Jon Stewart’s The Daily Show on Comedy Central. Monday, Stewart provided brilliant analysis of the recent market turmoil.

Nancy@NancyMAlexander.com
www.StoneHarborRealtor.com
800.708.5792

How About a Home Inspection? Do We need one? You Bet!

Just a few short Years ago, home inspections were virtually unheard of in a residential real estate transaction.
Buyers then would rely only on their own judgement of the home and the representations of the seller's real estate agent. Today it is a different ballgame. Dramatically different!

Included in the Agreement For sale is a clause giving the buyer the right to order one or more professional home inspections before completing the purchase.


Your Realtor will recommend several well-qualified home inspectors. The tricky part is selecting the best candidates among the group. Here are seven points to consider:

1. Qualifications. Ask open-ended questions about the inspector's training and experience as it relates to home inspections. The inspector should have some training in construction and building maintenance standards and a track-record of experience in the home inspection business. Depending on the location and age of the home, you may need to hire an inspector who's qualified to deal with asbestos, lead-based paint or other potentially hazardous substances. In some cases you may also require a structural engineer.

2. Exactly What Is Covered in This Inspection? Make sure up front what is and is not covered in the inspection Ask the inspector which parts of the property are and are not - included in the inspection. Will this inspector check out the roof? How about the swimming pool? How about the built- in appliances?
A bay front property will need a separate inspection for the bulkhead.

3. Ask to see a sample of the report. Ask the inspector to provide a sample of his checklist or inspection report. Will his report include a narrative description or just check-off boxes? Is the information presented and explained clearly and completely? Does the report highlight and summarize any problems that could present a safety hazard?

4. References. Request names and telephone numbers of several homeowners who have used his services. Call those people . Wouldn’t be a bad idea to talk to some people who have owned their home for a few months or longer. Some problems overlooked by an inspection can take a while to surface.


5. Qualifications. Is he licensed? Many good inspectors don't belong to a national or state association of home inspectors. However, all else being equal, an association membership is a plus. These groups provide their members with training and certification programs and up-to-date information about industry practices and inspection standards.

6. What happen If he misses something? Even top-notch inspectors are only human and can make errors or overlook problems they probably should have noticed. What is the company's policy in such situations? Does the company have insurance for errors and omissions? Will the inspector or his company stand behind the report? Many companies ask customers to sign a waiver limiting the company's liability to the cost of the inspection.
7. An excellent idea is a pre-listing home inspection. Talk to your sellers about the value of a thorough evaluation by a professional inspector to help get a property into tip-top shape. It’s tempting for owners to assume that they know everything about a home’s condition. But even sellers in a house for 25 years may not realize they’ve been living with a dangerous electrical outlet or plumbing leaks. Taking care of problems early offers a competitive edge.



Hope this information is helpful to you! If you have any questions, or need more information, please e-mail me at http://Nancy@NancyMAlexander.com
call me...... I Love To Talk Real Estate!
800.708.5792
Nancy M. Alexander CRS,GRI ,e-PRO

http://Nancy@NancyMAlexander.com
http://NancyMAlexander.com
CONTENTS COPYRIGHT NANCY M. ALEXANDER 2008

It's A Great Time To be A Buyer!

It's A Great Time To be A Buyer!

Don't Be Scared Off By The Media Negativity...
Be Smart. Buy Now. Lots and Lots of inventory. Sellers understand they need to negotiate and interest rates remain remarkably low. Cut your own deal. Buy now and in a few years when the market rebounds (and it always does),you can pat yourself on the back and congratulate yourself on your brilliant strategy.

In 1982 interest rates went as high as 18% and 19%. The banks were charging 4 and 5 points and guess what? People were still buying vacation homes at the shore. Sure, the tax code was different then. (That helped)
Back then we did not have a dozen cable channels 24/7 with non-stop repetitive negative coverage hyping fear about the state of real estate market. Non-stop negative press is scaring off some folks who would really like to jump in and buy a property.

If you are one of these people who would really like buy a home please try to ignore all the negative press and understand real estate is cyclical and at the moment the market is undergoing a natural correction. A correction does not equate to a crash.

We just came off four years of insane sale prices with sellers and speculators securing a full price buyer as soon as the ink was dry on the listing. Those days are gone. Forget about it. Today's seller realizes he needs to negotiate. If you are ready to own a home here at the shore, step up and make a deal.

30 year fixed Mortgage rates still remain between 6 and 7%....this is a 45 year low!
Let's take a look at a home for $300,000 with 30 year fixed mortgage at 6.5 interest rate (with no money down.) Your monthly mortgage payment would be $1896.20. Back in 1991, your interest rate would have been 9.25% and that same mortgage payment would have bought a house worth only $230,492. In 1982 a 30 year fixed rate was 14.6% and same monthly payment bought a house worth only $151,657.

Take a look at the homes now on the sale market. Find one you like and make your offer.You'll be glad you did.
Call me. I love to talk Real Estate 800.708.5792
http://Nancy@NancyMAlexander.com
http://NancyMAlexander.com
CONTENTS COPYRIGHT NANCY M. ALEXANDER 2008

Stone Harbor and Avalon Summer Rentals Are Still Available.You Can Book Your Summer Rental On-line Right here!

Stone Harbor and Avalon Summer Rentals Are Still Available.You Can Book Your Rental On-line Right Here!

Coming down the shore this year?

Have you booked your summer vacation rental house yet? If you are looking to rent a summer house or condo,there are still some prime weeks available in several luxury homes in Stone Harbor and Avalon New Jersey. Take a look here on my rental site. (and please remember to save the link to my rental site!) Choose your time period, and take a look at all the homes available. please e-mail me at Nancy@NancyMAlexander.com with any questions you may have,and I can help you!



http://www.stoneharborrealtor.com/VacationRentals.htm Click on the red banner and fill in the weeks you need to pull up all rentals still availble for your time period.( or e-mail me at http://Nancy@NancyMAlexander.com ,and I will search rental availability for you and e-mail the information to you. If you prefer,you call me at 800.708.5792. I Love To talk Real Estate!

http://NancyMAlexander.com
CONTENTS COPYRIGHT NANCY M. ALEXANDER 2008

Before You Leave For Vacation...

Spring break should be a relaxing time, especially if you’re
planning to go on vacation. But preparing your home for
your departure can be stressful. Whether you’re leaving
home for a week or a month, you can rest easy with these tips for
keeping your home safe while you’re away:

• Arrange for someone to do seasonal maintenance, such as
mowing, raking or snow removal.

• Have mail or packages picked up by a
friend, forwarded or held by the
post office.

• Stop newspaper deliveries and ask a
neighbor to pick up freebie newspapers
and circulars.

• Lower your telephone ringer (and
answering machine volume) and never
leave an outgoing message that says
you’re away.

• Use timers to turn lights off and on at
the appropriate times. Compensate for
having lights on when no one’s home by
turning off other appliances that are often
left on, such as DVD players, computers
and microwaves. Also consider connecting a radio to a timer.

• Leave blinds open in their usual position.

• If you live in a cold climate, keep the heat on just enough so
that the pipes don’t freeze.

• Ask neighbors to park their car in your driveway.

• If you leave your car in the driveway, be sure to remove the
garage-door opener from plain view.

• Double-check all doors and window locks.

• Tell a trusted friend or neighbor where you’ll be.

Sources: Travelocity.com; Tripso.com; Insurance Information Institute

Hope you find These Tips Helpful!
Nancy@NancyMAlexander.com
If I can help you in Selling or Renting your home at the shore,call me at 800.708.5792. I Love To Talk Real Estate!
http://www.NancyMAlexander.com

Stone Harbor Real Estate Activity

Statistics show 100 single family homes now on the market. Four single family homes now under contract.
Average list price is $1,835,395

Here are the latest MLS statistics for Condo/Townhomes There are Currently 77 condos for sale, two are under contract and one has been Sold since 1/1/2008 .Average list price is $822,841,and average time on the market of 77 days.

17 vacant Lots in Stone Harbor are now for sale..One lot is under contract, and two lots have been sold since 1/1/2008.Average time on market is 288 days.The Average list price is $2,135,588

There are now 21 Multi-family properties for sale in Stone Harbor and one is now under contract.

If you are buying or selling a home here at the shore, or if you would just like more property information,please e-mail me at http://Nancy@NancyMAlexander.com
http://NancyMAlexander.com
CONTENTS COPYRIGHT NANCY M. ALEXANDER 2008

The 411 Basics On Short Sales

Real Estate “Short Sales” have been getting some attention in the news lately. But just what is a “Short Sale?”
Simply put, a short sale is the sale of a mortgaged property that results in the mortgage holder receiving less that what is owed to them. The mortgage holder is “shorted” part of the mortgage balance.

In order to do a short sale, the bank or mortgage company must agree to it. But why would they agree to take less money?

The answer; banks don’t like owning, maintaining or selling houses. It interferes with their main business of lending, managing and investing money.

If you find yourself in the position of having to sell your house and you don’t have the equity in your house or cash reserves to pay the mortgage off in full, a short sale may help you out.


Here’s how to go about doing a short sale, step by step:
1. Determine the current market value of your home.
2. Add up all of the selling costs you will need to pay.
3. Find out what the payoff amount is on your current loan(s).
4. Do the math, subtract the loan balance & the selling costs from the market value.
5. Call your lender and ask for the “loss mitigation” department or a supervisor. Explain your situation to them.
6. Ask them what their procedures are for a short sale. If they are willing to work with you, get all the forms and requirements and see if you can work out an agreement. Be prepared to convince them your case deserves consideration. They will probably want a financial statement with all your bills and assets shown. They may even want to see your household budget. Don’t take it personally, it’s just business.
7. Sell the house. The bank will probably be involved with most of the contracts and offers.

The biggest mistake made by home owners in financial trouble is not getting in touch with their lender. Almost all lenders would rather work things out with you than take back your home. Especially in today's market.

Questions? Comments? Give me a call at 800.708.5792 or E-mail me at Nancy@NancyMAlexander.com. I love to talk Real Estate!

www.NancyMAlexander.com

Selling Your House? Time For A Garage Makeover!

Making your home stand out will give you an edge on your competition in today's real estate market. One way to accomplish this is to upgrade your garage. Changing your garage into a showplace can be easy and relatively cheap.

You can take advantage of a recent housing trend, the "Garage Makeover." There are all kinds of new products available to spruce up your garage.

You can get special garage flooring systems that snap together in one afternoon; tough enough to withstand our studded tires, oil, grease and dirt. Andyou can pick up 17' X 7' garage mats for about $149 at Wal-Mart or Home Depot.

Or... you can go with a complete garage floor refinishing system with epoxy finish in any color you can imagine. Most Home Depot stores or Lowes will carry these.

Along with a floor treatment, consider painting the walls & ceiling, especially if they're starting to get a bit dingy.
And you can't have too much lighting in a garage, most don't have enough. How about getting some fluorescent fixtures in 4-ft. or 8-ft. lengths.

Next, to get rid of all that clutter, you need shelving, cabinets and organizers. Getting stuff up off the floor will make a big difference in appearance.


With your garage all done over,your property will stand out from the competition.

Now get packing and get ready to move!

Nancy@NancyMAlexander.com
www.NancyMAlexander.com

Frequently Asked Questions When Buying Real Estate

Here are some of the most frequently asked questions in real estate. If you have a question that has not been included in this comprehensive list, please e-mail me at Nancy@NancyMAlexander.com and I'll will get back to you quickly .

Is there a difference between market value and appraised value?
The main difference between appraised and market value is that the former is an opinion, while the latter is based on a comparative market analysis. A certified appraiser's opinion of property value is based on comparable sales within the last six months with fees ranging from $200 to $300. Lenders require appraisals as part of the loan application process. A comparative market analysis is an estimate of value based on sales of comparable properties, and is usually provided by an agent or broker.

Are property taxes deductible? What about taxes on second homes or investment properties?
Property taxes on all real estate transactions are deductible against current income taxes. Interest and property taxes are deductible for second homes if expenses are itemized. The best advice to follow can be provided by your accountant or tax adviser.

What are, and why do we pay, property taxes?
Property taxes are the annual fees that property owners pay for owning real estate - usually 1.5 percent of the property's current market value, although they are calculated in many different ways. The county or local government uses the money to help fund public services.

What are closing costs?
Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a property. They may include upfront loan points, title insurance, escrow charges, document fees, and prepaid interest. Unless these charges are included in the loan, they are paid at the closing.

What kind of home insurance should I get?
An "all inclusive" policy is standard fare when dealing with home insurance. This type of policy will usually cover claims involving:
-Lightning, wind, storms, hail
-Fire, explosions, smoke
-Electrical damage and water damage from plumbing
-Heating or air conditioning systems
-Floods

For personal property, homeowners can increase coverage beyond the depreciated value of items such as televisions or furniture by purchasing a replacement cost endorsement. Another option is to purchase an inflation rider, which automatically increases coverage as the property value increases.

Do I need a home inspection?
Absolutely. For example, roof, plumbing, and electrical repairs are major problems and can amount to tens of thousands of dollars or more. Think twice before signing a contract to purchase property "as is."

When is the best time to buy?
Here are some great reasons to buy:
-You need a tax break.
-The mortgage interest deduction can make home ownership appealing.
-You plan to use the property long enough for any appreciation to cover your transaction costs.
-You want to own, not rent.
-You can afford it!

How does one choose between buying and renting?
While homeowners have the freedom to make decisions regarding their property, most renters do not worry about maintenance and other financial obligations associated with property ownership. Homeowners that secure a fixed-rate mortgage, are better able to plan financially because monthly housing expenses will not increase dramatically. This way, wise investments can be made, and, hopefully, yield long-term profits on the initial investment.

However, such returns depend on value appreciation. Aside from maintenance costs, the monies paid to the lender is usually greater than the total amount paid in rent. To determine whether a property is a long-term investment, prospective buyers should spend some time investigating potential communities or neighborhoods.

How do I hire a contractor?
Most people rely on referrals when hiring a contractor, but even in a referral situation the contractor should be subject to a background check. Inquire with the state regarding a licensing board for contractors. Then, call to learn whether any complaints have been filed against the contractor. The Better Business Bureau will also keep complaints on file. Both of these agencies are excellent resources for determining whether a contractor is reliable.

Next, you want to interview all candidates, being sure to ask whether they carry worker's compensation benefits as well as an umbrella general liability policy. If contractors do not have coverage, you could be responsible for worker injuries incurred on your property. Further, obtain the policy number, insurance company name and phone number to verify coverage. Take your time while making this important decision, and never pay a deposit at your first meeting.

How do I determine the price of my property?
The best way to determine the price of a property is to refer to a comparative market analysis, which is a report based on recent sales of comparable properties in your neighborhood. Although the real estate market fluctuates, it is still important to base the list price on current market conditions. I can help you with this. Please give me a call at my direct line 800.708.5792.I Love To Talk Real Estate! or if you prefer,you can e-mail me at Nancy@NancyMAlexander.com

www.NancyMAlexander.com

Vacation Rentals in Stone Harbor & Avalon

If you have not yet booked your Stone Harbor/Avalon vacation rental for next summer you might want to do it now. We still have a huge selection of properties available.
Simply visit my site at http://www.stoneharborrealtor.com/VacationRentals.htm Click on the red banner Looking forward to hearing from you!
Nancy
Nancy@NancyMAlexander.com
www.NancyMAlexander.com

Benefits Of Working With An e-PRO

What is an e-PRO—— and why should you use one?
A short guide for the Internet consumer
When you're on the Internet, you don't have time to waste on endless searches for useful real estate information. You want to get things done quickly and without hassle. So chances are you'd like a real estate agent who


Answers e-mail promptly and professionally.
Respects your on-line privacy.
Offers home listings and other Internet tools to help you find or market a home.
Enter the e-PRO.

An e-PRO is a REALTOR® who has successfully completed the e-PRO training program for real estate professionals. Endorsed by the National Association of REALTORS®, the e-PRO course teaches professionals the nuts and bolts of working with real estate on-line: Web sites, e-mail, on-line tools, and most of all, what today's consumer really wants.

What does all this mean to you? There are several benefits of working with a certified Internet professional.

More privacy
Are you reluctant to give out contact information through the Web for fear of being pestered or spammed? e-PROs understand. They've learned the Web isn't just a place to do business; you need information from someone you can trust.

That's why e-PROs respect your privacy. They respond quickly to your questions, but don't send you unwanted communication. And they protect your personal information.

Less hassle
Tired of struggling to find information? e-PROs are more likely to have access to the latest Internet utilities, making your life easier. These tools may include:


On-line home tours
Instant access to comprehensive neighborhood data
Extensive property listings
Immediate e-mail notification of just-listed homes meeting your criteria
Referral networks and on-line forums, where e-PROs can quickly find information——even potential buyers——from other e-PROs
Newsletters on current real estate conditions in your area
Electronic faxes sent to you by e-mail
Advanced software, PDAs, and laptops to find you answers on the spot
The result: you get more information, more easily. With electronic files, you have less paperwork to deal with. And since your agent uses e-mail, you can even eliminate phone tag. The e-PRO streamlines your entire transaction, from showing to closing.

Less expense
An e-PRO's access to advanced technology can save you considerable expense. You have more tools to find or market your home, so you're likely to get a better price. With on-line home tours, you reduce in-person showings——and the costs involved. And by using e-mail, you save money on long-distance calls and fax charges.

Relocating? An e-PRO is ideal for you. With the tools to do your research electronically, you can make a decision on a home the first day you're in town——or without traveling at all. You and your family save on travel costs. And after you've decided to buy, monitoring the sale by e-mail saves you even more.

Should you use an e-PRO? Yes——especially if you're an Internet user. In this fast-paced age, technology has become a necessity. An e-PRO is someone who has recognized and responded to the needs of the new consumer. If you choose an e-PRO, it's a safe bet you'll get the kind of service you want——and need.

Nancy@NancyMAlexander.com
www.NancyMAlexander.com

Staging Your Home For Sale Checklist

Just recently I heard a great line on one of those Real Estate TV shows .The Realtor said to the seller that “not staging your home for sale is like going to a job interview in your pajamas.” Isn’t that great? I love that line! And besides being funny, it is also very true. You only have one chance to make a good First Impression.

Remove all clutter from the house.
Are countertops free and clear?
Have you removed unnecessary furniture throughout the house?
Remove the art gallery and coupon collection from the refrigerator.

Check the bathrooms.
Are the surfaces clean and clear?
Are shower curtains and doors hung properly?
Is the flooring clean and fresh?
Are towels neatly hung?

Check the walls.
Is paint and wallpaper fresh and clean?
Are the walls free from holes?
Are there any colors or objects on the walls that need to be removed?

Check the floors.
Is the carpet clean and free from stains?
Are hard surface floors clean and free from stains?

Check windows and window coverings.
Are all your windows clean?
Are draperies and blinds clean?

Pet check.
Are there any signs that this is a pet's home? Be sure to clean and remove kitty litter, pet toys and bedding.

How's the aroma?
Try to air out the home prior to showings.
If air freshener is necessary, use well before showings as a consideration to those with allergies.

To Set the mood prior to showings.
Open all the draperies and blinds.
Turn on the radio to a nice classical music station and keep the volume low.
If you have time, bake a batch of cookies .Everyone loves the smell of fresh baked cookies!

http://Nancy@NancyMAlexander.com
http://NancyMAlexander.com
CONTENTS COPYRIGHT NANCY M. ALEXANDER 2008

Stone Harbor Condo/Townhouse Market Snapshot

Right now there are 47 condos on the market in Stone Harbor with average listed price of $690,511 and average days on market =254.
There are 25 townhouses on the market with average listed price of $690,511 and average days on market=254.
There are now two under contract with average list price of $574,450 and days on market = 97.
Two have SOLD with average sale price of $497,500 and average days on market = 82.
Nancy@NancyMAlexander.com
www.NancyMAlexander.com

Stone Harbor Single Family Homes Under Contract since 1/1/2008 to 3/4/2008

Two single family homes in Stone Harbor homes are now under contract. One listed at $989,000 and Has been 40 days on the market.
Another home listed at $1,649,000 just went under contract. This was on the market 126 days.
Nancy@NancyMAlexander.com
www.StoneHarborRealtor.com
800.708.5792

Stone Harbor Single family Homes Sold and Under Contract from 1/1/2008 to 3/3/2008

There are now 127 single family homes in Stone Harbor on the sale market. Average days on market = 193
Average listing price of a single family home in Stone Harbor is $2,415,913
There is now one single family home under contract (listed at $989,000) and on market 40 days.
7 listings have been SOLD since 1/1/2008 with median price of $2,185,000 and average time on market of 206 days.

If you would like more information on Stone Harbor property,please email me at
Nancy@NancyMAlexander.com and I will get back to you right away.
or call me at 800.708.5792
www.StoneHarborRealtor.com

Hang Up That Cell Phone in New Jersey And Drive!

Phoning while driving in New Jersey could be a real toll call
By ELAINE ROSE
Published: Saturday, March 01, 2008
Hang up and drive - or else. Starting today, police can ticket drivers who talk on a hand-held cell phone or send text messages while the car is moving. And the officer doesn't need another excuse to pull you over. The fine for the first offense is $100, but no points are added to your license.
It has been illegal since 2004 to talk on a hand-held cell phone while driving, but it was a secondary offense. That meant police had to see a driver commit another motor-vehicle violation, and could then write a second ticket for using the phone while driving.
But starting today, it is a primary offense, and the officer can stop you just for talking or texting. Drivers using headsets are exempt from the law.
You can still use a hand-held cell phone if you're in fear for your safety or to report a crime, fire or accident. But if you're calling your spouse to ask what's for dinner or sharing the day's events with a friend, wait until you get where you're going or be prepared to pay a fine.
Don't expect leniency or warnings, at least from state troopers. Capt. Al DellaFave of New Jersey State Police has said the troopers have their ticket books ready to write the summonses ! Be careful! You have been warned.
Nancy@NancyMAlexander.com
www.NancyMAlexander.com

IRS Changes Rule On Personal Residence Debt Relief

IRS Changes Rules on Personal Residence Debt Relief. If you lost your home due to foreclosure or had during 2007, there are new IRS rules that may apply.According to the Internal Revenue Service (IRS), "The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief."Further, the IRS explains "This provision applies to debt forgiven in 2007, 2008 or 2009. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition."To read more from the IRS: IRS questions and answers on Home Foreclosure and Debt CancellationNote: We advise you to check with your tax advisor, financial advisor or other appropriate professional(s) to see how this may affect you and your personal situation. We are not qualified to, or to we mean to, give tax advice.

Nancy@NancyMAlexander.com
www.StoneHarborRealtor.com

Did You See The Headline Article On MSN.com? Check It Out

The Housing Crunch

Nancy@NancyMAlexander.com
www.NancyMAlexander.com

Real Trends Newsletter

COMMENTARY
The New Year: The Worst Looks to be Behind Us
According to the REAL Trends Housing Market Report released on January 17, closings for the fourth quarter 2007
were down 21 percent from the same quarter in 2006. However, the good news is that closings for each month from
October 2007 through December 2007 were down fairly uniformly from the same months in 2006.
Prices were down in much the same pattern. Prices for closed homes were off about 1.5 percent for the quarter, but
were off fairly uniformly for each month of the fourth quarter.
Hence, while business is down, it did not appear to be declining much throughout the fourth quarter of 2007.
The REAL Trends Housing Market Report was launched in October of 2007. It is a
compilation of closed home sales from brokerage firms representing nearly 40
percent of all broker assisted sales throughout the country. The report covers all
states and MSAs and represents a cross section of price ranges and types of homes.
A new report from REAL Trends, the Pulse, a survey of 750 brokerage CEOs that
we launched in January, indicated that many brokerage firms improved in January
over the prior month. Sixty-four percent of CEOs said they strongly supported or
somewhat supported the statement that their business was measurably better as of
the end of January. Almost 70 percent strongly said that a temporary raising of the
conforming loan limit would have a material positive impact on their business –
which Congress and the President appear ready to sign.
Mortgage rates dipped on interest rate cuts by the Federal Reserve Board as economists
indicated that the risk of recession was near or upon us. Retail sales and credit card
growth were down measurably in December and January, indicating that consumers are
cutting back. While a recession is not an event to be sought, it can lead to an easing of
credit demand and lower rates. Lower rates can stimulate housing demand, even in
the fact of a downturn in employment, as we saw in the modest downturn of 2001.
Lower rates for mortgages and softer prices for homes mean a rise in affordability, all
other factors being equal. All of these trends should support increased buyer activity.
According to many sources, housing price indexes prices are down. The REAL
Trends Housing Market report showed that prices for closed homes were down
1.5 percent from the year before. NAR and OFHEO show soft house price declines.
Zillow’s Zindex and Cyberhomes show 3-5 percent home price declines on a
national basis. Even the S&P/Case-Schiller Index, the most bearish indicator of
house prices, says that there are many markets that remain healthy.
While homebuilders continue to report record soft sales and starts, a drop in the
supply of new homes is not bad for this housing market. Also, there are numerous
reports of investors gathering portfolios of distressed mortgages and real estate.
When large pools of investors are beginning to purchase real estate, it signals that
professional investors smell the bottom of the market.
We do not think most markets will decline much further in terms of transactions.
However, should the predicted recession be more than a mild one or the Fed
becomes more worried about inflation than a growing economy, then 2008 will not
likely be a year where housing turns upward.

Nancy@NancyMAlexander.com
www.StoneHarborRealtor.com

Realtor Magazine Article Home Improvements Cost vs Value

This article was published on: 12/01/20062006 Cost vs. Value Making Home Improvements Pay What’s the return for remodeling? Remodeling magazine’s annual report compares construction costs with resale values for 25 common remodeling projects in 60 U.S. markets.Prices for most remodeling projects continue to climb, while the recoup value of improvements at resale is declining to levels last seen in 2002. These are the findings of Remodeling magazine’s 19th annual Cost vs. Value Report — the eighth prepared in cooperation with REALTOR® Magazine. None of this should come as much of a surprise to you: This year’s recoup values confirm the housing slowdown many parts of the country are experiencing. With both home-sale and remodeling activity at record levels in the last five to six years, some cooling is inevitable. Indications are that the current downturn represents a return to “normal” levels. A number of improvements designed to make the report more reliable and useful has also affected both cost and value data. For starters, Remodeling took a fresh look at the specs for the 25 projects it studies each year. (REALTOR® Magazine, in the past, has limited the number of projects it included in its coverage.) The cost-to-construct figures (which include labor, material, subcontractors, and gross profit) are higher than in previous years, but also more accurate. (Read full project descriptions at www.remodelingmagazine.com.) The estimates of resale value are also more accurate than ever before (see “Survey confidence is high,” below), thanks to the more than 2,000 members of the NATIONAL ASSOCATION OF REALTORS® who completed Remodeling’s e-mail survey this past summer. In addition, the report introduces nine regional averages, following the divisions established by the U.S. Census Bureau. This breakdown provides higher confidence levels than could be achieved with the four larger U.S. regions measured in previous years. What the numbers meanWhen comparing cost estimates for actual projects, remember that averaging tends to have a leveling effect on “Job Cost” data. And, seemingly small differences in size, scope, or quality of finishes can dramatically affect the final project cost. Remember, too, that, even in neighborhoods in the same city, local conditions can affect both the cost and value of a remodeling project, making our numbers appear too high or too low. In an actual real estate transaction, the “cost recouped” for a given remodeling project depends on a variety of factors. These include the condition of the rest of the house, the value of similar homes nearby, and the rate at which property values are changing in the surrounding area. A home’s urban, suburban, or rural setting also affects its value, as does the availability and cost of new and existing homes in the immediate vicinity .

Nancy@NancyMAlexander.com
www.StoneHarborRealtor.com