Featured In This Issue

Special Days and Events
Existing-Home Sales Show Strong Gain In December
Four Ways to Find a Contractor You Can Love
Cooking Corner

Special Days and Events

February 2 – Groundhog Day
February 3 – Patient Recognition Day
February 8 – Boy Scout Day
February 14 – Valentine's Day
February 16 – President's Day
February 17 – Random Acts of Kindness Day
 

The birth flower for February is the Violet. The birth stone for February is the Amethyst.

Existing-Home Sales Show Strong Gain In December

Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors^®.

Existing-home sales - including single-family, townhomes, condominiums and co-ops - jumped 6.5 percent to a seasonally adjusted annual rate¹ of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million-unit pace in December 2007.

For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.

Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. "It appears some buyers are taking advantage of much lower home prices," he said. "The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future."

Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply² at the current sales pace, down from a 11.2-month supply in November.

Yun said the market is underperforming and hurting the broader economy. "We've added 25 million people to our population over the past decade and housing affordability conditions are the best we've seen since 1973, but household formation is much lower than expected," he said. "Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery."

The national median existing-home price³ for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it's an excellent time for first-time home buyers with good jobs. "The typical buyer plans to stay in their home for 10 years, which is the correct approach in today's market," he said. "With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who've been on the fence should take a closer look at today's market."

McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29 percent in December from 6.09 percent in November; the rate was 6.10 percent in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12 percent.

Single-family home sales rose 7.0 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4 percent below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9 percent to 4,349,000.

The median existing single-family home price was $174,700 in December, down 14.8 percent from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5 percent below 2007.

Existing condominium and co-op sales increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4 percent below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0 percent to 563,000 units.

The median existing condo price⁴ was $181,400 in December, down 18.3 percent from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2 percent below 2007.

Regionally, existing-home sales in the Northeast slipped 1.4 percent to an annual pace of 720,000 in December, and are 14.3 percent below December 2007. The median price in the Northeast was $235,000, which is 7.8 percent lower than a year ago.

Existing-home sales in the Midwest increased 4.0 percent in December to a level of 1.04 million but are 10.3 percent below a year ago. The median price in the Midwest was $140,800, down 11.4 percent from December 2007.

In the South, existing-home sales rose 7.4 percent to an annual pace of 1.74 million in December, but are 11.2 percent lower than December 2007. The median price in the South was $158,600, which is down 8.0 percent from a year ago.

Existing-home sales in the West jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago. The median price in the West was $213,100, down 31.5 percent from December 2007.

Reprinted from REALTOR® Magazine January 2009 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2009. All rights reserved.

Four Ways to Find a Contractor You Can Love

(ARA) – When it comes to sheer potential for relationship disaster, the worst in-laws in the world can’t compare to a shady contractor.

Hire a questionable contractor and you could be setting yourself up for serious heartache. Find a contractor you can love and you’ll be building the foundation of a lasting, happy relationship – not to mention the home of your dreams.

But the numbers show that many Americans have difficulty finding reputable contractors. In fact, the Better Business Bureau logged more than 9,600 complaints against contractors in 2006. Of the 3,800 different categories of complaints accepted by the BBB, those against contractors rank lucky 13 in terms of prevalence.

Here are four steps towards building a lasting, happy relationship with a quality contractor:

1. Run From . . .

Despite the volume of BBB complaints logged against certain contractors, most are honest and operate within the law. The Federal Trade Commission offers the following tips for recognizing a contractor who possibly isn’t on the up-and-up:

• Beware of signs such as soliciting door-to-door, only accepting cash, not having a listed business number in the local telephone directory, or offering to do your project with materials "leftover" from a previous job.
  
  
• Watch out for contractors who want you to obtain required building permits or find them new customers (some will offer discounts if you find them new business).
  
  
• If the contractor is offering something that seems too good to be true – like exceptionally long guarantees or offering to do your home as a "demonstration" – it probably is too good to be true.
  
  
• Finally, if a contractor pressures you for an immediate decision to hire him, or to borrow money for the project through his preferred lender, you may want to take your business elsewhere.

2. Check Them Out

Don’t hesitate to check out the background of the contractor you’re considering for your job; he won’t be offended if he has nothing to hide. Likewise, find out if he intends to subcontract some work, and do a background and financial check of those contractors as well. Fortunately, there are a number of resources with information on contractors, from the BBB to Web sites that maintain databases of contractors, such as ContractorCheck.com.

Launched by Experian, the company known for its credit reporting and protection services, ContractorCheck allows consumers to search for contractors in their area, check a specific contractor’s business background and avoid contractor fraud. For each contractor in the database, consumers can check to see if he is bonded, the status of his business license and insurance, how long the company has been in business, and if the contractor has any judgments or liens against him. In December, the site is offering visitors up to 10 free ContractorCheck reports. Visit www.ContractorCheck.com.

3. Talk to People Who Already Love Them

During your dating years you probably "checked out" prospective dates by talking to their friends and others who knew them. You need to do the same kind of word-of-mouth research before committing to a contractor. Talk to past clients to determine how reliable, speedy and reasonably priced they think your contractor candidate is. Were they pleased with the work but thought it took too long to complete? Did the contractor deliver on-time and on-budget?

Reputable contractors maintain a list of satisfied contractors who have agreed to act as references. If your potential contractor can’t provide the names, phone numbers and e-mail addresses of past satisfied customers, you may want to ask yourself why he can’t.

4. Get it in Writing

Good contractors will give you a binding estimate in writing. They also won’t work without a written contract. The contract should clearly spell out, in easy-to-understand terms, exactly what the project will cost, what will be accomplished and the anticipated time frame for completing the job. Don’t hesitate to get an attorney to review the contract before you sign it, especially if you are dealing with a high-price-tag project.

Beware of verbal agreements; as the saying goes, in a court of law, they’re often as good as the paper they were written on.

Courtesy of ARA Content

Cooking Corner

Ingredients:

1/4 cup extra-virgin olive oil, for frying, plus more to drizzle
3 tablespoons butter
2 cups all-purpose flour
2 to 3 pounds beef chuck shoulder roast, cut into 2-inch pieces (this cut is also called chuck shoulder pot roast and chuck roast boneless)
Sea salt and freshly ground black pepper
1 bottle good quality dry red wine (recommended: Burgundy)
8 fresh thyme sprigs
6 garlic cloves, smashed
1 orange, zest removed in 3 (1-inch) strips
1/4 teaspoon ground cloves
2 bay leaves
2 1/2 cups beef stock
9 small new potatoes, scrubbed clean and cut in 1/2
1/2 pound carrots, peeled and sliced
2 cups frozen pearl onions, a large handful
1 pound white mushrooms, cut in 1/2
1/2 pound garden peas frozen or fresh
Fresh flat-leaf parsley, chopped, for garnish

Preheat a large heavy-bottomed saucepan or Dutch oven over medium-high heat with the oil and butter.

While the pan is heating, arrange the flour on a large dish. Season the cubed beef with some salt and freshly ground black pepper and then toss in the flour to coat. Shake off the excess flour and add the beef chunks in a single layer to the hot pan, being careful not to over crowd the pan, you might have to work in batches. Thoroughly brown all of the cubes on all sides. Once all the meat has been browned remove it to a plate and reserve.

Add the wine to the pan and bring up to a simmer while you scrape the bottom of the pan with a wooden spoon being sure to loosen up all those tasty bits. Once the wine has gotten hot add the browned meat, thyme, smashed garlic, orange zest strip, ground cloves, freshly ground black pepper and salt, to taste, bay leaves and beef stock. Bring the mixture up to a boil and then reduce the heat to a simmer and cook uncovered until the liquids start to thicken, about 15 to 20 minutes. Cover and cook on low heat for 2 1/2 hours.

After 2 hours add halved potatoes, sliced carrots, pearl onions and mushrooms, along with a pinch of sugar to balance out the acid from the red wine. Turn the heat up slightly and simmer, uncovered, for 30 minutes more, until the vegetables and meat are tender. Add the frozen peas during the last minute of cooking. Season with salt and pepper and remove the thyme sprigs.

To serve, place the stew in a soup bowl, garnish with parsley, and drizzle with olive oil.