Archives for November 2011

Housing Affordability Hovers Near Record Levels

232_img_locnUltra-low interest rates mixed with stabilizing home prices continued to push housing affordability in the third quarter near its highest levels in more than two decades, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index.

For the third quarter, 72.9 percent of all homes sold were affordable to families earning the national median income of $64,200, according to the index. This marks the 11th consecutive quarter that the affordability measure was above 70 percent; prior to this it rarely was above 60 percent.

"With interest rates at historically low levels and markets across the country beginning to improve, home ownership is within reach of more households than it has been for nearly two decades," Bob Nielsen, chairman of the National Association of Home Builders, said in a statement. "However, tough economic conditions — particularly in markets that experienced major changes in house prices and production — as well as extremely tight credit conditions confronting home buyers and builders continue to remain significant obstacles to many potential home sales."

The most affordable major housing market nationwide? Lakeland-Winter Haven, Fla., in which 92.5 percent of all homes sold were found to be affordable to households earning the median family income of $53,800 for the area. Other affordable major markets included Toledo, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; and Ogden-Clearfield, Utah. For smaller housing markets, Fairbanks, Alaska, ranked the highest, in which 97.8 percent of homes sold during the third quarter were found to be affordable to families earning the median income of $91,700.

Meanwhile, the least affordable major housing market continues to be New York-White Plains-Wayne, N.Y.-N.J., in which 23.3 percent of all homes sold were affordable to those earning the area’s median income of $67,400.

Source: National Association of Home Builders

Fannie Mae and Freddie Mac are often just misunderstood

freddie_fannieFannie and Freddie – misunderstood?

“The mortgage giants Fannie Mae and Freddie Mac are not blameless in the foreclosure crisis, but the case against them is also often misunderstood and exaggerated,” opines Kevin Park, a doctoral student at the University of North Carolina at Chapel Hill in a piece about the history and evolution of the two government sponsored entities (GSEs) in modern times.

Three years ago, Fannie and Freddie were placed into conservatorship under the Federal Housing Finance Agency and Park notes that together, the two institutions hold roughly $5.3 trillion in home mortgages.Various efforts have been made to wind down or abolish Fannie Mae and Freddie Mac with those efforts accelerating as the two steal headlines over the FHFA approved nearly $13 million in bonuses to Fannie and Freddie execs just days before quarterly reports were released, revealing that Freddie Mac who lost $4.4 billion in the third quarter requested an additional $6 billion, while Fannie Mae lost $5.1 billion and requested an additional $7.8 billion.

Questionable cause of Fannie & Freddie’s failure

Park argues, however, that Fannie and Freddie aren’t exactly the bad guys in the housing market. It looks like they’re going to be the scapegoat though, according to Park’s take on the GSEs.  ”The causes behind their failure have been and will continue to be much debated. Below is a discussion of facts related to Fannie and Freddie’s role in the current housing crisis. The accumulation of evidence suggests that profit, not policy, pushed these players like many others into treacherous territory and risky products not borrowers led to their collapse.”

Park’s full argument is below and features insightful charts and easy to understand language:

Negative Equity: How Many Loans are Underwater in Your State?

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Home equity has become a thing of the past for millions of homeowners. Nearly 11 million, to be precise. That’s the number of properties nationwide that had negative equity at the end of the second quarter of 2011, according to market research firm CoreLogic. Using their data, we’ve illustrated the number and percentage of “underwater” properties (a common term for those with mortgage loans that are larger than what the property is currently worth) in the United States. Hover over each state for the details.

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10 Ways To Cut Your Energy Bill This Winter

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Brrrrrrr! The weather’s getting colder (some cities have already seen snow!) and that means that many of us will soon be seeing a big spike on our monthly electricity bills. But it doesn’t have to be that way – there are plenty of simple ways to minimize the amount of energy needed to heat your home and save a bundle of cash doing it. From properly insulating your house to simply dressing for the season, check out our 10 easy tips to cut your home’s energy use – you’ll thank us when you receive your next electricity bill!

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Get an energy monitoring device/power strip to understand where you are using the most energy

It’s hard to cut down on your energy when you don’t even know how much you use. That’s why we recommend getting an energy-monitoring device like this Kill-a-Watt that will allow you to visualize and quantify how much electricity you’re actually consuming. At about $20, this smart little device can save you hundreds – a nice return on investment if you ask us.

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Get a smart power strip and/or start to unplug electronics that aren’t in use

Just because you aren’t using a charger, television or computer doesn’t mean it isn’t still sucking up electricity (and costing you money). If you saw that your faucet kept running water even though you’d turned it off, you would probably do something about it and your electrical outlets should be no different. One way to deal with the problem is to simply unplug your electronics when they aren’t in use, but if that seems cumbersome, you can get an eco powerstrip which automatically cuts off the supply of electricity to computers and other gadgets when they are off.

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Use blinds, shades & window treatments effectively

You may not realize it, but you can significantly warm a room (or cool it down) by what you choose to do with your window treatments. During the daytime, if you have bright sunlight coming directly through your window, this will heat up a room significantly. If you want to heat up the room (say it is winter), roll those blinds up and let in the light! Likewise if it is summer and you are trying to cool this same room down, roll a thick, sunlight blocking shade over the window. If you are trying to keep a room warm at night (like a bedroom), put the shades or curtains down, so that heat doesn’t leak out the windows.

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Turn down your heat and hang out in the kitchen when you cook and bake

There’s nothing that can take the winter blues away like some hot soup or delectable baked goodies and if you’re going to be turning on your oven any way (presumably you use that stove relatively frequently?), why not turn off your heat and hang out in the kitchen for a bit? Back in the olden days, people used to huddle near their hearths for warmth, and there’s no reason why we can’t follow their lead. It’s true that our ovens need electricity (or gas) to operate too, but if you’re going to be whipping up some cookies, cakes, soups or casseroles anyway, might as well repurpose all of that hot air to keep yourself warm too. Besides the money you save by not double heating your home, the sweet and savory smells wafting through the air are another nice incentive!

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Seal up all of those home leaks with insulation

As we learned in our Green Home Expert Series from organic architect Eric Corey Freed, you can never have too much insulation – the more the better! Typically, ½ of your home’s heating and cooling (a huge chunk!) will escape through walls, windows, the floor and the roof, so if you don’t have proper insulation in those spots, you’re going to be spending a lot more to heat your home than is necessary. After you find out where your heat is leaking from (using the infrared gun we described on the page before this), spend some time bulking up on your insulation in those spots. Click here for different types of insulation and where they should be applied.

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Invest in well-insulated, super-sealed windows

Single pane windows are so 1960s and many homes leak most of their heat out of windows. In order to minimize the amount of toasty winter heat leaking out of a drafty window, make sure that all of your glass is at least double-paned. Triple pane or double pane with argon or some sort of insulation material between the glass is even better. Equally important to this is that the trim of the window around the glass is sturdy and well insulated, so that you do not have just a layer of metal between you and frigid winter air.

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Dress for the weather and turn your thermostat down a few degrees

This may seem like a no-brainer, but you can save a ton of cash if you simply dress a little warmer during the colder months. If you get in the habit of wearing sweaters, slippers and blankets around your home, you can turn your thermostat down a bit and still be completely comfy. It’s winter – dress for it!

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Get an energy audit (or Do It Yourself with a spot thermometer / infrared gun)

Getting an energy audit is a lot like getting a check-up at the doctor – a professional auditor can check out your whole home to spot any problem areas where heat could be leaking out, and recommend exactly what you can do to fix them. And while we wouldn’t recommend WebMD-style self-diagnosis for your health issues, if you want to take a stab at DIY energy auditing using a spot thermometer or infrared gun, we say go for it! These handy tools detect exactly where your home is leaking heat so that you can patch up those areas with insulation.

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Switch all of your light bulbs to LEDs

When the days get shorter we end up switching on our lights a lot earlier than we would in the summer, so it’s more important than ever to make sure your bulbs are as energy-efficient as possible. Our recommendation? Go with LEDs. You may have heard that CFLs were the way to go a few years back, but that is so 2007! LEDs are the future of low-energy lighting, and the future is finally here. High quality LED bulbs can now be found at many major retailers at reasonable costs. Not only are there LED bulbs now that consume 80 percent less energy and last 25 TIMES LONGER than incandescent, they’ve been much improved over LEDs of a few years ago, and are now designed to provide soft, warm ambient light, rather than the harsh bluish light that was common with LEDs a few years back. One more tip regarding LED bulbs – brace yourself and don’t go into sticker shock when you realize tha
t LEDs bulbs cost about 10X as much as old-fashioned incandescent bulbs (Philip’s Ambient LED 75W bulb retails for $39.95). Keep in mind they last 25X longer, so that means that you won’t ever have to buy new light bulbs, plus you’ll save a ton of money on your electricity bill. See, it all works out in the end!

Also worth checking out as we approach December? LED holiday lights!

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Invest in a smart thermostat

Ask most people if they would like to pay to have their houses heated during the day when they weren’t even there, and you’d probably be met with a resounding “of course not!” But if you don’t have an old-fashioned thermostat, that’s probably exactly what’s happening in your home. With a smart thermostat, like the Ecobee, you can program your heating and cooling systems to only turn on when you need them to. Look out for a similar device, the Nest, from the makers of the iPod next month.

Remodeling Activity Reaches Record Levels

home-remodelingAs the weather started to cool and kids went back to school, remodeling activity continued to soar in 2011. Recently, BuildFax unveiled its Remodeling Index for September 2011, which shows that remodeling activity reached a record high during the month. BuildFax also released data stating the most popular types of remodeling projects over the past five years.

The latest BFRI showed that September 2011 became the month with the highest level of remodeling activity since the Index was introduced in 2004 and represented the 23rd consecutive month of increases. The data revealed the most popular permitted residential remodeling jobs since 2006 have been roof remodels/replacements, followed by deck and bathroom remodels. The top eight types of remodels classified by are:

1. Roof (21.4%)
2. Deck (7.9%)
3. Bathroom (6.9%)
4. Garage (6.1%)
5. Kitchen (4.8%)
6. Basement (2.9%)
7. Office (1.7%)
8. Sunroom (0.7%)

Mortgage rates continue to be near record lows, and as homeowners from coast to coast refinance, they are continuing to update their current home and invest in their properties. The data shows that homeowners are not only doing important ‘maintenance’ projects, such as fixing their roof, but also taking on projects that add to the ‘livability’ of their homes by adding decks, remodeling their bathrooms and updating their kitchens. These are immediate fixes they will enjoy and that potential buyers look for.

September Signifies 23 Consecutive Months of Industry Growth

The Residential Remodeling Index rose 34 percent year-over-year—and for the twenty-third straight month—in September to 141.4, a new high number in the index. Residential remodels in September were up month-over-month 2.8 points (2 percent) from the August value of 138.6, and up year-over-year 36.3 points from the September 2010 value of 105.1.

The BFRI is the only source directly reporting residential remodeling activity across the nation with monthly information derived through related building permit activity filed with local building departments across the country. This monthly report provides month-over-month and year-over-year comparisons on trends in remodeling activity for the entire United States, as well as for the four major regions of the country: Northeast, South, Midwest, and West.

Half of Country See Month-over-Month Gains

In September 2011, the West (6.4 points; 4.6 percent) and the Midwest (5.73 points; 4.9 percent), all had month-over-month gains, while the Northeast (1.1 points; 1.5 percent) and the South (2.9 points; 2.9 percent) saw a decline. Regions up in year-over-year gains from September of 2010: the West (44.4 points; 43.5 percent), the Midwest (16.8 points; 15.9 percent) and the South (8 points; 9 percent). The Northeast dropped 3.7 points (4.7 percent).

Canadian Ecommerce By the Numbers

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What is Sound?

SoundCloud, the neat “social sound platform” that allows users to create and share sounds with anyone who has an internet connection, turned to design company, The Wilderness, to help answer the question, “What is sound?”

See what the experts—Moby, Imogen Heap, Julian Treasure, Martyn Ware, and others—have to say.

15 Places You Must See On Google Earth

Google Earth is a virtual globe, map and geographical information program that was originally called EarthViewer 3D, and was created by Keyhole, Inc, a Central Intelligence Agency. Google Earth lets you fly anywhere on Earth to view satellite imagery, maps, terrain, 3D buildings, from galaxies in outer space to the canyons of the ocean. Google Earth displays satellite images of varying resolution of the Earth’s surface, allowing users to see things like cities and houses looking perpendicularly down or at an oblique angle (see also bird’s eye view). The degree of resolution available is based somewhat on the points of interest and popularity, but most land is covered in at least 15 meters of resolution.

Top 5 Superstitious Hockey Players

5. Pelle Lindbergh

Former Philadelphia Flyers goaltender, Pelle Lindbergh, use to wear the same orange t-shirt under his equipment during each hockey game. The t-shirt was never washed and when it would start falling apart, he would have it sewn up. During intermissions, he would drink a Swedish beverage called ‘Pripps’. He would only accept the drink if it had two ice cubes, was delivered by a certain team trainer and as long as it was in his right hand. Lindbergh’s quirky habits helped him on the ice with a record of 87 wins, 49 losses and 15 ties in 157 NHL regular season games. Unfortunately, Lindbergh died as a result of a devastating car crash at just 26 years of age.

4. Brendan Shanahan

Known as a great power forward, Brendan Shanahan had some pretty quirky superstitions during his NHL career. He would wear old shoulder pads that dated back to his days in junior hockey. He would also listen to Madonna on game days. Obviously the ‘Material Girl’ and ancient shoulder pads worked in Shanahan’s favor, as he recorded 1,354 points in 1,524 NHL regular season games.

3. Sidney Crosby

Sidney Crosby could very well be the most superstitious player currently in the NHL. He will not call his mother on game days, as some of his past injuries occurred after he was talking to her. If he’s travelling with his team on a bus, he will lift his feet and touch the glass when they go over railroad tracks. If his team is playing on the road, he’ll only use tape that’s provided by the home team for his sticks. And when he’s done taping his sticks, nobody is allowed to touch them or else he’ll have to re-tape them. Crosby must be doing something right, as he’s one of the best hockey players to ever play the game. He has won numerous awards, including the Stanley Cup in just his fourth NHL season.

2. Patrick Roy

Hall of Fame goaltender Patrick Roy had a long list of superstitions. He would never talk to reporters on game days before he played. During pre-game warm-ups, he would skate to the blue line, stare at his net and picture it shrinking. He would also never step on the blue or red lines. Prior to the games, he would lay out his goalie equipment on the locker room floor and dress himself in a certain order. Then during intermissions, he would juggle with a puck and bounce it off the ground. And if those weren’t bad enough, he would quite often talk to his goal posts, claiming “they are my friends”. Apparently, his goal posts were extremely loyal friends, as he holds numerous NHL records and won many trophies during his incredible career, including four Stanley Cups.

1. Wayne Gretzky

Wayne Gretzky is one of the most superstitious players in NHL history. He wouldn’t get his hair cut while his team was on the road because one time when he did, his team suffered a major loss. During practice, he would start off by shooting a puck to the right of the net. He would then drink a Diet Coke, a glass of iced water, a Gatorade and another Diet Coke in that exact order. As for his uniform, he would always put the left side on first and he would always tuck in the right side of his jersey. Also, he would put baby powder on the blade of his hockey stick. He most definitely lived up to his nickname “The Great One”, as he holds a large amount of NHL records, won many trophies and averaged almost two points a game during his illustrious career (2,857 points in 1,487 games).