Housing market could be at a crossroads
September 26, 2009
The housing market could be entering a crucial phase as it hopes to place a bottom in home prices. This past week, two critical reports on the housing market sent mixed messages to the real estate industry regarding the potential for a continued rebound in home sales for the balance of the year and into 2010. The countdown to the expiration of the government tax rebate for first time home buyers is also fast approaching and their remains little consensus as to what role the government looks to take in potentially extending or enhancing the present program.
Home sales are a critical element in helping to bring the country out of the current recession. The government has been closely involved in attempting to stabilize the real estate market, as this helps to bring certainty to both Main Street and Wall Street. Prior to the month of August, the housing market has posted four consecutive months of better than expected home sale reports. The improvement in the resale market for housing has been one of the bright spots over the summer, and a real confidence boost for the market. This past month that streak came to an abrupt ending. For the month of August, home sales declined, sending renewed concerns through the industry. The market also has had an opportunity to review the new home sales report this past week. New home sales, posted another month of increases, but the report was less than overwhelming to many experts.
Financial experts have been hopeful that the combination of super low interest rates and unprecedented tax incentives would fuel a housing rally. The markets have improved, but at a much small pace than a number of economists were hoping for. The indication of a decline in home sales could be a significant red flag that real estate market faces significant challenges in the near future. The potential for the elimination of the tax rebate will hang over housing for the balance of the year, until the government either extends the current program or announces they are not planning to extend or enhance the current program. Industry experts believe that the current tax rebate is one of the key elements to helping push home sales higher over the summer, and elimination of the tax rebate could prove damaging to home sales.
The housing market is still under pressure from home foreclosures which have show no sign of slowing down. Bank repossessions and home foreclosures are quite damaging to the real estate industry as they drive down home values and add excess inventory which further suppresses home values. The government’s loan modification programs have had minimal impact in slowing the rate of home foreclosures, despite a pledge to help four million households over the next two years. The government has struggled to manage the process as home owners are waiting months to find out options from their lenders and servicers.
The housing market certainly faces an uphill battle for the balance of the year. The labor market and lack of confidence are huge obstacles the market will have to overcome, if the government removes the tax incentive than it is not unlikely to expect home sales to drop off sharply into the fourth quarter of this year.
Plan ahead this Fall and have your chimney cleaned
September 20, 2009
Soon the leaves will begin to change colors and the weather will steadily get colder across the country. The beginning of Fall is one of the greatest seasons to enjoy time outdoors and put the final touches on your home improvement projects as we head into the winter months. Homeowners often begin to plan weatherizing their home and explore ways to conserver energy. One of the most important item on a homeowners to do list should be the proper cleaning of their chimney system before it begins to get regular usage. Home chimneys and fireplaces are one of the most desirable features many home owners choose when buying or building a home. The allure of a warm fire on a cold winter evening can help to knock the chill out of the air and help pass the winter months easier.
Chimneys require regular inspection to ensure they are free of build up and deposits. The process of burning a fire leads to a build up of material called creosote. This material tends to gather at or above the flute of a home chimney. Over an extended period of time, creosote can reduce the ability for carbon monoxide to escape from your home. The potential for a home fire is also significantly increased when you have a fireplace. The buildup of creosote in your chimney liner can be extremely dangerous. This substance can become highly flammable and burn at temperatures well above one thousand degrees, creating an enormous fire hazard when left unchecked. The best way to prevent creosote from becoming a danger in your home is to have your furnace inspected and cleaned on an annual basis if you are routinely burning wood in your fireplace. During the chimney and fireplace inspection, a qualified inspector may inspect the following items:
• Inspect the condition of your flute system, the component that regulates air flow in and out of your chimney
• Utilize a camera to take pictures of your chimney walls to verify the level of buildup
• Examine the exterior of the chimney, looking for signs of cracks, missing mortar or animal nests
The cost for a chimney inspection is generally in the fifty to one hundred dollar range. Expect the cleaning costs to range between one and three hundred dollars. One of the most overlooked items that a qualified inspector can help to uncover is cracks in the chimney that could allow for carbon monoxide gas to return to into your home. This is a great time of year to have your chimney inspected and help prepare for a safe winter and peace of mind in using your home fireplace. You can review additional chimney safety tips from the chimney safety institute online by visiting their website.
Home insulation tips and energy conservation
September 12, 2009
Following up on our recent article on purchasing or replacing a furnace before the colder weather arrives, we can stay in the same ballpark and review some energy cost savings while reviewing opportunities to reinsulated or better insulate your home, or if you are in the process of building a new home review some guidelines to help you properly insulate your property.
Insulation is an important part of energy conservation and is equally important for properties located across the country. The planning for insulating a new home is critical to ensure energy efficiency and energy cost savings. If you are remodeling an existing home and exploring a re-insulation process, then having some basis guidelines will help to ensure you are utilizing the appropriate materials and can maximize your budget.
When reviewing an insulation project you will want to pay close attention to the R-Value. The R-Value, which refers to as the products ability to resist heat flow. The higher the R-Value of the installation, the more energy efficient this product is and the result should equate to a reduced loss in energy.
There are three basic materials that are used for insulating a home:
• Fiberglass
• Foam
• Cellulose
There are generally two areas you will need to address when insulating your home. Your ceiling and your walls. The easiest area in your home to insulate is typically your ceiling, which also should afford you the most choices when exploring insulating products and materials. Fiberglass insulation is generally the most utilized for insulating a home ceiling. This product is generally applied in rolls or large sheets and can be attached in between your homes framing. If you are exploring re-insulating your ceiling you can choose from a wide variety of insulating products, including foam and cellulose. If your insulating project involves re-insulating your walls, your options will become more limited based on your budget and housing style. The most common method for re-insulating a homes walls is through a blown in insulation foam material. This allows you to virtually seal all of your homes drafts and leaks, while reducing condensation buildup. The process of insulating your walls becomes more complex, based on your homes design and age, but the long term benefits can be exceptional for energy savings. One extra benefit to re-insulating your walls with a foam based product, is you will notice an improvement with the reduction of noise that can penetrate your walls.
Insulating a home can be a great way to reduce your properties energy expenses. The process of re-insulating can vary depending on your home size, age, and budget. With all home improvement projects, you can attempt to tackle the job on your own or work with a qualified contractor. If you are thinking of re-insulating your home, it never hurts to get a free estimate and expert opinion from a recommended home improvement expert. You can also utilize the government’s energy savings website for further details on home insulation and energy savings tips.
