Real Estate Market

Despite lower inventory and increased home prices, existing-home sales slid in October for the second consecutive month according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops declined 3.2 percent and are currently on pace to reach 5.12 million units for the year, up 6 percent over last year's4.83 million unit-level in October 2012.

NAR chief economist Lawrence Yun sees a flat sales trend. "The erosion in buying power is dampening home sales," he said. "Moreover, low inventory is holding back sales while at the same time pushing up home prices in most of the country. More new home construction is needed to help relieve the inventory pressure and moderate price gains."

Mortgage giant Freddie Mac reported the national commitment rate for a 30-year fixed rate conventional mortgage was down slightly to 4.19 percent in October, compared to 4.46 percent in September. The reported rate was 3.38 percent in October 2012.

Winter is one of our favorite times of the year! It's often easy to overlook your home's needs with so much going on. Here is a simple checklist of items that can save you money through the winter:

• Check for leaks and drafts around the house. Replace weather stripping and re-caulk around doors and windows. Drafty doors and windows will cool off the house and cost you money in heating bills.
• Inspect your attic's insulation. Heat rises so adding good insulation can keep the heat from escaping.
• Check your heating system. Sometimes something as easy as replacing your filter or having simple maintenance done can save on heating costs.
• Consider changing from standard light bulbs to energy saving bulbs. Winter uses a lot of your electricity so even saving a little here and there will help.

Whether you live in a warm or cold climate, take this opportunity to inspect your home systems. You'll be money ahead in the long run!

Many people ask about bi-weekly payment plans designed to reduce the interest paid out over the course of your loan. These programs help the borrower budget an extra payment a year, and over time this can knock years off the repayment schedule.

You might be surprised to learn that you can do this yourself without any special programs, simply by submitting an extra principle payment as you are able. By submitting an extra payment, you get the advantages of an early payout, without the extra contractual obligation. Now is a great time to assess your financing options. Contact us today for our list of preferred local lenders!