Market Update: Home Prices in Northeastern Ohio Post Slight Increase
Feature Article: What You Measure Improves
Critical Reads: Qualifying for a Mortgage May Get Harder in December
The Funnies: Night Vision Goggles & Other Hard-To-Find Toys
Home prices in Northeastern Ohio Increased Slightly This Summer
Home prices in Northeastern Ohio have increased slightly (around 1.8%) during the summer months of 2010, as compared to the same period in 2009. This is not the case for home prices at the National level, which fell 2.4% for the same period. However, recent statistics suggest home prices might track downward again.
One trend those interested in real estate should pay attention to is the average price concession. A price concession is the amount the home sells for compared to the asking price. In 2010, the average price concession has increased indicating that sellers must be more flexible in their pricing and during negotiations to get their homes sold.
Interest rates remain at historic low levels allowing buyers to save a significant tens of thousands in interest. However, it's going to be impossible for the Federal Reserve to keep rates at these levels indefinitely. At some point, they will have to increase to fight off inflation. An increase in interest rates will be good for homeowners because home prices typically rise with inflation. When this does happen (and it will happen) buyers who locked in fixed interest rates of 4.55% will be sitting pretty as their home gains value and their monthly mortgage payments remain unchanged!
What You Measure Improves
Believe it or not, one of the easiest ways to improve any area of your life is to measure where you stand on a consistent basis. For example, if one of your goals is to increase your net worth, you have to measure and track your net worth on a monthly basis. Otherwise, you're not paying attention and you're definitely not making any progress.
You've probably heard all of this before, but it's true.
What you measure improves.
Want to lose weight? Weigh yourself every single day. A recent study from Brown Medical School and Drexel University ran an experiment to determine whether consistent "weighing in" would affect weight maintenance. At the end of the year, the subjects who weighed themselves every day lost more weight and kept more weight off than those who weighed themselves less frequently. The key to their success was to consistently measure their weight.
Other things you might consider measuring on a routine basis might be:
- Your monthly passive income
- Them amount of debt you have
- How much you save each month for retirement
- Your monthly living expenses (are they increasing or decreasing)
- The number of books you read on a monthly basis
If you stop and think about it, tracking and measuring is super easy to do, but chances are your not doing it. To make progress in any area of your life, you have to monitor and measure where you stand consistently. The good news is won't cost you a penny and the potential return is enormous. You don't need any fancy software. All you need to do is make the time and follow through.
Qualifying for a New Mortgage Will Get Harder for Some Buyers
The New York Times recently ran an article highlighting new lending guidelines by Fannie Mae, which become effective on December 13, 2010. These new guidelines will make it easier for some buyers to qualify and almost impossible for others. If you're thinking of buying a home, these new guidelines will have an impact on you and this article is a must read. Depending on your circumstances you may not qualify after December 13, 2010. You can read the article by clicking here.
30 Days and Counting to Grab The $1,500 Energy Tax Credit
The tax credits for installing energy efficient windows, doors, furnaces and more is set to expire on December 31, 2010. If you need to upgrade something in your home, now may be the time. You can read more about this tax credit, what's eligible and how much you can receive at this link.
End of Year Tax Moves for Investors
Another important deadline you might want to pay attention to is the deadline to convert to a Roth IRA. Roth IRAs allow you to withdraw funds in retirement tax-free. For 2010 only, you can convert a traditional retirement account, or IRA and spread the resulting tax liability over the next two years. Now may be the time to convert and you can read more by clicking here.
Hard to Find Toys
Since it's officially time to shop for Christmas, see if you can find these hard-to-find toys...
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