Rankings : America’s Best Places To Raise A Family (2010)

Best Places To Raise A Family 2010

BusinessWeek recently released its America’s Best Place to Raise a Family list. Chicago suburb Tinley Park, Illinois, topped the list.

2010 marks the second straight year that a Chicago suburb took top honors. Last year’s winner was Mount Prospect, Illinois.

The BusinessWeek survey uses data from Onboard Informatics, compiling statistics in areas including education, crime, and access to parks, jobs and affordable homes.  Selections are limited to towns with 45,000 residents or fewer, and a median income of between $40,000 and $125,000.

One winner and 2 runner-ups are named for each state; the 10 most populous of which are listed below:

  1. California : Arcadia (Monterey Park, Diamond Bar)
  2. Texas : San Marcos (San Antonio, Houston)
  3. New York : Tonawanda (Irondequoit, Cheektowaga)
  4. Florida : Pembroke Pines (Sunrise, Tamarac)
  5. Illinois : Tinley Park (Arlington Heights, Schaumburg)
  6. Pennsylvania : Scranton (Erie, Allentown)
  7. Ohio : Lakewood (Parma, Strongsville)
  8. Michigan : Ann Arbor (Royal Oak, Portage)
  9. Georgia : Warner Robins (Valdosta, Roswell)
  10. North Carolina : Chapel Hill (Cary, Jacksonville)

Rankings like this BusinessWeek report can be useful for home buyers, but like all of real estate, it’s important to remember that statistics don’t apply to all parts of town equally. Some parts will have better schools, or better crime prevention, or more amenities.

Therefore, before you make a buying decision, talk with a real estate agent who has local market knowledge. It’s the most reliable way to get data that matters.

No Comments
by on December 13, 2010  •  Permalink
Posted in Rankings
Tagged
Posted by Gayle Blonar on December 13, 2010

http://gayleblonarblog.com/2010/12/best-places-raise-family.html

Fannie Mae Guidelines Change Monday. Apply Today To Lock In To “Old” Rules.

Fannie Mae changes mortgage guidelinesFannie Mae rolls out new mortgage guidelines Monday. Therefore, if you’re in the process of applying for a conforming home loan, consider giving your complete application by the close of business Friday.

All Fannie Mae applications taken on, or after, December 13, 2010, are subject to the changes.

As compared to mortgage guidelines updates of the last 3 years, Monday’s roll-out is relatively small. There is no change to the maximum debt-to-income ratio, for example; nor is there an increase in the minimum FICO score requirement.

Most mortgage applicants in Washington and nationwide will be unaffected.

Others, however, will find getting approved to be more difficult.

The most major change is with respect to revolving and installment debt. This category includes credit cards, charge cards, and student loans, among others. Going forward:

  1. Debt with fewer than 10 payments remaining must now be included in an applicant’s monthly obligations.
  2. Debt not reporting a monthly payment must be assigned a payment equal to 5% of the outstanding credit balance.

These edits will raise applicants’ debt-to-income ratios, and may push some of them beyond the maximum allowable limits, resulting in a denial. People with relatively large car payments are especially susceptible.

Another change relates to receiving gift funds for a purchase. Unlike debt calculations, though, the “gifting” process is getting easier.

Under the new Fannie Mae guidelines, buyers of owner-occupied, 1-unit properties (i.e. single-family homes, condos, townhomes) can forgo Fannie Mae’s customary, minimum 5% downpayment contribution from personal funds. Downpayments can be comprised 100 percent of gifted and/or granted monies.

Buyers of second or investment homes, or multi-unit properties must still make a 5% downpayment from their own funds.

And, lastly, Fannie Mae is easing some of its documentation requirements. Salaried applicants from whom commissions and/or bonuses paid account for less than 25% of annual income will have fewer paystubs to produce for underwriting.

Fannie Mae’s complete guideline changes are available online at http://efanniemae.com.

No Comments
by on December 10, 2010  •  Permalink
Posted in Mortgage Guidelines
Tagged
Posted by Gayle Blonar on December 10, 2010

http://gayleblonarblog.com/2010/12/fannie-mae-guidelines-december-13-2010.html

Home Affordability Reaches Record-Levels… Last Quarter.

Home Affordability - Top and Bottom 5 markets 2010 Q3

Last quarter, with home prices still relatively low and mortgage rates making new, all-time lows almost weekly, the cost of home ownership was extraordinarily low in Pennsylvania and most U.S. markets.

According to the National Association of Home Builders’ quarterly Home Opportunity Index, 72.5 percent of all new and existing homes sold between June-September 2010 were affordable to families earning the national median income. This ties the all-time high for home affordability, set in the first quarter of 2009.

The data also underscores that, when compared to historical norms, it’s a fantastic time to be a Pittsburgh home buyer.

Prior to 2009, the Home Opportunity Index rarely topped 65. The index has remained above 70 ever since.

All real estate is local, though, and on a city-by-city basis, home affordability varied last quarter.

For example, 96% of homes sold in Kokomo, IN are affordable for families earning the area’s median income. This handily beat the average figure and led the nation. Looking at major cities, Indianapolis led the pack.

93% of homes in Indianapolis are affordable to families earning the area’s median income. This ranks #9 nationwide.

On the opposite end of the affordability scale is the New York-White Plains, NY-Wayne, NJ region. For the 10th consecutive quarter, the New York Metro region ranks last in U.S. home affordability. Just 23% of homes are affordable to families earning the local median income, although this is 3 points higher versus Q1 2010.

The rankings for all 225 metro areas are available online.

Regardless of where your hometown ranks relative to its neighbors, home affordability remains high as compared to historical values. That said, with mortgage rates rising and home sales expected to climb this winter, it’s unlikely that the Home Opportunity Index will improve.

Buying a home may never be this inexpensive again. If you planned to buy in mid-2011, consider moving up your time frame.

No Comments
by on December 9, 2010  •  Permalink
Posted in Home Values
Tagged
Posted by Gayle Blonar on December 9, 2010

http://gayleblonarblog.com/2010/12/home-affordability-2010-q3.html

Boost Your 2010 Tax Deductions By Making Your January Mortgage Payment A Little Bit Early

Tax deductions Looking for an extra 2010 tax deduction? Consider making your January mortgage payment a few days early.

It’s a simple strategy that works because of how mortgage interest works.

Unlike rent which is paid in advance at the start of a month, mortgage interest is only paid after it’s been borrowed. Your January mortgage payment, therefore, accounts for the interest that accrued in December.

And for a lot of Washington homeowners, that mortgage interest is tax-deductible.

By making January’s mortgage payment in December, eligible homeowners can apply the interest paid to 2010′s tax returns instead of waiting to claim the same deduction against 2011. Don’t cut it close, though. It’s best to remit payment prior to the last week of the month, leaving your servicer ample time to receive and process your paperwork.

Most importantly, though, before prepaying on your mortgage, talk to your tax professional.

Not every homeowner is eligible for mortgage interest tax deductions, nor should every homeowner itemize their respective tax deductions. The “pay early” plan could be a wasted effort for you, ultimately, depending on your taxpayer profile.

If you don’t have an accountant that you trust, call or email me anytime; I’m happy to make a recommendation to you.

No Comments
by on December 8, 2010  •  Permalink
Posted in Tax Tips
Tagged
Posted by Gayle Blonar on December 8, 2010

http://gayleblonarblog.com/2010/12/pay-mortgage-early-tax-deductions.html

Pending Home Sales Index Points To A Budding Seller’s Market

Pending Home Sales (Apr 2009 - Oct 2010)The Pending Home Sales Index surged 10 percent in October as low mortgage rates and low home prices spurred Pittsburgh buyers into action.

A “pending home sale” is an existing home under contract to sell, but not yet closed. The Pending Home Sales Index is at its highest level since April 2010 — the contract deadline date for this year’s federal home buyer tax credit program.

The jump may also explain why home builder confidence is rising even as the number of new homes sold fades. Builders are seeing buyers’ renewed interest in housing first-hand and expect the next 6 months to be dramatically better.

On a regional basis, gains in October’s Pending Home Sales Index varied as compared to September. The Midwest led the charge, and the West was the laggard.

  • Northeast Region: +19.6%
  • Midwest Region : +27.3%
  • South Region : +7.1%
  • West Region : -0.4%

Home buyers looking in areas such as Canonsburg should take last month’s Pending Home Sales Index to heart. According to the National Association of Realtors®, 80 percent of homes under contract close within 60 days, so we can reasonably expect November’s and December’s existing homes sales data to be similarly strong.

In other words, the housing market is heating up and may have already shifting toward sellers. Changes like that lower buyer leverage, and increase the cost of homeownership. Coupled with rising mortgage rates, the shift is even more defined.

The best time to buy a home this year may have already passed. The next best time may be right now.

Talk to your real estate agent if you’re planning to buy a home in 2011. It may be smart to move up your time frame.

No Comments
by on December 7, 2010  •  Permalink
Posted in Pending Home Sales
Tagged
Posted by Gayle Blonar on December 7, 2010

http://gayleblonarblog.com/2010/12/pending-home-sales-october-2010.html

How To Install Motion-Detector Lighting On Your Home

 Activated by infrared waves, motion-detector lighting can illuminate a dark driveway, a dark sidewalk, and a dark yard, thwarting would-be thieves while also giving homeowners a lit, safe path to their own front or back door.

If your home is not already equipped with such lighting, this video from Lowe’s will be helpful. It’s a step-by-step tutorial on how to install motion-detector lighting on your home.

The basic steps are as follows:

  1. Cut the power at the circuit breaker
  2. If applicable, remove the existing light fixture
  3. Install the mounting strap
  4. Connect the junction box wires to the light fixture wires
  5. Mount the fixture to the mounting strap

Lowe’s marks the the skill level to complete the job as “intermediate”. So, if you don’t want to tackle the job yourself, or if the idea of working with electricity frightens you, reach out to a handyman.

Motion-detector lights sell for as little as $25.

No Comments
by on December 6, 2010  •  Permalink
Posted in Uncategorized
Tagged
Posted by Gayle Blonar on December 6, 2010

http://gayleblonarblog.com/2010/12/how-to-install-motion-detector-lighting.html

Understatement : Freddie Mac Says Mortgage Rates Rose Last Week

Mortgage Rate surveys are not real-time

It’s been a wild 30 days for home affordability.

Since the Federal Reserve’s November 3 press release, in which our nation’s central banker committed $600 billion to bond markets, mortgage rates have leaped, moving quicker than the news can report them.

This week is a terrific example of that.

Today, newspaper headlines in Pennsylvania and around the country read that mortgage rates rose 0.06% on average over the past 7 days, and that average loan fees remain unchanged at 0.8 points. The data is based on Freddie Mac’s Primary Mortgage Market Survey, a weekly poll of more than 100 lenders around the country.

Unfortunately for Pittsburgh home buyers and other local rate shoppers, the Freddie Mac figures are low. Both mortgage rates and fees rose by more than what’s being reported.

Freddie Mac’s data is not real-time. It’s out of date for today’s pricing.

According to Freddie Mac, the survey’s methodology has it collecting rates from participating lenders between Monday and Wednesday, averaging the results, and then publishing that data Thursday late-morning. The problem there, as you know if you’ve shopped for a mortgage rate, is that mortgage rates change all day, every day.

Monday’s rates are unrelated to Wednesday’s rates, yet both are included and given equal weight by Freddie Mac. Some weeks, it’s not a problem; rates are relative static. 

This week was not such a week.

 

Rates were jumpy Monday and Tuesday, rising and falling throughout the course of the day. Action like that is normal. But Wednesday, mortgage bonds put forth their third-worst daily showing of the year.  Rates rose by as much as 3/8 percent between the market open and close, with the bulk of the sell-off coming late in the day. In other words, after the deadline of Freddie Mac’s survey.

Mortgage lenders accurately reported their rates to Freddie Mac, but they reported them before the market turn a turn for the worse.

The lesson is that mortgage rates are time-sensitive and can’t be captured by a weekly, average survey. When you need to know what mortgage rates are doing right now, the best place to check is with your loan officer. Otherwise, you may just get yesterday’s news.

No Comments
by on December 3, 2010  •  Permalink
Posted in Mortgage Rates
Tagged
Posted by Gayle Blonar on December 3, 2010

http://gayleblonarblog.com/2010/12/freddie-mac-survey-december-2-2010.html

Mortgage Rates Rapidly Rising On Jobs Data; More Risk Ahead For Friday

Non-Farm Payrolls Nov 2008-Oct 2010Mortgage rates are rising, up nearly 1 percent since mid-October. Tomorrow, rates could rise again.

The Bureau of Labor Statistics releases the November jobs report at 8:30 A.M. ET Friday. With a stronger-than-expected reading, mortgage rates should continue their climb, harming home affordability across Pennsylvania and nationwide.

And already, Wall Street is bracing for big results.  Here’s why.

Wednesday, payroll processor ADP said that 98,000 private-sector jobs were created in November. The figure was a complete blowout reading as compared to analyst estimates, which had the results in the 50,000 range. But that wasn’t all. ADP re-measured and re-reported October’s gains, too. It found that 84,000 jobs were created — not the 43,000 on its original report from 30 days ago.

If jobs growth is the keystone to economic recovery, the ADP report suggests that recovery is already underway.

It’s bad news for rate shoppers. A faltering economy helped keep mortgage rates low. A recovering one should make rates rise. And, that’s exactly what happened Wednesday.

In response to the ADP report, conforming mortgage rates posted their third-worst day of the year. Rates climbed as much as 0.375 percent throughout the day as lenders scrambled to keep up with a deteriorating market.

At some banks, rates changed 4 times between the market’s open and close.

Tomorrow, analysts expect the government to report 146,000 jobs created in November. Mortgage markets and home affordability have a lot riding on the actual results. A lower-than-expected reading should lead mortgage rates lower. Anything else and mortgage rates should rise. Likely by a lot.

Therefore, if you’re shopping for a mortgage right now, or floating a loan that’s in-process, think about your personal risk tolerance and whether you want to gamble against rates moving higher. Once Friday morning’s report is released, it may be too late to lock something lower.

No Comments
by on December 2, 2010  •  Permalink
Posted in Jobs
Tagged
Posted by Gayle Blonar on December 2, 2010

http://gayleblonarblog.com/2010/12/non-farm-payrolls-november-2010.html

September’s Case-Shiller Index Reflects A Slowing Housing Market

Case-Shiller Change In Home Values September 2009-2010

Standard & Poors released the September Case-Shiller Index Tuesday. The Case-Shiller Index is a home-value tracker. The report shows home prices down 0.7% from August and values fading, in general.

Case-Shiller representatives assessed the findings as “another weak report; weaker than last month”, citing deterioration in 18 of 20 tracked markets. Upward pricing momentum from the summer is slowing and values remain 30% off the market’s June 2006 peak. It could spell bad news for home sellers in Washington this winter.

That said, the Case-Shiller Index is imperfect; its methodology flawed. The index is not meant for use by individual buyers or sellers — for 3 reasons.

First, the Case-Shiller Index reports on a 2-month delay. Today is December 1 and we’re discussing data from September. In the 8 weeks since, the economy has shifted to a net jobs gainer, and the Federal Reserve has committed to $600 billion in re-investment.  These are major developments that weren’t a part of September’s housing market, but are relevant today.

Especially because employment is largely believed to be a keystone to housing.

    Second, the Case-Shiller sample set is limited to just 20 cities nationwide. This means that most U.S. home sales are specifically not included in the Case-Shiller Index’s monthly findings.

    And that ties into reason number three — all real estate is local. No matter what the Case-Shiller Index says about the country, what matters to your local market is what’s happening in your local market. Each neighborhood has its own housing economy and that’s something that can’t be captured by a national report.

    No Comments
    by on December 1, 2010  •  Permalink
    Posted in Case-Shiller Index
    Tagged
    Posted by Gayle Blonar on December 1, 2010

    http://gayleblonarblog.com/2010/12/case-shiller-index-september-2010.html

    New Home Sales Slip In October

    New Homes Sales (Oct 2009-2010)After posting a strong September, the number of newly-built homes sold nationwide slipped in October.

    Total units sold on an annual basis dropped by 25,000 from September; supplies of new homes climbed 0.7 months. Home supply is back to its rolling, 6-month average of 8.6 months.

    Like everything else in real estate, however, the October’s New Home Sales results varied by location.

    For example, except for the South, each U.S. region posted a loss. In the South, there was a 3 percent gain. This is statistically significant because more new homes are sold in the South than in all other U.S. regions combined.

    In October, the South accounted for 58 percent of all homes sold.

    The dip in New Home Sales did not surprise Wall Street. New Home Sales is closely correlated to Housing Starts, and Housing Starts fell in July and August. Furthermore, it seems home builders expected the dip and are brushing it off.

    In a poll taken 2 weeks ago, builders reported higher confidence in housing, and their respective prospects for the future. Home builder confidence is at its highest point since June.

    For buyers in Pittsburgh , the effects of New Home Sales data are unknown. In a normal environment, falling sales volume and rising home supplies would help shift negotiation leverage away from the seller and toward the buyer, resulting in lower sales prices.

    However, in this market, the “sellers” (i.e. home builders) are more confident about housing, and that offsets a buyer’s statistical edge.

    With home prices stagnant and mortgage rates rising, therefore, the best “deals” may come between now and the New Year.

    No Comments
    by on November 30, 2010  •  Permalink
    Posted in New Home Sales
    Tagged
    Posted by Gayle Blonar on November 30, 2010

    http://gayleblonarblog.com/2010/11/new-home-sales-october-2010.html

    « Older Posts
    Newer Posts »

    WordPress Blog Hosting