Jun 9, 2014 | Market Outlook
Last week’s economic news was mixed. Construction spending grew, but fell below the expected level. CoreLogic reported that April home prices continued to rise, but did so at their slowest growth rate in more than a year. Employment reports for private sector and government jobs indicated fewer jobs, but the national unemployment rate was steady. Here are the details:
Construction Spending, Home Price Growth Slows
Construction spending reported by the Department of Commerce reached $953.5 billion annually, and increased by 0.20 percent month-to-month against expectations of an 0.80 percent increase and the March reading of 0.60 percent growth.
According to CoreLogic, the rate of home price growth slowed to 10.50 percent year-over-year in April as compared to the 11.10 year-over-year rate of increase in April 2013. Home prices increased by 2.10 percent over March; these gains in home prices were the slowest posted in more than a year, but there was good news.
No states posted a drop in home prices, and eight states posted new record highs for home prices.
CoreLogic said that although a short supply of available homes has driven home prices up, price gains lost momentum due to affordability; CoreLogic expects home prices to increase at a slower pace and projects that home price growth will reach a pace of 6.30 percent by April 2015.
Mortgage Rates Mixed
Freddie Mac reported that mortgage rates for fixed rate mortgages rose while the average rate for a 5/1 adjustable rate mortgage fell. The average rate for a 30-year fixed rate mortgage increased by two basis points to 4.14 percent; discount points fell to an average of 0.50 percent. The average rate for a 15-year fixed rate mortgage also increased by two basis points to 3.23 percent; discount points were unchanged at 0.50 percent. Rates for a 5/1 adjustable rate mortgage averaged 2.93 percent, a drop of three basis points. Average discount points rose from 0.30 to 0.40 percent.
Jobs, Unemployment Data Suggest Economic Strength
Labor markets impact consumer decisions to buy homes; several labor-related reports released last week indicated that the economy continued to gain strength as more jobs were added and fewer workers filed jobless claims.
ADP reported that 179,000 private-sector jobs were added in May as compared to 215,000 jobs added in April. The Bureau of Labor Statistics released its Non-farm Payrolls report for May; 217,000 jobs were added as compared to projections of 210,000 jobs added and 288,000 jobs added in April.
New weekly jobless claims were reported at 312,000 as compared to expectations of 311,000 new jobless claims and the previous week’s 304,000 new claims. The four-week rolling average of weekly jobless claims fell by 2250 new claims to 310,250; this was the lowest reading since June 2007, and was 10 percent lower than the reading for the same week in April 2013 and was 17 percent lower than for the same week in 2012.
Another sign of economic growth was reported last week. Continuing jobless claims dropped to a seasonally-adjusted annual rate of 2.60 million for the week ended May 24; this was the lowest reading reported since October 2007.
The national unemployment rate for May matched April’s reading of 6.30 percent, and was lower than projections of 6.40 percent for May. The Federal Open Market Committee of the Federal Reserve (FOMC) has repeatedly cited an unemployment rate of 6.50 percent as a benchmark indication of economic recovery; it appears likely that the Fed may continue its tapering of asset purchases as it winds down its quantitative easing program.
What’s Ahead
This week’s scheduled economic news includes Retail Sales, Retail Sales without vehicle sales, and the Producer Price Index. Freddie Mac mortgage rates and Weekly Jobless Claims will be released Thursday, and the University of Michigan will release its Consumer Sentiment Index on Friday.
Jun 6, 2014 | Real Estate
Growing a home garden creates beauty, oxygen and even food for our families to enjoy. If you’re looking to get more from your home garden, here are four easy ways to improve a green thumb.
A Good Foundation For Your Garden
Good soil is the foundation of a healthy garden. By using quality soil, you can give your garden the best start possible. Adding a variety of organic matter to soil will give plants a happy home to grow in.
Add two to three inches of organic matter to your garden bed at the beginning of each season. Compost, dried leaves, grass clipping and dry manure are all good organic materials to use in your garden.
Manures provides nitrogen, which is a great contributor to soil aeration and composting efforts. Being so far along in the decomposing process, the nutrients in manure are readily available for plants.
Fresh manure, however, is more likely to leach out of the soil into groundwater and streams (where the nutrients it provides can become pollutants).
Design Fundamentals To Achieve Harmony And Flow
Although landscaping your home garden is a matter of personal taste and preference, there are some fundamental principles for creating a good garden.
Balance and proportion establish the basic structure of a garden. Order is obtained through symmetry, repetition of plants, and colors or thoughtful contrast. This will create a garden space that is both balanced and proportioned.
Harmony and unity is achieved when different aspects of your garden work together as a whole. Strong focal points and a limited color palette can help with the overall look of your garden.
Prevent the eye from making sudden stops with good flow and transition in your garden. Gradual changes in height and color create the illusion of a larger space, and will make for a full and finished look in your garden.
Variety Is Important And Maintenance A Must
Have a good combination in your garden of annuals, perennials, shrubs, trees and food producing plants. Plants that require little maintenance and come back each year will take some of the pressure off when it comes to seasonal changes and garden preparation.
With more time to focus on bedding plants and vegetable gardens, you’ll yield a bigger reward for your gardening efforts. Water features and other structural focal points work in much the same way; they provide your outdoor space with added beauty and appeal that is easy to maintain throughout the year.
Don’t Be Bothered By Pests And Bugs
Although people have differing opinions on pests, at home a greener garden is always a healthier garden. Harsh pest control products can hurt wildlife and pollute groundwater.
You may be solving one problem, but using chemical pesticides contributes to another. There are many ways keep pests under control without chemical products.
With so many easy to make homemade pesticides to discover, gardeners can ditch the chemical alternative without sacrificing quality. There are also plants such as marigolds that can be incorporated into your garden that deter pests.
A garden is a labor of love that creates a welcoming outdoor space that your family can enjoy. Call your local real estate professional for more information on creating or finding your perfect home garden.
Jun 5, 2014 | Home Seller Tips
Selling your home or property in a slow real estate market isn’t easy, but it can be done. Pricing your property right is the key to selling it within a reasonable amount of time.
Sometimes this means lowering your price while it’s on the market. Of course, you want to get as much money as possible, so how do you know when it’s time to lower your asking price?
No One Is Looking At Your Home
If you expect your home to sell, you need to have people look inside it. Most buyers search for homes within a certain price range. If you aren’t getting any showings, chances are it’s because your home is overpriced compared to other homes in the area. In this case, you may need to lower your price so buyers will look at your home.
Comparable Homes Are Selling For Less
Your home will sell for whatever a buyer is willing to pay for it. If the homes around you are selling for less than your asking price, it may be time to lower it. No one is going to pay more for your home when they can get the same thing for less.
Pay attention to what homes are selling for in your community and adjust your price accordingly.
You Are Getting A Lot Of Negative Feedback
Buyers are a great source of information about other homes in your price range. After all, they’re spending their free time looking at countless homes similar to yours.
Your real estate agent can find out exactly what buyers think of your home. Perhaps homes comparable to yours have updated kitchens or more attractive landscaping. With this knowledge, you can choose to either remodel or lower your price.
Call or email me if you have any questions. I can help you sell your home or property in any real estate market.
Jun 4, 2014 | Real Estate
Burglaries are a concern for many North Americans. Although some communities report more break ins than others, everyone should be aware of their home’s safety and security. Protecting yourself and your home from thieves can contribute to a better quality of life.
Know And Connect With Your Neighbors
There is much to be said about knowing your neighbors. By establishing connections with the residents around you, you’ll be better equipped to spot suspicious people. When neighbors look out for other members the community, they give thieves less opportunity to case homes unnoticed.
You may consider getting your neighbors together to exchange contact information, or even form a community watch program.
Protect Your Privacy By Locking Up
Thieves often gain entry to homes through an unlocked door or garage. Make sure that when you leave your home you lock up behind you. Give yourself an extra moment or two to walk through the house and make sure that everything is properly shut and locked.
You may also consider reinforcing ground level windows and doors with additional safety locks. Wrought iron bars can mean better security for ground level windows out of street view, as they are popular targets for burglars and thieves.
Always Know Who’s Knocking
Installing a peephole on the front door works wonders for a person’s peace of mind. It’s important to know who is at your doorstep so you don’t open your door to an intruder. Burglars have been known to knock on a target’s door to see if they’re home. This also gives thieves important information, such as whether you have pets, deadbolts or security systems.
Be wary of suspicious visitors that come knocking at your door, and write down their description in case you end up needing it later.
Security Systems To Protect Your Home
Monitored security systems are a great way to feel good about your home security. There are many products available at a variety of different price points. These systems are easily installed by a professional, and are monitored by a security company. The monthly cost of the service will be offset by savings on your home insurance, and is well worth the protection the systems provide.
Stop Break Ins While You’re On Vacation
If you’re planning on going out of town, keep your plans on a need to know basis. Don’t let people know you’re away on your answering machine greeting or with auto respond email. These may be suitable for the workplace, but they are not safe for your personal messaging systems.
Have a neighbor gather your mail and take out your garbage to keep your home looking lived in while you’re away. You may also consider lighting and electronic timers to give the illusion that someone is home.
Spare Yourself From Burglaries
Spare keys can save the day, but can also tempt thieves. If you have a spare key hidden, make sure it’s hidden well in the back of the house. If you do use it, don’t return it to its hiding spot right away, and change its place from time to time. A better idea may be to leave a spare key with a neighbor or with a friend.
Security is an important component to a good quality of life. By taking simple steps to improve the security of your home, you can feel safe knowing that your house is protected from thieves.
Call your trusted local real estate agent to learn more about home security, or to find the safest neighborhoods in your area.
Jun 3, 2014 | Uncategorized
Real estate in Massachusetts is conveyed by a written document known as a deed. The deed must be signed by the seller or owner of the property, who is referred to in the deed as the grantor. The buyer, or person acquiring the real estate, is known as the grantee. The grantor transfers their right of ownership using one of three types of deeds. Each type of deed provides a different level of promises or covenants to the grantee. These promises were once meant to offer protection and guarantees against flaws in the grantors chain (or right) of ownership of the real estate. Grantors typically make the same promises or covenants to their buyer as they received from their seller when the real estate was granted to them.
The three types of deeds in Massachusetts are:
Warranty Deeds. A warranty deed provided the most assurances to the grantee, it includes four basic promises to the grantee. The first promise is that the seller of the real estate owns the real estate in fee simple, and that the grantor has absolute ownership of the property. The second promise is that the property is free from any encumbrances, liens or defects which would limit the grantees interest in the real estate, with exception to limits specifically stated in the deed. Third, the warranty deed guarantees that the grantor has the legal right to sell or transfer the property to grantee. Fourth the grantor promises to defend against any legal claims of ownership against the grantee that arose during the grantor’s ownership or prior to the grantor’s ownership. (See M.G.L. Chapter 183, Section 10 and 16.)
Quitclaim Deeds. The assurances of a quitclaim deed are more limited. The first promise is similar to the second guarantee of the warranty deed, which states that the grantor has not caused any encumbrances on the property other than those specifically listed in the deed. Unlike a warranty deed, however, the quitclaim only covers encumbrances made by the grantor and does not cover any preexisting encumbrances, restrictions or defects.. In addition to the first assurance, the quitclaim deed guarantees that the grantor will defend against any legal claims regarding problems with the title that arose during the grantor’s ownership period but not prior to the grantor’s ownership. Essentially a quitclaim provides the same protections as a warranty deed except it limits how far back in time the grantor is liable for any problems resulting from the title. (See M.G.L. Chapter 183, Section 11 and 17.)
Release Deeds. A release deed offers the least amount of protection to a grantee. It does not guarantee anything and serves only to transfer a title with whatever right the grantor may have to the property. With a release deed the grantor does not make any assurances o promises that the title is valid. A “Fiduciary Deed” is a Release Deed and is generally used by a grantor who is an Executor or Administrator of an estate to convey the decedent’s property. It is also used by a Trustee of a Testamentary Trust, a Guardian, or Conservator. The Fiduciary must have power to convey title either through a will or trust document.
If you have specific questions about the conveyance of title or about deeds in Massachusetts please contact our office.
