More Good News About the Housing Market

Check out last week's developments:

Mortgage applications for purchases of resale and new homes were up again -- eight percent for applications using conventional loans, and a remarkable 17 percent gain in applications to buy houses using low-downpayment FHA mortgages.

Mortgage rates remain at near historic lows, though they may be bottoming out. Thirty-year fixed rates rose a tenth of a percent on average last week, according to the Mortgage Bankers Association, to 4.7 percent. Fifteen year rates stayed flat, around four and a half percent.

A group of new consumer-sentiment polls came out showing that Americans are feeling better about their economic prospects for the first time in months. A survey of 15,000 adults by Discover Financial Services recorded a significant jump in confidence between February and March. A New York Times/CBS poll of 1,000 consumers found the same. The Times even put the results at the top its front page with the headline: "Poll finds Brightening Outlook on U.S. Economy."

Members of the National Association of Home Builders reported that shoppers' visits to look at new houses for sale are "on the rise and consumer interest is increasing.” The association also announced that more than half of all U.S. households -- 55 million of them -- can now afford to buy the median priced $200,000 new home. That's up 45 percent in the past 24 months.

Even Business Week, which has been particularly harsh on housing in recent years, ran a cover story about the turnaround getting underway -- focusing on hard-hit areas of Florida, California and Las Vegas, where sales have been rising fast and unsold inventory taking a plunge.

All of this good news may be an indication that the housing market is back on its way up!

Bill Swanson is an agent with over 20 years experience at CBSHome Real Estate, an affiliate of Berkshire Hathaway, in Omaha, Nebraska. For any and all of your real estate needs, email Bill at Bill.Swanson@cbshome.com or visit http://www.billswanson.com/ today.

10 Things Every Remodeling Contract Should Include

Entering into a remodeling contract is no different than entering into a purchase agreement.

You need to take care to make sure all the details are in writing to get exactly what you want.

The National Association of the Remodeling Industry spells out the following key elements that every remodeling contract should have:

1. The contractor’s name, address, phone number, and license number.

2. Details on what the contractor will and will not do.

3. A list of materials for the project in your contract. This includes information about the size, color, model, brand name, and product.

4. The approximate start date and completion date.

5. All required plans. Study them carefully for accuracy. Insist that you approve them and that they are identified in your written contract before any work begins.

6. Written notice of your right to, without penalty, cancel a contract within three business days of signing it.

7. Financial terms, spelled out in a way that you understand. This includes the total price, payment schedule, and any cancellation penalty.

8. A binding arbitration clause, which you’ll need in the event a disagreement occurs. Arbitration may enable you to resolve disputes without costly litigation.

9. Everything you’ve requested. Consider the scope of the project and make sure all items you’ve requested are included. If you do not see a specific item in the contract, consider it not included. Never sign an incomplete contract.

10. A warranty covering materials and workmanship for a minimum of one year. The warranty must be identified as either "full" or "limited." The name and address of the party who will honor the warranty (contractor, distributor, or manufacturer) must be identified. Make sure the time period for the warranty is specified.

Would you like more information about the value of your home and how a home project might impact its value? Feel free to contact bills.swanson@cbshome.com.

Proposed Mortgage Bill

A massive new mortgage reform bill, introduced by House financial services committee chairman, Barney Frank, has Washington real estate and banking groups buzzing.

The bill, which is expected to pass the House easily this month and go to the Senate in May, would change home mortgage lending fundamentally.

Here's how. It would discourage lenders from making anything but "plain vanilla" 30-year fixed rate mortgages with full documentation and strict underwriting.

It would require lenders that originate other types of loans to retain at least a five percent ownership stake in the loan for its full term, even if it gets sold in the secondary mortgage bond market.

If the loan ultimately went bad, the originator would own a piece of the loss -- unlike today's system, where they can sell them and forget them.

A second major change -- the bill would prohibit loan officers from receiving any fee tied to the interest rate or terms of the mortgage. During the boom years, mortgage brokers routinely were paid fatter fees by Wall Street for delivering higher-rate, higher-risk mortgages.

The bill also creates what it calls a new "federal duty of care" that would legally require lenders to ensure that a mortgage is suitable for the borrower in terms of income and ability to repay.
All refinances would have to pass what the bill calls a "net tangible benefit" test before closing. In other words, homeowners couldn't be refinanced unless the replacement loan is better for them financially than their existing loan.

Critics say forcing small and mid-sized mortgage companies to set aside capital to cover potential losses would put many of them in financial hardship.

Supporters say the 151-page bill would have gone a long way to preventing mortgage lending excesses during the housing boom, especially no-documentation, negative amortization and zero down payment deals, had it been federal law before the boom started in 2002 or 2003.

For more information on real estate and financing feel free to contact bill.swanson@cbshome.com.

Along with the Spring Flowers We Welcome Promising Numbers in the Housing Market

The good news keeps rolling in about the small but important turnaround underway in the home real estate market.

Last week's headliner was the second straight monthly gain in pending home sales -- up nearly 11 percent in the Northeast, 15 percent in the Midwest, and 4.4 percent in the Southern states.

On top of that, the ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.

Bottom line is that median priced houses haven't been more affordable to more households in decades!

Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.

Meanwhile, there were other positive economic signs popping up like spring daffodils. For example, both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains. Both, however, remain at low levels in comparison to non-recession periods in past years.

Also, Consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.

All in all, not a bad set of reports in the middle of an economic recession and financial crisis.

It all points to much better days for real estate as we proceed through the year.

For information about finding or selling a home feel free to contact bill.swanson@cbshome.com or visit www.billswanson.com today.

Here Comes Peter Cottontail...

Easter Extravaganza at Lauritzen Gardens

Saturday, April 11, 9 a.m. to Noon

Come to the Gardnes for a very special Easter celebration in the garden! Children's "carrot craft" activities and photos with the Easter Bunny precede a unique egg hunt in the garden's arboretum.

The café will open at 9 a.m., allowing visitors to grab coffee or breakfast before starting on all the exciting activities.

9 to 11 a.m.

Children's "carrot craft" activities featuring garden and Easter themes in the great hall

Photos with the Easter Bunny in the floral display hall

Spring stories in the children's classroom

11:10 a.m.

Egg hunt in the arboretum

The egg hunt will be divided into three age groups:

- "Crawler Corral," Ages 3 and under

- Ages 4 to 6

- Ages 7 and up

Due to limited capacity, advanced registration is required for any and all of the activities.

Please RSVP to (402) 346-4002 ext. 262 or m.sears@omahabotanicalgardens.org by end of day Thursday, April 9.

Nebraska the nation's "Happiest" state!

It's true folks!

I am happy to report that Nebraska has been voted the nation's happiest state according the first ever "Happiness Index" study by Mainstreet.com.

Click on the link below to watch the report from Good Morning America! It truly is "the Good Life"!

The Happiest States (Financially)
http://abcnews.go.com/GMA/story?id=7264863&page=1


Bill Swanson is an agent with over 20 years experience at CBSHome Real Estate, an affiliate of Berkshire Hathaway, in Omaha, Nebraska.
For any and all of your real estate needs, email Bill at Bill.Swanson@cbshome.com or visit http://www.billswanson.com/ today.

Greek fisherman nets 2,200-year-old bronze statue

ATHENS, Greece – A Greek fisherman must have been expecting a monster of a catch when he brought up his nets in the Aegean Sea last week.

Instead, Greek authorities say his haul was a section of a 2,200-year-old bronze statue of a horseman.

A Culture Ministry announcement said Monday the accidental find was made in waters between the eastern islands of Kos and Kalymnos. The fisherman handed over the corroded metal figure to authorities, who have started the cleaning process.

Dating to the late 2nd century B.C., the statue represented a male rider wearing ornate breast armor over a short tunic and armed with a sheathed sword. The trunk of the horseman and his raised right arm have survived.

Need more useless information? Just stay tuned for more of Bill's blog...