at the end of the newsletter.
+++++++++++ February 1, 2012 +++++++++++++++++++
CONTENTS:
Introduction: Sales See-Saw: Existing Up, New Sales Down
Mortgage Rate Update: 30-year Fixed-rates remain sub 4%
This Month's Tip: All About Homeowners' Associations
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Introduction: Sales See-Saw: Existing Up, New Sales Down
Welcome to the February, 2012 edition of the Home Buyer's
Newsletter. As has been the case for much of the last 18
months, home sales, existing and new, did not head in the same
direction in the month of December.
Existing-home sales continued on an uptrend in December, rising
for three consecutive months and remaining above a year ago,
according to the National Association of Realtors®.
The latest monthly data shows total existing-home sales rose
5.0 percent to a seasonally adjusted annual rate of 4.61 million
in December from a downwardly revised 4.39 million in November,
and are 3.6 percent higher than the 4.45 million-unit level in
December 2010. The estimates are based on completed transactions
from multiple listing services that include single-family homes,
townhomes, condominiums and co-ops.
Lawrence Yun, NAR chief economist, said these are early signs
of what may be a sustained recovery. "The pattern of home sales
in recent months demonstrates a market in recovery," he said.
"Record low mortgage interest rates, job growth and bargain
home prices are giving more consumers the confidence they need
to enter the market."
In new construction activity, sales of new single-family houses
in December 2011 were at a seasonally adjusted annual rate of
307,000, according to estimates released jointly January 26th
by the U.S. Census Bureau and the Department of Housing and
Urban Development.
This is 2.2 percent (±13.2%) below the revised November rate
of 314,000 and is 7.3 percent (±16.6%) below the December 2010
estimate of 331,000.The median sales price of new houses sold
in December 2011 was $210,300; the average sales price was $266,000.
The seasonally adjusted estimate of new houses for sale at the
end of December was 157,000. This represents a supply of 6.1
months at the current sales rate.
An estimated 302,000 new homes were sold in 2011. This is 6.2
percent (±3.6%) below the 2010 figure of 323,000.
+++++++++++++++++++++++++++++++++++++++++++++
Mortgage Rate Update: 30-year Fixed-rates remain sub 4%
Although there was a bit of an uptick at the end of January,
long-term mortgage interest rates remained favorable for buyers
in the last 30 days. According to mortgage company Freddie Mac,
30-year fixed-rate mortgages averaged 3.98% at the end of the
month after beginning the month of January at an average of
3.91%. On shorter terms, 15-year fixed-rate mortgages averaged
3.24%, rising only slightly from the 3.23% average at the
beginning of January.
For current average mortgage rates, see:
<A HREF="http://www.ourfamilyplace.com/homebuyer/rates.html">Mortgage Rates</A>
For an extensive discussion of all aspects of mortgages, see the section on the
site devoted to this subject. <A HREF="http://www.ourfamilyplace.com/homebuyer/mortgage.html">Mortgages</A>
++++++++++++++++++++++++++++++++++++++++++++++
Sponsor: Looking to Compare Agents? Try HomeGain.com
The most important part of your team for buying a home should be
your real estate Agent. Want to anonymously (and without obligation)
compare Agents? You can compare experience, background and
much more at HomeGain.com.
<A HREF="http://www.homegain.com/sp/ae_intro.html?entryid=2267&ht=houseclicksAE">Compare Agents</A>
++++++++++++++++++++++++++++++++++++++++++++++
This Month's Tip: All About Homeowners' Associations
Home Owner's Associations can either be lauded by some
home buyers ("the association is working to keep our property
values high!") or derided by others ("they try to control everything!")
but if you purchase a home that has one in place, the Home Owner's
Association will be an integral part of your home ownership
experience.
A Home Owner's Association exists both to administer rules and
regulations for the entire community as well as being responsible
for the maintenance and repair of common areas throughout the
community. In addition, the Home Owner's Association may be
responsible for exterior repair and maintenance on indidual units,
depended how the Association is structured and chartered.
Because they generally are built as seperate units in a larger
structure, virtually all condominium and townhouse communties
will have a Home Owner's Association. Since indiviudal units
will often be sharing walls, roofs and community assets, it is
important to have an association to maintain rules and
regulations. You can see discussions on these types of
communities on the site:
<A HREF="http://www.ourfamilyplace.com/homebuyer/condo.html">Condos</A>
<A HREF="http://www.ourfamilyplace.com/homebuyer/townhouse.html">Townhouses</A>
In addition, more and more single family homes are being built in
subdivisions that have chartered Home Owner's Associations. This
means that if you purchase a home in one of these neighborhoods,
membership in the Home Owner's Association will be mandatory and
you will be responsible for dues (monthly, quarterly or annually) and you
will be bound by the covenants, conditions and restrictions of the
association (commonly referred to as CCRs). What this means is that
there are specific rules and regulations for the community in a number
of areas--these rules may include something as mundane as who is
responsible for trimming the grass by the pool or as important as
determining the size, color and style of your home.
Depending on how the Home Owner's Association is structured,
it may have little more than a background effect on your ownership
or it can be a very high profile part of ownership. A Homeowner's
Association may, for example, determine if you can or cannot have a
pet, and if you can what type of pet is permissable. It may stipulate
what color your front door can be and how often it must be painted (and
who pays for the painting). And, because Home Owner's Associations
have special legal authorities, they can enforce these rules in a court
of law.
If you are planning in purchasing a home in a development that has a
Home Owner's Association, it is imperative that you know exactly what
those rules and regulations (the CCRs) are and, just as importantly,
be willing to live withing the boundries of these rules and regulations.
Once you have purchased the property, it is too late to decide that you
do not want to abide by the rules that have been established. You can
work to get them changed (any changes would have to be voted on by
the entire community) but until that time you are obliged to follow the
rules and regulations.
You will want to obtain a copy of the Home Owner's Association package
which should include:
1) A complete and detailed list of all the Covenants, conditions and
restrictions in effect in the communtity. You will need to know precisely
what the Home Owner's Association controls as well as your personal
responsibilities as an individual home owner.
2) The amounts of the Home Owner Assocation dues and fees and how
they will be paid. You will also need to know of any special assessments
(fees above and beyond the normal dues used to pay for community
repairs or maintenance--for example, paving the parking lot) for which
you will be responsible.
3) Specifics on what you, as a home owner, must pay for and what the
Home Owner's Association pays for. A couple of examples here might
be roof repair or replacement and exterior painting.
4) A copy of the most recent financial statement of the Home Owner's
Association so that you (or your accountant) can assess its financial
condition. When it comes to financial health, all Home Owner Associations
are definitely not created equal. Some may be awash in reserves (extra
cash on hand for repairs, maintenance or emergencies) while others may
be severely short in funds and need to assess home owners every time
there is an expense.
The last few years have seen enormous growth in the construction and
sale of condominiums, townhouses and planned communities with
Home Owner's Associations, so more and more buyers are being
confronted with--and need to be educated on--the workings of these
associations. As with most aspects of purchasing a home, it is far
wiser to be prepared up-front rather than being disappointed later.
On the site:
<A HREF="http://www.ourfamilyplace.com/homebuyer/condo.html">Condos</A>
<A HREF="http://www.ourfamilyplace.com/homebuyer/townhouse.html">Townhouses</A>
<A HREF="http://www.ourfamilyplace.com/homebuyer/associations.html">Home Owner's Associations</A>
Next Month's Tip: Preparing for Closing/Settlement Costs
++++++++++++++++++++++++++++++++++++++++++++++
The Home Buying Checklist
Many of our visitors have said that one of the most valuable
aspects of the Home Buyer's Information Center is the
Buying Checklist, where they can make sure that all
the bases have been touched. You can find the checklist
here: <A HREF="http://www.ourfamilyplace.com/homebuyer/checklist.html">Home Buyer's Checklist</A>
A special thanks to all those who have written to let us know
that they have found the Home Buyer's Information Center a
helpful resource in their buying process.
Have a great month and good luck in all your endeavors!
The Team at the Home Buyer's Information Center
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