It’s time to buy a new home

Posted on December 8, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

new homes for saleThe time may be right for you to buy a new home this spring. Low interest rates and reduced prices, combined with builder incentives may make a new home a viable option that many home buyers have forgotten about.

Home builders that survived the culling of the market decline have sought out ways to make homes more affordable. Going with the new trend, some home builders are offering more efficient floor plans, as well as more cost efficient building processes.

Modular homes seem to be more prevalent these days as custom home builders seek to reduce costs to the buyers as well as increasing floor plan flexibility and construction quality. The reason why many home builders are turning to modular designs may be that the modules are built in a controlled environment, which increases quality while reducing weather related delays and damage. In a typical plant, manufactured and modular housing fabrication quality specialists constantly monitor fabrication to ensure the final product meets or exceeds all codes, which is unlike on-site construction where inspections can be random and inconsistent.

One attraction to buying a new home is that everything is new! Along with the new, one expects warranties. Make sure you discuss the warranties that are provided with your purchase with your builder and Realtor®. It is typical for new appliances, fixtures and flooring to have limited manufactures warranties, so make sure you receive all paperwork related to those items.

Additionally, most builders offer a warranty as well; the warranty is most likely guaranteed by a third party. According to a homebuyer’s booklet offered by the Maryland Attorney General’s Office Consumer Protection Division, a home builder warranty in Maryland must include at a minimum: “any defects in materials or workmanship for one year; any defects in the electrical, plumbing, heating, cooling and ventilating systems for two years (not to exceed the period of the manufacturer’s warranty); and defects to any load-bearing structural elements for five years.” The booklet recommends that you contact the third party guaranteeing the warranty, to check if the builder is in good standing.

Although a home may be new, it does not guarantee that it is perfect when delivered to you. It is common to conduct a “final walkthrough” with a builder representative to check the systems and to identify any defects that may need repair or correction. Builders will ask for a “punch list” of items that need correction.

Former president of the American Society of Home Inspectors, Frank Lesh, was on record as saying that “Even new homes have defects that only a professional can detect…” He stated that a home inspector can help ensure that a new home’s major systems (roof, foundation, electrical, plumbing) “are functioning properly and safely before moving in”… “Because many items can’t be inspected after a house has been built, homeowners should consider having a series of phased inspections conducted at key milestone markers. ASHI encourages homebuyers to consider an inspection at the following times: prior to foundation pour; prior to insulation and drywall; prior to the final walkthrough.” (ashi.org)

If you’re considering buying a new home, consider visiting new home resources offered by the National Association of Home Builders (nahb.org) and the American Society of Home Inspectors (ashi.org), as well as the homebuyer’s booklet offered by the Maryland Attorney General’s Office Consumer Protection Division (www.oag.state.md.us/Homebuilder).

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of December 5, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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Will inflation help the housing market: how real estate is affected

Posted on November 30, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

Homes for saleMany people believe that as inflation increases, home values decrease. The argument put forth is that as purchasing power decreases, so do the value of your assets.  However, some economists say that it is flawed thinking to assume that housing, like other goods, decline in value as inflation increases.

Collin Barr reported that Yale economist Robert Shiller (coauthor of the Case-Shiller Home Price Index) has spent years collecting data that indicates “that house prices over time tend to rise more or less in step with inflation” (fortune.com: Why house prices will keep falling; March 29, 2011). That’s all well and good, except that home prices far exceeded the rate of inflation during the recent “bubble years;” and is reported as still having a 25% gap from baseline. So, unless we see an increasing rate of inflation, some believe that home prices drop another 20%.

Brian Summerfield, Online Editor of REALTOR® Magazine, describes (in an April 5th Realtor.org blog post) a scenario of how inflation can lift the current housing market. By highlighting affordability, he explains the cost of housing is currently cheaper to own a home (compared to renting). Additionally, as inflation creeps up and eats more of the family budget by decreasing buying power, the a person’s housing budget will be pressured by rising rents and buying a home will be increasingly more attractive.

Of course, Mr. Summerfield’s scenario is hinged on several “caveats”: interest rates will have to remain relatively low (he says no higher than 7%); implementation of “accessible” 30 year fixed mortgage programs; housing supply will have to remain low; and no additional economic crises.

In several Realtor.org blog posts, Lawrence Yun, Chief Economist for the National Association of Realtors®, discussed inflation and housing. In an April 18th post he explained that “Unexpected inflation” does erode savings, however actually benefits borrowers. Additionally, in a September 15th post reporting that housing starts are the lowest since World War II, Yun explains that some investors are returning to undervalued real estate as a hedge against inflation. Since new housing is not on track with population growth, some believe there will be a housing shortage that will cause increased demand in coming years.

House for saleThe reality is that although there is a relationship between home prices and inflation, it does not signify causality. In other words, although one may have an effect on the other, housing and inflation are independent. Even in Brian Summerfield’s scenario, he is cautious to provide conditions to bring his vision to reality. And no one has talked about the affects of stagflation.

When talking about a recovery, the typical homeowner should remain cautious- especially in espousing a view that a home is an investment vehicle. Even though our consumer oriented society has encouraged people to pay for their lifestyles with their home’s equity, it’s now widely decried as irresponsible.

In light of the current economic conditions, many potential home buyers are becoming more pragmatic as well. Even though the basic benefits of homeownership include affordability, community, etc, many potential home buyers view owning a home as anchor that will keep them tied to a specific area. And in a time when jobs are scarce, many people want the freedom of mobility in case they have a career opportunity elsewhere.

Will inflation help the real estate market? We will only know in hindsight.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of November 28, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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Take care of your vacant home

Posted on November 24, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

According to a 2009 USA Today report, 1 out of 9 homes are vacreal estate for saleant. Although, more so in recent times, “foreclosure” may come to mind when you hear “vacant home;” however, there are other reasons why a home may be vacant, which may include: the home owner bought their new home prior to selling; seasonal travelers head to warmer climates during the winter; job relocation; divorce; or an unsettled estate. Regardless of the reason for leaving your home vacant, making preparations prior to leaving may make your return more welcoming.

Even if your home is listed with a Realtor®, don’t assume that the home will be looked after; take care of your asset and ensure that your vacant home is cared for. Consider having a trusted person in charge of checking the vacant home regularly. Besides collecting un-forwarded mail, this person can take care of issues that may arise while you’re away.

As we are headed into winter, consider winterizing the home. “Winterizing” is jargon that describes the draining of water and pressure from the plumbing system. Experts recommend winterizing your home if you plan leaving your home vacant during the winter months. Winterizing your home may reduce the risk of bursting pipes as well as possibly reducing damage to plumbing fixtures. When winterizing and de-winterizing your home, consider hiring a licensed plumber because you may encounter unexpected high pressure, and the winterizing process may cause increased stress on the plumbing system.

Check the drainage around your home to ensure that water is removed away from the home as intended. Test the sump pump (if you have one) to ensure it is in working order. Blockages from leaves and other debris can build up on the roof and gutters as well as around basement stairwell drains (which are notorious for clogging and may cause a flooded basement). Clogged gutters and drains may cause roof and basement leaks even when a home is lived in; certainly if unattended to, can wreak havoc on your vacant home.

real estateCold weather is also a time when pests are seeking a warm shelter; you don’t want to return to the surprise of a home that has been infested with mice, raccoons, or other pests. A licensed pest control expert may be able to assist you in preventing an infestation by searching for and sealing pest related access points.

Theft and vandalism is often a primary concern for vacant home owners. Besides being the target of thieves, vacant homes often become the focus of vandals. Besides ensuring that valuables are safe, make certain that all doors and windows are secure.

Finally, consult with your insurance agent about your home owners’ policy. Don’t assume that you’re covered just because you have insurance. Besides describing what the insurance company deems as “vacant,” many home owners’ policies have coverage limitations when the home is considered vacant. Your insurance agent can assist you in determining if you need additional coverage while you’re away from your home.

Taking care of a vacant home is not only for lenders taking possession of foreclosed homes. Whatever your reason for leaving your home behind this winter, think ahead and take care of your asset. Consider taking preventative measures to keep your home safe and intact as well as arranging for someone to take charge of the home while you’re away.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of November 21, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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Attitudes towards business and the housing market

Posted on November 17, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

Everyone seems to be fixated on resolving the housing market through direct intervention. However, it is increasingly apparent that people are forgetting the symbiotic economic system that housing belongs. Even local attitudes towards business may affect local housing markets.

First let’s consider housing data reported for October 2011 by Real Estate Business Intelligence, LLC and Metropolitan Regional Information Systems (MRIS), which indicates that sold prices for homes in Montgomery County decreased 3.2% compared to September 2011 and decreased 6.5% compared to October 2010 (the same time last year). And although sold prices for homes in Loudon and Fairfax counties decreased from October 2011 compared to the previous month, the median sold price for these two Virginia counties increased compared to October 2010 (an increase of 2.5% and 2.3% respectively).

Maybe Donald Trump knows something we don’t; the high profile real estate investor purchased a Loudon County golf course in 2009, and more recently a Charlottesville winery.

Next consider that some high profile companies have been making their preferences clear, as they choose Virginia over Maryland. Anita Kumar reported in her October 27th Washington Post blog (McDonnell, pursuing Lockheed Martin, says Maryland is less friendly to business) that Maryland has lost two defense contractors to Virginia. And recently, Virginia is trying to persuade Lockheed Martin (one of Montgomery County’s largest employers) to move there too; this courtship became widely publicized after a brouhaha erupted when the Montgomery County Council considered passing a resolution asking Congress to cut defense spending in favor of social spending. Additionally, Steve Contorno of the Washington Examiner reported just last week (McDonnell woos Bechtel Corp. away from Maryland; 11/17/2011) that the “International construction and engineering giant Bechtel Corporation” will move its global operations headquarters from Frederick to Reston.

Another consideration is the demographic change in Montgomery County, which may be one of the main reasons for big-box retailer Wal-Mart wanting to expand within the county. Reported by Carol Morello and Ted Mellnik of the Washington Post (Incomes fall in Montgomery and Fairfax counties; September 22, 2011), the once considered “posh” county now has a lower median income than Prince William County, VA, which is home to Potomac Mills Outlet Mall.

As the housing solution continues to elude many, along comes the National Association of Realtors (realtor.org) publicizing a “2011 Five Point Housing Solutions Plan.” The plan is a result of a policy meeting (New Solutions for America’s Housing Crisis ) conducted by the Progressive Policy Institute (progressivepolicy.org) and Economic Policies for the 21st Century (economics21.org).

Looking more like a “five point housing suggestion,” NAR’s plan offers these recommendations: 1) Not to weaken housing any further; 2) Support communities by reducing foreclosures; 3) Open mortgage markets to “foster new demand among responsible homebuyers”; 4) Support for a secondary mortgage market with government participation; and 5) A call for a national housing summit to “articulate a new housing policy” (www.realtor.org/government_affairs/five_point_plan).

Much like a doctor’s patient seeking pain relief caused by a systemic problem, housing relief through direct intervention may only be temporary. Although some have found the solution to a faltering housing market and other economic ailments tied to jobs, others continue to be confounded by the issue.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of November 14, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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Are internet Realtor® reviews real or fake?

Posted on November 10, 2011 by Dan

by Dan Krell ©2011
DanKrell.com

internet Realtor reviewsThe internet is a great tool. It conveniently provides access to information about real estate activity and home sales to assist you in your decision making. It’s only natural that people tend to gravitate to the internet because it provides somewhat of a buffer from aggressive real estate agents; it allows a certain amount of anonymity. This may also be a reason for the rise in popularity of internet Realtor® reviews.

But, internet anonymity can be a two way street. Besides reading online what others are saying about your agent, without anyone being the wiser; online reviews are often posted without verification.

An August 19th New York Times article by David Streitfeld (In a Race to Out-Rave, 5-Star Web Reviews Go for $5: Printed August 20, 2011, on page A1 of the New York edition) is an exposé of the fake review business. Yup, fake online reviews. Streitfeld describes how in an effort for online businesses to appear better than the competition, “an industry of fibbers and promoters has sprung up to buy and sell raves for a pittance.” Streitfeld illustrates the “game” as it’s played; posts on websites such as Craigslist and help for hire sites offer a positive review for a fee.

Also known as “deceptive opinion spam” or “review spam, Cornell researchers claim “these fake reviews are fictitious opinions deliberately written to sound authentic, in order to deceive the reader.” They conclude that the detection of fake reviews is “well beyond the capability of human judges;” and recommend an analysis of reviews to include, among other things, psycho-linguistically motivated features. (Proceedings of the 49th Annual Meeting of the Association for Computational Linguistics, pages 309–319, Portland, Oregon, June 19-24, 2011.)

“There have always been fake reviews from employees and competitors,” states Greg Sterling, of Sterling Market Intelligence, in a March 7th blog post “Fighting the Rise of Paid Reviews” (screenwerk.com). Describing the increase of “guaranteed positive reviews” for a fee, “… the increasing importance of online reputation to consumers and the potential influence on rankings that reviews bring the stakes are higher than ever. Hence the emergence of services that will guarantee positive reviews.” He further states, “I don’t know this but my guess is that somewhere in some room … there are minions writing positive reviews without ever having actually used the business or visited its location.”

The National Association of Realtors® (NAR) code of ethics prohibits deceptive practices, which includes posting or encouraging fake reviews. However, Lani Rosales of AGBeat (agbeat.com) argues that there has always been an element posting fake Realtor® reviews and testimonials (“Sketchy new trend – hiring fake online review writers”).

Internet Realtor reviewsWhat to do?

Suresh Srinivasan of agent reputation platform ReachFactor (ReachFactor.com) stated in email correspondence that review spam is a “big and growing problem. It’s extremely cheap to pay others …to write a review of any service professional.” He states that many websites get “gamed” because they only require the reviewer to register but don’t actually verify that a transaction took place with the agent. He points out that even though some popular real estate websites try to read every review, it is not entirely effective in weeding out the fake reviews. Mr. Srinivasan’s company verifies factual information collected about Realtors® so as to ensure consumer transparency as well holding Realtors® to a higher ethical standard.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of November 7, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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Occupy Main Street; the trouble with greed

Posted on November 3, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

What is it about Occupy Wall Street that has everyone talking?  Sure, everyone seemed to be against the bailouts, but it seemed as if there was not much agreement among the protest groups about other issues.  Some expressed anger about capitalism; some were against student loans, while others seemed to focus on debit card fees.  The buzz about OWS has allowed us to define it in our own terms.

While recently sitting in on a continuing education class about fair housing and predatory lending, an OWS discussion begins: the banks’ were responsible for the housing crash and the resulting financial crisis.

The discussion quickly turned into a tirade about the evils the banks would have us do for their gain.  Two agents in the class were clearly angry and claimed that the banks knew what they were doing before the crises ; the banks forced people to take loans they couldn’t afford; the banks need to cut the loan balances to match the market; and the banks need to repay those who lost their homes; and so on.

Of course these two are always entitled to express themselves.  However, I seemed to upset the apple cart by asking a question.  I asked, “Do you feel you contributed to the housing crisis because you sold homes during the years that lead up to the crash?”   They explained they had no way to look into the future and did not have a crystal ball.  I asked, “Did you ever ask the lender to push your client’s debt ratio or get exceptions to underwriting requirements?  There was no answer.  One final question, “Would you return all or some of your commission you earned during that time?”  Thankfully, the instructor got the point and quickly turned our attention back to subject of the class.

It’s not ironic that this conversation comes almost two months after the Federal Housing Finance Agency (FHFA) filed 17 suits against issuers of mortgage backed securities.  According to an October 10th editorial in Mortgage Banking, the FHFA is seeking damages on behalf of Fannie Mae and Freddie Mac.  The complaint cites “negligent misrepresentation” in disclosure documentation and “some allege state securities law violations or common law fraud.”

The editorial points out a statement made by Mortgage Bankers Association Chairman Michael Young as understanding the FHFA’s actions to attempt to recoup taxpayer losses tied to the GSEs; however, he “noted responsibility for the mortgage crisis extends far beyond the banks and includes the credit rating agencies, mortgage insurers, borrowers and even the GSEs.”

As time passes, we are increasingly provided new information and facts that allows us the opportunity to have a broader perspective of the housing and financial crises.  Nazneed Ahmed, in a 2010 enlightening essay, Greed, financial innovation or laxity of regulation? (Studies in Economics and Finance, 27(2), 110-110-134.), discusses the mortgage and liquidity crises that affected the US and Global economy.  Using Bernie Madoff as an example of poor financial oversight, he surmises that the liquidity crisis “evolved with the advent of poorly supervised financial products, especially the credit default swaps and subprime mortgage loans.”  The conclusion is that greed that is the root cause.

Like the Greek Sirens, greed entices people to their peril.  From home owners and buyers to Wall Street, greed is the apparent culprit that fueled the crises the evolved from 2007-2009.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 31, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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The housing solution trap

Posted on October 27, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

When we’re feeling pain or anguish, immediate relief is often sought. So, it would make sense that, when we’re feeling pinched financially, a short term money fix might help. However, quick fixes don’t always address the underlying issues that precipitated or contribute to the problem.

According to recent reports, Americans are increasingly “feeling” the pain as the economy continues to stagger amid volatile financial markets and gloomy housing reports. The Misery Index, which can be construed as a quantitative measure of “pain” associated with an economy, was recently reported to have risen to its highest levels in 28 years. (Introduced in the 1960’s, the Misery Index is found by adding the unemployment rate to the rate of inflation. Obviously, the lower the index – the better.)

So it should come as no surprise that as the push for a jobs bill continues the focus has once again turned to the housing market. This week, the Federal Housing Finance Agency (FHFA.gov) announced that the Home Affordable Refinance Program (HARP) will be “enhanced” to accommodate more under-water home owners.

When the program was initiated in 2009, the intention was to assist the refinancing of home owners whose home values declined. It was estimated that it would assist millions of home owners. However, as has been widely reported recently, only about 900,000 home owners have been helped; and of those home owners, about 72,000 are under-water.

Seeking immediate relief for home owners, HARP’s eligibility requirements have become the center of attention. This week’s announcement to remove the “impediments” to refinancing is expected to increase the pool of home owners seeking refinancing of underwater mortgages.

HARP’s initial eligibility requirements included: having a mortgage guaranteed by Fannie Mar or Freddie Mac; the mortgage must not be an FHA, VA, or USDA loan; mortgage payments are current and payments must not have been more than 30 days late in the last year; the first mortgage amount must not exceed 125% of the home’s value; the refinance should improve the long-term affordability of the mortgage; and you’re able to make the new payments.

The new HARP guidelines announced by FHFA this week include lowering or eliminating certain borrower fees, removing the 125% loan to value ceiling, and extending the program to December 31, 2013.

In addition to helping already stressed home owners, it is expected that the money saved on mortgages will be pumped back into the economy. However, critics say that the revised guidelines will do little, if anything, to address the wider problem that exists in the housing market. Additionally, some critics point to the added burden on an already troubled Fannie Mae and Freddie Mac.

So, if the recent adjustment to HARP won’t do much for the housing market, as critics point out; what is the solution? Short term fixes may immediately reduce the pain. However, there should be little doubt that housing and employment are closely linked. Aside from monetary policy that might focus on flattening inflation; addressing long term sustainable economic growth, along with an expansion of permanent full time employment is the key to reviving the housing market.

Nothing feels better than taking pain away quickly and effortlessly. However, like many deep seated problems, the solution may very well lie in a long term plan that may require feeling some pain along the way.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 24, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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Do people really care about real estate agent ethics?

Posted on October 20, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

What factors do you consider when shopping for items or services? Is it price? Brand recognition? References? When it comes to hiring a real estate agent, if you’re like most people, chances are your choice is not necessarily based on the agent’s adherence to ethical standards.

Of course, high integrity and ethical behavior is admirable. However, what may seem counter intuitive to an ethical society, a body of research indicates that consumer choices are not typically based on ethical criteria. Of the many research articles published in peer reviewed journals, here is a very select few that point to such a conclusion.

First, a 2005 study seeking to determine if consumers buying decisions were based on companies’ ethics was conducted by De Pelsmacker, Driesen, & Rayp. They indicated that although there are numerous attitude surveys that reveal consumers actually value ethics in the marketplace, consumer behavior is not consistent. The study examined consumer’s willingness to pay for fair trade coffee (considered to be the “ethical” choice), and found that although 50% of the study sample were considered fair trade “lovers” or “likers,” only 10% of the study sample were willing to pay the premium for the ethical choice (Do consumers care about ethics? willingness to pay for fair-trade coffee. The Journal of Consumer Affairs, 39(2), 363-363-385.).

Not convinced? A 2001 study investigated whether consumers actually care about ethical behavior as well as whether good/ bad ethical behavior affects consumer choice. Carrigan & Attalla concluded that although consumers are increasingly sophisticated, consumer behavior doesn’t favor ethical companies or avoids those that are unethical. Additionally, the study found that a consumer’s knowledge of a company’s unethical behavior didn’t change buying behaviors nor did it contribute to actions against the unethical company. In addition to being cynical about ethics differentiation; consumers consider price, quality, and value more important than ethical criteria in consumer purchase behavior (The myth of the ethical consumer – do ethics matter in purchase behaviour? The Journal of Consumer Marketing, 18(7), 560-560-577.).

Although ethical criteria may not be necessarily used in when choosing a real estate agent, Neale & Fullerton found that consumers do perceive unethical behaviors as unacceptable. In their 2010 study, consumers rated ten of fourteen scenarios of questionable behaviors as being unacceptable (The international search for ethics norms: Which consumer behaviors do consumers consider (un)acceptable? The Journal of Services Marketing, 24(6), 476-476-486.).

Even though unethical behaviors may be considered unacceptable, reporting such behavior is a different story. Curtis, in his 2006 study found that although the seriousness of a breach of ethics would prompt a report, the decision to report unethical behavior is highly correlated to negative mood (e.g., anger, pain, etc) (Are audit-related ethical decisions dependent upon mood? Journal of Business Ethics, 68(2), 191-191-209.).

Rutledge, concluded in a 1994 paper that ethical issues are not always clear. Additionally, responses to such situations depend on personal principles and standards (Conflicts of interest or ‘thou shalt not steal’ revisited. Real Estate Issues, 19(3), 15-15.).

The research might suggest that consumers are not entirely impressed by an adherence to high ethical standards. Furthermore, even when ethical standards are breached, the offenders are not always reported. The research may point to an increasingly pragmatic view that real world ethics is a complex matter that is often determined by a person’s perception.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 17, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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What housing market surveys are telling us

Posted on October 12, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

You’ve probably heard, now and then, reports of housing surveys giving a status report of the housing and the real estate market. Of course the scientific method is forgotten for a chance at a headline; technical details and summaries are usually condensed to a one sentenced sound-bite. If you’ve ever taken the time to look into the survey results to see the samples and questions, you can see that any one poll is only a snapshot of respondents’ attitudes at the time of the survey.

The results of recent housing surveys conducted by Fannie Mae (fanniemae.com) are telling of the current economic environment. Reported quarterly and monthly, the National Housing Survey (NHS) “offers a window into the opinions of Americans across the country…” about owning and renting a home as well as personal finances and confidence in the economy.

The most recent quarterly NHS results were released August 15th, and quoted Doug Duncan, vice president and chief economist of Fannie Mae, as saying, “… consumer spending, which accounts for about 70 percent of the economy, ground to a halt in the second quarter. Consumers are more hesitant to take on additional financial commitments, and a setback to confidence means a setback to the recovery of the housing market.” Additionally, the quarterly survey indicated increasing consumer pessimism as employment concerns tops the list, economy on wrong track…yada, yada, yada.

Ok, not news to you. But how about trends indicating a further decline of the housing market?

The most recent monthly NHS (released October 10th) reported a “marked deterioration” of consumer home price expectancies. Mr. Duncan was quoted here saying that, “…The lack of a sense of urgency to buy homes, given expectations for further declines in home prices and continued low mortgage rates, coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”

The Home Values Survey (HVS) is another telling survey, which is conducted by Homegain (homegain.com); and examines Realtor® and consumer sentiment about the housing market and economy. The most recent Regional HVS was reported September 11th for Q3 indicated: that although a majority of real estate agents surveyed reported their client’s homes depreciated in value, home sellers continued to over-value their homes; home buyers overwhelmingly reported that homes were overpriced; 39% of home buyers surveyed in the Northeast reported that they thought homes were overpriced 10%- to 20%; and an overwhelming majority of real estate agents surveyed in the Northeast (62%) reported they believed that home values would decrease in the next six months.

The outlook is not all doom and gloom. Some surveys report a positive spin as well.

Although a Rasmussen Reports (rasmussenreports.com ) survey reported on September 21st indicated that 48% of adults nationwide felt that buying a home is the best investment for one’s family, a commentary posted on rasmussenreports.com (The Housing Bust Has a Good Side by Froma Harrop; September 22nd) promotes the idea that the housing downturn has brought home owners back to fiscal reality.

Additionally, Gallop (gallop.com) reported in April that of the American adults surveyed, there were just as many who felt that the average home price would decrease (30%) than increase (28%) in the coming year. And, of course- an overwhelming majority of those surveyed (69%) felt it was a good time to buy a home.

More news and articles on “the Blog”This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 10, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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Celebrity homes

Posted on October 6, 2011 by Dan

by Dan Krell © 2011
DanKrell.com

Nothing grabs the public’s attention more than juicy celebrity gossip. So, it shouldn’t have surprised me when I received what seemed to be endless calls from Hollywood gossip reporters asking about Kate Gosselin’s move to Rockville, MD. At first, I thought the calls were from pranksters because I had no idea who Kate Gosselin was (I’m not a TV junkie, so I was unaware of her celebrity status); but when I was enlightened to her realty-TV fame, I was taken aback by the amount of attention and energy that was garnered just by a rumor. But that was in 2009.

Sure, I know you’re wondering “why would a celebrity be moving to Bethesda?” Well, the MD-DC-VA area attracts many celebrities. Of course there are the home grown celebs who have moved away, but the area attracts celebs of all kinds from around the world. Some celebs who live or have lived in the area are known for their on screen achievements, some are known for their writing ability, some are known for their contributions to their respective fields, some are royalty, and some are known just for their wealth.

Without question, the MD-DC-VA area attracts the political elite from around the world, not just because DC is the seat of government, but it is also perceived as a seat of world power. And don’t forget the many sports stars who choose to live locally as well; even though they don’t have to make their permanent homes locally, many do.

Even Donald Trump knows the attraction value of the area. A purchase of a Sterling, VA golf course on the Potomac River in 2009 was not the only recent local real estate purchase; his purchase of a Virginia vineyard made headlines earlier this year.

It’s only natural to be interested in how the rich and famous live, it taps into our human ambition and need for achievement; at some unconscious level, peeking into celeb lifestyles may also provide motivation or a vision of aspiration. But looking into the “window” of their home, so to speak, is a bit different than celebrity spotting around town with the paparazzi.

The interest in celeb homes and lifestyles has sparked such TV shows as MTV Cribs (mtv.com) and even Joan River’s show How’d You Get So Rich?(tvland.com). Looking inside a celeb’s home can give you a view of the elegant, trendy, or even cutting edge design. But most of all it allows a peek into a lifestyle that may seem familiar; many celeb homes are focused on family, on comfort, and around food (the kitchen).

Be warned- no matter how curious you are, don’t try to peek through the windows of a celebrity’s home (or anyone’s home for that matter) as you may wind up being detained by the police (or worse). If you’re interested in celebrities and their lifestyles, there is no loss for information in today’s saturated Media. Local TV shows and internet websites can not only give you the scoop on local celebs’ homes, some provide interior pictures and tours. Websites such as DC Curbed (dc.curbed.com) and The Real Estalker (realestalker.blogspot.com) have the latest info on celebs homes.

Today, the calls asking about celebrities moving into or out of town continue. But here’s a tip- don’t ask the real estate agent: a good agent knows the value of discretion for the sake of their famous client.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 3, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.

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