Ultimate Open House

Maintenance Tips for New Home Owners

April 19, 2012

As a new home owner, you are excited about getting your house in order — setting up furnishings, rearranging and decorating. But once you have place for everything and everything in its place, it’s time to get a handle on the routine maintenance you’ll need to perform to help ensure that you and your family live comfortably in your new home for years to come.

Maintaining a clean home is one way to ensure its longevity. Here are some tips for properly maintaining some of the systems in your new home:

Heating and Cooling Systems

Late summer or early fall are the ideal times to do an annual inspection and cleaning of these systems.
Change or wash the filters every three months.
If you have a gas furnace, keep your pilot light burning during the summer to help keep the furnace dry and prevent corrosion.
Registers help regulate the flow of air and maintain the desired temperature in your home. Keep registers closed in rooms you don’t use to save on cooling/heating costs.

Plumbing

Every member of your family should know where the intake valves are located. Label each one.
If any of your appliances develop a leak, inspect your drain trap. A partially clogged drain can cause overflow. Use a plunger or a plumber’s snake to unclog the drain. If you need to, use boiling water to help unclog a partially opened drain. Call a plumber if these techniques don’t work.
A worn washer, a loose part in a faucet or steam in a hot water pipe are generally the causes of a noisy pipe. Do not hesitate to repair the noise — vibrations can follow the noise and lead to leaks.

Gutters and Downspouts

Clear away leaves, tree limbs and other debris from gutters and downspouts.
Turn the downspouts away from your home’s foundation.
Every four to six years, paint gutters that are not made of aluminum or vinyl to help prevent rust.

Remember to read the instruction manual for every appliance in your new home. The manuals provide recommended cleaning and maintenance schedules. Also familiarize yourself with any warranties you have on both the house and its systems. Some warranties may be voided if problems arise because of failure to perform routine maintenance.

A new home – and months of free heating

April 16, 2012

The Ultimate Open House has something for everyone – homes of different sizes, styles and locations. But regardless of your taste and needs, the home you prefer is likely to have natural gas equipment.

This year, NW Natural and its partners are adding one more reason for you to go Blue and buy gas-fueled home. If you’re one of the first 10 buyers of a qualified home with a natural gas furnace and water heater, you’ll receive an $800 credit on your NW Natural bill, courtesy of the builder.

Now there’s one more reason to go Blue, in addition to the comfort and reliability of gas heating; the convenience and beauty of gas fireplaces; the speed and control of a gas stove; and the clear price advantage of natural gas. That’s an $800 credit on your gas bill.

Voters Place High Value on Homeownership, Oppose Policies That Make It More Difficult to Own a Home

January 19, 2012

By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters’ attitudes towards homeownership and housing policy issues.

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” said Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

Conducted on Jan. 2-5 on behalf of the National Association of Home Builders by the Republican and Democratic polling firms of Public Opinion Strategies in Alexandria, Va., and Lake Research Partners in Washington, D.C., the comprehensive survey of 1,500 likely voters includes data from key political “swing areas,” including National Journal political analyst Charlie Cook’s swing House and Senate seats and Stuart Rothenberg’s presidential swing states. The survey, which has a margin of error of ±2.5 percent, is a follow-up to a similar national poll conducted last May.

The poll shows that three out of four voters – both owners and renters — believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. This sentiment cuts across regional and party lines, with 84 percent of Democrats, 71 percent of Republicans and 71 percent of Independents agreeing with this statement.

Also, two-thirds of respondents say that the federal government should help home buyers to afford a long-term or 30-year, fixed-rate mortgage.

Moreover, 73 percent of voters oppose eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 77 percent of Republicans, 71 percent of Democrats and 71 percent of Independents against doing away with the mortgage interest deduction.

Meanwhile, 68 percent would be less likely to vote for a congressional candidate who proposed to abolish the deduction, a figure that was virtually identical across all party affiliations (69 percent of Independents and 68 percent of Democrats and Republicans).

A majority of voters are also against proposals to reduce the mortgage interest deduction, eliminate the deduction for interest paid for a second home, limit the deduction for those earning more than $250,000 per year, scale back the deduction for home owners with mortgages above $500,000 and do away with the deduction for interest paid on home equity loans.

“With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction,” said Celinda Lake, president of Lake Research Partners.

Among the poll’s other key findings:

96 percent of home owners are happy with their decision to own and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.
79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.
74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.
Homeownership and a retirement savings program are considered by voters to be their best long-term investments.
78 percent of respondents said that owning their own home is very important to them.
Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.
Job uncertainty and saving for a downpayment and closing costs are the biggest barriers to buying a home.

The survey findings are consistent with the results of other public opinion surveys. In a New York Times/CBS News poll conducted in June, 89 percent said that homeownership is an important part of the American Dream and more than 90 percent indicated that it is important for the federal government to continue the mortgage interest deduction.

According to a Pew Research Study conducted last March, 81 percent of respondents agree that buying a home is the best long-term investment a person can make and 81 percent of renters surveyed said they would like to buy a house.

“Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nev. “Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation’s long-term commitment to homeownership.”

Poll results can be downloaded at www.nahb.org/homeownershippoll.

29 Percent of Renters and 19 Percent of Homeowners Are Considering Buying a Home in the Next Two Years

October 6, 2011

Despite the recession and declines in home prices, Americans still view homeownership as being important to the economy and the American family, according to the “Housing 360 Survey” conducted by Hanley Wood Products.

The survey found that despite the recession and housing crisis, homeownership is still very important—that both renters and homeowners feel it is a good time to buy a home and 19 percent of homeowners and 29 percent of renters are considering buying a home in the next two years. In fact, the survey findings support that up to two million potential home buying consumers are waiting to jump into the market when the time is right.

Should You Rent Or Buy?

February 10, 2011

From NPR

When we (and everybody else) report on real estate, we tend to focus on recent changes in home prices — prices fell last month, prices rose last year, whatever.

This is certainly relevant information. But if you’re trying to decide whether to buy a house, its value is limited.

Home prices have fallen a ton in the past few years. Does that mean real estate is a bargain now? It’s hard to say, because it’s hard to know just how much homes were overvalued at the peak of the bubble.

So I’m always interested in measures that look at home prices relative to other variables — household income, say — to try to get a better sense of whether it’s a good time to buy.

This ratio of home prices to household income was pretty stable for many years, but it shot way up during the housing crisis. That suggested lots of people were buying more house than they could afford.

By the fall of last year, the ratio had fallen back into line with historical norms in many parts of the country, the WSJ reported this week.

I wanted more details, so I called Moody’s Analytics, the source for the data the WSJ cited.

I also asked Moody’s for their data on another metric: the price-to-rent ratio.

This compares how much it costs to rent for a year versus how much it costs to buy. This is a useful way to think about home prices — particularly for people (like me) who are trying to decide whether to rent or buy.

As a very rough rule of thumb, a price-to-rent ratio of less than 20 suggests that buying may be a good deal. A price-to-rent ratio of more than 20 suggests that renting may be a better deal. (The NYT’s David Leonhardt devoted a whole column to this ratio last year, and there’s a rent-buy calculator that goes with it.)

Both of these ratios are different in different parts of the country, and the Moody’s data are broken out by metro area.

Both tables include the historical average from the years before the housing bubble really took off, as well as the most recent figures that are available, from July through September of 2010. So you can find the area where you live (if you live in one of the areas on the list) and see how the ratios now compare to their historical norms.

Of course, buying a house is only partly an economic decision. As a professor of real estate finance recently told us, “The value of a home is the the value you get from living in it and two different people are going to get two different values from the same home. It’s a very individual decision.”

Still, it’s nice to have data.

Click here for full story and data tables.

Share your American Dream for a chance to win!

February 9, 2011

70% of Americans say owning a home is part of their personal American Dream – what’s yours?

Does it include a suburban home with a white picket fence?
Is it living in all 50 states before you die?
Or do you aspire to rent a high-rise loft in a big city?

Click here to learn more about a twitter/facebook contest by Trulia for a chance to win $50-$250 Crate and Barrel gift cards.

What do women want in a house?

January 3, 2011

By Joanne Cleaver, From bnet.com

If you sell things to women, buy things from women, lend to women, work with women, or otherwise participate in the economic life of the country, here’s a significant stat.

Women now account for 21% of house sales, according to a report recently released by Sphere Trending, LLC, in partnership with InForum, the group for Michigan executive women. The proportion of single women buying houses has doubled since 1999, while the proportion of single men has been cut in half.

If you still picture the home buyer as a young married couple with chubby-cheeked kids, you’re only partly right. Young couples still dominate, but single women (including those with chubby-cheeked kids) are fast gaining. As they gain share in the fractured housing market, builders and homeowner will have to give them what they want to get sales over the line.

What do women want? Not surprisingly, it depends on age, family responsibilities and various psychographics.

Millennial women want lofts or loft lookalikes in cities
Gen X moms want manageable-sized houses in cities or close-in suburbs, with open floor plans and lots of built-in storage to catch kid stuff
Boomers in transition want single-family living, a few luxury amenities, and welcoming guest quarters for visiting kids and parents

Want more evidence? The National Association of Realtors just released its 2010 Profile of Home Buyers and Sellers. Its finding reinforces the SphereTrending findings.

23% of first time buyers were single women.
Women are almost twice as likely to finance their home purchase with an inheritance
Women are buying smaller homes – most often, in the 1,500 – 2000 square foot range

Finally, this construction trends forecast just in: By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).

What does all this mean for builders and home sellers? To me, it means that women are not an emotional sell. They’re practical. They care about safety, return on investment and effort, and everyday functionality. They want lots of storage where it makes sense. A trophy closet is a start. “Drop zones” for kids’ backpacks are just as important.

Read full article here.

Housing-market Bust is Changing Buyer Behavior

November 8, 2010

Check out this interesting article from Marketwatch.com about the changing behavior of home buyers especially first time home buyers. The article states that…

Twenty-seven percent of first-time buyers who purchased a home between July 2009 and June 2010 received a gift from family or friends to help with the down payment.
First-time buyers plan to stay in their homes for an average 10 years when they make a purchase; repeat buyers plan to stay for 15 years.

Homeownership’s Future

October 25, 2010

From builderonline.com

Reports of the death of homeownership are greatly exaggerated. To read the headlines and hear the cable news, you would think that efforts to provide greater opportunities for homeownership were fiendish plots to ruin America. The pendulum of opinion appears to have swung well beyond simple correction for recent excesses.

Homeownership has been the housing choice for the majority of U.S. households since WWII. Home prices, sizes, locations, and types have changed but the quest to become a homeowner grew for 65 years. The share of households owning their own homes rose to almost 70 percent by 2004. That rate has fallen backward in the last several years. This article presents four observations countering the drum beat of negativism against homeownership.

Homeownership remains a priority. The recent housing market interruption has had many causes and explanations, and some long-term trends have changed since WWII. But, the demand for homeownership remains. The absolute number of homeowners stays above 75 million and is down less than 1 percent from the peak in 2006. A 2010 survey found that eight in 10 respondents consider homeownership important to the economy. Seven in 10 respondents said they believe buying a home continues to be one of the safest investments available. In contrast, only 17 percent believe buying stocks is a safe investment. Homeownership rises with age, marriage, and number of children.

Homeownership rates have fallen but recovered. Virtually all of the largest 75 metropolitan areas have seen house prices decline in the 20 years preceding the mid-2000s, and almost half saw a more than year-long decline. The slumps were often aligned with larger economic events that affected particular regions. For instance, Los Angeles experienced a 21 percent fall in house prices that ended in early 1995. Home-ownership rates peaked at 48.9 percent in 1994, fell to 46.8 percent in 1996, and recovered to 49 percent in 2000 and continued increasing into the 2000s. Dallas home prices fell almost 13 percent in the late 1980s, and homeownership rates fell 3.5 percentage points between 1990 and 1992. However, homeownership rates revived and increased to 58.7 percent in 1995 and over 60 percent through the remainder of the 1990s.

Home equity provides wealth. Home equity is a more uniformly distributed form of wealth accumulation than any other asset. And, home equity is used to expand small businesses, educate children, pay medical costs, and fund retirement. As of 2007, 53 percent of families owned retirement accounts, 18 percent owned stocks, and 69 percent owned a home. For these homeowners, home equity and household wealth is built by paying down mortgage principal and through normal increases in value. The tax benefits of homeownership, including the mortgage interest deduction, are also beneficial, particularly for recent, younger home buyers, who pay more interest as a share of income. So while renting remains an important option for younger or more mobile households, homeownership is an engine of wealth creation for most households.

Homeownership generates social benefits. Research studies in economics and other disciplines have shown homeownership increases civic participation, improves childhood outcomes, and increases the value of close-by properties. These social benefits of homeownership spill over and improve the economic and social conditions of neighborhoods with concentrations of homeowners. Homeowner property taxes are the primary revenue source for most local governments, and finance schools and other local services.

Over enthusiasm and faith in continued double-digit housing appreciation fed the housing boom until bad decisions on the part of buyers, lenders, investors, and raters brought the party to an end. But recent discussion questioning the benefits of homeownership is exaggerated and at odds with the facts positioning homeownership’s central place in our society. It would be a mistake to conclude otherwise.

Study Says Housing Most Affordable Since 1969

October 14, 2010

From Beacon Economics

Beacon Economics’ new Beacon Economics Home Affordability Index finds that in August homes were at their most affordable level since data became available (1969). Beacon Economics developed the Beacon Economics Home Affordability Index based on the percentage of income an average family would need in order to make mortgage payments on an average priced home.

The August estimate shows the cost of home ownership (mortgage interest plus principal payments after a 20% down payment) falling to 16.9% from 17.1% in July. Overall, the Beacon Economics Home Affordability Index has remained below 20% for the past twenty-one months.

“Home affordability has reached an historic high,” says Beacon Economics Founding Principal Christopher Thornberg. “Nationwide, prices are down approximately 25% from their peak, and mortgage financing rates are at all-time lows.” Moreover, the high level of affordability is likely to drive demand and reduce the stock of excess inventory, ultimately resulting in the need for new housing, a rise in prices, and a pickup in new construction, according to Thornberg.

“While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us,” adds Beacon Economics Research Manager Jordan G. Levine. “We expect prices to stabilize around current levels and likely be higher in the next twelve months.”