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Seller's Tip: Securing a Water Heater

Monday, July 22, 2013
by Rob Levy

Here’s an important seller’s tip: securing a water heater is required in most Western states. Since an earthquake can toss these appliances around, lawmakers now require them to be strapped down securely enough to withstand this disaster.

Water heaters are relatively easy to secure by using a DIY strapping kit purchased from a local hardware store. This kit normally contains either metal or nylon straps that go around both the top and bottom of a water heater tank. These kits also contain tension bolts, washers, spacers and screws to aid in wall attachment. Retailers offer different sized kits to accommodate different sizes of tanks.

Installation begins with securing one end of each strap to the wall. If the wall is concrete, this could involve drilling into the concrete and then installing concrete anchors. Water heaters that are quite a distance from the wall could require the placement of wooden blocks on them.

If you wrap the straps at least one full rotation around the water heater tank you will insure its stability. Begin at the back of the tank and then wrap towards the front. Once this is accomplished, tighten the straps down so that the water heater does not rock back and forth when pressed on from either side.

In addition to straps, a water heater should also contain flexible hoses. Made from coiled stainless steel, they flex whenever the appliance is shifted from side to side. They prevent the additional damage that could come from a broken hose or gas line.

Laws in earthquake-prone states mandate this seller’s tip: securing a water heater is required before placing your property on the market. A home inspection should include checking the water heater to insure its safety in the event of an earthquake. Securing a water heater is easy to do, and provides peace of mind for everyone involved.

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Mortgage Rates Begin to Rise

Monday, July 15, 2013
by Rob Levy

Mortgage rates are on the rise according to some news sources. Oregon Live reports that the average rates on a 15-year fixed mortgage escalated above the three percent mark in late May. This was the first occurrence in more than a year, but many feel this rise in interest rates is only the beginning.

Freddie Mac  reported that the average rate on a 15-year mortgage was 3.03% at the end of May. This was an increase from an all-time low rate of 2.56%. 30-year mortgages saw rates rise from 3.3% in early May to 3.91% at the end of that month. According to Doug Duncan, a chief economist with Fannie Mae, mortgage rates are unlikely to ever be that low again.

One of the reasons for record low rates was that the Federal Reserve had been purchasing around $85 billion a month in mortgage-backed securities and treasury bonds. This resulted in mortgage lenders being able to offer their loans at record low interest rates while still making a hefty profit. The Federal Reserve never intended these rates to carry on indefinitely, but rather were to taper off later this year. That timeframe has since been moved up to late summer or early fall.

Although mortgage rates have risen somewhat, they have nonetheless stayed low enough to help stimulate an increase in home purchases during 2012. In addition, home sales and market values have both increased across the country during the past two months.

Since mortgage rates are on the rise, potential buyers should strongly consider whether or not to take advantage of these lower rates. There are numerous advantages to purchasing now, and many people could find it in their best interest to go ahead and invest in the American dream of home ownership.

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Foreclosure Activity Decreased in April Compared to Last Year

Monday, July 8, 2013
by Rob Levy

Recent data shows that foreclosure activity was down in April when compared with  last year. Foreclosures in March and April remained nearly the same, yet there were significantly fewer of them in 2013 than during the same period in 2012.

Foreclosures numbered around 52,000 in April compared to around 62,000 just a year ago. This reflects a 16% decrease in the number of repossessed properties in a 12-month period. Across the country, more than 1.1 million homes are currently in foreclosure. This represents approximately 2.8% of all homes with a mortgage. The total number of homes in foreclosure by June of last year was more than 1.5 million.

The decrease in foreclosures is partly due to an increase in home loan modifications that have made it possible for more people to retain their property. This in turn has resulted in a slight increase in home values. More people have also been applying for loans in recent months, which is a sign that the economy is finally on the upswing.

Some areas of the country have seen more than their share of foreclosures during the recent past. Five states have collectively seen more than half the new foreclosures over the past 12 months. These states are Florida, Georgia, Texas, California and Michigan.

Tracking changes in foreclosure numbers has been difficult in Oregon, as new legislation has changed the way lenders file these proceedings. Our state has seen a decrease in the number of foreclosures, and foreclosures make up about 2.9 percent of all mortgaged homes, compared to 3.2 percent just one year ago.

The fact that foreclosure activity is down in April from last year is good news for both buyers and sellers, because it means there are more buyers available, and they have a better quality selection to choose from. A drop in foreclosure rates is also good for the economy at large, which means that everyone benefits from it.

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Larger New Construction Homes Being Built

Tuesday, July 2, 2013
by Rob Levy

The construction of larger sized houses is once again on the rise.  The average size of a newly constructed single-family home was just over 2,500 square feet in 2012. This can indicate that the housing market is showing strong signs of recovery.

The Census Bureau has been collecting information about new home builds since 1973. Since that time, the average size of a new home has steadily increased despite the fact that American families have actually gotten smaller. The exception was from 2007 to 2010, when economic concerns made buyers reconsider whether building a larger home was truly necessary.

After the housing market crash, the size of newly constructed homes dropped somewhat.  In 2007, the average home was 2,521 square feet, but it was 2,392 square feet in 2010. That’s because many people were leery of losing their homes to foreclosure if they purchased a larger property than their budget would allow. It seems this concern has subsided somewhat, and consumers are once again willing to consider purchasing a sizeable home.

 Last year's data showed not only an increase in square footage, but in other features as well - approximately 41 percent of new homes contained four bedrooms, 19 percent featured three-car garages, and 43 percent contained fireplaces. In fact, the construction of four bedroom homes was at all all-time high during 2012.

The fact that larger homes are being built once again may eventually cause a surge in mid-sized and starter homes as well, and new home construction is one of the biggest indicators of a recovering economy.

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