Home Ownership

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December 14, 2010

My Favorite New Gadget

Posted by martikilby under Christmas, Home Improvement, Home Ownership | Tags: , , , |
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First, let me just say that I don’t own a wonder hanger and wouldn’t be caught dead in a Snuggie, but I did recently buy something that I saw on TV, and was stunned at how well it worked.

Last weekend, we were getting ready to decorate the front of the house with green Christmas garland.  Several years ago I had carefully intertwined 300 little white lights through all 90 feet…not a quick task.  So before hanging the garland, I of course plugged in the lights to test them and was annoyed to discover that two sections of 50 lights each didn’t work.  I wasted about 30 minutes messing with each bulb to make sure it was all the way in its socket, but to no avail.  Now fuming, I realized that the only solution was to de-construct the garland and re-string it with new lights – a total waste of time when I was already so behind on Christmas!

So I made my way to Home Depot and was picking up some new lights when something clicked in my head, and I remembered a gadget I’d seen on TV that supposedly fixed strings of mini lights like mine.  And there it was on the shelf right in front of me, the Light Keeper Pro.  Kind of expensive at $19.95, but I reasoned, if it happened to work and saved 2-3 hours of my time it was money will spent.

I read the package, and had no idea how it really worked, but followed the directions by removing one of the dead bulbs and putting the socket in the little hole on the Light Keeper.  I squeezed the trigger, and voila, the lights came back on!  I put the bulb back in the socket and like magic all the lights worked. 

I was elated!  And even happier when I discovered and fixed “dead” sections in the  lights I was going to put on the tree.  No more throwing out strings of mini lights!  This little gadget definitely made my Christmas brighter 🙂

 

December 10, 2010

Staggering Stats: Trillions in Equity Lost

Posted by martikilby under Home Ownership, Real Estate Sales Statistics, Real Estate Values | Tags: , , , , |
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This year alone U.S. homes are projected to lose $1.7 trillion in value.  Since the market peaked in 2006 there has been over $9 trillion in lost equity, according to Zillow.  But let’s put that in perspective.

Zillow cites a report by the Congressional Research Service, which says that from 2001 to the end of September of this year, the war in Iraq has cost the U.S. $750.8 billion.  This means that since 2006, the dollar value of home equity lost by U.S. homeowners is greater than the cost of 12 Iraq wars!

Now some might argue that home equity in 2006 wasn’t “real” money, and that inflated prices only created the illusion of equity.  Well, most of the country based many financial decisions on that illusion and by the end of the 3rd quarter 2010; more than 23.2% of homeowners owe more than their house is worth.

Looking forward into 2011, Dr. Stan Humphries, Zillow’s chief economist, doesn’t see the market settling into a natural equilibrium of supply and demand any time soon.  “Unfortunately, with foreclosures near an all time high in late 2010, and negative equity persisting, it does not appear that the first part of 2011 will bring much relief,” he said.

One bright spot for San Diego emerged however.  Out of the 129 market areas tracked by Zillow, only one-quarter showed any increase in value in 2010, led by Boston with a spike in residential home values of $10.8 billion and San Diego metro with an increase of $10.2 billion.

The message for San Diego homeowners:  Hang-on if you can and you’re not too far underwater.  For would-be buyers:  Don’t wait!  Prices and interest rates are on the rise.

 

December 2, 2010

Reducing the MID is a Stupid Idea

Posted by martikilby under Home Ownership, mortgage, Real Estate Values, Tax Deduction | Tags: , , , , , |
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We all agree that reducing the national debt and annual deficit is important to the long-term stability and health of our nation’s economy.  But why, in a time when the housing market is so fragile, would anyone think that reducing one of the principal benefits of home ownership is a good idea?

Yesterday, the Deficit Reduction Commission issued its recommendations which included cuts to Social Security, Medicare, Defense spending, and the Mortgage Interest Deduction, among other programs.  The Mortgage Interest Deduction has been around for over 80 years and is one of the principal benefits of owning a home.  This provision allows homeowners to take the annual interest paid on their mortgage as an income tax deduction. Take away or significantly lower the deduction and the benefits of home ownership are reduced to choosing your own paint colors.   Values are not appreciating; no one is building equity, so why buy?

Coincidentally the Federal Reserve’s Beige Book was also released yesterday showing that the depressed housing market continues to be one of the biggest stumbling blocks to economic recovery.  So if I understand correctly, the Feds are saying that our economy won’t show significant improvement until the housing market recovers and at the same time the Deficit Commission is proposing that we make home ownership less appealing.   The logic eludes me.

I believe that the impact of this proposal will be a significant blow to the struggling housing market, whether or not it is ever enacted.   The public in general is still nervous that home values will continue to decline, so many would-be buyers are sitting on the sidelines waiting to buy.  The news reporting of this proposal, and even the remote possibility that the deduction will disappear gives them one more reason to stall, further delaying recovery.

Although I don’t always agree with their politics, the National Association of Realtors got this one right.  This is a stupid idea and I hope that you’ll join me in asking your Representative to defend the Mortgage Interest Deduction.

 

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