Inflation cools

Inflation cools

The Labor Department said today that the Consumer Price Index was
unchanged last month. Economists had expected an increase of
0.1%. Prices rose 3.4% in the 12 months through November. That
is off from the 3-year high of 3.9% clocked in September, and
Friday's report backs the view that the spike in inflation is
subsiding. However, some of the data in the report could give
pause to policymakers still concerned about inflation. Outside
food and energy, prices climbed 0.2%. These so-called core
prices rose 2.2% in the 12 months through November, up from 2.1%
in October. Prices for food rose 0.1% during November. Within
the core index, prices for apparel jumped 0.6%. But dragging
down the overall index, gasoline fell 2.4% and prices for new
vehicles were down 0.3%.

Economists and investors see inflation slowing over the coming
months, which could help convince the Federal Reserve to do more
to bring down the country's 8.6% unemployment rate. Most
economists have said the Fed's next meeting on Jan. 24-25 would
be the more likely occasion for any new moves to bring down
borrowing costs and help growth. The US central bank has held
overnight interest rates near zero since December 2008 and has
bought $2.3 trillion in government and mortgage-related bonds in
a further attempt to stimulate a robust recovery.

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Unpluggged 2011

Holiday greeting.pdf Download this file

It's easy to get swept into the holiday frenzy, spending money you really don't have, making commitments because you think you just can't say “no.” But you can put a stop to the madness and regain the joy of the season.

James P. Sargen did just that after decades of holiday excess. As general manager of a big-city shopping center early in his career, he worked 80-hour weeks during the holiday season. Raising a young family, his wife enjoyed entertaining and decorating, he says, but he dreaded the holidays. There were extended-family dinners, two elaborately decorated trees, a large holiday event for more than 200 the week before Christmas and more than 300 holiday cards to mail.

Each year, he found himself caught up in this whirlwind of obligations. Sargen says he felt trapped in stressful commitments and the spending frenzy.

The turning point came when he realized the true value of the holidays is spending time with family and friends. “How you did it was less important than connecting with the people you love or care for,” he says. Author and psychologist Cheryl Dellasega says focusing on personal connections is the key to exchanging holiday stress for holiday serenity. It's important to appreciate those closest to you “all year rather than trying to have one intense day of caring,” says Dellasega, a professor at Penn State College of Medicine. “Focus on the significance of the holiday, first for the individual and then for the family, which can help identify what is most important.”

Sargen decided to take control of the holiday madness. He talked with his family and they agreed to focus on sharing presents with personal meaning to the giver and recipient. They also replaced the long holiday mailing list, sending cards personalized with letters and photos for close relatives and friends.

Sargen, of Avila Beach, Calif., says downsizing the holidays was part of his “age of simplification.” He gave up the corporate job for entrepreneurial pursuits and now heads outdoor fitness equipment provider TriActive America Inc.

Now, rather than the extravagant holiday party, he enjoys a simple holiday brunch. He sets aside time to “listen to holiday music, enjoy warm apple cider or mulled wine, and celebrate the holidays with good conversation with family and friends.” Instead of last minute shopping, he keeps loved ones in mind throughout the year as he travels or shops. “I let my heart make the decision,” he says.

A Working Mother's Perspective

Nicki McManigal Hayes and husband Ryan wanted their children Regan and Charlie to cherish the holiday season for its meaning rather than for gifts. “We try to celebrate with our children all season leading up to the holiday,” says Hayes, who is director of online retailer Memolink.com. On the holiday, the Hayes family plans a simple, fun activity, like sledding after Thanksgiving dinner near their Denver home.

They also set spending limits and buy only for the children and grandparents. They keep the kids on their regular schedule to limit stress. And she doesn't take on holiday responsibilities she doesn't have time for. “Store-bought cookies are just as good, if not better, than homemade ones!” she says with a laugh.

By not getting caught up in the holiday frenzy, the Hayes family can enjoy “saying and doing the things we don't take time for all year round,” she says. “It's the perfect time to recharge the family bonds and friendships to carry you into the New Year.”

A Life-Changing Holiday

For Matt Lowe and his family, the true meaning of the holidays will be forever etched into their consciousness through his mother's brush with death three years ago. “A supposedly fatal tumor was discovered between my mom's spinal cord and brain stem,” Lowe says. “This happened 10 days before Christmas.”

His mother's only hope was a dangerous surgery. Lowe, now 30, says the health professionals told the family to “brace for her death; that survival was unlikely and the best-case scenario was that she would be a vegetable.”

The week before Christmas was one of the saddest and most stressful for their family. But “to the disbelief of her doctors,” Lowe says, the surgery was successful and his mother made a complete recovery. She was released from the hospital on Christmas Eve.

Lowe, a public relations account director in Kansas City, Mo., says the family no longer wastes time and money on elaborate festivities. “The more elaborate the party, the less it is about the people in attendance,” he says.

And they share presents valued for the thought and the humor. “Last year, I made a horrible, wood CD rack for my brother Mike, which he actually uses!”

Every season since that life-altering event, Lowe says he has just two concerns for the holidays: “Will I see my favorite people, and how much are we going to laugh?”

I hope you enjoyed these stories as much as I did. And with that being said, I want to thank you for your friendship and  allowing me to send you the stories I cherish so much throughout this year. I hope you have a blessed and glorious Christmas. And if you do not celebrate Christmas, then happy holiday to you and yours.

Merry Christmas

 

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Freddie: Low Mortgage Rates to Hang Around Next Year

Message body

Wall Street Journal - December 14, 2011, 2:40 PM ET

Freddie: Low Mortgage Rates to Hang Around Next Year

By Drew FitzGerald

Mortgage rates are expected to remain very low at least through mid-2012, while housing activity improves slightly, according to Freddie Mac

’s economic and housing outlook released Wednesday.

The outlook also projects fewer single-family home-loan originations but more multifamily lending in 2012. The rental market is likely to lead growth in the lending industry, though parts of the country will also benefit from increased activity in the single-family home market.

High unemployment and a glut of foreclosed properties have depressed the housing market in recent years, despite extremely low interest rates that have made borrowing more attractive.

“While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly,” said Frank Nothaft, Freddie Mac’s chief economist. “All told, next year will be another bumpy ride.”

Job growth must accelerate beyond the average monthly payroll gains of 130,000 seen this year through November for the unemployment to decrease significantly. Even then, the mortgage company predicted the unemployment rate will remain above 8% in 2012.

Freddie Mac predicts the U.S. economy will grow by about 2.5% next year.

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Fw: Reinvigorate Your Holiday - 12/16 Money Pit e-Newsletter

Home Remodeling Repair & Improve Ideas & Solutions Radio & Podcasts Contact Us Community Presented by: The Welcome Mat When you're riding high on the holiday spirit, the last thing you want is a brown tree or burned out bulbs bringing you down. Don't let your holiday lose its sparkle! We've got tips for keeping your tree and trimmings merry and bright through the whole season. You can do-it-yourself, but you don't have to do it alone. This Issue Christmas Light Repair Tips Are your Christmas lights in need of repair? Here are five fast and easy ways to get the joy back in the joyous season without having to buy new light strings. read more How to Find a Long-Lasting Christmas Tree In the market for a fresh-cut Christmas tree? When you head out on the hunt for that perfect annual pine, keep these tips in mind. read more Energy Efficient Holiday Tips The average American household paid a record-breaking $1,400 for electricity last year. Stop the madness! You can save money and energy this holiday season by switching to LED holiday lights. read more ON THE AIR: Holiday Recycling Tips Learn ways to cut down on your holiday waste by recycling. Radiant floor heating can be an efficient way to keep your house warm. Learn how a new showerhead can revolutionize your entire shower. Plus get answers to your home improvement questions about air ventilation, relaminating countertops and more. read more Holiday Gift Guide 2011 Do you have a handy person in your life who already seems to have every tool on the planet? We can help! Get great gift ideas for everyone on your list this holiday season. read more Share This Information With A Friend! Simply forward this Email. And invite friends to register to receive this E-newsletter each week. If you would like to unsubscribe from our weekly newsletter, please refer to the unsubscribe directions at the bottom of this newsletter. You are currently subscribed to moneypit_e-newsletter as: dabeisner@yahoo.com To unsubscribe: click here or write to Squeaky Door Productions, Inc., 57 S. Main Street #133, Neptune, New Jersey 07753

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California home sales and median price post increases in November, C.A.R. reports

California home sales and median price post increases in November, C.A.R. reports

VIDEOLEFT LOS ANGELES (Dec. 16) – California home sales posted an increase both on a monthly and annual basis in November, marking the fifth consecutive month of year-to-year sales increases, according to figures released today from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 503,570 units in November, up 2.1 percent from a revised 493,140 in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. November home sales also were up 2.3 percent from the revised 492,040 units sold during the like period a year ago. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

“The continuing strength in home sales is encouraging and should keep us on track to match or exceed last year’s sales pace,” said C.A.R. President LeFrancis Arnold. “Despite the challenges the housing market has faced, sales are maintaining a pace that is just shy of normal levels, enabling both distressed and non-distressed properties to move and providing a tremendous opportunity for those who are looking to buy a home.”

The November statewide median price of an existing, single-family detached home sold in California was $280,960, up 1.0 percent from $278,060 in October but down 5.2 percent from the $296,480 median price recorded for November 2010.

“On a regional level, more markets registered year-to-year price gains in November than in October, despite the statewide year-over-year price decrease,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “However, price declines in such high cost areas as Contra Costa, Marin, Ventura, Orange County, Santa Barbara, and Santa Cruz may be a sign that the recent lowering of the Fannie Mae and Freddie Mac conforming loan limits may have had an impact on purchases of homes in the moderately high-priced range.

Other key facts of C.A.R.’s November 2011 resale housing report include:

·         The Unsold Inventory Index for existing, single-family detached homes was 5.0 months in November, down from 5.3 months in October and down from a 6.2-month supply in November 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

·         Thirty-year fixed-mortgage interest rates averaged 3.99 percent during November 2011, down from 4.30 percent in November 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.90 percent in November 2011, compared with 3.25 percent in November 2010.

·         The median number of days it took to sell a single-family home edged up to 56.6 days in November 2011, compared with a revised 54.8 days for the same period a year ago.

Multimedia:

·         View a video of C.A.R. Deputy Chief Economist Robert Kleinhenz discussing highlights of the November existing home sales and price report.

·         View Unsold Inventory by price range.

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes in November may exhibit unusual fluctuation.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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Zillow: Real estate values decline at steady rate toward bottom

DAILY REAL ESTATE NEWS December 15, 2011

Zillow: Real estate values decline at steady rate toward bottom (CHARTS)

10 of 156 metro areas saw annual appreciation in October

By Inman News
Inman News™

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U.S. home values continued to fall in October, but at a rate that has stabilized as the market heads toward a bottom, according to a report from property valuation site Zillow.

Nationally, home values dipped 0.3 percent in October from September, and declined 5.1 percent from October 2010, to $147,900.

"The rate of monthly depreciation has stabilized around -0.2 percent to -0.3 percent over the last few months, an improvement compared to the fall of last year, when rates reached more than 0.8 percent monthly depreciation," the report said.

 

Home values have declined 23.7 percent from a May 2007 peak. Zillow said it expects home values to drop another 2 to 4 percent before reaching a bottom in 2012.

"Continued home-value depreciation is a reflection of an abundance of housing supply relative to continued anemic demand despite record high housing affordability and historically low mortgage rates. Low consumer confidence and fears of further price declines continue to contribute to a crisis of confidence among potential buyers," the report said.

"However, I'm encouraged by the positive, albeit slow, progress in working down the unemployment rate, which should help to improve consumers' appetites for buying homes," added Stan Humphries, Zillow's chief economist, in a statement.

 

Of the 156 metropolitan areas tracked by Zillow, 61 percent saw home values decline on a monthly basis; a quarter saw monthly increases; and 14 percent remained flat. Only 6 percent (10 metros) saw home values increase on an annual basis. Seven of those metros also experienced monthly appreciation: Fort Collins, Colo.; Honolulu; Madison, Wis.; Lincoln, Neb.; Oklahoma City; Fort Myers, Fla.; and Tulsa, Okla.

Of the 25 largest metro areas, all except Pittsburgh saw year-over-year decreases. Atlanta posted the biggest drop, down 14.7 percent, followed by Tampa, Fla., down 10.7 percent. Pittsburgh saw home values appreciate a slight 0.4 percent year over year.

Only four of the 25 largest metros saw monthly appreciation: Detroit; Phoenix; San Diego, Calif.; and Pittsburgh. Detroit posted the highest increase, up 1 percent. Of the remaining metros, St. Louis posted the largest monthly drop, falling 1.9 percent, followed by Atlanta, down 1.4 percent.

Largest 25 metros covered by Zillow	Zillow Home Value Index
	Oct. 2011	Mo.- to- mo. ch.	Yr.- over- yr. ch.	Ch. from peak	Homes fore- closed (out of every 10K homes)	Fore- clos- ure re- sales
U.S.	$147,900	-0.3%	-5.1%	-23.7%	8.1	19.4%
New York	$342,500	0.5%	-4.4%	-24.3%	0.4	2.6%
Los Angeles	$382,700	-0.5%	-7.4%	-37.9%	11.5	27.2%
Chicago	$163,600	-1.1%	-10.4%	-34.3%	--	--
Dallas	$120,600	-1.2%	-4.9%	-16%	8.3	19.9%
Philadelphia	$188,400	-0.5%	-4.6%	-18.1%	2.5	7.4%
Miami-Fort Lauderdale, Fla.	$136,800	-0.1%	-4.9%	-55.4%	--	--
Washington, D.C.	$301,400	-0.2%	-1.9%	-29.6%	4.9	15.1%
Atlanta	$109,700	-1.4%	-14.7%	-37.6%	--	--
Detroit	$72,900	1%	-6.7%	-52.9%	--	--
Boston	$305,700	-0.6%	-2.7%	-19.4%	--	--
San Francisco	$464,000	-0.3%	-6.3%	-33.8%	12.5	26%
Phoenix	$120,600	0.2%	-8.4%	-56.9%	24.5	40.9%
Riverside, Calif.	$178,100	-0.2%	-5.9%	-55.7%	22.5	45.1%
Seattle	$252,400	-0.2%	-9.4%	-33.1%	11.5	25.2%
Minneapolis-St. Paul, Minn.	$164,000	-0.6%	-9.1%	-31.5%	10.5	18.9%
San Diego	$339,000	0.1%	-5.5%	-36.5%	11.3	26.6%
St. Louis	$121,500	-1.9%	-9.1%	-21.7%	--	--
Tampa, Fla.	$103,900	-0.3%	-10.7%	-52.5%	--	--
Baltimore	$214,600	-0.8%	-3.2%	-24.2%	3.1	11.3%
Denver	$203,500	-0.5%	-2.9%	-11.8%	10	23.6%
Pittsburgh	$106,500	0.1%	0.4%	-1%	2.7	8.5%
Portland, Ore.	$208,100	-0.4%	-6.8%	-26.3%	12.2	15.3%
Cleveland	$109,800	-0.8%	-5.1%	-22.6%	9	20.3%
Sacramento, Calif.	$201,400	-0.5%	-10.4%	-52.2%	19.2	39%
Orlando, Fla.	$112,600	-0.7%	-8.1%	-56.4%	--	--

Source: Zillow

Homes were foreclosed on at a rate of 8.1 per 10,000 in October, a decline from an all-time high of 10.7 per 10,000 in October 2010, just before a controversy involving documentation irregularities caused a slowdown in foreclosure proceedings. The share of foreclosure resales in the market was 19.4 percent in October.

"We do expect an increase in the foreclosure liquidation rate either in conjunction with a settlement between major lenders and servicers and various states' attorneys general or, alternatively, in the aftermath of the settlement effort falling apart.

This will cause the cumulative number of homes in foreclosure status to begin to fall again as these homes become REO (real estate owned), unfortunately putting renewed downward pressure on home values," the report said.

October's report includes the addition of 18 million homes to the coverage area of Zillow's Home Value Index, which previously covered 750 U.S. counties and now covers nearly 3,000.

Many of the homes added are in rural locations, which typically have lower home values, resulting in a lower national Zillow Home Value Index.

For example, September's national index value fell to $148,400 from $171,500 after the data from the added counties was included. Zillow's national home-value index is a weighted average of the median home value for each county.

Index values at the metro level were little changed because most homes within major metro areas had previously been covered, the report said.

Data from the added counties has been recomputed into the historical data back to 1996 for the Zillow Home Value Index, "so there is no discontinuity," the report said.

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American dream of homeownership continues amid foreclosures

DAILY REAL ESTATE NEWS December 15, 2011

American dream of homeownership continues amid foreclosures

Yahoo! Real Estate Survey shows consumer resilience in the face of foreclosure

By Tara-Nicholle Nelson
Inman News™

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By now, nearly five years after the real estate market meltdown began, you'd think virtually no housing consumer has been unaffected. To start, more than 5 million homes have been foreclosed and repossessed by lenders; 10 million homeowners are underwater (owing more on their homes than the homes are worth); and untold millions who want to offload their homes either can't or are trying -- and struggling -- to sell.

And while nearly everyone who pays for the place they live in has experienced some impact from the real estate recession, it looks like one thing remains insulated from damage: our belief in the value of homeownership.

Surprisingly, the people who you would expect were the most emotionally and financially scarred by the foreclosure crisis -- homeowners who have lost their homes -- still cling tightly to their belief in the value of homeownership, according to the results of a Yahoo! Real Estate study that polled 1,500 housing consumers, including more than 400 foreclosed homeowners.

Only 43 percent of the respondents who had actually lost their homes said their belief in homeownership had suffered as a result.

Among the 10 percent of respondents who experienced a foreclosure that led to a loss of primary residence:

Source: Yahoo! Real Estate Home Horizons 2012 survey of 1,500 U.S. homebuyers, sellers, owners and renters.

Further, there was not much difference in the share of respondents who had personally experienced foreclosure who still believe that homes are good investments (64 percent) compared with those who had no personal experience with foreclosure who hold the same belief (76 percent).

Source: Yahoo! Real Estate Home Horizons 2012 survey of 1,500 U.S. homebuyers, sellers, owners and renters.

The results underscore how resilient the dream of homeownership truly is. Survey respondents who had lost their personal homes to foreclosure were as likely to say they plan to buy a home in the future as respondents who hadn't experienced the financial and emotional trauma of losing a home to foreclosure.

Foreclosed homeowners have experienced firsthand the advantages of homeownership -- especially the tax, lifestyle and psychological advantages -- and they miss them, the survey shows.

You might wonder what would possess a foreclosed homeowner -- after going through the months or years of stress while missing mortgage payments (and/or trying to get the bank to modify their loans), the breathless anxiety of having to move or being evicted, and the years of credit and financial rehab after the foreclosure -- to ever want to buy or own another home again?

As I see it, several phenomena might be at play in keeping their desire to be homeowners alive. It's entirely possible that this group had a stronger-than-average belief in homeownership before they even bought the homes they lost in the first place.

This might have made them more likely to take a subprime loan or buy a more expensive home than they could sustainably afford, making them more susceptible to foreclosure than others.

If you loved living in and owning your own home, decorating and customizing it at will, and knowing that a big chunk of your monthly housing costs (i.e., your mortgage interest and property taxes) are tax deductible, it can be tough to take what feels like a personal financial step backward from owning to renting a home -- no matter what the financial pundits might say about renting vs. owning.

From a psychological perspective, there's even an argument that the fact that these people have lost their homes might be making them want homes even more than they would have had they never been homeowners to begin with.

And lest you think buyers and renters have gotten a free pass from foreclosure crisis effects, millions of would-be buyers who are desperate to strike while the home-value iron is hot are finding themselves stymied, unable to qualify for today's tight mortgage guidelines.

Even renters now have much more competition, in the form of foreclosed homeowners, which has driven rents up -- way up, in some markets. And 72 percent of surveyed homebuyers and sellers said the housing crisis has affected their housing plans.

Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.

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