Carbon Monoxide dangers

NEVER heat your home with your oven. May I repeat...? NEVER heat your home with your oven. But if you do...be sure to call this HVAC repairman first: http://www.thenewsroom.com/details/3233796

...oh...and get a Carbon Monoxide Detector.

September 2008 Home Sales in Williamson County, TN

The numbers for home sales in September 2008 were released by the Williamson County Association of REALTORS® today. As expected, the volume of home sale transactions continued to be lower than this time in 2007. There is little doubt that the issues effecting the economy and Wall Street are having a substantial impact on the ability of Buyers to buy and Sellers to sell. However, the number of closings remains consistent with the typical annual patterns proportionate to the 2008 real estate trends (see graph "Williamson County Single Family Closings").


The market always slows in September after schools begin as many families make moves during the Summer months, and this year the dip in sales from August to September is about the same percentage as in 2005 and 2006, and actually less dramatic than 2007. So what does that mean? Well, as far as the number of transactions, basically the housing market in Williamson County seems to be doing what it always does...there are just fewer transactions, or overall volume is down.

The pattern of growth and consistency in pricing compared to the two previous years was broken in September 2008 (as it was in April 2008) with this month showing a decline of 6.5% in median home values compared to the same month in 2007 and down 8% from the September in 2006.


The most interesting comparison to me however is in the return to the median home value patterns of 2005. Looking specifically at the flow of the median price in 2005 and 2008 (see chart "Williamson County Single Family Median"), they are very similar just offset by one month. The low median price in 2005 occured in March and the high in July, while in April and August of 2008 respectively.

You might also note that while the median home value is down compared to 2006 and 2007. It is up 19% compared to September of 2005. That's an average return of 6.3% per year and while not a huge annualized return, home values in Williamson County continue to be a solid long term investment.

Secrets of an Energy Efficient Home

Wondering what you can do about the higher energy costs expected this winter? Prepare now by making your home more energy efficient and keep your energy costs down. Forbes.com has some suggestions:

1. Install Compact Fluorescent Bulbs by replacing Incandesent Bulbs



2. Insulate by filling cracks with caulk or expanding foam.



3. Use solar film on windows to lock in heat during the winter months.



4. Consider alternative heating sources like a pellet stove.



5. Install a programmable thermostat.



6. Shop your energy provider (not available in all states)



7. Change your HVAC filters and/or have your HVAC serviced



8. Use your microwave to cook



9. Hang dry your clothes

See specific details regarding these suggestions online at Forbes.com

Nashville Housing Market Good... (WKRN News Video)

While the volume of home sales in the Greater Nashville Area is down, home values are remaining consistent. The median sales price of single family homes in 2008 according to GNAR has ranged from a low of $168,000 (Feb '08) to a high of $189,975 (May '08). August's numbers showed a median sales price of $177,500. These types of fluctuations are a normal part of the annual real estate cycle.



Areas of the Nashville market continue to show growth and rising prices. Williamson County is seeing positive growth as WCAR reported the August 2008 Median Sales Price of single family homes to be $385,000. That's up almost 5% from August of 2007 and up 4% from August 2006 when it was $370,000.



Having said all of that, Sellers must realize that there are in fact fewer Buyers able to make home purchases at this time. September has had a number of events effecting the housing market and we'll see the statistical results of those events as they are released.

THDA Media Announcement

404 James Robertson Parkway,

Suite 1200
Nashville, TN 37243-0900 www.thda.org

News Release

Offers Flexibility to Homebuyers
REALTOR® Jeremy Pittman Learns THDA Mortgage Program

NASHVILLE, September 17, 2008 – Jeremy Pittman, a REALTOR with Keller Williams® Realty attended training on the Homeownership Choices Program from Tennessee Housing Development Agency (THDA) at the Williamson County Association of REALTORS® (WCAR®) office on August 19. Debbie Reeves, THDA Director of Business Development, taught the class.

THDA makes mortgages through local lenders to first-time homebuyers. It has been in business for 35 years. Its mortgage rates are generally more affordable to first-time buyers of moderate- to low-income ranges. The mortgage funds are generated by the sale of tax-exempt mortgage revenue bonds.

“Many families can be successful homeowners with a lower interest rate,” said Reeves. “The 30-year fixed rate is a strong foundation for a predicable budget. THDA does not offer adjustable rate mortgages.”

Down-payment and closing cost grants are available with THDA mortgages. The buyer can choose a grant equal to 2 or 4% of the acquisition cost, but a higher interest rate is charged. Persons choosing the grants are required to take an eight-hour homebuyer education class.

“Buying a home is the largest investment many of us make,” said Pittman. “Homebuyer education is a sensible choice for all buyers.

“We have many homes available right now that fit the THDA purchase limits,” said Pittman. “Buyers can choose a single family home, a duplex, or a condominium. It’s really a very flexible program. I hope buyers will call me at 615-469-1412 to talk about the possibilities or visit my website at www.JeremyPittman.com and request the FREE book Your First Home.”

Jeremy Pittman has been a REALTOR® with Keller Williams® Realty for 3 years and has been awarded top honors during his tenure as a real estate professional. He serves Williamson County and the surrounding areas. Additionally, Jeremy gives back to the citizens of Williamson County as the Chair of the WCAR® Scholarship Committee, helping to award scholarships to deserving high school graduates. He earned 4 hours of continuing education credit by participating in the THDA class.

More information on THDA is available at www.thda.org, including a list of area lenders that work with the program.

***
THDA is a political subdivision of the State of Tennessee. THDA is the state’s housing finance agency, responsible for selling tax exempt mortgage revenue bonds to offer affordable mortgage funds to homebuyers of low and moderate incomes through local lenders, and to administer various housing programs targeted to very low-, low- and moderate-income households.

THDA was established in 1973, making its first mortgage in 1974. It has provided affordable fixed rate mortgages to over 99,000 households without using state tax dollars. THDA issues between $250 and $300 million in mortgage revenue bonds annually for its first-time homebuyer program.

In the year 2007, THDA created the Tennessee Housing Trust Fund using state, THDA and locally-generated match to support programs for the very-low income, elderly and special needs populations.

More information about THDA is available on-line at www.thda.org.

Quick Take on the Economy: August 26, 2008

Copyright National Association of REALTORS®, Reprinted with permission.

Economist's Commentary: August 26, 2008
Quick Take on the Economy: August 26, 2008

By Lawrence Yun, NAR Chief Economist

New Home Sales

New home sales scratched out a gain of 2.4 percent in July. The latest sales figure of 515,000 is 35 percent below a year ago and far below the 1.2 million sales set in 2005.

The median transacted price was $230,100, 6.3 percent below a year ago. There is very little pricing power with the very high overall inventory of homes - both new and existing - on the market.

Because of the continuing cutback in production by builders, the total new homes for sale have been trending down for the past two years. Inventory fell to 416,000 in the latest month, much lower than 537,000 in 2006 and getting close to "normal" inventory levels. The months supply, however, reamins high at 10.1 months because of soft sales activity.

OFHEO Home Price

OFHEO reported its latest price trend and showed no change in home prices from May to June. However, because of declines in the earlier months, home prices are down 4.8 percent from one year ago nationally. OFHEO primarily covers mortgages that are prime loans.

Prices rose respectably by better than 3 percent over a one year time period in 12 states with Oklahoma and Wyoming leading the way.

Prices fell by double-digits in 3 states: Florida, Nevada, and California. Arizona prices fell 9 percent. The price changes for the remaining 46 states have been less the 5 percent either up or down.

Case-Shiller Home Price

The Case-Shiller price index, which captures many of the home sales with subprime loans, fell big time. The latest price decline of 15.9 percent, which covers up to June (not July as was reported for existing and new home price), was the largest on record.

Home prices fell by more than 20 percent from a year ago in markets in California, Florida, and Arizona.

Home prices rose in 9 of the 20 markets in terms of month-to-month change. Dallas, Denver, and Boston have shown gains for few straight months. For example, a home buyer in Denver in who bought in March would now enjoy better than a 3 percent price gain in three short months.
What does today's data mean for REALTORS® and consumers?

Housing data are moving all over the map, with some good news and some continuing bad news. The fluctuating data generally signal early stages of recovery.

It is worth reinforcing the notion that all real estate is local because there are so many market variations.

Home prices are generally holding much better in neighborhoods with prime loans while price trends are weaker in neighborhoods exposed to large subprime loans.

Daily Forecast Update

NAR's monthly official forecast as of August 7 (15K PDF)
GDP Q3: 1.8%
GDP Q4: 0.6%
Unemployment rate by election time: 5.9%
Average 30-year fixed mortgage rate in December: 6.6%
Average 30-year fixed mortgage rate by mid-2009: 6.8%
The next Fed policy change: a rate hike in December 2008.

Mélange

More thoughts from Greg McNey of American Signature Mortgage...

Mélange

“Mélange” – what a pleasant sounding word (mey-lahnj). It’s of French origin and essentially means a mish-mash, a hodge-podge, a mixture. Audi has used it to name a paint color for their A6 – a browny-grayish neutral tone, which is what you get when you mix several colors together. It’s a soupy mess.

Real Estate news is often colored with that same Audi paint. While there are certainly pockets of deep, dark difficulty in several places throughout the US, there are also plenty of vivid success stories being told in cities large and small. The problem is that real estate, an absolutely local “event,” has become the stuff of national news. The stories are blending together, the dark tones overwhelming the brighter hues, and the result of this mélange of data is that browny-gray soupy mess.

Take for instance the State of Tennessee. Recently, the state ranked 17th in number of foreclosures per household. But, a closer inspection of the statistics shows
that more than half of the state’s problem lies in Memphis. Cities like Knoxville and Nashville have foreclosure rates that are less than 1/3 of what occurs in Memphis. And suburban areas, such as Williamson County in middle Tennessee, have experienced even fewer foreclosures than these larger cities. But, Williamson County homeowners and would-be buyers are hounded daily by the news that as residents of the state of Tennessee, they’re on the brink of financial ruin.

As with all news, we must consider the source and, when necessary, do our own research. When data is averaged, you get average information. Learn what’s going on in your city, your community, your neighborhood. Mélange really isn’t as pretty as it may sound – unless you’re talking about a glossy one-owner 2000 Audi A6 2.7 Turbo with low miles.

Is It a Good Deal…for Me…Now?

Some good thoughts from my friend Greg McNey of American Signature Mortgage...

Is It a Good Deal…for Me…Now?

Should I buy a home? Thanks to the tv
game show of the 1950s, we sometimes call this the $64,000 question. In truth,
its implication can be much greater and far reaching, so we often worry and
avoid making the decision.

Here’s a little tool that might help you
decide whether making a large investment such as purchasing a home is for you.
Ask these questions:

“Is it a good deal?” You have to look for a little
while to spot a bargain, but it’s a great feeling when you know you’ve found
one. Do your research, online and in person. Turn over a few stones, kick some
tires, and acquaint yourself with the market. Finding a house isn’t that hard,
finding a deal takes a little more work. Have you done yours?

“Is it a
good deal for me?” Finding a bargain on a 1,500 square foot house is meaningless
if you need 2,500. And the converse is true as well. Don’t be allured by
upgrades you don’t need or can’t use. If you’re not prepared to care for a big
lawn, the house with a manicured acre lot may not be for you.

“Is it a
good deal for me now?” Perhaps it’s a good deal, and maybe it matches your
housing needs perfectly, but if you can’t afford it on today’s income, you might
need to pass. What a person can “afford” by lending standards and what a person
is willing to “afford” by standards of personal spending may be two different
things. Even though your lender will approve your purchase, if it means
decreased spending in other areas of your life, you will have to decide if “now”
is the right time.

None of us is able to predict the future. When
decisions are to be made, you can only work with what you know now, today. Count
on it, circumstances will change, and events you didn’t expect will arise.
Still, making a decision, even if the decision is “not now,” is better than
worrying.

Tax Free Weekend

FOR IMMEDIATE RELEASE

CONTACT: SARA JO HOUGHLAND

• (615) 741-2461 (OFFICE)
• (615) 545-1745 (CELL)

SAVE ALMOST 10 PERCENT DURING THIS WEEKEND'S SALES TAX HOLIDAY

HOLIDAY PROVIDES BIG SAVINGS FOR ALL TENNESSEANS

NASHVILLE, Tenn. - The annual Sales Tax Holiday begins this Friday, providing timely savings to Tennesseans who are experiencing the effects of a slowing national economy here in the state. Shoppers can save almost 10 percent on tax-free clothing, school and art supplies and computer purchases.

The holiday begins at 12:01 a.m. on Friday, August 1 and ends on Sunday, August 3 at 11:59 p.m. During the designated three-day weekend, consumers may purchase select clothing with a price of $100 or less per item, school and art supplies with a price of $100 or less per item, and computers with a price of $1,500 or less without paying Tennessee's state and local sales tax. Visit http://www.tntaxholiday.com/ for more information on the holiday, including an audio news release available for download from Revenue Commissioner Reagan Farr.

“Since 2007, Tennesseans have saved more than $8 million by purchasing tax-free items,” said Revenue Commissioner Reagan Farr. “We are hopeful that Tennessee shoppers will continue to save during this holiday while generating business for our retailers.”

The average family will spend nearly $600 on back-to-school purchases, according to a National Retail Federation estimate. Although anyone can take advantage of the holiday, back-to-school shoppers looking to save money can save almost $50 on supplies by purchasing them during the holiday, equaling a significant portion of one visit to the gas pump.

Consumers can also save money by shopping at home and saving gas money. The holiday also includes purchases of qualified items sold via mail, telephone, e-mail or Internet if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.

Please visit the Sales Tax Holiday Web site at http://www.tntaxholiday.com/ to learn more about the items exempt from sales tax. The Tennessee Department of Revenue also offers assistance to consumers via e-mail, Salestax.Holiday@state.tn.us, and through its toll-free statewide telephone hot line, (800) 342-1003. Staff is available to answer questions Monday through Friday 7 a.m. to 5 p.m. Central Time. (Out-of-state and Nashville-area callers, please dial (615) 253-0600.)

Examples of exempt items include:

• Clothing: Shirts, dresses, pants, coats, gloves and mittens, hats and caps, hosiery, neckties, belts, sneakers, shoes, uniforms whether athletic or non-athletic and scarves
• School Supplies: Binders, book bags, calculators, tape, chalk, crayons, erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper, rulers and scissors
• Art Supplies: Clay and glazes; acrylic, tempera and oil paints; paintbrushes for artwork; sketch and drawing pads; and watercolors
• Computers: Central processing unit (CPU), along with various other components including monitor, keyboard, mouse, cables to connect components and preloaded software (Note: While the CPU may be purchased separately, other items must be part of a bundled computer package in order to be eligible.)

The Sales Tax Holiday is an ideal way to prepare your children for a successful school year, but school supplies are not all that is needed. Ensure a healthy school year for your children by enrolling them in CoverKids, Tennessee’s free health insurance program for children 18 and under. Please visit http://www.covertn.gov/ to learn more or enroll.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 fiscal year.

Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.

Checkmate

A recent article from my friend Greg McNey of American Signature Mortgage. Quite apropos given this weekend's news of the federal government's involvement in reassuring consumers of Fannie Mae and Freddie Mac.

Checkmate

A stalemate is unfolding in the local real estate market as sellers, determined to stand by their prices, line up opposite buyers, emboldened to wait patiently for values to fall further. But, while each waits for the other to blink, the threat of an increase in mortgage interest rates could change the rules of the game.

Two dynamics present in the current market, record low interest rates and falling home prices, are not commonly found together. Many believe it was historically low interest rates that helped drive housing prices higher between 2003 and early 2007. Lower interest rates meant that buyers could strengthen their buying power, purchasing more house for the same monthly payment.

However, since the middle of 2007, when buyers left the market and inventory levels rose, prices have retreated. Yet, interest rates remain in the first quarter of 2008 at the same levels they were during the first quarter of 2007. This is an unusual combination of circumstances that shouldn’t be expected to last indefinitely.
While lenders are reluctant to cool the market further, they are also finding it more difficult to secure funds to lend, and with decreasing supply comes increased pricing. Additionally, lenders are returning more and more to risk-based pricing where interest rates are determined not only by the time value of money but by the lender’s perception of the likelihood of the borrower’s default.

While major jumps in mortgage rates don’t appear imminent, even the prospect of an increase is something that should step up the negotiation between sellers and buyers. Here’s why:

How much home a buyer can afford is as much a function of the monthly payment as it is the actual purchase price since most purchases are made based on what the buyer can afford each month. If the amount of that monthly payment is a constant, then the buyer and seller are both motivated to complete a transaction before interest rates increase. A rise in rates reduces how much of that monthly payment can be allocated to principal, thereby reducing the purchase price a buyer can afford.

For example, let’s assume you intend to buy a home with a 20% down payment and plan to finance the balance with a 30 year fixed-rate mortgage. If your household can afford a monthly principal and interest payment of approximately $1,500, you should be able to purchase a home priced at $312,500. However, if the interest rate increases to 7%, you would have to purchase a home priced at $281,500 to maintain that same $1,500 monthly principal and interest payment. That’s a $31,000 and more than 10% decrease in the value of the home you can afford.

So, who will make the first move? Time will tell, but each player has a reason to act sooner rather than later to get a deal done.

Buyers, since home prices have already taken a hit, you must assess the risk of waiting for another significant drop. Even a 5% decrease in prices may not be enough to offset the affect of financing your purchase at a higher interest rate.

And, sellers, if it has been tough to find a buyer during the last few months, imagine your difficulties if the buying power of the customer base should erode.

The bottom line is, while buyers wait on sellers and sellers wait on buyers, interest rates may step in and force the discussion, but at a cost to everyone involved.