Blair Webb

Microwave Potato Chips Recipe

Blair Webb — Fri, 03 Feb 2012 23:25:00 GMT

Microwave Potato Chips
Active time: 30 minutes | Total: 30 minutes | To make ahead: Store in an airtight container for up to 3 days.

You don't need a deep fryer to make crispy potato chips. We toss thinly sliced potatoes with just a touch of olive oil, pop them in the microwave and voilà! Crispy, crunchy homemade potato chips with 8 grams less fat per serving than regular chips.

1 1/3 pounds Yukon Gold or red potatoes, unpeeled, scrubbed
2 teaspoons extra-virgin olive oil
1/2 teaspoon salt

1. Slice potatoes into thin (1/8-inch) rounds. Toss the slices in a medium bowl with oil and salt to coat evenly.
2. Coat a large microwave-proof plate with cooking spray. Arrange some potato slices in a single layer on the plate. Microwave, uncovered, on High until some slices start to brown, 2 to 3 minutes (depending on potato thickness and microwave power). Turn the slices over and continue microwaving until they start to crisp and brown around the edges, 2 to 4 minutes more. Check frequently and rearrange slices as needed to prevent scorching. Transfer the chips to another plate and allow to cool completely. (They will crisp more as they cool.) Repeat with the remaining potato slices.

Makes 4 servings, 12-14 chips each.
Per serving: 141 calories; 2 g fat (0 g sat, 2 g mono); 0 mg cholesterol; 26 g carbohydrate; 3 g protein; 2 g fiber; 291 mg sodium; 807 mg potassium.

4 Questions to Ask Before Buying a Foreclosure

Blair Webb — Tue, 31 Jan 2012 18:36:00 GMT

Foreclosures can offer big bargains, but buyers need to be careful that they don’t get over their heads in purchasing a home that may need more repairs than they bargained for.

Foreclosures are usually sold as-is, and homes that are left vacant standing too long can have a lot of maintenance problems.

Real estate experts suggest buyers consider the following questions:

1. How long has the home been vacant? Be cautious of a foreclosed home that has stood vacant for more than a few weeks or had its utilities shut off a long time. Marvin Goldstein, a home inspector for many foreclosed properties, says a home can deteriorate quickly when heating, cooling, electricity, and running water have been turned off for awhile.

2. How old is the home? Goldstein says that homes that are more than 50 years old may have a failing plumbing system or inadequate electrical wiring.

3. How does the home look? Are there broken windows, gutters hanging down, or damaged siding? “Trust your instincts. If the house looks bad from the outside, it's probably worse than you think,” Goldstein told The Oklahoman.

4. Is there anything missing? Sometimes former owners remove anything of value from the home, such as built-in light fixtures, bathroom tile, water heaters, air-conditioning units, and hardwoods, says Bill Jacques, president-elect of the American Society of Home Inspectors.

Housing experts encourage buyers to get a home inspector to look at the property, even if it is sold as-is, so that home buyers know any repairs needed and cost estimates before they purchase the home.

“Buying a bank-owned home gives you the opportunity to enter the market at a very low price level,” says Dorcas Helfant, a past president of the National Association of REALTORS®. “You can find terrific values among foreclosures, especially if they're not in too bad shape. But, remember, these houses are discounted for a reason.”

I know the foreclosure market ...let me help you find the right one !

IRS Audit Red Flags: The Dirty Dozen

Blair Webb — Tue, 31 Jan 2012 18:31:00 GMT

Ever wonder why some tax returns are eyeballed by the Internal Revenue Service while most are ignored?

The IRS audits only slightly more than 1% of all individual tax returns annually. The agency doesn't have enough personnel and resources to examine each and every tax return filed during a year. So the odds are pretty low that your return will be picked for review. And, of course, the only reason filers should worry about an audit is if they are fudging on their taxes.

However, the chances of being audited or otherwise hearing from the IRS increase depending upon various factors, including your income level, whether you omitted income, the types of deductions or losses you claimed, the business in which you're engaged and whether you own foreign assets. Math errors may draw IRS inquiry, but they'll rarely lead to a full-blown exam. Although there's no sure way to avoid an IRS audit, you should be aware of red flags that could increase your chances of drawing unwanted attention from the IRS.

1. Making too much money

Although the overall individual audit rate is about 1.11%, the odds increase dramatically for higher-income filers. IRS statistics show that people with incomes of $200,000 or higher had an audit rate of 3.93%, or one out of slightly more than every 25 returns. Report $1 million or more of income? There's a one-in-eight chance your return will be audited. The audit rate drops significantly for filers making less than $200,000: Only 1.02% of such returns were audited during 2011, and the vast majority of these exams were conducted by mail. We're not saying you should try to make less money -- everyone wants to be a millionaire. Just understand that the more income shown on your return, the more likely it is that you'll be hearing from the IRS.

2. Failing to report all taxable income

The IRS gets copies of all 1099s and W-2s you receive, so make sure you report all required income on your return. IRS computers are pretty good at matching the numbers on the forms with the income shown on your return. A mismatch sends up a red flag and causes the IRS computers to spit out a bill. If you receive a 1099 showing income that isn't yours or listing incorrect income, get the issuer to file a correct form with the IRS.

3. Taking large charitable deductions

We all know that charitable contributions are a great write-off and help you feel all warm and fuzzy inside. However, if your charitable deductions are disproportionately large compared with your income, it raises a red flag. That's because IRS computers know what the average charitable donation is for folks at your income level. Also, if you don't get an appraisal for donations of valuable property, or if you fail to file Form 8283 for donations over $500, the chances of audit increase. And if you've donated a conservation easement to a charity, chances are good that you'll hear from the IRS. Be sure to keep all your supporting documents, including receipts for cash and property contributions made during the year, and abide by the documentation rules. And attach Form 8283 if required.

4. Claiming the home office deduction

Like Willie Sutton robbing banks (because that's where the money is), the IRS is drawn to returns that claim home office write-offs because it has found great success knocking down the deduction and driving up the amount of tax collected for the government. If you qualify, you can deduct a percentage of your rent, real estate taxes, utilities, phone bills, insurance and other costs that are properly allocated to the home office. That's a great deal. However, to take this write-off, you must use the space exclusively and regularly as your principal place of business. That makes it difficult to successfully claim a guest bedroom or children's playroom as a home office, even if you also use the space to do your work. "Exclusive use" means that a specific area of the home is used only for trade or business, not also for the family to watch TV at night. Don't be afraid to take the home office deduction if you're entitled to it. Risk of audit should not keep you from taking legitimate deductions. If you have it and can prove it, then use it.

5. Claiming rental losses

Normally, the passive loss rules prevent the deduction of rental real estate losses. But there are two important exceptions. If you actively participate in the renting of your property, you can deduct up to $25,000 of loss against your other income. But this $25,000 allowance phases out as adjusted gross income exceeds $100,000 and disappears entirely once your AGI reaches $150,000. A second exception applies to real estate professionals who spend more than 50% of their working hours and 750 or more hours each year materially participating in real estate as developers, brokers, landlords or the like. They can write off losses without limitation. But the IRS is scrutinizing rental real estate losses, especially those written off by taxpayers claiming to be real estate pros. The agency will check to see whether they worked the necessary hours, especially in cases of landlords whose day jobs are not in the real estate business.

6. Deducting business meals, travel and entertainment

Schedule C is a treasure trove of tax deductions for self-employeds. But it's also a gold mine for IRS agents, who know from experience that self-employeds sometimes claim excessive deductions. History shows that most underreporting of income and overstating of deductions are done by those who are self-employed. And the IRS looks at both higher-grossing sole proprietorships and smaller ones.

Big deductions for meals, travel and entertainment are always ripe for audit. A large write-off here will set off alarm bells, especially if the amount seems too high for the business. Agents are on the lookout for personal meals or claims that don't satisfy the strict substantiation rules. To qualify for meal or entertainment deductions, you must keep detailed records that document for each expense the amount, the place, the people attending, the business purpose and the nature of the discussion or meeting. Also, you must keep receipts for expenditures over $75 or for any expense for lodging while traveling away from home. Without proper documentation, your deduction is toast.

[Also see: 7 ways to score free stuff]

7. Claiming 100% business use of a vehicle

Another area ripe for IRS review is use of a business vehicle. When you depreciate a car, you have to list on Form 4562 what percentage of its use during the year was for business. Claiming 100% business use of an automobile is red meat for IRS agents. They know that it's extremely rare for an individual to actually use a vehicle 100% of the time for business, especially if no other vehicle is available for personal use. IRS agents are trained to focus on this issue and will scrutinize your records. Make sure you keep detailed mileage logs and precise calendar entries for the purpose of every road trip. Sloppy recordkeeping makes it easy for the revenue agent to disallow your deduction. As a reminder, if you use the IRS' standard mileage rate, you can't also claim actual expenses for maintenance, insurance and other out-of-pocket costs. The IRS has seen such shenanigans and is on the lookout for more.

8. Writing off a loss for a hobby activity

Your chances of "winning" the audit lottery increase if you have wage income and file a Schedule C with large losses. And if the loss-generating activity sounds like a hobby -- horse breeding, car racing and such -- the IRS pays even more attention. Agents are specially trained to sniff out those who improperly deduct hobby losses. Large Schedule C losses are always audit bait, but reporting losses from activities in which it looks like you're having a good time all but guarantees IRS scrutiny.

You must report any income you earn from a hobby, and you can deduct expenses up to the level of that income. But the law bans writing off losses from a hobby. For you to claim a loss, your activity must be entered into and conducted with the reasonable expectation of making a profit. If your activity generates profit three out of every five years (or two out of seven years for horse breeding), the law presumes that you're in business to make a profit, unless IRS establishes otherwise. If you're audited, the IRS is going to make you prove you have a legitimate business and not a hobby. So make sure you run your activity in a businesslike manner and can provide supporting documents for all expenses.

9. Running a cash business

Small business owners, especially those in cash-intensive businesses -- think taxis, car washes, bars, hair salons, restaurants and the like -- are a tempting target for IRS auditors. Experience shows that those who receive primarily cash are less likely to accurately report all of their taxable income. The IRS has a guide for agents to use when auditing cash-intensive businesses, telling how to interview owners and noting various indicators of unreported income.

10. Failing to report a foreign bank account

The IRS is intensely interested in people with offshore accounts, especially those in tax havens, and tax authorities have had success getting foreign banks to disclose account information. The IRS has also used voluntary compliance programs to encourage folks with undisclosed foreign accounts to come clean -- in exchange for reduced penalties. The IRS has learned a lot from these programs and has collected a boatload of money ($4.4 billion so far).

Failure to report a foreign bank account can lead to severe penalties, and the IRS has made this issue a top priority. Make sure that if you have any such accounts, you properly report them when you file your return.

11. Engaging in currency transactions

The IRS gets many reports of cash transactions in excess of $10,000 involving banks, casinos, car dealers and other businesses, plus suspicious-activity reports from banks and disclosures of foreign accounts. A report by Treasury inspectors concluded that these currency transaction reports are a valuable source of audit leads for sniffing out unreported income. The IRS agrees, and it will make greater use of these forms in its audit process. So if you make large cash purchases or deposits, be prepared for IRS scrutiny. Also, be aware that banks and other institutions file reports on suspicious activities that appear to avoid the currency transaction rules (such as persons depositing $9,500 in cash one day and an additional $9,500 in cash two days later).

12. Taking higher-than-average deductions

If deductions on your return are disproportionately large compared with your income, the IRS may pull your return for review. But if you have the proper documentation for your deduction, don't be afraid to claim it. There's no reason to ever pay the IRS more tax than you actually owe.

Mortgage Rates Rise After Posting Record Lows

Blair Webb — Fri, 27 Jan 2012 23:50:00 GMT

Mortgage rates started to edge higher this week, after a series of recent positive reports showing the housing market on the mend, Freddie Mac reported in its weekly mortgage market survey.

The 30-year fixed-rate mortgage after posting all-time record lows for the past three weeks reversed course this week and ticked up to 3.98 percent. Still, this is the eighth consecutive week that 30-year fixed-rate mortgages have remained below 4 percent, Freddie Mac reported.

"Fixed mortgage rates ticked up this week as the housing market ended 2011 on a high note,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.Existing-home sales increased 5 percent in December, the largest amount since May 2010.

Here’s a closer look at mortgage rates for the week ending Jan. 26:

30-year fixed-rate mortgages: averaged 3.98 percent, with an average 0.7 point, up from last week’s low of 3.88 percent. A year ago at this time, 30-year rates averaged 4.80 percent.
15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.8 point, inching up after last week’s 3.17 percent average. Last year at this time, 15-year rates averaged 4.09 percent.
5-year adjustable-rate mortgages: averaged 2.85 percent, with an average 0.7 point, also up from last week’s 2.82 average. Last year at this time, 5-year ARMs averaged 3.70 percent.
1-year ARMs: averaged 2.74 percent this week, with an average 0.6 point--holding at last week’s 2.74 percent average. A year ago at this time, 1-year ARMs averaged 3.26 percent.

Single Story For Sale in Marshes of Mackay

Blair Webb — Mon, 23 Jan 2012 15:40:00 GMT

Marsh Front Home with Privacy

• 3,190 sq. ft., 2 bath, 4 bdrm single story "Redone inside and out" - MLS® $285,000 - Marsh front home

Marshes of Mackay, Brunswick - Enjoy marsh front living in this beautifully maintained low country style home at an affordable price. This home has a lot of space inside and out along with privacy.The home has been update and is move in ready.A large wrap around screened porch allows year round enjoyment of the outdoors or come inside and enjoy a good book infront of the stone fireplace of the living room with catherdal ceiling and wood beams.Memories will be made in this home with plenty of room for family gatherings and a kitchen with a new double oven allowing the fragrance of the season to fill the home. The first level has a large recreation area and an office with built in bookcases with plenty of views of the marshes and large oaks in the fenced backyard. This home has so much to offer and needs to be on your list of homes to see. Lease Purchase option available. Lease for $1850 month.

Property information

Banks, Gov't Near Deal on Foreclosure Settlement

Blair Webb — Mon, 23 Jan 2012 00:13:00 GMT

Up to 1 million at-risk, underwater borrowers may be eligible for a reduction on their mortgage principal, if a settlement between big banks and government officials gets the final approval.

The mortgage aid is reportedly on the table as big banks and federal and state government officials are nearing an end to months of settlement talks stemming from foreclosure abuses allegedly made by banks that caused many home owners to lose their home.

"We're very close to a settlement that would both fix the servicing problems, but also help over a million families around the country stay in their homes and get help," Shaun Donovan, U.S. Housing and Urban Development Secretary, said during a recent forum at the Winter Meeting of the U.S. Conference of Mayors in Washington.

Under the proposed settlement, major lenders J.P. Morgan Chase, Bank of America, Wells Fargo, Citigroup, and Ally Financial would pay between $20 billion to $25 billion to settle alleged foreclosure abuses.

Donovan also said banks also would reduce the mortgage principal of up to 1 million borrowers by about $20,000 each. Furthermore, he noted that some families who were wrongly foreclosed upon may get compensated as a result of the settlement.

Builders Feel the Most Upbeat in More Than 4 Years

Blair Webb — Mon, 23 Jan 2012 00:11:00 GMT

Builder confidence is at its highest level since June 2007, yet another sign that things are finally perking up in the new-home market, which has faced some of its darkest days on record this past year.

For the fourth consecutive month, builder sentiment for newly built, single-family homes was on the rise, according to the National Association of Home Builders and Wells Fargo Housing Market Index. The index measures builder sentiment on current and future sales conditions and buyer traffic.

The latest increase in the January index is “universally represented across every index component and region,” said Bob Nielsen, NAHB chairman.

“This good news comes on the heels of several months of gains in single-family housing starts and sales, and is yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide,” Nielsen said.

Coming Off a Dismal 2011

The Commerce Department reported Thursday that for the third straight month, single-family home construction rose 4.5 percent in December. However, overall housing starts for the month dropped 4.1 percent, with gains in the single-family sector offset by a nearly 28 percent drop in apartment construction in December.

The latest news wraps up a dismal year for new-home building, with 2011 marking the fewest number of single-family homes built in half-century. In all, builders started about 606,900 homes in 2011 — that’s half the 1.2 million economists consider healthy for the sector.

Nevertheless, despite the mostly sluggish year for the sector, building did start to pick up in the last part of 2011 and housing analysts are upbeat that will continue. "We expect further sustained gains in starts and permits over the next few months; a real recovery is getting started," Ian Shepherdson, chief U.S. economist at High Frequency Economics, told the Associated Press.

Threats to Recovery Remain

NAHB Chief Economist David Crowe warns that “caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost, and the continuing flow of foreclosed properties hitting the market.”

iPhone vs. Android: Smartphone Race Heats Up

Blair Webb — Mon, 23 Jan 2012 00:04:00 GMT

The iPhone 4S, which debuted in October, launched with a big bang and to record-breaking sales, and it’s being credited with helping Apple narrow its gap against its chief rival, Google's Android.

The research firm Nielsen reports that more than half of shoppers who purchased a new smartphone last fall chose an Android phone. Yet, Android’s market share dropped by about 12 percent when the iPhone 4S made its debut.

“The numbers show the iPhone still holds appeal, even if it isn’t the fastest phone on the market,” an article at Forbes notes about the findings.

One of Apple’s main criticisms is that it doesn’t have a super-fast 4G LTE phone, like rival Android, which boasts the Samsung Galaxy Nexus, a 4G LTE device. However, analysts expect Apple to release a 4G LTE iPhone later this year, as well as a faster iPhone 5 in the fall.

Analysts predict the sales gap between Apple and Android will narrow even more when Apple debuts its new products, according to the article. Still, Android boasts more types of smartphones than Apple, and Android manufacturers HTC and Samsung have helped Android stay on top by providing smartphone shoppers with greater selection and variety.

The smartphone race may even get tighter later this year, though, with the debut of the new Windows 4G LTE phone, which will likely put even more “market pressure on the two front-runners,” Forbes notes.

Rising Rents Make Home Buying a Better Choice

Blair Webb — Mon, 23 Jan 2012 00:02:00 GMT

Fallen home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, rental prices are continuing to rise at a fast pace, according to a new report released by Hotpads.com, a rental listing service.

Rental prices in 20 of the largest metro areas increased 3.75 percent in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by 1.83 percent in 2011, according to the report.

"In a lot of cases it's getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling," Paul Gleger, author of the report, told AOL Real Estate.

According to the report, New York has the highest rental prices, with a two-bedroom apartment’s median rent at $2,653. Other cities posting some of the highest median rents in the country: Boston ($1,929), Miami ($1,748), San Francisco ($1,607), Los Angeles ($1,717) and Chicago ($1,552).

“Don’t shoot the messenger”

Blair Webb — Sun, 22 Jan 2012 23:58:00 GMT

“Don’t shoot the messenger,” is the message the Appraisal Institute has for those in the real estate industry. Appraisers have been taking heat the last few months over low home values, with critics arguing that values aren’t matching a home listing or contract’s price and valuations are unfairly weighing distressed properties into the equation.

“Appraisers don’t set the real estate market; they reflect what’s happening in the market,” Sara W. Stephens, the Appraisal Institute’s president, said in the handout. “Obviously, the market is depressed — home prices have fallen far below the values of a few years ago. Many homes simply aren’t worth what their owners think they are.”

Appraisers say their main goal is to protect lenders against entering into a risky mortgage, not justifying the sales price for a buyer or seller. But the report emphasizes: Appraisers are independent, third-party experts and serve as an unbiased source of information.

Buyers and sellers “shouldn’t assume an appraisal is somehow ‘wrong’ if it doesn’t match the listing or contract price,” Stephens says. “There’s no reason to assume the contract price is the ‘correct’ price simply because it’s higher than the appraisal.”

A lot of the criticism over appraisals recently has centered on appraisers using distressed sales in their comparables — comparing an abandoned foreclosure to a lived-in home that may not have the maintenance issues that the foreclosed home might have.

“Appraisers know what adjustments to make, if any, when using distressed sales as comparables,” Stephens notes. “In some markets, distressed sales are so prevalent that it would be improper not to use them as comparables.”

Existing-home sales continued on an uptrend

Blair Webb — Sun, 22 Jan 2012 23:53:00 GMT

Existing-home sales continued on an uptrend in December, rising for three consecutive months and remaining above where they were a year ago, according to the National Association of REALTORS®.

The latest monthly data shows total existing-home sales rose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010. The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

For all of 2011, existing-home sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.

Affordability Conditions

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to another record low of 3.96 percent in December from 3.99 percent in November; the rate was 4.71 percent in December 2010; recordkeeping began in 1971.

NAR President Moe Veissisaid more buyers are expected to take advantage of market conditions this year. “The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves,” he said. “More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services.”

Total housing inventory at the end of December dropped 9.2 percent to 2.38 million existing homes available for sale, which represents a 6.2-month supply at the current sales pace, down from a 7.2-month supply in November.

Available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market.

“The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future,” Yun said.

Who’s Buying What

Foreclosures sold for an average discount of 22 percent in December, up from 20 percent a year ago, while short sales closed 13 percent below market value compared with a 16 percent discount in December 2010.

The national median existing-home price for all housing types was $164,500 in December, which is 2.5 percent below December 2010. Distressed homes — foreclosures and short sales — accounted for 32 percent of sales in December (19 percent were foreclosures and 13 percent were short sales), up from 29 percent in November; they were 36 percent in December 2010.

All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010. Investors account for the bulk of cash transactions.

Investors purchased 21 percent of homes in December, up from 19 percent in November and 20 percent in December 2010. First-time buyers fell to 31 percent of transactions in December from 35 percent in November; they were 33 percent in December 2010.

Contract failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010. Although closed sales are holding up better than this finding would suggest, contract cancellations are caused largely by declined mortgage applications and failures in loan underwriting from appraised values coming in below the negotiated price.

Single-family home sales increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in December from 3.93 million in November, and are 4.3 percent higher than the 3.94 million-unit pace a year ago. The median existing single-family home price was $165,100 in December, which is 2.5 percent below December 2010.

Existing condominium and co-op sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in December from 460,000 in November but are 2.0 percent below the 510,000-unit level in December 2010. The median existing condo price was $160,000 inDecember, down 3.0 percent from a year ago.

Around the Country

Regionally, existing-home sales in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December and are 3.3 percent above a year ago. The median price in the Northeast was $231,300, which is 2.7 percent below December 2010.

Existing-home sales in the Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5 percent above December 2010. The median price in the Midwest was $129,100, down 7.9 percent from a year ago.

In the South, existing-home sales increased 2.9 percent to an annual level of 1.76 million in Decemberand are 3.5 percent above a year ago. The median price in the South was $146,900, down 1.1 percent from December 2010.

Existing-home sales in the West rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8 percent below December 2010. The median price in the West was $205,200, up 0.3 percent from a year ago.

Record Rates Push Housing Affordability Higher

Blair Webb — Sun, 22 Jan 2012 23:50:00 GMT

The 30-year fixed-rate mortgage hit another all-time low this week, marking the seventh straight week it has averaged below 4 percent, Freddie Mac reports in its weekly mortgage market survey.

Here’s a closer look at rates for the week ending Jan. 19:

30-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.8 point, a new all-time low and dropping from last week’s previous record of 3.89 percent. A year ago at this time, 30-year rates averaged 4.74 percent.
15-year fixed-rate mortgages: averaged 3.17 percent, with an average 0.8 point, up slightly from last week’s record low of 3.16 percent. Last year at this time, 15-year rates averaged 4.05 percent.
5-year adjustable-rate mortgages: averaged 2.82 percent, with an average 0.7 point, the same as last week’s average. Last year at this time, 5-year ARMs averaged 3.69 percent.
1-year ARMs: averaged 2.74 percent, with an average 0.6 point, dropping from last week’s 2.76 percent average. Last year at this point, the 1-year ARM averaged 3.25 percent.

What's in Store for Housing in 2012?

Blair Webb — Wed, 28 Dec 2011 18:41:00 GMT

The worst for the housing market may finally be over, according to housing experts in a recent article in Kiplinger. After median home price have dropped nearly 40 percent nationwide, a rebound is taking shape -- although, housing experts say, the market may stay flat for awhile before gradually ticking up.

According to housing experts in a recent Kiplinger article, here are some predictions for the real estate market in the coming year:

Home prices stabilize: Mark Zandi, chief economist at Moody's Analytics, predicts that home prices nationwide may still drop another 3 to 5 percent in 2012, but the new year will most likely finally bring a leveling off of home prices before gains start to take shape in 2013. When markets do begin to stabilize in the new year, “price appreciation tends to spread unevenly, creating a lot of confusion about where the recovery is occurring and when,” David Stiff, chief economist at Fiserv Case-Shiller, told Kiplinger. “Even within a single city, more desirable neighborhoods will stabilize first, while prices in other neighborhoods may fall at a rapid pace.”

Housing affordability high: Housing affordability -- the ratio of median home prices to median family income -- will likely remain at record levels in 2012. Homes in many cities are “substantially undervalued,” the Kiplinger article notes. That may even lead to a mini bubble with double-digit spikes in prices, such as an increase of 10 to 15 percent in a given year in some markets, housing experts say.

Low mortgage rates: Helping to keep affordability high, low mortgage rates are expected to continue on in 2012 -- at least the first part of the year, economists predict. The 30-year fixed-rate mortgage, the most popular among home buyers, has been hovering under a 4-percent average the past few weeks, staying in record low territory. Rates are expected to stay between 4 to 5 percent in 2012, predicts Guy Cecala, publisher of Inside Mortgage Finance, an industry publication.

Sales increases: The National Association of REALTORS^® has already been showing a tick up in sales taking shape with increases in existing-home sales during the summer and early fall of 2011. High inventories of homes continue to flood the market but a drastic slowdown in new-home building the past three years is “gradually easing the surplus,” the Kiplinger article notes.

Foreclosures: Foreclosures remain the problem and still plague many markets. After a slowdown with lenders processing the paperwork, foreclosures have began to pick up once again. About 1.84 million home loans are 90 days or more delinquent and 2.17 million have finished the foreclosure process but aren’t up for sale yet, according to RealtyTrac data. Alex Villacorta, director of research and analytics at Clear Capital, told Kiplinger that he predicts regardless of the downward price pressure caused from foreclosures, overall home prices won’t fall as long as lenders bring additional foreclosures to the housing market at a steady pace.

CHRISTMAS EVE 1881

Blair Webb — Wed, 28 Dec 2011 18:36:00 GMT

I was touched by this, I know it's long, but I believe you may enjoy

Have a Merry Christamas and a Happy New Year

CHRISTMAS EVE 1881

Pa never had much compassion for the lazy or those who squandered their means and then never had enough for the necessities. But for those who were genuinely in need, his heart was as big as all outdoors. It was from him that I learned the greatest joy in life comes from giving, not from receiving.

It was Christmas Eve, 1881. I was fifteen years old and feeling like the world had caved in on me because there just hadn't been enough money to buy me the rifle that I'd wanted for Christmas. We did the chores early that night for some reason. I just figured Pa wanted a little extra time so we could read in the Bible.

After supper was over I took my boots off and stretched out in front of the fireplace and waited for Pa to get down the old Bible. I was still feeling sorry for myself and, to be honest, I wasn't in much of a mood to read Scriptures. But Pa didn't get the Bible, instead he bundled up again and went outside. I couldn't figure it out because we had already done all the chores. I didn't worry about it long though, I was too busy wallowing in self-pity.

Soon Pa came back in. It was a cold clear night out and there was ice in his beard. "Come on, Matt," he said. "Bundle up good, it's cold out tonight." I was really upset then. Not only wasn't I getting the rifle for Christmas, now Pa was dragging me out in the cold, and for no earthly reason that I could see. We'd already done all the chores, and I couldn't think of anything else that needed doing, especially not on a night like this. But I knew Pa was not very patient at one dragging one's feet when he'd told them to do something, so I got up and put my boots back on and got my cap, coat, and mittens. Ma gave me a mysterious smile as I opened the door to leave the house. Something was up, but I didn't know what.

Outside, I became even more dismayed. There in front of the house was the work team, already hitched to the big sled. Whatever it was we were going to do wasn't going to be a short, quick, little job. I could tell. We never hitched up this sled unless we were going to haul a big load. Pa was already up on the seat, reins in hand. I reluctantly climbed up beside him. The cold was already biting at me. I wasn't happy.

When I was on, Pa pulled the sled around the house and stopped in front of the woodshed. He got off and I followed. "I think we'll put on the high sideboards," he said. "Here, help me." The high sideboards! It had been a bigger job than I wanted to do with just the low sideboards on, but whatever it was we were going to do would be a lot bigger with the high side boards on..

After we had exchanged the sideboards, Pa went into the woodshed and came out with an armload of wood - the wood I'd spent all summer hauling down from the mountain, and then all fall sawing into blocks and splitting. What was he doing? Finally I said something. "Pa," I asked, "what are you doing?" "You been by the Widow Jensen's lately?" he asked.. The Widow Jensen lived about two miles down the road. Her husband had died a year or so before and left her with three children, the oldest being eight. Sure, I'd been by, but so what?

Yeah," I said, "Why?"

"I rode by just today," Pa said. "Little Jakey was out digging around in the woodpile trying to find a few chips. They're out of wood, Matt." That was all he said and then he turned and went back into the woodshed for another armload of wood. I followed him. We loaded the sled so high that I began to wonder if the horses would be able to pull it.

Finally, Pa called a halt to our loading, then we went to the smoke house and Pa took down a big ham and a side of bacon. He handed them to me and told me to put them in the sled and wait. When he returned he was carrying a sack of flour over his right shoulder and a smaller sack of something in his left hand. "What's in the little sack?" I asked. Shoes, they're out of shoes. Little Jakey just had gunny sacks wrapped around his feet when he was out in the woodpile this morning. I got the children a little candy too. It just wouldn't be Christmas without a little candy."

We rode the two miles to Widow Jensen's pretty much in silence. I tried to think through what Pa was doing. We didn't have much by worldly standards. Of course, we did have a big woodpile, though most of what was left now was still in the form of logs that I would have to saw into blocks and split before we could use it. We also had meat and flour, so we could spare that, but I knew we didn't have any money, so why was Pa buying them shoes and candy? Really, why was he doing any of this? Widow Jensen had closer neighbors than us; it shouldn't have been our concern.

We came in from the blind side of the Jensen house and unloaded the wood as quietly as possible, then we took the meat and flour and shoes to the door. We knocked. The door opened a crack and a timid voice said, "Who is it?" "Lucas Miles, Ma'am, and my son, Matt... could we come in for a bit?"

Widow Jensen opened the door and let us in. She had a blanket wrapped around her shoulders. The children were wrapped in another and were sitting in front of the fireplace by a very small fire that hardly gave off any heat at all. Widow Jensen fumbled with a match and finally lit the lamp.

"We brought you a few things, Ma'am," Pa said and set down the sack of flour. I put the meat on the table. Then Pa handed her the sack that had the shoes in it. She opened it hesitantly and took the shoes out, one pair at a time. There was a pair for her and one for each of the children - sturdy shoes, the best.... shoes that would last. I watched her carefully. She bit her lower lip to keep it from trembling and then tears filled her eyes and started running down her cheeks. She looked up at Pa like she wanted to say something, but it wouldn't come out.

"We brought a load of wood too, Ma'am," Pa said. He turned to me and said, "Matt, go bring in enough to last awhile. Let's get that fire up to size and heat this place up."

I wasn't the same person when I went back out to bring in the wood. I had a big lump in my throat and as much as I hate to admit it, there were tears in my eyes too. In my mind I kept seeing those three kids huddled around the fireplace and their mother standing there with tears running down her cheeks with so much gratitude in her heart that she couldn't speak. My heart swelled within me and a joy that I'd never known before, filled my soul. I had given at Christmas many times before, but never when it had made so much difference. I could see we were literally saving the lives of these people.

I soon had the fire blazing and everyone's spirits soared. The kids started giggling when Pa handed them each a piece of candy and Widow Jensen looked on with a smile that probably hadn't crossed her face for a long time. She finally turned to us. "God bless you," she said. "I know the Lord has sent you. The children and I have been praying that he would send one of his angels to spare us."

In spite of myself, the lump returned to my throat and the tears welled up in my eyes again. I'd never thought of Pa in those exact terms before, but after Widow Jensen mentioned it, I could see that it was probably true. I was sure that a better man than Pa had never walked the earth. I started remembering all the times he had gone out of his way for Ma and me, and many others. The list seemed endless as I thought on it..

Pa insisted that everyone try on the shoes before we left. I was amazed when they all fit, and I wondered how he had known what sizes to get. Then I guessed that if he was on an errand for the Lord, that the Lord would make sure he got the right sizes.

Tears were running down Widow Jensen's face again when we stood up to leave. Pa took each of the kids in his big arms and gave them a hug. They clung to him and didn't want us to go. I could see that they missed their Pa, and I was glad that I still had mine.

At the door Pa turned to Widow Jensen and said, "The Mrs. wanted me to invite you and the children over for Christmas dinner tomorrow. The turkey will be more than the three of us can eat, and a man can get cantankerous if he has to eat turkey for too many meals. We'll be by to get you about eleven. It'll be nice to have some little ones around again. Matt, here, hasn't been little for quite a spell." I was the youngest... my two brothers and two sisters had all married and had moved away.

Widow Jensen nodded and said, "Thank you, Brother Miles. I don't have to say, may the Lord bless you, I know for certain that He will."

Out on the sled I felt a warmth that came from deep within and I didn't even notice the cold. When we had gone a ways, Pa turned to me and said, "Matt, I want you to know something. Your Ma and me have been tucking a little money away here and there all year so we could buy that rifle for you, but we didn't have quite enough. Then yesterday a man who owed me a little money from years back came by to make things square. Your Ma and me were real excited, thinking that now we could get you that rifle, and I started into town this morning to do just that, but on the way I saw little Jakey out scratching in the woodpile with his feet wrapped in those gunny sacks and I knew what I had to do. Son, I spent the money for shoes and a little candy for those children. I hope you understand."

I understood alright... and my eyes became wet with tears again. I understood very well, and I was so glad Pa had done it. Now the rifle seemed very low on my list of priorities. Pa had given me a lot more. He had given me the look on Widow Jensen's face and the radiant smiles of her three children..

For the rest of my life, whenever I saw any of the Jensens, or split a block of wood, I remembered, and remembering brought back that same joy I felt riding home beside Pa that night. Pa had given me much more than a rifle that night, he had given me the best Christmas of my life.

Don't be too busy today... share this inspiring message. Merry Christmas and God bless you!

Record $88 Million Sale for NYC Condo

Blair Webb — Tue, 27 Dec 2011 15:12:00 GMT

Russian billionaire Dmitriy Rybolovlev is reportedly paying the full asking price of $88 million for a New York City condo for his 22-year-old daughter, considered the highest individual transaction ever recorded in New York City, according to Forbes.

The 6,744-square-foot apartment was owned by Sandy Weill, the former Citigroup chairman.

“This sale is an outlier. It works out to be about $13,000 per sq. foot, the highest on record, for anything, that has ever occurred,” Jonathan Miller, chief executive of real estate appraiser Miller Samuel, told Forbes.com. “What is ironic is that when Sandy Weill bought it for less than half this amount, he paid the highest price per square foot to date in that building, around, $6,400 per square foot. He is again setting a record.”

The Manhattan condo features 10 rooms, including four bedrooms and more than a 2,000-square-foot wraparound terrace. Rybolovlev’s daughter plans to use the apartment when attending the college in the United States.

The previous sales record in New York City was $53 million for a townhouse, set before the housing crisis.