Inventory

The length of time that it takes for inventory to turn over has dropped to around three months, which is good news for sellers. This means that if there were no new homes listed for sale, it would take three months for all of the homes to be sold.

More Jobs

When new businesses open or current businesses add new workers, more people will be buying homes. People may move into the area and others feel more confident to buy a house when they have a stable income.

House Prices Increase

This indicator is usually one of the later to be seen. However, you will begin to see less negotiation between buyers and sellers; buyers are more willing to pay the sales price. Sellers are less likely to offer deals or reduce their price because they know someone else will be interested in the house at the selling price.

Seller Deals Disappear

Sellers do not feel the need to offer benefits to sell their home, such as paying closing costs or paying for points. Buyers take the time to get approved before looking for a home because they know they don’t have time to waste when they find the perfect home. If they have to get approved, they know they risk the likelihood that the house will be sold before they can put in a bid.

What Happens in a Seller’s Market?

When the momentum shifts to the seller, interest rates as well as prices go up. Buyers that wait too long to get into the market will find that they are paying more than they would have just a few short months ago. There will also be fewer houses to choose from and the ones that are on the market will be available for a shorter time.

The best time for a buyer to make a purchase is when the market has hit bottom and is just starting to move upward. They can still get attractive interest rates and find a good selection of homes to choose from. They will get a good price for the house before values start to go up. This will allow them to purchase at a reasonable price and as the value of the house increases, they will owe less than what their home is worth.

If buyers do not watch the housing market closely, they will find that they missed the ideal opportunity to become homeowners.

1. Projects with unmanageable budgets and maintenance. Underestimating the cost and time necessary to make your yard look good can cause a lot of problems down the road. Before you jump in headfirst, sit down and draft a landscaping plan. Estimate the cost of each project, revising your plan to fit your allotted budget and time commitment.
2. Focusing on the backyard rather than the front. Just as you wouldn’t read a book from back to front, you don’t want to landscape from the back yard to the front. Creating curb appeal is one of the first things you should try to accomplish as you begin landscaping.
3. Buying things you won’t use, like concrete curbing and lawn ornaments. It’s easy to get carried away in Lowe’s or other home supply stores. As you strategize your spring landscaping projects, whatever you do, don’t splurge your entire budget on one or two superfluous items. Concrete curbing is one of those luxury items that can easily cost upwards of $1,000. Large lawn ornaments, like outdoor fireplaces or statues, are expensive, and for the most part, unnecessary.
4. Too many lights in your yard. Lighting can be a great way to accent your yard at night, especially if you have friends coming over often for parties on the patio. There are, however, homes that go overboard on lighting, which can lead to a higher electricity bill. To curb your monthly bill, place low-energy lights where they can be seen by you and your visitors. Stringing lights on trees and along walkways, as well as these other tips, are great ways to provide visual punctuation without causing an inordinate electricity bill.
5. Overplanting. It’s an innocent mistake to pick plants and trees that breed quickly and soon overcome your house, your driveway, and your yard. If you don’t want to spend your days pruning endlessly, be mindful of the size of your plot. Choose varieties of plants that grow a size that suits your house and property.
   
   A similar problem can be planting too many of one variety. If you plant only crepe myrtle trees in your yard, how will your yard look once the crepe myrtle blooms have died? Balance out varieties with different blooming times so your yard will always have something special to offer.
6. Outdoor kitchens in cold climates. Admittedly, there’s nothing more satisfying than grilling and cooking outdoors. If you live in cold weather areas, however, you’ll only be able to use your outdoor kitchen for one season. Outdoor kitchens are expensive, and you’ll get the most out of the investment only if you can use it year-round; or, at least three quarters of the year.
7. Opting for pebble yard or patio rather than a lawn. It’s true that a patio or gravel yard is much easier to maintain than a lawn, but it can be an eyesore, especially if there’s no soft greenery to offset harsh surfaces. Grass in your yard provides padding for small children who love to play (and sometimes fall) outdoors. It can be a challenge to put grass down, whether growing it from seed or installing turf, but once it’s laid down, maintenance is minimal, and it lasts forever.

Clean dust with a microfiber dust cloth
A microfiber dust cloth works better than an old t-shirt or feather duster because it attracts dust. Other products stir dust into the air, which gets pushed deeper into unreachable spaces. The microfiber cloth uses an electrostatic charge to pull dust away from surfaces. Microfiber dusters come in a variety of sizes and shapes, so you can clean those hard to reach fan-blades and blinds.

Vacuum
When it comes to banishing dust from your home, the vacuum is your right hand man. A vacuum with a high-efficiency particulate air filter (HEPA) can capture the tiniest dust bunnies. Vacuum heavily-trafficked areas like hallways, doorways, dens, and bedrooms once a week to keep dust at bay. Almost as important as using the vacuum, keeping it in good maintenance can make your dust-busting endeavor less frequent and more successful. Empty the vacuum canister often and keep the brush wheel free of hair and other debris.

Change air filters
Old air filters can be packed with germs and dust-spreading mites. Change the air filters in your home or apartment at least once a month. As an added health benefit, some air filters have pleats and electrostatic charge that attracts pollen, dust, and other allergens. If you suffer from asthma or endure other allergy symptoms, change the air filter frequently to prevent dust and allergens from circulating in the air.

Cut down on textiles
Textiles like carpets, rugs, curtains, and clothes not only trap dust, but they create it, too, as fibers shed and disintegrate. Carpets are huge reservoirs of dust, and should be cleaned regularly. Besides vacuuming weekly, you should beat and shake out area rugs three to four times a year. Upholstery fabric used on furniture and pillow cushions cannot be tossed easily into the washing machine. To rid these of dust, regularly beat them outside with a broom or tennis racket. The only way to totally eliminate dust from textiles and fabric is to install hardwood floors, and have only leather or vinyl furniture.

Rotate bedding
Every time you roll from one side to another in your bed, you’re sending an invisible cloud of dust into the air. Not just a reservoir of dead skin cells, your bed contributes to its own dust content, as sheets, pillows, and mattress fibers disintegrate. To minimize dust fallout from your bed, change all sheets and pillow cases weekly. For bedding that can’t be washed easily, like quilts and comforters, take them outside for a good shaking. Once or twice a year, take pillows and other bedding to the dry cleaners to minimize dust in your bedroom.

-Shop Around. Spend time researching different providers. To start with, it may be easiest seek advice from friends and family members. You should also consult your state’s insurance department, which usually displays typical rates that major insurers charge and the frequency of customer complaints. You can also check online quote services to get a better idea of your premium. Consumer guides and insurance agents can give you an idea of price ranges and companies with the lowest prices. Aside from low prices, you also want a stable company. It’s important therefore, to check the financial status of the providers you’re considering, using rating companies like Standard & Poor’s and A.M. Best. Rank your top three insurers, and get price quotes from them.

-Raise Your Deductible. Your deductible is the amount of money you pay out of pocket before an insurance policy will kick in to pay a claim. The more you pay on your deductible, the less you’ll pay for your premium. The premium is paid either monthly, quarterly, or biannually. If you can afford to raise your deductible, say from $500 to $1,000, you would save 25 percent on the amount paid for premiums. For certain disaster-prone areas, like cities along the Gulf Coast, there may be separate policies for wind damage and hurricane disasters. For most insurers, a higher deductible wouldn’t apply if there were damage due to a common regional threat; which is why they set up a separate policy for frequent threats. When you do raise your deductible, make sure you know exactly what your policy will cover in case you have to file a claim.

-Consolidate Your Policies. If you can bundle your auto and homeowner’s insurance with the same company, you may save between 5-15 percent of your premium. Many companies will offer incentives to bundle policies, such as a discount on premiums or a combined deductible. The added benefit of a bundled policy is the convenience of paying only one bill. Nevertheless, if you’re trying to save money, you should compare separate auto and homeowners insurance policies with a bundled policy. You may even find that it’s more cost effective to have separate homeowners and auto coverage.

-Improve Your Home’s Security. Beyond keeping you and your loved ones safe, beefing up your home’s security can actually get dollars shaved off your insurance premium. Simple security enhancements in your house, such as deadbolt locks, smoke detectors, and burglar alarms, can help you save at least 5 percent. For more advanced and expensive home security arrangements, make sure you check with your insurer to find which system they recommend. Typically, sprinkler security systems, burglar alarms that phone the police, and other monitoring devices can cut your premium by 15-20 percent.

-Actively Seek Out Discounts. There are a great number of discounts to be had; you simply have to ask. If you’ve been with the same insurer for a long period of time, you may be eligible for a loyalty discount. If you or someone in your family recently quit smoking, mention it to your insurance agent to see if you can get a discount on your premiums. People over the age of 55 can receive discounts. Many groups, such as AARP, university alumni associations, and employers, partner with insurance companies, and may have a lower group rate than the one you pay as an individual.

1. Skipping Pre-approval
Before you start house-hunting, take the time to find out how much you will be approved for. It will give you a budget to work with and save time later when you find the perfect home. If you do the pre-approval process after you find a home, you may end up losing it to someone who is already pre-approved.

There is a difference between getting pre-approved and pre-qualified. With pre-qualification, you have given basic information to the lender so they can determine how much you can qualify for. However, you are not guaranteed to get that amount. With pre-approval, the lender goes through the entire process and guarantees you a loan for a certain period of time.

2. Not Knowing What You Can Afford
You may have been approved for a certain amount, however, to be able to afford those mortgage payments you must sit down with your budget and figure how much money you need to allocate each month. If you are already paying rent, you know you can pay at least that much. But if you want a bigger house, or one that’s in an expensive neighborhood, your mortgage payments can be more than your current rent. Don’t get locked into a loan without knowing where the money is coming from.

3. Not Knowing the Value of the House
A seller may owe a certain amount on a house or expect a certain sale price, but it may not be the right price in today’s economy. House values have fallen in the last few years and will take some time to rise again. Don’t end up paying more for a house than it is worth; you may run into problems if you decide to sell.

4. Not Getting the Right Inspector
Don’t get so excited about a house that you skip the inspection or choose a cheap inspector to do the work. Even beautiful homes can have unseen damages or expensive problems which may need repair. Mold often hides in hard-to-find remote areas, and structural damage can take years to affect the part of the house you see.

Not all problems mean that you should back away from the home. What it does mean is that you should try to negotiate a lower price or have the seller fix these problems. You don’t want to end up hating a house that looked so good in the beginning.

For many people, buying a home is a dream. Don’t let it become a nightmare by making these costly mistakes. Take the time to learn about the buying process and stay a step ahead.

Don’t Look at Prices

Housing prices are not the first indicator of a recovery; rather, they are often one of the late signs. The first sign is increased house sales. People won’t buy if they are worried about income or a job. If they are looking to buy a house, it shows they have confidence in their job security, their income, and the economy as a whole.

Prices will increase as the demand for houses increases; this is the law of supply and demand. The drop in house prices may be depressing, but it isn’t a true indicator of the state of the real estate market.

According to a Bloomberg survey, housing sales increased in 2011 (compared to 2010), and February of 2012 promises to have the highest number of sales in 1 month in the last 2 years.

Inventory

Another indicator of the state of the housing market is how much inventory is available, or the months’ supply. It is an estimate of how long it would take to sell all of the homes that are available today, at the current rate of home sales. Right now, the inventory is at 6.6 months, meaning it would take about six and half months to get rid of all of the homes on sale in the market right now. This number is actually considered healthy because it shows a good balance between buyers and sellers.

Other Indicators

You can look at statistics that have nothing to do with the housing market directly, but will, to some degree, have an impact on it. For instance, as unemployment rates drop, it indicates a steadily improving economy. As more people get jobs, they will begin to look at their housing situation. Once they feel secure in their career, they will be ready to commit to a mortgage and start looking for a house.

Reduced Foreclosures

As the foreclosure rates drop, fewer homes are coming back on the market. The homes that are for sale are from owners who have been making their payments and are ready to sell. Potential buyers also feel more secure about entering the housing market if they hear improvements. A high rate of foreclosure makes people hesitant to look for a mortgage. It takes some time for buyers to regain their confidence in mortgage companies and banks.

If you wait for housing prices to increase before you feel safe about purchasing a home, you may be waiting a few years. But if you are willing to look at other indicators, you might decide that now is the perfect time to start investigating the possibilities. You can get in on the beginning of the recovery while home prices are at their most affordable.

Houzz Interior Design Ideas
This app was featured in the Wall Street Journal and TechCrunch. It offers its users the largest idea database with over 70,000 photos and 150,000 idea books. The app also allows you to store photos locally, so you don’t have to be connected to the Internet every time you want to view your idea. The app makes it easy to connect with local contractors and architects to turn your dream designs into reality. Instead of clipping photos from design magazines, you can simply grab photos and ideas you like and compile them into your digital ideabook. With your ideabook on the iPad, you can easily show contractors or designers exactly what you’re looking to do for your next home improvement project.

Cost: Free

Home Interiors Ideas HD
Another top pick, this app was selected by Apple as one of their “New and Noteworthy” apps. Organized and expansive, it features ideas and designs in six major categories, including living room, bedroom, bathroom, kitchen & dining rooms, house pool & Jacuzzi, and Japanese home interior. With high definition photographs you can view close-up details of rooms and decorating ideas. The app has a virtual interior museum experience where you can take virtual tours of interior designs from all over the world. Other popular features of the app include a bookmark function and a button for sharing favorite designs. Because the app already stores all its content, you don’t need an Internet connection to browse and discover new possibilities for your home.

Cost: $1.99

Phaidon Design Classics
For those who want a comprehensive collection of classic designs, the new Phaidon app for iPad offers its three-volume design history encyclopedia. With access to 1,000 design classics by renowned designers, you can be inspired from history as you brainstorm ideas for your next project. The application features archival photographs, original sketches, prototypes, and more from famous designers. This is an essential resource for those who love design and design history.

Cost: $28.99

Autodesk Sketchbook Pro
If you are the type of person who always sketches out the latest idea for your home, welcome to the new pencil and paper. With this app you can transform your iPad into a sketchbook. Whether you’re a creative professional or an amateur designer, this app can help you communicate your design ideas visually with drawing and painting tools. The app boasts a natural sketching experience with pencils, pens, markers, brushes, layers, and blending tools.

Cost: $4.99

Pulse News Reader
To stay on top of the latest trends in design and interior decoration the Pulse News Reader app is an essential. The news reader comes with a curated Design section, but it also allows you to personalize your news feed so you can view topics from your favorite design sites daily. The app itself has an intuitive design that makes it easy to use and visually attractive.

Cost: Free

Color in the Kitchen
Color is one of the easiest ways to add a fresh, new look to your home. A blue tile backsplash in your kitchen adds a Mediterranean atmosphere, with bright blue reminiscent of the sea. Choose a mint makeover to bring zen-like calm in a cottage kitchen. For a fun spring vibe, paint everything, including the floors, cabinets, and ceiling, a clean white. Then, add pink accents for the curtains, light fixtures, wall art, and large appliances, like the refrigerator. Other bright color trends in the kitchen are citron or gold colors. The yellow hues make for a stylish, retro feel with a homey atmosphere.

Neutrals with a Splash
Every five or seven years there seems to be an overhaul in design trends. This spring, designers are seeing a greater presence of neutral tones combined with bright accents. Creams, dark browns, and grays allow bold furnishings or bright accents to vividly dramatize rooms. Citron, lime, tangerine, and yellow are the best pairings with gray and other neutral shades. All shades of gray from charcoal to pale gray are versatile for rooms with either contemporary or traditional interior design. The grays serve as the perfect back drop for paintings and for energizing accents and furnishings. Patterns and prints have fallen out of favor this spring, but colors like red-orange or tangerine combined with earthy neutrals are hugely popular. Valances, throws, floral arrangements, and pillows with bright, spring colors are easy to find and replace, reviving your home from its winter doldrums.

Color of the Year
The latest color crush in spring design is Tangerine Tango. As the 2012 Color of the Year, this red-orange color instantly energizes a room. You can paint one wall in a room tangerine to make the rest of the room’s features stand out. Creamy-orange wallpaper paired with red-orange pillows and throws can bring out the various shades and moods of orange. If you’re looking for easy ways to enliven your living room, rearrange your books according to color, placing tangerine spines near bright blue spines to add contrast and visual punch. An easy way to spruce up your patio for spring is to add a tangerine painted rug. To contrast the tangerine color, pair it with steely blue or indigo for a more dramatic effect. Because the juicy tangerine was a popular shade in the 1960s and 70s, it’s easy to find chairs and accent pieces in the color at vintage stores and thrift shops.

From Outdoors to Indoors
Take a few hints from nature as your redecorate your home this spring. Replace heavy fabric curtains with light, airy ones. Sheer white or lacy curtains stream in the sunlight, bathing your whole house in soft natural lighting. Swap out your old, dull rugs with new ones that feature floral prints to bring botanical life into your home. Indoor plants like African violets and begonias have stunning flowers and foliage in the spring. Other low maintenance house plants are peace lily, spider plant, and snake plant.

Fixed Rates
The 15-year-fixed mortgage rate fell to its lowest level in 60 years, currently averaging 3.13%. The 30-year-fixed-rate at 3.88% was just a whisker away from its all-time low of 3.87%. Since October, 30-year-fixed mortgages have not exceeded 4%. Last year, for 30-year-fixed mortgages, interest rates stayed just below 5%. For the past 18 weeks, the rates have remained nearly 1% lower than the average of last year’s rates. At this time last year, the 15-year-fixed mortgage rate averaged 4.15%, a full 1.2% higher than the current rate.

Adjustable Rates
Average initial rates on 5-year adjustable rate mortgages (ARMs) were at 2.81%, just a tick above the record low reached a few weeks ago, 2.80%. The average last year for 5-year adjustable mortgages was 3.73%. With an adjustable mortgage, lenders are guaranteed a steady margin while borrowers may face changes in their payments over time.

Low Rates & The Economy
The low rates may be due to some of the recent economic developments both domestic and abroad. Here in the U.S., the unemployment rate is slowly decreasing which means the U.S. job market is strengthening. In February over 200,000 jobs were added to the economy. China’s growth into an industrial engine also contributes to the favorable market conditions. Finally, in Greece a debt exchange with private bondholders removes a default of sovereign debt from the table. With positive signs in the economy and historically low interest rates, housing sales should increase.

Sluggish Housing Market Despite Low Rates
These interest rates have been hovering at or around the record lows for quite some time. The unusually stable mortgage rates combined with rock-bottom housing prices means housing is more affordable than it has been in nearly two decades. Freddie Mac’s chief economist Frank Nothaft stated that typical families have more than double what is needed to purchase median-priced homes.

Despite these favorable conditions, consumer demand for homes remains sluggish. Uncertainty in the housing market and the economy in general is certainly responsible for the lack of enthusiasm. Even with plenty of income, low interest rates and affordable houses, potential buyers aren’t willing to commit to such a huge financial obligation as a home purchase.

Another possible factor to the lag in housing demand is more stringent credit demands. With some mortgage financiers requiring a 20% down payment on the purchase price of a home, many young consumers who otherwise qualify aren’t able to obtain a loan. These younger consumers are turning to the Federal Housing Administration (FHA). With as little as 3.5% down, potential homebuyers can obtain an FHA loan. The insurance costs associated with these federal loans, however, increases the mortgage interest rate.

For parents, it’s important to consider the future first. If retirement is on the horizon, parents should prepare for their financial future and budget accordingly. If a large sum for a house payment or loan will not be a financial burden on the parents, then it could be an opportunity to help boost their child’s finances. Additionally, should the parents loan their child money for a down payment, they need to make sure they can afford to take over mortgage payments if their child cannot. It would be unwise to help finance your child’s home if you will not be able to pick up their mortgage payments should something unexpected happen. Beyond money, parents can assist their kids with house purchases by giving the gift of knowledge. Ensure that the kids know the risks involved with investing in a home. There can be unforeseen repairs, replacement of vital electrical or plumbing systems, and more.

HOW TO LEND TO YOUR KIDS:
Cash – A cash donation is the simplest way to assist with the down payment. The most an individual can give to another, without incurring taxes, is $13,000. Cash can be the best way to help finance your kid’s home because most young people have not yet had the chance to save for a long period of time. They are in need of a large sum of money to make the down payment, which can range from 10-20 percent of the price of the home. The larger the initial down payment, the smaller the mortgage payments. For a young person, a large upfront payment can relieve some of the financial burden later.

Rent-to-own, lease-to-own – Many parents use a rent-to-own arrangement (also called lease-to-own) when helping their kids with their first home purchase. In this setup the parents buy the house by putting down the entire down payment and let the child pay rent to cover mortgage payments. When the child is financially ready, for instance after they’ve found a steady job with regular income, the parents can then sell the property to the kids. For a rent-to-own, it is important to have a written contract with the arrangement details. Parents and kids should also consult with tax professionals and a lender to cover all the risks and details of a rent-to-own agreement.

Loan – Finally, parents can sign or co-sign on a loan for the child’s house purchase. A loan from a parent can be much more lenient than from a bank, allowing the child to pay it off quickly without accruing additional charges in interest. For parents who co-sign on a loan, it’s important to be aware of risks. If the child misses payments or defaults on the loan, the parents may face financial consequences in addition to having to cover the cost of loan payments. In times of crunch, if the adult child has lost a job or needs to buy a new car or home, a loan from a parent can be a successful route to getting the child back on track.

MAKE IT FORMAL
In the face of a large financial decision, no matter which way a parent helps out a child, draw up a contract. If the child mistakes a loan for a gift, unless specifically spelled out, situations could become uncomfortable. With written agreements, parents can avoid messy family squabbles and make planning an estate easy.