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Rates Hit New Low
In Freddie Mac's results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage (FRM) averaged 5.14% for the week ending December 24, 2008, down from the previous week when it averaged 5.19 percent.
Last year at this time, the 30-year FRM averaged 6.17 percent.
"Interest rates on 30-year fixed-rate mortgages eased for the eighth straight week and set another record low since Freddie Mac's survey began in 1971,"said Frank Nothaft,
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Freddie Mac vice president and chief economist. The average rates are so low, refinancing can benefit even those who purchased a home a year or two ago.
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Why Are Property
Taxes Still Rising?
 Property taxes continue to rise across the country, despite declines in home values.
Property tax collections across the United States rose 3.1 percent this year, according to the U.S. Bureau of Economic Analysis. That means state and local governments will collect more than $400 billion in property taxes this year — a record amount.
Most states have caps that prevent taxes from rising rapidly in boom times. The same laws keep taxes from plummeting when home values decline. "Property taxes aren't always popular, but they are a very stable tax, even in tough times," says Thomas Gentzel, executive director of the Pennsylvania School Board Association. |
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Deal Sweeteners Woo Potential Buyers
 What does it take to sell a house these days? While the right price is key, attractive bonuses can get potential buyers to at least take a look.
A Porsche comes with the house in Austin, Texas, while a seller in Phoenix is offering to install a pool, a patio and a professional grill to anyone who pays full price.
Purchasers of Tim Newton’s home in La Habra, Calif., get professional lawn maintenance for six months, furnishings of their choice, and a flat-screen TV.
A Real-estate development company in New York City is offering buyers 10 personal-training sessions, a $500 American Express gift card, and a romantic getaway to a bed and breakfast. |
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Curb Appeal Matters Now More Than Ever
 For the second year in a row, Realtors® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report.
On a national level, wood deck additions and all types of siding replacements – upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl – returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent.
"Because today's buyers have much more to choose from in the way of inventory, any home for sale must make a positive first impression,"said National Association of Realtors® President Charles McMillan. "As a trusted source for real estate information, Realtors understand what attracts and motivates their buyer clients, which is why the results of this year's Cost vs. Value report underscore the importance of curb appeal in the buyer's eye."
The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects in 79 markets across the country |
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