you must do your due diligence to ensure the buyers of your listings are locked in well in advance of settlement. This scenario is very likely to happen on short sales and when we have delays in foreclosure settlements as a result of title problems.

If you have any additional questions about this OVER legislation of our industry, contact your lender.