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Owning vs. Renting a Home | North Salem Homes

To the Editor:

Re “Owning a Home Isn’t Always a Virtue” (Economic View, July 14), which questioned incentives for homeownership:

Owning a home is one of the best ways to build financial security over the long term, providing equity accumulation and tax benefits. Homeownership strengthens communities, supports the economy and helps families build wealth — and for many people, it means gaining a foothold into the middle class. That is why owning a home has had longstanding government support.

Admittedly, lax lending and risky mortgages led to the housing market crash, but Americans have justly called for a return to safe, sensible underwriting standards. But the people have also spoken clearly and consistently about the importance of policies that promote responsible, sustainable homeownership, like the mortgage interest deduction.

Further, comparing homeownership rates in the United States to those in Switzerland, as the column did, is comparing apples to oranges; there are too many variables that influence those rates to make a fair comparison.

LAWRENCE YUN

Washington, July 16

The writer is chief economist of the National Association of Realtors.

 

 

Owning vs. Renting a Home – NYTimes.com.

What Words Should Real-Estate Listings Use? Depends on the Market | North Salem Real Estate

A strong market means homes with more sun and more views—that is, if you are going by real-estate listings.

During strong market cycles, agents tend to reference lifestyle features, including sunshine, entertainment and views, more frequently in their listings than during slow periods, says Kirsten Robertson, senior lecturer in marketing at the University of Otago in Dunedin, New Zealand, who researched language in residential property listings.

About 55% of the listings she studied mentioned sunshine and 42% referenced views during a buoyant market, compared with 41% that referenced sunshine and 26% that referenced views during a slow market.

[image]James Gulliver Hancock

Because a home’s exposure to the sun and its views aren’t things that change, the listings demonstrate that agents are homing in on different elements depending on market strength, Prof. Robertson says. That, in turn, may affect how people see the housing market as a whole. “All the language they use will influence how people will feel about a property,” she says.

Prof. Robertson and co-author Antony Doig of the University of Otago, working with experts in linguistics, examined 965 residential listings from 2001 to 2008 in Dunedin, New Zealand. They categorized the years 2002 through 2007 as buoyant market cycles, and 2001 and 2008 as slow market cycles. They then coded the listings for 13 variables, including references to emotive language, good value and sunshine; adjectives such as “bright” and “capacious” and adverbs such as “effortlessly” and “generously.” The study, “An Empirical Investigation of Variations in Real-Estate Marketing Language over a Market Cycle,” was published in Housing, Theory and Society in June 2010.

In a buoyant market, listings also were more attention-grabbing—using so-called intensifying words such as “totally,” “ultra” and “absolutely”—and more frequently referred to “you.”

Bloomberg

In a buoyant market, listings were more attention-grabbing—using so-called intensifying words such as ‘totally,’ ‘ultra’ and ‘absolutely.’

During a slower market, listings included references to “cheap” and “value” and included more emotive language to entice people to buy.

Agents also stressed that the market was a “buyers’ market” in slow periods—using terms such as “desperate” and “has to go”—to coerce people to buy, Prof. Robertson adds. Agents referenced “sellers’ market” during strong cycles, with phrases such as “not going to last” and “will sell,” to draw more people to a listing. “The more competition they got, the higher the final offer will be,” she says.

 

 

What Words Should Real-Estate Listings Use? Depends on the Market – WSJ.com.

New home sales hit five-year high, prices soar | North Salem Homes

New U.S. home sales vaulted to a five-year high in June, while other data on Wednesday showed an acceleration in factory activity in July, boosting hopes of a third-quarter pick-up in economic growth.

 

Showing no signs yet of slowing in the face of higher mortgage rates, single-family home sales increased 8.3 percent to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008, the Commerce Department said.

 

Economists, who had expected sales to advance only to a 482,000-unit rate, said buyers sitting on the fence had probably rushed into the market to lock in lower rates in anticipation of mortgage rates moving even higher.

 

“The recent increase in mortgage rates hasn’t slowed demand as long as home affordability remains high,” said Bob Walters, chief economist at Quicken Loans in Detroit. “We are, however, seeing an increased urgency from potential new home buyers as they move to secure today’s historically low rates.”

 

Though the government revised down sales from March through May by a total 38,000 units, the overall tone of the report was bullish. Compared with June last year, single-family home sales were up 38.1 percent, the largest increase since January 1992.

 

There had been worries that higher borrowing costs could crimp the housing market recovery after a report on Monday showed a surprise drop in home resales in June.

 

Mortgage rates have been rising in anticipation of the Federal Reserve starting to reduce its massive monetary stimulus later this year. According to Freddie Mac, the 30-year fixed mortgage rate increased 0.53 percentage point in June to 4.07 percent, its highest level since October 2011.

 

Still, mortgage rates, which edged lower last week, remain low by historical standards and economists, including Fed Chairman Ben Bernanke, believe the fundamentals in the housing market are strong enough to withstand the rise in borrowing costs.

 

New home sales hit five-year high, prices soar | Reuters.

Why the Fed Wants Higher Prices | North Salem Real Estate

Wealth effects merit increased attention these days. They play a fundamental role in the attempt to find recuperative power as the U.S. economy struggles to exit from the financial crisis. The Federal Reserve, however, ignores wealth effects in its current policy statements. Its formula is outcome-driven. The Fed has identified 6.5% as a target unemployment rate as long as inflation remains below or around 2.5%.

An important issue that the Fed has not discussed in detail is the idea that rising asset values in housing and the stock market will translate into more economic activity, and a speedier economic recovery—the impact of wealth effects.

Wealth effects are determined by changes in asset prices. In the U.S., two asset classes determine the intensity of wealth effects. They are housing prices and the stock market.

IN SOME SEMINAL RESEARCH, economists Karl Case, John Quigley, and Robert Shiller examined the housing sector’s wealth effect for the 37 years ending in 2012. Their findings are published in National Bureau of Economic Research Working Paper 18667. The authors determined that a major change occurred with the financial crisis that started in 2007.

Prior to the crisis, the U.S. saw decades of housing and business cycles during which housing had only a positive wealth effect. The economists’ research showed that households increase their spending when house prices rise, but there has been no significant decrease in consumption when house prices fall. The wealth effect from housing was always positive until the recent crisis period.

Tim Foley for Barron’s

But the housing crash from 2005 to 2009 introduced a negative wealth effect to the U.S. Technical measures of the response of personal consumption with respect to wealth changes—elasticities, in economics lingo—were large. The Case-Quigley-Shiller study found that real housing wealth gains in the 2001-2005 period pushed up household spending by about 4.3% and the decrease in real housing wealth from 2005 to 2009 was associated with a decline in household consumption of 3.5%.

Separate research by Neal Soss and Henry Mo of Credit Suisse published in February reached a similar conclusion. They said, “Mortgage equity withdrawals, once the main channels through which consumers generated the cash flow to spend beyond their take-home pay, show no sign of recovery following the collapse from 2006-2008. Less cash from monetized home equity implies less purchasing power and consumer expenditures, and hence a smaller housing wealth effect.”

While the Fed says its policy is focused on employment and inflation targets, the Fed decision makers know that smaller wealth effects make their job more difficult. That is why interest rates are being managed to very low levels. The Fed wants housing prices to rise in order to achieve positive wealth effects. To do that, it must make the cost of financing housing cheap and keep it cheap.

 

 

Why the Fed Wants Higher Prices – Barrons.com.

Fannie, Freddie shareholders seek $41B in damages from government | North Salem Real Estate

The 2008 decision by government regulators to place Fannie Mae and Freddie Mac in conservatorship may have been “beneficial to the economic welfare of the nation,” but it “trampled the private ownership rights” of shareholders in the company, according to a lawsuit that seeks class-action status to recover $41 billion in damages on behalf of investors. Source: bloomberg.com. – See more at: http://www.inman.com/wire/fannie-freddie-shareholders-seek-41b-in-damages-from-government/#sthash.DRKS69Qj.dpuf

 

Fannie, Freddie shareholders seek $41B in damages from government | Inman News.

How to Build a Pergola for Backyard Shade | North Salem Real Estate

Bountiful sunshine makes our gardens grow, but all living things need a little shade sometimes — especially people. These step-by-step plans will show you how to build a pergola to create your own backyard shade. The finished product will add stylish definition and shape to your yard and garden. If you’re looking to increase the amount of outdoor space you have, as well as the amount of time you can spend enjoying your outdoor space, then exterior folding arm awnings are exactly what you are looking for.

A pergola (also known as an arbor) can be an elegant entranceway over a path, a quiet place to sit, or a frame for vines to climb over a deck or patio. Our pergola plans create a structure that’s large enough to span a picnic table, but you can make the dimensions narrower and shorter so yours can serve as a garden entrance. The 6-by-6 and 2-by-8 lumber used in these plans looks great and is more than strong enough for the job. You can use thicker or thinner planks, or even peeled poles you’ve foraged. (For instructions on how to build a pergola using logs and poles, see How to Build a Pergola Using Peeled Poles.[link to sidebar])
finished pergola

Step 1: Install the Pergola Posts

Building our pergola begins with the same challenge encountered in many outdoor projects: installing a series of vertical posts at exactly the same height. The cardinal rule is to bury first and cut later. This is the best way to install your pergola posts, because it’s nearly impossible to dig a set of holes to the identical depths required for pre-cut poles.

Begin building your pergola by marking six posthole locations using spikes pushed into the ground, then dig oversized postholes that are 24 to 48 inches deep. Hoist your 6-by-6 posts — each of them 12 to 14 feet long — and tip them up and into the holes. Plumb the poles temporarily with 2-by-4 braces and, when all of the posts are in alignment, fill the holes with soil. Compact the soil around the posts using a long piece of wood. I’ve found the end of a sledgehammer handle to be ideal for this type of tamping. There’s no need to set your posts in concrete, because this pergola is self-supporting. The posts will stand solidly so long as you firm the soil all the way to the bottom of each posthole. (Want to cut your own posts and boards for this project? See Use a Portable Sawmill to Make Your Own Lumber.) install posts

Step 2: Make Pyramid Cuts

After all of the 6-by-6 posts are set solidly into the ground, you’ll need to mark and cut the tops to exactly the same height. You’ll probably appreciate some extra hands to help with this step. Start by measuring and marking the first post about 8 feet above the highest area of soil. Grab a 2-by-4 that’s long enough to span the space between the posts, turn it on its edge, and hold it parallel to the ground at the first pole’s 8-foot mark. Set a level on the top edge of the 2-by-4, maneuvering it into a level position, and then mark the second post where it’s crossed by the 2-by-4. Repeat until all of the posts are marked. This approach is the only way to get their tops perfectly level.

Post tops that have been cut square look surprisingly ugly. For improved aesthetics, trim each post with four angled cuts — 15 to 20 degrees from square — using a hand-held circular saw. You’ll find 6-by-6s too thick for a standard circular saw to chew all the way through, but that’s OK. Just make four angled cuts — one from each side of each post — then complete the cut with a handsaw. Your post top will then have a pyramid shape. Saw marks look ragged, so refine them with a belt sander spinning an 80-grit abrasive. Tedious? Yes. But trust me — it’s worth the results. make pyramid cuts

Step 3: Place the Crossbeams

Now that your pergola posts are up and trimmed, it’s time to fasten the three 6-by-6 crossbeams to them. At this point, you can remove the 2-by-4 braces from the posts. Measure the distance between the outer faces of the posts, then cut the three main crossbeams you’ll need to span them. Allow 12 1/2 inches for overhang on each end (see our lap joint drawing under Step 4 for precise measurements). Cut the crossbeams to length and trim the ends with pyramid cuts (as you did with the post tops).

Use the helping hands you’ve recruited plus props to temporarily hold up the crossbeams with scrap lumber, make sure the beams are level, and mark the place where the posts and the crossbeams overlap on the outer faces of both. You could just mark the spot using a tape measure and level, but beware — bows or bends in the beams could prevent the joints from fitting together well.

Step 4: Shape the Lap Joints

Lap joints are the way you’ll connect the posts and crossbeams. A lap joint is simply a pair of interlocking notches that fit together like Lincoln Logs. Wherever your posts and beams overlap, that’s where you’ll need a lap joint for support. Prepare these joints by making multiple cuts with a circular saw every quarter-inch or so, then knocking out the remaining chunks of wood using a mallet and chisel (see the illustration in Step 2). You’ll need to do this work with the posts installed in the ground, of course, and that won’t be easy. Preparing the joints on the crossbeams will be much simpler, because you can support them on sawhorses while you’re sawing and chiseling.

Note that a standard, 7 1/4-inch circular saw makes cuts only about 2 1/4 to 2 1/2 inches deep — too shallow to produce a lap joint groove halfway through a 6-by-6. A better and easier approach is to make offset lap joints that aren’t flush but have about a seven-eighths-inch offset. The effect looks pretty good when you position the overhanging faces of the crossbeams on the outside faces of the posts. (Study the lap joint diagram here.)

Read more: http://www.motherearthnews.com/diy/how-to-build-a-pergola-zm0z13jjzmar.aspx?newsletter=1&utm_content=06.07.13+GEGH&utm_campaign=2013+GEGH&utm_source=iPost&utm_medium=email#ixzz2VfCIUxNi

How to Build a Pergola for Backyard Shade – Do It Yourself – MOTHER EARTH NEWS.

List of improving housing markets grows | North Salem Real Estate

After dipping slightly in May, the number of U.S. housing markets on the mend increased by five, bringing the total to 263 in June, according to the National Association of Home Builders/First AmericanImproving Markets Index. 

The IMI, which includes entrants from all 49 states and the District of Columbia, reveals metropolitan areas that have shown improvement in housing permits, employment and home prices for at least six consecutive months. 

This month, 29 new markets were added, while 24 were dropped from the list. New entrants included Salinas, Calif.; Sioux City, Iowa; Chicago; Topeka, Kan.; Baton Rouge, La.; Laredo, Texas; and Philadelphia, Pa. 

“This is the fifth consecutive month in which the IMI has designated more than 70% of U.S. metros as improving,” observed NAHB Chairman Rick Judson. 

He added, “While that’s a good sign that the housing recovery is on solid footing, we know that various challenges are slowing its progress — including continuing issues with credit availability for builders and buyers, as well as appraisals that aren’t keeping up with the rising cost of construction.” 

According to NAHB Chief Economist David Crowe, it is normal to see some seasonal fluctuations regarding the IMI list. “Meanwhile, it’s worth noting that the number of improving markets is now more than three times what it was in June 2012,” he noted.

 

List of improving housing markets grows | HousingWire.

Home prices surge despite sluggish wage growth | North Salem Real Estate

As the economic recovery has sputtered along in recent years, those looking for signs of progress have focused intensely on two metrics: the unemployment rate and housing prices.

Much of the investor optimism about the economy is now being fueled by various measurements showing housing prices surging across the country. Just this week CoreLogic, one of several real estate data providers that tracks home prices around the country, reported that prices rose 12.1 percent in April compared to the period a year ago.

The Triangle market, while not experiencing double-digit growth, is also seeing solid appreciation, according to CoreLogic. Home prices, including distressed sales, increased 4.4 percent in the Raleigh-Cary market in April while Durham-Chapel Hill market increased 5.3 percent.

It can be tantalizing to view these numbers as having the finality of a company’s stock price, with sellers assuming they will now be able to get X percent more for their home.

But, in the same way that a lower unemployment rate doesn’t necessary mean an unemployed person’s job prospects have improved, the reality is more complicated.

 

Read more here: http://www.newsobserver.com/2013/06/05/2941459/real-deals-home-prices-surge-despite.html#storylink=cpy

 

 

Real Deals: Home prices surge despite sluggish wage growth | Real Deals | NewsObserver.com.

10 Tips to Create Killer Social Content that Gets You Found | North Salem Realtor

It’s no secret that in today’s business world, companies must constantly produce new content. But are you producing quality social content with a WOW factor that gets you found? The truth is it’s really not that hard to do. There are so many options to consider when it comes to creating quality content that stands out in a crowd. Blog posts, videos, eBooks, whitepapers, webinars, social media updates, Slideshare presentations…just to name a few. It just takes time, the right dedication and effort.

When done consistently and correctly, quality content will improve search engine rankings, drive new traffic to websites and nurture leads into customers for years to come. Below are 10 tips so that you can start creating killer social content with a WOW factor that gets you found!

Keep up with information relevant to your industry. Setting up RSS feeds, subscribing to industry newsletters and setting up Google Alerts on branded and non-branded keywords are all ways to keep up with news relevant to your industry. You can take these industry articles and create social content with your own spin that identifies trends your clients would be interested in reading and learning how it will affect them. For example, I might create a series of blog posts covering recent Google algorithm updates to teach potential clients about the changing needs and challenges of content marketing and SEO for their business.

Social media conversations are a reflection of your brand. Therefore, it’s important that you monitor and engage with your audience to humanize your brand and let them know you care about them and their needs. Tools such as Hootsuite and TweetDeck can help you manage, monitor and measure your social content marketing effectiveness. Below is an example of engaging social content in Twitter from Celsius, a healthy energy drink company. This is a great example of a company engaging with a customer, making this person feel important which in turn humanizes the brand.Twitter social conversation from @CelsiusOfficial

Gone are the days when content is just written by CEOs and managers. Everyone in your company can write social content around their individual areas of expertise. Create an editorial content calendar that maps out who writes what and when. An editorial calendar really keeps things organized and lays out your content strategy and plans. My area of expertise is SEO and content marketing, so I contribute blog content around topics such as how social media affects SEO results and Pinterest marketing tips. You could have your sales staff create a short video series on how best to choose the products and services you sell. You might even post Q&A with some of your customers like IT business and consulting services firm Tribridge did and how they benefit from your products and/or services.

When it comes to writing, sometimes you just feel tapped out for ideas. Or maybe you have an idea or concept but don’t know how to put it into words at the moment. Keeping a content backlog helps to save your ideas so that you can come back to them at a later time and write then. Keep bullet lists, product reviews, videos, photos, how-to guides and interviews in your backlog so you can write more social content pieces at a later date.

It’s perfectly alright to take content you’ve written in the past and republish it as a fresh, new piece. It saves time, resources and provides an updated spin on a topic. Add a short video and provide updated content to an old whitepaper. Use questions taken from a webinar or presentation to put together an eBook. Turn videos into blog posts or a blog post series. Turn one piece of social content into as many formats as possible – turn a whitepaper into a YouTube video, a shortened Slideshare presentation, a blog post series, a webinar. The possibilities are endless!

 

10 Tips to Create Killer Social Content that Gets You Found | Find and Convert.

Family facing foreclosure wins lotto | North Salem Real Estate

The best loss mitigation tool is winning the lottery.

CBS-Chicago recently told the story of Ricardo Cerezo out of Illinois.

Cerezo and his wife were about to lose their home to foreclosure when the pair discovered old lottery tickets stuffed into a cookie jar.

Cerezo’s wife told him to check the numbers or throw the tickets away.

Luckily, Cerezo checked his numbers —  a move that resulted in millions of earnings overnight.

 

Family facing foreclosure wins lotto | HousingWire.