Jamison Realty Blog

Seasonally adjusted home prices in 20 major metro areas rose 0.3% in December compared with November, according to the Standard & Poor's/Case-Shiller Home Price Index. Fourteen cities showed higher prices than in November on a seasonally adjusted basis.

But compared with 2008, prices were still lower in 15 of the 20 cities. Las Vegas, down 20.6% in 2009, had the worst decline. San Francisco had the biggest increase in prices: 4.8%.

Overall, average home prices in the fourth quarter were similar to what they were in 2003, the report showed.

"Generally, 2009 was better than 2008, but we're not out of the woods yet," says Maureen Maitland of Standard & Poor's.

The S&P/Case-Shiller report Tuesday noted that many metro areas are no longer showing the same rate of improvement they were last summer.

While prices are showing signs of stabilizing, some economists warn that they could slide again once a tax credit for first-time home buyers expires in spring. Buyers must sign a purchase contract by April 30 to get the credit. Demand for entry-level homes is expected to drop off after that.

Another worry is that more homeowners with negative equity — owing more than their homes are worth — will walk away from mortgages in what's known as a strategic default.

Increased defaults could trigger more foreclosures that further depress prices. More than 11.3 million homes with mortgages, or 24%, had negative equity at the end of 2009, First American CoreLogic reported Tuesday. That's up from 10.7 million, or 23%, at the end of the third quarter of 2009.

"We don't know how big a problem strategic defaults are going to be," says Patrick Newport, an economist at IHS Global Insight. "Even though prices have stabilized, it's temporary, and prices will start dropping again, another 5% to 10%."

"We're not seeing the price pressure we'd seen in the past 18 months," says Pat Lashinsky, CEO of ZipRealty. "I think there'll be an uptick (in prices) in a few months, and then some downward pressures as the tax credit expires. But prices are stabilizing. There is so much less supply now."

There was a 7.2-month supply of existing homes available in December, up from 6.5 months in November, according to the National Association of Realtors. The inventory exceeded a nine months supply for most of 2009.

Release date: 02/18/10
The government's mortgage relief plan has provided long-term help for only about 12 percent of borrowers who signed up since President Barack Obama announced the program a year ago.
The Treasury Department said Wednesday that as of last month, about 116,000 homeowners had completed the application process and had their loan payments reduced for several years, a so-called "permanent modification." That compares with more than 1 million homeowners who started the process.
More than 61,000 homeowners have dropped out so far, either because they failed to make payments or didn't return the necessary paperwork. And hundreds of thousands more are likely to fall out soon, predicts Alan White, a law professor at Valparaiso University.
"I would say it's a complete failure at this point," White said.
Treasury officials, however, say the Home Affordable Modification Program (HAMP) is on track.
The plan "is doing the job it was designed to do," Phyllis Caldwell, chief of the Treasury's homeownership preservation office said in a statement. "Struggling families are receiving payment relief and the housing market is showing signs of stabilization."
More than 80 percent of homeowners who started the process - about 830,000 families - have received at least temporary relief through trial modifications with reduced payments.
If they meet their trial obligations, those borrowers are supposed to be on track for permanent modifications.
However, the total of borrowers with some form of modification represents only 28 percent of the 3.4 million that Treasury estimates are eligible. That's evidence large banks and servicers continue to struggle with a huge volume of borrowers needing help.
The government "massively overestimated the ability of the (mortgage) industry to roll out a new program with a lot of paperwork," said Thomas Lawler, an independent housing economist in Virginia.
Bank of America, the nation's largest mortgage servicer, quadrupled the number of borrowers it has placed in long-term modifications but still lags competitors overall.
The Charlotte bank, which handles one of every five mortgages nationwide, completed 12,761 permanent modifications through January, according to the report. That was up from 3,183 as of the previous month and second only to Wells Fargo, the next largest servicer.
Bank of America has, by far, the most borrowers in trial modifications. However, those 221,395 loans, combined with the permanent plans, represent only 22 percent of its more than 1 million delinquent borrowers that Treasury estimated were eligible as of January. That's below the 28 percent HAMP average and behind Wells Fargo's 38 percent as well as leaders GMAC and CitiMortgage, both with 50 percent.
Bank of America has disputed the eligibility estimate, which is based on delinquencies without regard for whether they meet HAMP guidelines.
The bank also has said it modified hundreds of thousands of mortgages outside of HAMP.
Source: The Charlotte Observer

It’s the weekend and you have a whole list of household chores to do. Oh, we know you’d rather be golfing or playing tennis or watching TV, but keeping your home in good shape is important. Your home may be the biggest investment you will ever make. Taking good care of it with regular maintenance is necessary to maintain its value and ensure it will provide a comfortable, safe shelter for you and your family for a long time.Here is a home maintenance quiz that will test your maintenance knowledge. While this quiz does not address every home maintenance project, it does provide helpful tips and reminders for chores you may have overlooked.
1. How often do forced-air furnace filters need to be changed?
At least every three months during the heating season.

2. What part of the faucet usually needs to be replaced when you have a water leak?
The washer.

3. Should you run hot or cold water through your garbage disposal?
Cold water.

4. How often should the moving parts of garage doors be oiled?
Every three months.

5. What tools can you use to unclog your drains?
A plunger and a plumber’s snake.

6. What tool can be used to unclog a toilet?
Coil spring-steel auger.

7. What faucet part needs to be cleaned every three to four months?
Aerator—the screen inside the end of the faucet.

8. What can you use for traction on icy sidewalks, steps and driveways?
Cat litter or sand—never use salt because it damages the pavement.

9. Where should the fire in your fireplace be built?
On the andirons or grate, never on the fireplace floor.

10. What will prevent soot and add color to the fire in your fireplace?
Throw in a handful of salt.

11. Where should your firewood be stored?
Outside, away from your house and not directly on the ground.

12. What helps keep unpainted concrete floors easy to keep clean?
Concrete sealer.

13. What should you use to clean unpainted concrete floors?
A solution of 4 to 6 tablespoons of washing soda in a gallon of hot water. Mix scouring powder to the solution for tough jobs.

14. When can you clean hardwood floors with water?
When the floors have a polyurethane finish.

15. Do hardwood floors need to be waxed?
Hardwood floors that do not have a polyurethane finish probably will need to be waxed periodically. Use liquid or paste “spirit” wax.

16. What is the best polish for vinyl floors?
Water emulsion wax.

17. When is basement condensation at its maximum?
In new homes because gallons of water went into the concrete of basement walls.

18. Why should noisy water pipes be fixed promptly?
The condition that causes noisy pipes may be accompanied by vibration that can cause fittings to loosen and leak.

19. Why should frozen pipes be thawed slowly?
Frozen pipes should be thawed slowly to prevent the formation of steam, which could  cause the pipe to burst.

20. How often should your roof be inspected?
A qualified roofer should inspect your roof every three years.

21. What should be regularly checked on your security system?
The alarms and circuit breakers should be checked to make sure they are in working order and the sensors should be inspected one by one.

22. To ensure your safety, what household equipment uses batteries that must be checked regularly to make sure they are operable?
Smoke and carbon monoxide detectors.

23. What do you use to fill nail holes and cracks in plaster walls and gypsum wallboard? 
Spackling.

24. What is the white powdery substance that develops on masonry walls?
Efflorescence sometimes appears on masonry walls. It is crystallized soluble salts that can be removed by scrubbing with water and a stiff brush.

25. At what temperature should your water heater be set?
120 degrees Fahrenheit

26. How often do skylights need to be inspected?
Skylights should be inspected each time your roof is inspected so leaks don’t develop from cracks and interruptions around its seals, caulking and flashings.

27. What is a simple solution you can use to wash extremely dirty exterior windows?
A solution of equal parts vinegar and water or 3 tablespoons of denatured alcohol per quart of warm water. Use a piece of crumpled newspaper to wash the glass to avoid lint left behind by papertowls.

28. What can you use to help a window slide easily?
Rub the channel with a piece of paraffin.

29. What should you look for when you inspect your siding yearly?
Determine if wood-sided homes need to be repainted; check to see if the caulking around the windows and doors has split and cracked, and replace the caulk; clean the mildew; trim shrubbery away so it does not touch the siding.