Blog - Property Tax Appeal and Protest Services

Top 10 U.S. Cities For Public Parks

July 9, 2012 by

Park rankings by city For the first time in more than 100 years, the growth in America’s cities is outpacing the growth in its suburbs.

According to the 2011 estimates of the U.S. Census Bureau, between July 2010 and July 2011, city centers grew faster than their surrounding suburbs in 53% of the nation’s largest housing markets.

Compare this to just 9.8% during the 10 years prior.

Cities now compete with suburbs on a number of fronts including job availability, housing costs, and access to amenities, a category which includes proximity to public parks.

Parks are important to a city. Studies prove that parks help to attract home buyers, to retain retired homeowners, and to raise home values. And now, with the creation of ParkScore, it’s easy to compare park systems between U.S. cities.

ParkScore is an at-a-glance assessment of a city’s park system. Published by The Trust for Public Land, ParkScore considers “every publicly owned park space” within the nation’s largest cities and assigns an overall score based on total acreage, services provided, and access.

The maximum ParkScore is 100.

According to its publisher, the 10 cities nationwide with the highest ParkScores are :

San Francisco, California (74.0)
Sacramento, California (73.5)
Boston, Massachusetts (72.5)
New York, New York (72.5)
Washington, D.C. (71.5)
Portland, Oregon (69.0)
Virginia Beach, Virginia (68.5)
San Diego, California (67.5)
Seattle, Washington (66.5)
Philadelphia, Pennsylvania (66.0)

ParkScore rankings place a high premium on the “percentage of city residents living within a 10-minute walk of a public park”. It’s no surprise, therefore, that some of the top-finishers included San Francisco, Boston and New York City — three cities known for their abundance of public parks.

ParkScore bottom-finishers included Fresno, California; Charlotte, North Carolina; and Louisville, Kentucky.

The complete ParkScore rankings are available at http://parkscore.tpl.org, along with each city’s score and ranking analysis.

30-Year Fixed Rate Mortgage Rates Fall To 3.62% Nationwide

July 6, 2012 by

30-year fixed rate mortgage rates made new, all-time lows once again this week.

According to Freddie Mac’s weekly mortgage rate survey of more than 125 banks nationwide, the average 30-year fixed rate mortgage rate fell 4 basis point to 3.62% nationwide.

The rate is available to conforming, prime borrowers willing to pay an accompanying 0.8 discount points plus a full set of closing costs. A “prime” mortgage applicant typically has excellent credit, verifiable income, and at least 25% equity in their home.

And, it’s not just the 30-year fixed rate mortgage that made new lows in this holiday-shortened week, either. The 15-year fixed rate mortgage did, too, falling 5 basis points to 2.89%, on average.

The 15-year fixed rate mortgage requires 0.7 discount points plus closing costs.

Discount points are a one-time, up-front closing cost, based on loan size. If your loan requires 1 discount point, that means that your loan has a closing cost equal to 1 percent of your loan size. If your loan requires two discount points, the fee would be equal to two percent of your loan size; and so on.

So, based on this week’s Freddie Mac survey, a home buyer opening a $200,000 mortgage and paying 0.8 discount points would face to a one-time $1,600 fee to be paid at closing.

The good news is that discount points are optional.

To avoid paying discount points, simply ask your lender for a “zero points” loan. You’ll get a higher mortgage rate than what Freddie Mac shows in its survey, but you’ll pay fewer closing costs.

Today’s low rates are terrific for both home buyers and existing homeowners looking to make a refinance. As compared last year at this time, mortgage rates are down by 98 basis points — nearly one full percentage point.

Mortgage payments are much lower today as compared to July 2011 :

July 2011 : $512.64 principal + interest per $100,000 borrowed
July 2012 : $455.77 principal + interest per $100,000 borrowed

Today’s rates yield an 11 percent payment discount as compared to last year.

Mortgage rates are unpredictable so there’s no guarantee that low rates will last forever, much less through the summer. If today’s rates meet your household budget, consider locking something in.

Mortgage Rate Risk Ahead Of Friday Morning’s Jobs Report

July 5, 2012 by

Non-Farm Payrolls Since July 2010

Friday morning, the Bureau of Labor Statistics will release its Non-Farm Payrolls report. More commonly called “the jobs report”, Non-Farm Payrolls is a monthly market-mover.

Depending on the strength — or weakness — of the data, mortgage rates will change. Perhaps sharply. Unfortunately, we can’t know in which direction.

If you’re actively shopping for a mortgage , therefore, today may be a prudent day to lock a mortgage.

The job report’s connection to mortgage rates is straight-forward. As the number of U.S. citizens earning paychecks increases, reverberations are felt through the economy.

First, higher levels of income are tied to higher levels of consumer spending and consumer spending accounts for the majority of the U.S. economy. More working citizens, therefore, builds a larger overall economic base.

Next, as the overall economic base grows, businesses produce and sell more goods, necessitating the hiring of additional personnel and the purchase of more raw materials — both positives for the economy.

And, lastly, as more paychecks are written, more taxes are paid to local, state and federal governments. These taxes are often used to fund projects and purchase goods and services which, in turn, grow the economy as well.

Tying it all together, the health of the U.S. economy is a major factor is setting day-to-day mortgage rates. This is why rate shoppers face risk with tomorrow’s Non-Farm Payrolls report.

Between 2008 and 2009, the economy shed 7 million jobs. It has since recovered 3.9 million of them and, Friday, analysts expect to see another 100,000 jobs created in June. If the actual number of jobs created exceeds this estimate, look for mortgage rates to rise.

If the actual number of jobs created falls short of 100,000, mortgage rates may fall.

The government releases Non-Farm Payrolls data at 8:30 AM ET Friday.

Pending Home Sales Index Hits A 2-Year High

July 3, 2012 by

Pending Home Sales Index Homes are going under contract at a quickening pace.

In May, for the second time in 3 months, the Pending Home Sales Index crossed the 100 barrier, stretching to 101.1. A “pending home sale” is a home under contract to sell, but not yet sold.

Statistically, the Pending Home Sales Index reading is significant for two reasons.

First, the index’s reading is at its highest since April 2010. From this, we infer that today’s pace of home buying nationwide is approaching the “stimulated” levels of two years ago — but without the federal stimulus.

This is a positive signal for the housing market.

Second, because the Pending Home Sales Index is a relative index; and, because it was assigned a value of 100 upon its inception in 2001, readings higher than 100 imply that the housing market is performing better than it did during the index’s first year.

2001 happened to be a strong year for housing. 2012, it seems, is shaping up to be a better one.

And, there’s another reason why the Pending Home Sales Index matters so much to buyer and sellers — the Pending Home Sales Index is among the few “forward-looking” housing market indicators.

Rather than report on how the housing market looked 30-60 days in the past, as the Case-Shiller Index does; or the Existing Home Sales report, the Pending Home Sales Index looks 30-60 days to the future.

80% of homes under contract sell within 2 months so, as the Pending Home Sales Index goes, so goes housing. Based on May’s data, therefore, we can assume that home sale figures will rise through the summer.

If you’re shopping for homes right now, consider going under contract while the market remains somewhat soft. Mortgage rates are low and so are home prices. It makes for good home-buying conditions.

Tips To Keep Your Home Cooler Without Turning Down The Thermostat

July 2, 2012 by

The typical U.S. household “loses” up to 30% of its annual heating and cooling bill to energy inefficiencies, according to ENERGY STAR®.

The good news is that there are dozens of ways to help your home perform better.

As the calendar turns to July, and as temperatures warm nationwide, implement even one of the following cost-saving moves and you can expect your home’s energy bill to drop. Implement two or more, and you can expect your bill to drop by a lot.

Keep it simple at the start. When the sun shines through a window on a cloudless day, it can raise a room’s temperature by as much as 20 degrees. Therefore, the first energy-saving move to review is the easiest one — simply close your home’s window blinds and shades to block out the sun.

With the shades drawn and the sun blocked, your rooms will stay cooler, and so will your home. This is especially important during the mid-day hours when the sun is at its strongest so, before you leave for work, make sure you’ve closed your blinds.

The next step is to change your home’s air filter.

Air filters are meant to be changed quarterly, or monthly if your home has shedding pets. When your air filter is clean, the HVAC unit won’t have to work as hard to push air through your home’s air ducts, saving up to another 7% off your annual energy costs.

Next, replace your home’s incandescent light bulbs with energy-efficient ones.

This step can be costly up-front, but over the long-term, savings are big. Not only do energy-efficient light bulbs such as CFLs and LEDs last for years, but they don’t pump heat back into a room like an incandescent bulb will.

Incandescent bulbs are shown to convert 97.5% of their energy into heat, meaning just 2.5% of their supplied energy is used for light. This 97.5% then warms up your house, which costs money to cool.

And, lastly, if your home has ceiling fans, use them.

When a ceiling fan is running, it can make a room feel up to 8 degrees cooler. Just remember that ceiling fans cool you and not the room. Be sure to turn them off when you leave the room.

FHFA : Home Values Up 3% Since Last Year

June 29, 2012 by

HPI from April 2007 peak

The Federal Home Finance Agency’s Home Price Index shows home values up 0.8% in April on a monthly, seasonally-adjusted basis.

April marks the third consecutive month during which home values increased and the index is now up 3 percent from last year at this time.

As a home buyer , it’s easy to look at the Home Price Index and believe that its recent, sustained climb is proof of a broader housing market recovery. Ultimately, that may prove true. However, we cannot base our buy-or-sell decisions on the HPI because, like the private-sector Case-Shiller Index, the Home Price Index is flawed.

There are three main flaws in the FHFA’s Home Price Index. They cannot be ignored.

First, the FHFA Home Price Index’s sample set is limited to homes with mortgages backed by Fannie Mae or Freddie Mac. By definition, therefore, the index excludes homes with mortgages insured by the FHA.

5 years ago, this wasn’t such an issue because the FHA insured just 4 percent of mortgage. Today, however, the FHA’s market share is estimated to exceed 30 percent. This means this the HPI excludes more than 30% of U.S. homes from its calculations right from the start.

The index also excludes homes backed by the VA; jumbo mortgages not securitized through the government; and, portfolio loans held by individual banks.

Second, the FHFA Home Price Index is based on the change in price of a home on consecutive home sales. Therefore, it’s sample set cannot include sales of new home sales, nor can it account for purchases made with cash because cash purchases require no mortgage.

Cash purchases were 29% of the home resale market in April.

Third, the Home Price Index is on a 60-day delay.

The report that home values are up 0.8% accounts for homes that closed two months ago, and with contracts from 30-75 days prior to that. In other words, the Home Price Index is measuring housing market activity from as far back as January.

Reports such as the Home Price Index are helpful in spotting long-term trends in housing but data from January is of little help to today’s home buyers and sellers. It’s real-time data that matters most and the best place to get real-time housing market data isn’t from a national home valuation report — it’s from a local real estate agent.

Simple Real Estate Definitions : Right To Cancel

June 28, 2012 by

Right To Cancel notice As part of the federal Truth-in-Lending Act, refinancing homeowners are granted a 3-day “cooling off” period post-closing during which they retain the right to rescind, or “cancel”, their recent refinance without penalty or cost.

The Right To Cancel is protection against surprises at closing and/or a change of heart. It’s also a safety valve for homeowners signing paperwork under duress. With 3 days to revisit and rethink the terms of a loan, a homeowner can maintain tighter control of his/her financial situation.

If you ever have the wish (or need) to execute your right to rescind, be aware that the process is a formal one. The required steps must be completed on-time, and in order, or else your request will be invalid.

The process starts with a document labeled “Right To Cancel”. It’s included in your closing package and lists the terms of a rescission in straight-forward language. Among the key points :

You have 3 business days during which to cancel your loan
When you cancel the refinance, the entire transaction is cancelled
You must submit your Right To Cancel in writing

“Business day” is defined by the government to be every day, save for Sundays and federal holidays. A loan that closes on a Monday, therefore, must be rescinded prior to Friday at 12:00 AM.

Typically, rescission requests are faxed to the settlement agent, notary, or title company assigned with the refinance. It’s good practice to ask for an acknowledgement of receipt as proof of delivery, too.

There are some refinances for which the Right to Cancel does not apply, however. This includes refinances linked to an investment property, and loans not collateralized by residential real estate. There are other conditions, too, that may supersede your right to rescind so be sure to ask your lender.

New Home Sales Rise To 2-Year High

June 27, 2012 by

New Home Supply The new construction market continues to improve.

As reported by the Census Bureau, 369,000 new homes were sold last month on a seasonally-adjusted, annualized basis. A “new home” is a home that is considered new construction.

May’s data marks the highest number of new homes sold since April 2010, the last month of that year’s federal home buyer tax credit.

It’s also a 14% increase over the rolling 12-month average.

The news was somewhat expected based on the most recent Homebuilder Confidence survey, which rose to a 5-year high. Home builders have been reporting higher sales volume and rising buyer foot traffic since October of last year.

The May New Home Sales report confirms what builders already told us.

Furthermore, new homes are selling more quickly than builders have built them, lowering the national “home supply” to levels not seen since October 2005. There are currently 145,000 new homes for sale.

A supply of 6.0 months is believed to represent a market in balance. Anything less connotes a “sellers’ market”. At the current pace of sales, the entire new home housing stock would be exhausted in 4.7 months.

The South Region continues to account for the majority of new construction sales, posting a 55% market share in May. South Region sales were up 13 percent as compared to April. The other 3 regions turned in mixed results :

Northeast Region : +36.7% from April 2012
Midwest Region : -10.6% from April 2012
West Region : -3.5% from April 2012

For all its strength, though, the Census Bureau’s New Home Sales data may also be “off”.

Although New Home Sales were said to rise by roughly 8 percent nationally from April to May, the government’s monthly report was also footnoted with a ±12.2% margin of error. This means that the actual New Home Sales reading may have been as high as +20% last month, or as low as -4%. The values could be positive or negative — we can’t know for certain.

However, that’s not to say that the New Home Sales should be ignored.

Longer-term, new home trends have been positive and builder confidence survey suggests the same. If you’re in the market for new construction , you may want to go into contract soon. Home prices and mortgage rates remain low — a terrific combination for today’s home buyers.

Existing Home Sales Slip 2% In May

June 26, 2012 by

Existing Home Sales Home resales slipped last month; a slight setback for the nation’s housing market’s recovery.

According to the National Association of REALTORS®, Existing Home Sales fell to 4.55 million units in May 2012 on a seasonally-adjusted annualized basis, representing a 2 percent drop from April.

An “existing home” is a home that’s been previously owned or occupied, and cannot be categorized as new construction.

Despite May’s retreat, however, as compared to last year at this time, Existing Home Sales by units are higher by 10 percent. In other words, like everything else in housing, the long-term statistical trend has been a positive one.

The housing market has seen its bottom and is finding balance.

Other data from the Existing Home Sales report includes :

First-time buyers accounted for 34% of all purchasers, down from 35% in April
Real estate investors accounted for 17% of all purchasers, down from 20% in April
Cash buyers accounted for 28% of all purchasers, down from 29% in April

In addition, distressed sales accounted for 25% of all sales in May, down from 28% in April.

“Distressed sales” include the sale of homes in various stages of foreclosure, and of short sales. This is the smallest percentage of homes sold in a “distressed” status since the real estate trade group began tracking the data in 2008.

And, lastly, home supplies rose by 0.1 months to 6.6 months nationwide in May. This means that, at the current pace of sales, the complete U.S. home resale inventory would be sold out before the end of 2012. A 6-month supply is widely believed to represent a market in balance between buyers and sellers.

There are now 2.49 million homes for sale — a 20% reduction from May 2011.

Home resales may have slipped last months but volume remains brisk nationwide. All-time low mortgage rates and high home affordability are keeping buyers in the market. Home prices are rising in many U.S. cities as the housing market continues its slow, steady recovery.

How To Choose The Proper Paint Color(s) For A Room

June 25, 2012 by

Whether you’re moving into a new home and want to make it “yours”, or just want to change the feel of your current place, a painting project is an easy way forward. Painting is relatively inexpensive yet it can transform a home’s look-and-feel.

But how do you make sure you’re choosing the best colors and the proper type of paint?

This 8-minute video from Lowe’s tells it all. In it, you’ll learn how professional designers identify a potential paint palette for a room, then how they choose between shade, finish and type.

Among the tips and advice in the video :

How to use 2×2 “test blocks” to ensure a color works in both natural and artificial light
How to choose the right colors for a small room, and for a large room
Why painting the ceiling can change a room’s perceived size
How to build complementary, split-complementary and analogous color schemes for a room
How to choose between latex and oil-based paint products

In addition, the video shares notes on how light bulb types can affect the “warmness” of a particular paint color, and how to consider existing room elements such as furniture in your final color choices.

Paint projects require little advance planning and, if done properly, they can change the feel of a room, and a home. Most projects can be completed within a weekend.

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