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Posts Tagged ‘home buying Columbia Mo’

Mortgage Rates

While the Federal Reserve has promised to keep rates “low” until 2013, it is clear to many experts that the current historical lows we are experiencing will not last.

According to the latest projections from the National Association of Realtors® (NAR), interest rates should gradually rise out of historic lows as we move through 2012.

The NAR reports that current surveys reflect the tight credit conditions. They report that recent buyers are staying well within their means, with higher incomes and higher downpayments.

Richard Peach, Senior Vice President at the Federal Reserve Board of New York, who said the economy is under-performing, reports, “Nearly two-and-a-half years since the end of ‘the great recession,’ the economy continues to operate well below its potential. Among the significant structural impediments are the legacy of the housing boom and bust, and fiscal contrition at the state and local level.”

Lawrence Yun, chief economist of the National Association of Realtors®, said home sales should be stronger. “Tight mortgage credit conditions have been holding back home buyers all year, and consumer confidence has been shaky recently,” he said. “Nonetheless, there is a sizable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can’t continue indefinitely. This demand could quickly stimulate the market when conditions improve.”

It is this improving jobs markets that many analysts are waiting for. Yun projects the GDP will grow 1.8 percent this year and 2.2 percent in 2012. The unemployment rate should decline, albeit modestly, to around 8.7 percent by the end of 2012.

Around this same time, experts expect that “mortgage interest rates should gradually rise from recent record lows and reach 4.5 percent by the middle of 2012.”

This is still an incredibly low rate and many experts feel that housing market, while still struggling, will improve throughout next year and after. In fact, the NAR expects new home sales to reach 372,000 next year. Existing home sales could fare just as well, rising 4 to 5 percent in 2012.

“Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year,” Yun said. “Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that credit restrictions will ease and allow more home buyers to take advantage of current opportunities.” The bottom line is that the housing market should improve over the next year and along with that improvement will come higher interest rates. Buyers interested in making a move should take head of today’s historically low rates and high levels of affordability.

If you are looking to join the Columbia Real Estate market, please feel free to call us.  Prudential Vision Properties can be reached at 573.449.6200. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

November 16, 2011 — Realty Times Feature Article by Carla Hill

According to the National Association of Realtors®, (NAR) the U.S. will not become a nation of renters.

Currently, over 65 percent of Americans are homeowners, a rate that has held since the 1960s. It’s no wonder why most Americans seek out a home of their own.

Home ownership has both financial and social benefits. According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.

“We knew that homeowners, on average, accumulate more wealth than renters,” said Ken Johnson, editor, Journal of Housing Research at Florida International University. Johnson spoke at the session and conducted the analysis with Eli Beracha. “These findings indicate that home ownership is a self-imposed savings plan. Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying.”

This is no wonder why. Despite recent declines in home prices, historically prices do rise over the long-term. This means an owner is paying towards an asset. They are building equity. A renter, on the other hand, is paying for a living space for that month. It is not money invested.

Home ownership is also at a generational high when it comes to affordability. Recent studies show all 50 states are at 30-year record levels of affordability, based on mortgage-to-income ratios. Couple that with historically low interest rates and there are deals to be had.

Many buyers are still uncertain about entering the market, though. Unemployment and rampant media reminders of an ailing economy create fear and reserve.

Regardless of the ups or downs of the economy, however, social benefits of home ownership remain. Realty Times has reported on these benefits for years, knowing that buyers don’t buy simply because it’s the right financial time. They buy to provide stability and security for growing families.

In the NAR study, “Measuring the Benefits of Home owning: Effects on Children,” there were significant findings that home ownership has a strong positive effect on educational achievement. Children are more likely to graduate, teenage girls are less likely to experience teenage pregnancy, and children of homeowners are more likely to be financially responsibly adults.

The study says, “Homeowners are required to take on a greater responsibility such as home maintenance and acquiring the financial skills to handle mortgage payments. These life management skills may get transferred to their children.”

Additionally, higher levels of home ownership have been shown to reduce crime rates. “Homeowners have a lot more to lose financially than do renters. Property crimes directly result in financial losses to the victim. Furthermore, violent non-property crimes can impact the property values of the whole neighborhood. Therefore, homeowners have more incentive to deter crime by forming and implementing voluntary crime prevention programs.” (NAR)

“These findings are no surprise to Realtors®,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “We, like the nation’s 75 million homeowners and many other who aspire to one day own a home, know home ownership is an investment in the future of our families, communities, and nation. That is why we will continue to fight for public policies that promote responsible, sustainable home ownership; we believe that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.

If you are looking to join the Columbia Real Estate market, please feel free to call us. Prudential Vision Properties can be reached at 573.449.6200. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

November 15, 2011 — Realty Times Feature Article by Carla Hill

Christmas Tree Disposal

It is that time of year when people tear down their Christmas trees.  Instead of throwing them on your curb for pick up, consider this option!

The Department of Conservation as well as Boone Electric agree people should turn those trees into mulch.  It is as easy as dropping your tree off at Boone Electric at 1413 Rangeline Street.  The drop off site is on the south side of the building.  In exchange for your Christmas tree, you will receive a FREE bag of woodchips.

The woodchips made from the collected Christmas trees will be put into animal habitats by the Conservation Department.

If you are looking to join the Columbia Real Estate market, please feel free to call us.  Prudential Vision Properties can be reached at 573.449.6200. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Activities to Keep Your Kids From Driving You Crazy

The children are stirring because it is that time of year where they are trapped in the house.  Here are some great indoor activities to keep them busy when it is too cold to go outside.

Marshmallow Snowmen Activity

YUMMY SNOWMEN–  Take 3 marshmallows and stack them using icing in between each marshmallow to hold them together.  Use you imagination to decorate your snowmen.  Here are some of our suggestions…. Arms= pretzel sticks, Eyes= Either Red Hots or Mini M&M’s, Hair= Pull apart licorice, Brim of hat= thin cracker, Top of hat= gum drop, Buttons= raisins.  Hold of the items in place with more icing!

DECORATE WINTER GEAR– Are you kids tired of their old stockings, mittens, etc?  Give them new life (even if they have holes)!  For patches you can hot glue or stitch on fun patterned thick fabric.  The kids will love decorating their winter gear with glitter, sequins, buttons, felt, googly eyes, fabric markers, etc!

INDOOR SNOW SCENES– Give each child a piece of paper, and ask them to draw and color a scene of their idea of the “Best Snow Day Ever”.  Then give them cotton balls and glue to make the snow.  They will love pulling and stretching the cotton balls!

Check out the outdoor fun!

ICE ORNAMENT– Gather 4-5 disposable pie pans.  Fill them with water (leaving enough room that the water won’t overflow during movement).  Have the children add some of their favorite craft items in the water such as glitter, sequins, buttons, etc.  A few drops of food coloring is another great item that will dazzle up this ice ornament.  Then place some twine, fishing line, or yarn in a loop in the water to create the “hook” for the ornament.  Carefully place the pie pans in the freezer or outside if the temperatures allow for it to freeze overnight.  The next day, remove the ice from the pans and you have beautiful ornaments to hang outside (at least until they start to melt)!

PAPER SNOWFLAKES– A true classic activity.  Fold a piece of paper many times, then cut out small shapes along the edges.  Unfold, and VOILA!  A beautiful snowflake.  You can also use glue and glitter after it is unfolded to make a shinning snowflake.  You can turn these into ornaments for your tree, garland, wreaths, etc.

DRESS THE SNOWMAN– Cut out a snowman out of poster board and tape it on a wall.  Have the children make the clothing, eyes, nose, mouth, arms, etc for the snowman out of construction paper, markers, etc.  If your children are old enough, they can cut out the items otherwise help/guide your child to cut them out.  Then blind fold each child giving them a different item to “pin” or tape onto the snowman.  They will love seeing where they put each part!

Paper Snowflake Activity

If you are looking to join the Columbia Real Estate market, please feel free to call us.  Prudential Vision Properties can be reached at 573.449.6200. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Holiday Season is here!

Can’t wait for the holiday season to arrive?  We have come apps for your smartphone that will help you keep your holiday shopping under control, find the best deals, read a holiday classic to your child, etc.  Check them out!

Country Living Holiday Cookies App

For iPhone users:  Santa Watch, Kwanzaa Puzzles, TGI Black Friday, Country Living Holiday Cookies, Hanukkah Gift List, Christmas Radio, Flightview

For Android users:  Santa Watch, TGI Black Friday, Christmas List Pro, Country Living Holiday Cookies, Christmas Radio, Dreidel, Flightview

For Blackberry users: Santa Watch, Christmas Song Lyrics, Flightview

If you would like to contact a Prudential Real Estate agent today, please call 573.449.6200 or email Info@PrudentialVision.com.  Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.