Home prices gain 3.6% in past year

By Les Christie, staff writer

August 31, 2010: 9:53 AM ET

NEW YORK (CNNMoney.com) -- Despite a recent spate of bad news coming out of the housing industry, home prices show signs of stabilizing.

National home prices jumped a substantial 3.6% in the past year, according to the S&P/Case-Shiller Home Price Index released on Tuesday. Prices also climbed 4.4% in the second quarter compared with a 2.8% plunge in the first quarter.

"While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead," said David M. Blitzer, chairman of the Index Committee at Standard & Poor's. "Even with concerns about near term developments, we recognize that the housing market is in better shape than this time last year."

Of course, the positive report was buoyed by the government's tax credit program, which refunded as much as $8,000 for homebuyers. With that program now over, markets could cool.

"We all know what happened to housing after the homebuyers tax credit ended," said Mike Larson, real estate analyst for Weiss Research. "It's been an Acapulco-sized cliff-dive."

QUIZ: Are you an All-American homeowner?

And because this report is a lagging indicator, Larson adds that "it would be foolhardy to think that this report tells us that prices will continue to rise." Instead, he expects prices to slowly deteriorate over the next several months.

In fact, home prices across the country could be substantially lower a year from now, according to Pat Newport, an analyst with IHS Global Insight. "It's now apparent that the demand for housing is a lot weaker than anyone thought," he said.

That has resulted in a glut of inventory, which a slew of bank repossessions of foreclosed properties is only making worse. Plus job gains are still proving elusive.

"These three factors are enough to bring home prices down," Newport said.

Winners and Losers

A market basket of 20 metro areas tracked by the S&P/Case-Shiller home price indexes showed that prices gained in all markets but one. The index is up 4.2% year-over-year, well above a 3.1% forecast from industry experts as compiled by Briefing.com. The month-over-month gain was 1%.

"Las Vegas was the only city to record a fall in prices during June (-0.6%), compared with a month earlier. All 19 other markets were either up or flat, with Chicago, Detroit and Minneapolis the biggest winners. Each gained 2.5%.

Fifteen of the 20 cities recorded 12-month price rises, with San Francisco leading the way. Its 14.3% increase was one of three cities posting double-digit gains, with San Diego prices jumping 11.2% and Minneapolis 10.7%

 

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Just Reduced

Reduced to $699,900 on Tuscawilla Golf Course.

6 quick fixes for your credit score

Q:  What do you advise a financially fit homebuyer to do to increase their credit score or make themselves more attractive buyers, to qualify for the lowest mortgage rates?

A:  A FICO score of 700 (FHA)/740 (Conventional) or better qualifies you for the lowest rates. In fact, it qualifies you just as well as a higher score, so if you’re at or over 700/740, there’s no loan qualification rationale for investing effort into boosting it.  But these are firm breaking points. The difference between a score of 698 and a score of 700 (in an FHA loan scenario) can cost you a quarter of a point in interest, or thousands of dollars over the life of your mortgage.

I’ve found that people asking about how to boost their credit to qualify for the best interest rates is similar to people asking me how to lose weight: I tell them the truth, then their eyes glaze over when I give them the straight dope, no magic bullets.  No one wants to hear: eat vegetables, cut the sugar, and exercise; similarly, they don’t want to hear pay your bills on time, every time. 

But I’ve been asked this question a lot recently, so here goes, anyway!
    
1.    Pull your reports online – get them for free, no strings attached, at the government authorized website AnnualCreditReport.com.  This doesn’t get you your actual FICO scores, but it does get you the content of your report. Look for errors that could be depressing your score, like accounts that don’t belong to you, balances that are actually lower than reported, old debts that are paid off that should have been removed entirely (7 years for credit cards, 10 for bankruptcies). 

2.      Consider reopening accounts you thought were open but have been closed because you haven’t used them in so long - it will help boost your utilization ratio, one element of your credit score that is dependent on how much available credit you have.

3.      Pay down some debt.  This both decreases your debt-to-income ratio (36% is the goal, including the proposed mortgage payment) and increases your credit score, if you do it right (see the next tip).

4.     Don’t close any accounts.  Instead, spread your debt out. The ideal utilization ratio is about 20-30% of your available credit overall, and on any given account.  Closing accounts reduces the amount of credit that is available to you, so it makes it look like you’re closer to being maxed out. 

So if you have one card that’s near its max and several others that have zero balances and you’re trying boost your score a bit, quickly, consider balance transfers to spread our your debt more evenly, aiming for 20-30% of the available credit on each card.

5.     Use your credit regularly – and pay it on time, every time:  Having a good FICO score doesn't happen because you have sound personal finances, including no debt. FICO scores are a measure that shows that you have a history of responsibly using andmanaging and repaying your debt on an ongoing basis. 

6.      Finally, check in with your mortgage broker.  Have them pull your report and score, as the report they pull is the one they’ll have to go by in the final analysis.  If you’re really close to a score level higher, that would empower you to qualify for a lower rate, they can actually run a credit diagnostic on your score and generate some recommendations for which actions you could take to raise your score by the needed few points. Then many of them can do what’s called a ‘Rapid Rescore’ – once you’ve paid that bill off, they can actually submit a request directly to the credit bureaus to update that information and your score in just a few days.

None of these tips will get someone with a 500 credit score to a 700 (other than a massive debt reduction program).  But if you’re trying to get a little boost to get you over a credit score hump, these can be potent, and save you beaucoup bucks in interest.

6 quick fixes for your credit score

Q:  What do you advise a financially fit homebuyer to do to increase their credit score or make themselves more attractive buyers, to qualify for the lowest mortgage rates?

A:  A FICO score of 700 (FHA)/740 (Conventional) or better qualifies you for the lowest rates. In fact, it qualifies you just as well as a higher score, so if you’re at or over 700/740, there’s no loan qualification rationale for investing effort into boosting it.  But these are firm breaking points. The difference between a score of 698 and a score of 700 (in an FHA loan scenario) can cost you a quarter of a point in interest, or thousands of dollars over the life of your mortgage.

I’ve found that people asking about how to boost their credit to qualify for the best interest rates is similar to people asking me how to lose weight: I tell them the truth, then their eyes glaze over when I give them the straight dope, no magic bullets.  No one wants to hear: eat vegetables, cut the sugar, and exercise; similarly, they don’t want to hear pay your bills on time, every time. 

But I’ve been asked this question a lot recently, so here goes, anyway!
    
1.    Pull your reports online – get them for free, no strings attached, at the government authorized website AnnualCreditReport.com.  This doesn’t get you your actual FICO scores, but it does get you the content of your report. Look for errors that could be depressing your score, like accounts that don’t belong to you, balances that are actually lower than reported, old debts that are paid off that should have been removed entirely (7 years for credit cards, 10 for bankruptcies). 

2.      Consider reopening accounts you thought were open but have been closed because you haven’t used them in so long - it will help boost your utilization ratio, one element of your credit score that is dependent on how much available credit you have.

3.      Pay down some debt.  This both decreases your debt-to-income ratio (36% is the goal, including the proposed mortgage payment) and increases your credit score, if you do it right (see the next tip).

4.     Don’t close any accounts.  Instead, spread your debt out. The ideal utilization ratio is about 20-30% of your available credit overall, and on any given account.  Closing accounts reduces the amount of credit that is available to you, so it makes it look like you’re closer to being maxed out. 

So if you have one card that’s near its max and several others that have zero balances and you’re trying boost your score a bit, quickly, consider balance transfers to spread our your debt more evenly, aiming for 20-30% of the available credit on each card.

5.     Use your credit regularly – and pay it on time, every time:  Having a good FICO score doesn't happen because you have sound personal finances, including no debt. FICO scores are a measure that shows that you have a history of responsibly using andmanaging and repaying your debt on an ongoing basis. 

6.      Finally, check in with your mortgage broker.  Have them pull your report and score, as the report they pull is the one they’ll have to go by in the final analysis.  If you’re really close to a score level higher, that would empower you to qualify for a lower rate, they can actually run a credit diagnostic on your score and generate some recommendations for which actions you could take to raise your score by the needed few points. Then many of them can do what’s called a ‘Rapid Rescore’ – once you’ve paid that bill off, they can actually submit a request directly to the credit bureaus to update that information and your score in just a few days.

None of these tips will get someone with a 500 credit score to a 700 (other than a massive debt reduction program).  But if you’re trying to get a little boost to get you over a credit score hump, these can be potent, and save you beaucoup bucks in interest.

Oviedo Traveling Tuesdays via PickingWildFlowersBlog.blogspot.com

This is a post I just did on a friend of mines blog for her Traveling Tuesday Posts. She asked me to give the 411 on Oviedo/Orlando, so here is my post. Check out her blog as well: pickingwildflowersblog.blogspot.com

Name: Justin Core (and his wife, Megan Bevis Core)

Occupation: Realtor

Blog: CoreRealEstateGroup.blogspot.com 

Location: Oviedo, FL (Orlando)

What major cities or landmarks are your city close to? Anytime I'm asked this question, Disney is the obvious answer and out-of-towners assume I venture there on a weekly basis. Truthfully, I could not recall the last time I made it to the "happiest place on earth" until we decided to go last weekend for my wife's birthday. After a morning full of the classic rides at the Magic Kingdom with surprisingly reasonable wait times, we hopped on the monorail for a quick trip over to Epcot to drink around the world. We began in the UK with a beer sampler, stopped in Germany for a Flight of Wines, and ended gracefully with Margaritas in Mexico. Disney is a good 45 minute drive from Oviedo and well worth the drive but expect it to be an all day adventure.

The University of Central Florida is also minutes from downtown Oviedo but somehow the 50,000 students who flock to the campus every fall and their brand new stadium do not spoil the quaint feel of small town Oviedo.

downtown Orlando from across the beautiful Lake Eola

How long have you lived there? I've lived in Oviedo since 1994, with the exception of my 4 year stint for college in Tallahassee (FSU).

If you moved here after living in a different city, where did you move from? I was born in Huntsville, Alabama and moved to Florida when my dad was transferred for work. All of our family is still in Huntsville so we have always visited regularly. Although Huntsville is not a small town, it has many small town tendencies and aspects. We found the same thing in Oviedo when we came here and it is really what has kept us here for so long. Although Oviedo doesn't have a lot to offer, in the way that a town like Orlando does, it does have a very quaint atmosphere. 


For instance, Oviedo is known for chickens that roam freely throughout the downtown. There are bumper stickers all throughout Central Florida that say "I brake for Oviedo Chickens," and that's how our town is known. Growing up in a town like Oviedo, you do everything you can to find your way out. I did find my way out for four years and at some point during that time began to fall back in love with the town for all new reasons. I did move back and began to see it in an all new light. It has something for everybody because it is a small town that is so close to a major city and all of the tourist attractions that go along with that. 

What's the climate like? Hot, humid, and muggy. Winter is cool and dry but short, and fall is nice but hurricanes are frequent. Spring is the time of year to come if you are going to the parks and summer is the time of year if you are coming for the beach. 


Personally, I find cold weather miserable unless I'm in the Rockies skiing and to me. There are a few weeks in late January and February that are bitter cold, but it is not uncommon to venture over to the beach New Year's Day to enjoy the occasional warm sunshine. When it is cold however, I dream of the days of the scorching summer heat, but I seem to remember once again how HOT it can really get once summer rolls back around. Late summer, around July and August, we have temperatures over 100 degrees with 100% humidity. That's hot!

What are some of your favorite weekend things to do in your town? The best thing about this area is that there truly is something for everyone. For a relaxing Saturday morning, the Winter Park Farmers Market is a must. Just off Park Avenue there is a farmers market that draws vendors from all over Central Florida on a weekly basis. The streets get crowded so make sure to get there bright and early to beat the crowds and the heat. 

Winter Park Farmer's Market

New Smyrna Beach is a local favorite and still remains a hidden treasure, unspoiled by the heavy tourist population that invades the Florida coastline every summer. New Smyrna's Flagler Avenue is just two short blocks from the beach and is truly a relaxed beach town. You can drive on the beach and stop on your way out of town to visit a long-time local favorite Frozen Gold for a sweet ice cream treat. You're guaranteed to enjoy yourself at the beach, the food, and the atmosphere.

For the sports fans (or those just looking for a good time), an Orlando Magic game (during season) is a must. The Magic have always had a great fan base, atmosphere, and venue, but all of that has increased as of late. The Magic have played in two straight Eastern Conference Championships and are putting their final touches on their new state-of-the-art Amway Center. The intensity is higher than it has ever been and the entire City of Orlando is ecstatic about the outlook of the team. 

What is your town known for?

Free Roaming Chickens! And we love it.

What are some of your favorite restaurants in your city?

Oviedo:

Breakfast - Big John's Country Cookin' & Townhouse Restaurant (in a close second)
Lunch - Tijuana Flats 
Dinner - Gino's Pizzeria, Froggers

Winter Park/Orlando:
Breakfast - Uncle Henry's Country Grill, First Watch
Lunch - Four Rivers Smokehouse
Dinner - Dexter's, Boston Fish House, & anything on Park Avenue in Winter Park

Tell us why you love your city? Oviedo is everything you could want from a small town within minutes of a larger city. It is close enough to the tourist attractions to venture often but not so close that it feels like one itself. Oviedo loves it's high school football team, sweet barbecue, quiet backroads, pick-your-own strawberries, and you'll never forget the smell of orange blossoms in bloom. On any given day you eat a $3 breakfast at Big John's and spend a bundle on dinner at one of the top tourist destinations in the world [Disney] or walk on the most famous beach in the planet [Daytona Beach]. Oviedo is a great place to live and vacation. 

Emergency Preparedness Checklist

Create an Emergency Plan

❏

Meet with household members to discuss the dangers of fire, severe weather, earthquakes and other emergencies. Explain how to respond to each.

❏

Find the safe spots in your home for each type of disaster.

❏

Discuss what to do about power outages and personal injuries.

❏

Draw a floor plan of your home. Mark two escape routes from each room.

❏

Show family members how to turn off the water, gas and electricity at main switches when necessary.

❏ Post emergency telephone numbers near telephones.

❏ Teach children how and when to call 911, police and fire.

❏ Instruct household members to turn on the radio for emergency information.

❏ Pick one out-of-state and one local friend or relative for family members to call if separated during a disaster (it is often easier to call out-of-state than within the affected area).

❏ Teach children your out-of-state contact’ s phone numbers.

❏ Pick two emergency meeting places. 1) A place near your home in case

of a fire. 2) A place outside your neighbor-

hood in case you cannot return home after a disaster.

❏ Take a basic first aid and CPR class. ❏ Keep family records in a water and

fire-proof container.

Prepare a Disaster

Supplies Kit

Assemble supplies you might need in an evacuation. Storetheminaneasy-to-carry container such as a backpack or duffle bag.

Include:

❏ A supply of water (one gallon per person per day). Store water in sealed, unbreakable containers. Identify the storage date and replace every six months.

❏ A supply of non-perishable packaged or canned food and a non-electric can opener.

❏ Achangeofclothing,raingearand sturdy shoes.

❏ Blankets or sleeping bags. ❏ A first aid kit and prescription

medications.

❏ An extra pair of glasses.

❏ A battery-powered radio, flashlight and plenty of extra batteries.

❏ Credit cards and cash.

❏ An extra set of car keys.

❏ A list of family physicians.

❏ A list of important family informa- tion; the style and serial number of medical devices such as pacemakers.

❏ Special items for infants, elderly or disabled family members.

 

Top 10 Tuesday's: Top 10 Moving Mistakes That Can Cost You

#1: Moving Without a Plan

Whether you're trekking across the country or simply shifting across the street, moving is a big job that takes considerable preparation. If you think you can throw everything in boxes and onto a truck at the last minute, you're bound to overlook important details and make costly mistakes. To alleviate the stress of last-minute planning and packing, stay on schedule with a moving checklist. As early as 60 days before your move, start getting estimates from movers, gathering packing supplies, and making travel arrangements. Be diligent in checking off the tasks on your list; time will be at a premium on the days leading up to your move, so the more you can get done in advance the better

#2: Hiring the Wrong Moving Company

A quality moving company can save you a lot of the time, stress and muscle strain it takes to tackle a do-it-yourself move. However, not all movers are created equal -- hire an undependable company, and you might actually add stress to your move. Fortunately, there are several steps you can take to make sure your movers are legit. Use these tips to choose a reliable moving company:

• Ask your friends and family for recommendations.
• Check out the company's licenses, credentials and track record. Look for the company's U.S. Department of Transportation license and their Motor Carrier number on their website. Find out if the company is a member of the American Moving & Storage Association or another industry trade association. Check with the Better Business Bureau for many unresolved complaints about the movers.
• Get in-home estimates from at least three companies. Movers need to see your stuff to give you a truly accurate estimate, so skip estimates over the phone or internet.
• Don't hire a mover that offers a too-good-to-be-true rate.
• Avoid movers that require large deposits or down payments.

#3: Not Setting a Budget

It's easy to get caught up in the costs of selling your home and buying a new one, but don't overlook the costs associated with moving. Besides the obvious expenses -- a moving van or crew, boxes and tape -- there are lots of little expenses along the way that can wreak havoc on your wallet if you're not prepared for them. For example, while you're calculating the costs of moving your stuff, keep in mind the cost of moving yourself: If you're traveling a long distance, factor in costs for transportation, lodging and meals on the road.

And don't forget to save your receipts -- they might save you money after your move. If you relocated for a new full-time job at least 50 miles away from your previous home, you can deduct the cost of packing, transporting or storing your household goods from next year's tax return.

#4: Packing Poorly

Let's face it: Packing is a pain. But so are the last-minute hassles and possible property damage you'll face if you don't take the time to pack your belongings correctly. If you can fit it in your budget, your moving company can save you time and stress by packing your items for you. But if you choose to box up your own belongings, follow these quick tips to pack like a pro:

• Invest in quality packing materials. Boxes designed specifically for moving will help keep your belongings safe and secure.
• Label your boxes. Make unpacking easier by labeling each box with the room it belongs in, plus a short description of its contents.
• Know what not to pack. Movers won't touch flammable items, perishable foods or plants.
• Pack a moving survival kit. This box should contain toiletries, medications and other necessities and should stay with you -- not with the moving truck. You should also transport valuable and irreplaceable items yourself, such as jewelry, family heirlooms and important documents.
• Don't wait until the last minute. Pack a few boxes a day so you don't get overwhelmed.

#5: Not Understanding Your Insurance Options

Even with the most careful movers, accidents can happen -- and when they do happen, typical moving insurance may not be of much help. Basic carrier liability, which is the minimum coverage required by law and is included in the price of your move, pays about 60 cents per pound for damaged goods. That means if your 20-pound plasma TV breaks in transit, you'll be reimbursed $12 -- even if you paid $800 for it last year. If you want the peace of mind that your goods will be replaced if broken, you'll need to purchase additional coverage. First, check your homeowner's insurance to see if it covers damages that occur in transit. If it doesn't, explore other options to find one that fits your needs and your budget.

#6: Withholding Details From Your Moving Company

You can never be too honest with your movers. When getting in-home estimates, show them everything you plan on moving so they can give you an accurate quote. If there are any factors at your new home that might affect the move -- say, a narrow driveway or a steep set of stairs to the front door -- be sure to disclose these details to your movers as well. Most obstacles are not insurmountable, but you'll be charged extra for them later if you don't tell your movers upfront.

#7: Hastily Signing Off on the Moving Inventory

This important document proves that all of the items from your old home were packed and put on the truck. When the movers arrive at your new residence, check every item on the inventory sheet before you sign off -- if you hurriedly confirm that everything arrived intact, you'll have a hard time backtracking when you notice your favorite flatware is missing. If you notice any damages or missing items before the movers leave, alert them and make a note on the inventory sheet or Bill of Lading. If they offer to settle on the spot, politely decline. You may end up underestimating the damages.

#8: Forgetting About Fido

If you're moving with pets, don't forget to make any special arrangements needed for your furry friends. Make travel plans well in advance: If you are flying, reserve a space for your pet at least three to four months prior because flights have limits on how many pets they can carry. If you are driving, make sure your dog has somewhere to sleep at night -- you don't want to start searching for pet-friendly lodging after a long day's drive. The commotion of moving day will likely be stressful for your pets, so consider asking a friend or a professional to care for them while you're loading up the moving van. At the very least, designate a safe spot for your pets where they'll be out of the way of the movers.

#9: Moving Things You Don't Need

Whether or not we admit it, most of us are packrats. Rather than parting with all the junk we never use before a move, we'd rather box it up and haul it to our new homes. But transporting items you don't need will make your move more expensive if you're using a moving company (movers often base their price on how much stuff you're shipping) and more difficult if you're moving yourself (why lift extra boxes if you don't have to?). Before you start packing, get rid of anything you don't currently use or won't be necessary in your new home. You can hold a garage sale to make some extra cash to put toward moving expenses, or you can give your things away to friends, family or charity.

#10: Not Timing Your Move

Summer is the busiest time for moving, and the best moving companies get booked well in advance. Waiting until the last minute to plan a summer move can mean getting stuck with a second-rate mover -- or no mover at all. If you can postpone your move to the fall or winter, you'll have a much easier time hiring a great mover at a low rate. But if a summer move is unavoidable, don't procrastinate on planning. Start getting estimates from movers three to four months before your moving day.

Visit us at: www.TheCoreGroupFL.com