Amherst & Milford Market Update - Saturday Real Estate Market Update

Click on the links below

Amherst real estate market update and statistics (active/sold - detailed information & statistics)

Milford real estate market update and statistics (active/sold - detailed information & statistics)

We are working this weekend... let us know if you have any questions or need help! 603-471-3799

55 Lawrence Derry NH $250,000 - Friday Feature Listing

7 Tips for Decorating on a Budget - Homeowner Tip Thursday

7 Tips for Decorating on a Budget

In today's economy, homeowners are watching their money more closely and going out of their way to give their home a fresh look by working with what they already have.

We have access to many great home improvement resources. Home decorator Lee Evanwood offers the following advice for homeowners who are looking to decorate while staying in budget:

Rub down and stain or repaint old wooden furniture. Take advantage of that old furniture you have sitting in your basement. Simply add new drawer or door handles to achieve a new look.

Can't afford a new sofa? Have the old one recovered. With plenty of fabrics in a wide variety of colors and patterns to choose from, recovering an old sofa is an easy and inexpensive way to create a new look.

Choose rugs. If the floor is already in good shape, you can get it refinished or try area rugs instead of carpeting. Not only are they chic and stylish, but they cost less, too.

Paint with a plan in mind. Try a neutral color on three walls, with a splash of color on the fourth. That splash of color can give you a starting point for further decorating.

Go with soft goods. A few new pillows or cushions that pick up the color on your accent wall can transform the look of a room. Add some inexpensive curtains, draperies or valances to help tie it all together.

Add some accents. Give a room a homey look by using baskets, vases and other small accessories to hold books and magazines, fresh flowers or craft projects.

Finish with artwork or mirrors. A pretty, framed print or two can help finish a room. Keep in mind that a mirror of any size on one wall can add depth and make the room appear larger.

These are just some of the many ways you can transform your home while staying in budget. Feel free to contact us for more ideas and please forward this on to anyone who can use a few inexpensive ways to create a new look in their home.

Blood Drive this week - Work Together Wednesday

Folks, did you know NH hospitals rely totally on the American Red Cross for a safe and sufficient blood supply?

     Have you ever waited anxiously in the emergency room wondering if a loved one would survive?  Imagine the reason someone you love didn’t survive was due to a lack of available blood supply. 

     Honor your Mom this Mother’s Day and the memory of your loved ones, this Thursday, April 28, for your Annual Manchester/Nashua Board of Realtors Blood drive, held 11:00 am to 6:00pm, at the American Red Cross Donor Center, 425 Reservoir Ave. in Manchester. 

PLUS

     Register to win Red Sox/New Hampshire Fisher Cats Tickets, and receive coupons for free oil from M.L. Halle Oil.  We’ll be serving delicious Lasagna from Belmont Hall Restaurant, finger sandwiches and other goodies!

Your time is valuable to us-please call 625-1951 to make an appointment for your donation for quick in and out service! 

      Can’t make it on Thursday?  You can also donate for this drive any day this week Monday to Friday 11am to 6pm to Saturday from 7:30am to 12:30pm

Tuesday Town Snapshot

Derry $200,000 - $400,000: Actives, recently solds and town specific market statistics
http://www.carrieandtyhomes.com/derry-mkt-update.asp

You can sign-up for personal reports for all New Hampshire towns/price ranges (as many as you like)!

Monday Mortgage Market Update!

 April 25, 2011

Mortgage Market Recap

• RE/MAX reported that home sales increased by double-digits in March from February in all but one of the 54 U.S. metropolitan areas it covers. This represents a complete reversal from January, when none of the 54 cities saw even single-digit monthly sales increases.
• The National Association of Realtors corroborated Re/Max's bullish report with one of its own. The NAR's data show that March was a decent month for existing home sales, with sales up 3.7 percent to an annualized rate of 5.1 million units. Prices also firmed slightly, up 2.2 percent, to a median reading of $159,600. More homes were on the market, 3.55 million, but the solid rise in sales dropped the supply to 8.4 months.
• See more of the market recap and important dates/events at: http://www.carrieandtyhomes.com/weekly-market-recap.asp

This Newsletter is for informational purposes only. The information contained herein may not be applicable to every situation or jurisdiction and we urge you to consult your professional advisor prior to acting on information contained herein. The content, accuracy and opinions expressed herein are not verified or endorsed by the sponsor hereof.

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Sunday Funday!

Create An Outdoor Oasis for Less Than $1,000

A concrete patio is turned into a Mexican-themed outdoor room.

BeforeThis small patch of concrete is an eyesore that needs some design attention.

After
Vivid color and creative seating make this patio inviting, exciting and livable.

Plants and Pottery - $290

• A collection of terra-cotta pots hold various cacti. Sheinkopf enhances a pair of pots with an aged finish made of stain, varnish and paint thinner. Turpentine is splashed on over the finish to give it an aged look. (pots and plants: Mainly Seconds; pot: Crate & Barrel - 05155150875549; chimnea and outdoor Pots: Pottery Etc.)

Accessories - $261

• Create a shade awning out of a drop cloth. After cutting it in half  attach the ends to the house and lets one curtain fall down the side of the house to hide the meter. The other half is stretched out over the patio and secured via grommets to a pair of poles anchored in pots with concrete.

• A custom fountain becomes the focal point in the area. Make the piece out of lightweight fiberboard, which is painted with rubber paint and coverd with copper foil. Stack the pieces so that when the water cascades down the sides it will create a ripple effect. The base is lined with slate. After hooking up the irrigation system, spray an aging patina on the copper to tone down the shine.

• Use bamboo thatching on the wrought-iron fence to give the space more privacy. A pathway to the patio is defined with white landscaping rocks.

Furniture - $243

• The low concrete wall is made functional for seating and stepping with a two-level redwood bench.

• A new table and a pair of chairs provide a spot for dining. Pillows in striped outdoor fabric add comfort to the chairs and bench. (fabric used for cushions: Jo-Ann Fabrics - 6647416/Sage/Terracotta/Sand/Outdoor Fabric; outdoor table: Target - 009010904)Incidentals - $113

Paint and Supplies - $86

• The concrete is painted turquoise and the half-wall is painted a terra-cotta color. (paint: Behr - Greensleeves - 490D-7; Mojave Sunset - 220D-7)

Project Total - $993

Saturday Snapshot!

Today's Featured Town Is

Goffstown, NH 03045

To Check On Your Town

Visit

http://www.carrieandtyhomes.com/market-info--update.asp

Friday's Featured Listing

13 Lake Potanipo
Brookline, New Hampshire 

03033

$379,900



Brookline NH Real Estate: Fantastic lakefront/waterfront home on Lake Potanipo, 185ft frontage w/private beach & area for dock/slip. Enjoy waterviews from living room, 3-season porch and bedrooms. 2-car garage with large finished room above. Great kitchen with island. Wood stoves in living room & kitchen. Extra space for guests in 4-bed bunk house. Covered storage on left side of garage with shower. Fantastic large yard.

Features

Single Family Property Status: Active County: Hillsborough Year Built: 1970 2 total bedroom(s) 1 total bath(s) 6 total rooms Approximately 1162 sq. ft. Type: Modified, Ranch Style: Modified, Ranch Master bedroom is 9.5 x 15.5 2 car garage Attached parking

Parking features: 2 Parking Spaces, Auto Open, Direct Entry, Paved Driveway Heating features: Hot Water, Electric, Oil Fuel, Wood Fuel Interior features: Dishwasher, Range-Electric, Refrigerator, Finished Above Grade SQFT: 1162, Bedroom 2 is 9.5 x 12.0, Bedroom 4 is 20x9 3-seasonPch, Water Heater: Oil Exterior construction: Wood Frame, Clapboard, Concrete Foundation, Crawl Space Foundation Waterfront property Waterfront features: Lake Lot features: Landscaped, Level Approximately 0.5 acre(s) Lot size is between 1/2 and 1 acre Zoning: Residential Utilities present: Sewer: Private School District: Hollis-Brookline Cooperative

Thursday Tips For HomeOwners!

5 Steps to Owning a Home Again After Foreclosure

By: Barbara Eisner Bayer

Foreclosure is just a one-time event—with discipline and perseverance, you can get a mortgage and become a homeowner again.

It won’t be easy to obtain a mortgage after foreclosure. But with enough time, discipline, and desire, you can own your own home again. Here’s what you need to do:

1. Stick with a job after foreclosure

Did you fall into foreclosure because of the lack of a steady job? If you did, the first step toward homeownership after foreclosure is finding and holding one. And if you already have one—stick with it, unless you can move to a better one. Note that potential lenders will require stable employment before they’ll give you a new mortgage loan after a foreclosure. Even if it means taking a lower-paying job, it’s worth it.

2. Rebuild your nest egg after foreclosure

Establish a safety net. Financial planners generally recommend three to six months of living expenses in a liquid account, but since you’re coming out of foreclosure, six is a minimum to show stability and that you’re able to pay your bills—including your mortgage—for an extended period if you lose your job.

 

3. Raise your credit score after foreclosure

This is the hardest and most time-consuming part. After foreclosure, your credit score, according to myFICO, probably dropped by about 150 points. You’ll need to raise it back up with perseverance.

Pay bills on time and keep your credit card balances below maximum levels. The foreclosure will stay on your credit report for seven years, but if you prove your money management skills have matured, it will become less of a red mark as years go by.

Tip: Consult a housing counselor. The U.S. Department of Housing and Urban Development offers free housing counseling for distressed homeowners with a foreclosure in their past. A counselor can help you with money management and budgeting. Counseling works—an evaluation of a program in Indianapolis discovered that credit scores greatly improved because of education and counseling, and increased average borrowing power by $4,500 per family.

4. Reduce your waiting time for a mortgage after foreclosure

Normally, you would have to wait seven years after foreclosure before you can apply for a new mortgage under Fannie Mae rules. (Fannie Mae changes rules frequently. You can check the latest rules at Fannie Mae’s site.)

However, you might wait only three years if you can show extenuating circumstances for your foreclosure, which are defined as “events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.” These include:

• Losing a job
• Getting divorced
• Having unexpected medical expenses

There’s one last alternative if waiting isn’t your thing—you can obtain seller financing, essentially bypassing the traditional mortgage. If both parties are amenable, you can enter into a lease with an option to buy, or take a mortgage directly from the seller. You’ll most likely have to show some hefty reserve funds, but if you’ve turned around your financial situation quickly after your foreclosure, it’s worth a shot to deal directly with the seller.

Keep in mind that sellers may be motivated to agree to this if they need to sell and the potential buyers they’ve met with can’t obtain a conventional mortgage—perhaps because they’ve been through foreclosures, too.

5. Be honest about your foreclosure

When you’re ready to apply for your new mortgage, don’t try to hide your foreclosure. On the contrary, be proactive and reveal the steps you’ve taken to remedy the problems that led to your foreclosure.

Tip: Try a mortgage broker, who can work with a variety of lenders to find you a loan. When you work directly with a retail lender, like a bank, they have a limited pool of loans to offer you. But a good mortgage broker—one with a vast network of lendersóhas many options, and may be able to find a mortgage solution if the foreclosure in your past is creating challenges in obtaining one.

If you stay disciplined and positive, the American dream—obtaining a mortgage and owning a home of your own—can, indeed, be yours again. Even after foreclosure

Work Together Wednesday!

Boost Your Neighborhood’s Walkability

By: Sacha Cohen

You can’t move your neighborhood closer to shops, restaurants, and offices, but if you can improve its walkability, you might make it more valuable.

The more walkable your neighborhood, the more valuable your home, studies say. To boost your neighborhood’s walkability—how quickly and comfortably you can walk to stores, schools, restaurants, offices, and parks—you can either get more close-by amenities, or make it easier to walk to what you’ve got.

How much is that walkability worth?

Having shops and gathering spots like schools and restaurants located within a quarter-mile to one-mile from the homes in your neighborhood can add from $4,000 to $34,000 to home values, according to “Walking the Walk,” a study from CEOs for Cities, a nonprofit that works to improve cities. The increases were largest in large cities like San Francisco and Chicago and smaller in smaller cities like Tucson, Ariz., and Fresno, Calif.

What are walkable communities?

Dan Burden, founder of Walkable Communities, defines them with his a 12-step checklist, which includes:

• Great public places to get together and socialize

• Speed-controlled key streets

• Pedestrian-centric design

• A town center with a wide variety of shops and businesses

Maybe you’ve been to one of the communities he says has high walkability, like:

• Bethesda, Md.

• Jackson, Wyo.

• Madison, Wis.

• Savannah, Ga.

How do I make my neighborhood more walkable?

To have great walkability, you have to have something worth walking to, such as restaurants or parks, and a critical mass of people living around those amenities. To make a difference, get your neighbors together and go talk to local officials. Your group can push the planning and zoning board for changes that make your town more walkable, like putting multifamily housing to the town core or allowing home owners in nearby neighborhoods to build a rental apartment in their home.

All those new residents will want to mingle somewhere. So plan to lobby for more welcoming public spaces where you can mix and socialize (think library, park, coffee shop) to increase your neighborhood’s walkability.

How does walkability affect drivers?

To heighten walkability, make the streets kinder to walkers and, possibly, crueler to drivers. Put these items on your city planning list:

• More and wider sidewalks

• Lower speed limits

• Pedestrian-friendly laws, like New Hampshire’s rule that drivers have to hit the brakes for pedestrians in crosswalks even if the light is green

Try applying peer-pressure power to get drivers to ease up on the gas pedal. Pedestrian safety advocates persuaded 6,000 Atlanta home owners to put up yard signs asking drivers to slow down.

If you’re serious about increasing walkability, gather neighbors and town officials for a walking audit, where the group walks along a particular route and stops periodically to discuss how to improve the walking experience with landscaping, safety improvements, or accessibility improvements.

If mixing it up with politicians and planning committees isn’t your bag, try these much easier tips for improving walkability from John Wetmore, producer of Perils For Pedestrians Television:

• Trim shrubbery that’s blocking the sidewalk in front of your house.

• Pick up trash and litter as you walk along.

• Support initiatives in your town to build new sidewalks and repair existing sidewalks.

• Be polite to other drivers and pedestrians when you drive.

And maybe the best walkability tip of all? Just get out and walk

 

Work Together Wednesday!

Making Fair Housing Laws Work for Your Neighborhood

By: Sue Mellen

By ensuring that your neighborhood adheres to fair housing standards, you can build a stronger, more vibrant community and protect property values.



The nation’s fair housing laws protect groups who often suffer housing discrimination in a range of ways. They may be buyers or renters who are sometimes steered toward or away from particular neighborhoods, or existing residents seeking services from homeowners associations (HOAs) to help them live with their disabilities. But fair housing laws protect everyone in a community, making it important to actively promote fair housing in your neighborhood.

 

How fair housing protects property

It can happen faster than you can say “segregation.” Suddenly, your once-integrated, multi-ethnic neighborhood is becoming monochromatic. Should you expend your energy working to fight for integration of your community? Absolutely. When your neighborhood is diverse and welcoming, you ensure the widest possible pool of potential buyers for each house that goes up for sale. That helps keep property values high.

“It’s hard to believe that blatant housing discrimination still exists, but it does,” says Shanna Smith, president and CEO of the National Fair Housing Alliance, a non-profit fair housing advocacy group. All it takes is one housing-related professional making statements about a neighborhood being bad or one insurance company with different underwriting policies based on the racial makeup of the neighborhood to negatively impact property values, she says.

What you can do

As an individual or member of an HOA, there are several things you can do to protect your neighborhood:

Report suspected discrimination. You can do that through HUD, either online, by phone, or by mail. Or you can seek help from HUD’s local Fair Housing offices.

You can also contact the National Fair Housing Alliance, a national umbrella organization for fair housing advocacy groups nationwide. It can refer you to a local fair housing group that may be able to help.
Arrange an educational program in your community. Ask your HUD regional office or the National Fair Housing Alliance to send someone to your neighborhood for an informational meeting. Plan it as a potluck supper or neighborhood get-together, and include neighborhood association members and local real estate agents. Planning the event should take no more than 20 hours, including issuing the invitation to neighbors, asking around to find out which real estate agents are active in your neighborhood, and finding a speaker.

Make sure your community association’s bylaws and its covenants, conditions, and restrictions follow Fair Housing Act guidelines. When residents ask an HOA to make changes to accommodate a disability, for example, widening common-area doorways for a resident using a wheelchair, the association must follow federal fair housing laws. Fair Housing Accessibility First can help your association understand its responsibilities

“Fair housing is the gateway to equal opportunity in education, jobs, and quality of life. It’s up to all of us to protect these rights in our neighborhoods,” said John Trasviña, U.S. assistant secretary for Fair Housing and Equal Opportunity.

Tuesday Town Snapshot!

Today's Featured Town Is

Windham  NH

To Check On Your Town

Visit

http://www.carrieandtyhomes.com/market-info--update.asp

Monday Market Update!

Sunday FUNday!

9 Easter Decorating Ideas

Welcome spring to your home with fresh flowers, cheery colors and playful touches!

Shabby and Chic

Combine rustic elements like a perfectly weathered twig bench, willow wreath and a salvaged window for a charming Easter display.

Dogwood and Poppy Wreath

Banish winter blahs with this colorful and easy-to-create spring wreath. 

Sit a Spell

A cozy porch swing is the perfect spot for unwinding on a warm spring day. Design by Rate My Space user MoonlightandMagnolias.

Colorful Pick-Me-Up

Dogwood branches add a happy pop of spring color



Cheery Welcome

Bright colors and a lovely spring wreath make this entry bench a welcoming sight for Easter guests

Harbinger of Spring

Grape hyacinths, in a handmade stoneware vase, add an exuberant spring touch to any space.

 

Easter Tree

 Decorate any area with pastel colors and traditional Easter touches.

Vintage Appeal

Graceful cherry branches in a period urn complement this room.

Get Your Glitter On

Shimmering eggs in a nest of excelsior make a lovely Easter centerpiece.

Saturday SnapShot!

Today's Featured Town Is

Merrimack, NH 03054

To Check On Your Town

Visit

http://www.carrieandtyhomes.com/market-info--update.asp

FRIDAY'S FEATURED LISTING!!

69 Martin Road

 Weare, NH

03281

$289,000

Charming country home on 4.94 private acres. Fantastic living room with cathedral ceiling, skylights and wood fireplace with insert. Well equipped kitchen with adjacent dining area. First floor master bedroom w full bath & jetted tub, plus sliders that lead to wrap around deck, Screened porch and large back yard. Tinker in 3 story, heated garage. Quick close available.

Features

Single Family Property Status: Active County: Hillsborough Year Built: 1990 3 total bedroom(s) 3 total bath(s) 1 total half bath(s) 7 total rooms Approximately 1764 sq. ft. Style: Cape Basement Master bedroom is 18 x 13

Basement is Bulkhead, Full, Unfinished 2 car garage Parking features: 2 Parking Spaces, Gravel Driveway Heating features: Hot Air, Oil Fuel Central heat Interior features: Dishwasher, Dryer, Microwave, Range-Electric, Refrigerator, Smoke Detector, Finished Above Grade SQFT: 1764, Bedroom 2 is 14 x 10, Bedroom 3 is 14 x 13, Water Heater: Electric Exterior construction: Wood Frame, Clapboard, Wood, Concrete Foundation Lot features: Landscaped, Wooded Approximately 4.94 acre(s) Lot size is between 2 and 5 acres Zoning: res Utilities present: SEWER: 1000 Gallon, Private

Thursday Tips For Homeowners!

7 Smart Strategies for Bathroom Remodeling

Here’s how to get the bathroom of your dreams without making your budget a nightmare........

• Dream about a bathroom that’s high on comfort and personal style, but you also want materials, fixtures, and amenities with lasting value. Wake up! You can have both. A bathroom remodel is a solid investment, according to Remodeling Magazine’s annual Cost vs. Value Report. A $16,600 bath remodel will recoup about 64% of those costs when it’s time to sell your home, and a more extensive $53,800 job returns about 57%. In addition, you can maximize the value of your investment by using these smart strategies, which will create a stylish yet budget-friendly bathroom.

1. Stick to a plan

bathroom remodel is no place for improvisation. Before ripping out the first tile, think hard about how you will use the space, what materials and fixtures you want, and how much you’re willing to spend.

The National Kitchen and Bath Association (NKBA) recommends spending up to six months evaluating and planning before beginning work. That way, you have a roadmap that will guide decisions, even the ones made under remodeling stress. Once work has begun—a process that averages 2 to 3 months—resist changing your mind. Work stoppages and alterations add costs. Some contractors include clauses in their contracts that specify premium prices for changing original plans.
If planning isn’t your strong suit, hire a designer. In addition to adding style and efficiency, a professional designer makes sure contractors and installers are scheduled in an orderly fashion. A pro charges $100 to $200 per hour, and spends 10 to 30 hours on a bathroom project.

2. Keep the same footprint

 

Work Together Wednesday!

Improve the Infrastructure of Your Community

By: Myra A. Thomas

New community infrastructure enriches your neighborhood—and maybe your home value, too. Follow these four tips to get upgrades that boost your neighborhood’s curb appeal.

 

 

It takes time and effort, but lobbying local government for sidewalks, crosswalks, street lighting, and other community infrastructure:

• Creates a sense of community.

• Makes an area more desirable to home buyers. Indeed, appraisers keep score of community infrastructure and amenities when valuing homes.

• Sets your ‘hood apart from others with similar homes—especially in a competitive real estate market.

A local REALTOR® can tell you which infrastructure upgrades will offer the most value to your community. Then it’s up to you to work with local government.

1. Who controls community infrastructure?

Call your mayor or councilperson’s office to find out which office of your local government handles infrastructure upgrades and additions. Does your city or town have any short- or long-term plans to develop a grid of sidewalks or street lighting?

“Developing a system of sidewalks leading to a downtown, shopping district, or local school adds more value to the neighborhood than disjointed sections of sidewalk,” says Cheryl E. Kuck, public information officer for the City of Portland Bureau of Transportation.

The pitch: Saying that the infrastructure project is something your community needs is better than something it wants.

Example: If you want sidewalks, argue that kids need them to walk safely home from school rather than saying you need them because they’ll improve your home value.

2. What is the community infrastructure approval process?

• You might have to get a certain number or percentage of people who live near the project to sign a petition saying they approve.

• You might need to hop aboard a lengthy process involving a zoning or planning board.

Once you know the process, figure out how to present your case.

3. Who picks up the tab for community infrastructure projects?

It’s not cheap. Concrete curbs and sidewalks cost about $15 per linear foot for curbing and $11 per square foot for walkways. Streetlight and crosswalk costs differ depending on their design.
Funding sources may include:

• Local, state, and federal tax dollars

• Assessments charged to home owners (Local officials may be able to offer relief or deferrals to seniors.)

• Bonds issued by local government and paid back over many years

• Money set aside by government for capital improvements

4. How do I deflate the naysayers?

One strategy: Emphasize health.

• As Americans become more conscious of the environment and their health, crosswalks and sidewalks are a good way to get your neighbors out of their cars.

• A walking-friendly neighborhood will hold its value better than a similar neighborhood that’s not walkable.

Support for community infrastructure projects can quickly snowball. “Building community support helps to sway local council people to your side,” says Charlie Zegeer, director of the Pedestrian and Bicycle Information Center.

Myra A. Thomas is an award-winning Fanwood, N.J.-based journalist. She was drawn to Fanwood because of the quaint walking downtown with well-marked crosswalks and Victorian street lamps. Myra is slowly rehabbing her 50-year-old split-level home, but she is lamenting the lack of a sidewalk on her block.

 

Tuesday Town Snapshot!

Today's Featured Town Is

Hooksett NH

To Check On Your Town

Visit

http://www.carrieandtyhomes.com/market-info--update.asp

 

 

 

Monday Market Update!

Keeping you updated on the market! For the week of
April 4, 2011

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MARKET RECAP

 

The monthly S&P/Case-Shiller home-price index always attracts a good deal of media attention. This month's edition was no different. In fact, because of a strong pessimistic bias, it probably drew more attention than it should have.

Once again, falling home prices elevated fears of a double-dip recession in the home-buying market and a longer slog toward recovery than once anticipated. According to Case-Shiller, the average sale price of single-family homes in 20 major metropolitan areas fell 1 percent from December and 3.1 percent from a year ago. Only two areas – San Diego and Washington – recorded price increases year-over-year.

We offer our usual caveats with the Case-Shiller index: For one, it's two months in arrears. Recent data on home prices have been less dour. In addition, 20 metropolitan areas is hardly a complete picture. Real estate is much more localized than it was during the recession. Even within major metropolitan areas, we see differences in pricing trends. So, yes, on a national level prices have fallen, and have fallen 31 percent since the 2006 highs. However, prices, like mortgage rates, can go only so low, and there isn't much room on the downside, as many local markets have already shown.

It's also worth noting that the pending home sales index rose 2.1 percent in February, which is encouraging when considering how miserable the weather was in February. What's more, the pending home sales index has trended higher since bottoming in June, with contract activity 20 percent above the low point. More activity isn't a price panacea, but it helps.

Shadow inventory has been the counterclaim, because it continues to apply downward pricing pressure. The good news is that shadow inventory is improving. CoreLogic reports that 1.8 million properties make up the shadow inventory of foreclosures, but that's down 11 percent from a year ago. We expect this inventory to dissipate further, thanks to robust economic growth and a pickup in job creation and wage growth.

Low financing rates will also help the liquidation process. A quote below 5 percent on a 30-year fixed-rate mortgage remains the norm. To be honest, the norm has held longer than we had expected. That's a good thing, to be sure, but it does tend to induce complacency and procrastination at times.

Buyers these days have to balance high inventory levels against the likelihood of higher mortgage rates. Excess supply is a persuasive argument to house shop at a leisurely pace. However, just because rising prices aren't an immediate concern doesn't mean rising mortgage rates aren't. We noted in last week's commentary that buyers have the best of both worlds – low mortgage rates and low home prices. We doubt we will be saying that this time next year.

Is It Really Only A Matter of Time?

Faithful readers of these missives know that we've been saying that it's a matter of time before mortgage rates head higher (which puts us in the majority opinion). Indeed, since November, rates have headed higher, but not as high as many, including us, would have thought. Granted, we were right in saying that rates holding under 4 percent were unlikely, but that was an easy call. Four percent simply isn't sustainable when inflation is the norm.

Inflation is the reason we still think rates are headed higher. Many market watchers have been lulled into a false sense of security because consumer and producer prices – though rising in the past two months – haven't spiked out of control.

There are many variables that go into prices – productivity gains, technology, consumer demand – all of which can offset the increase in money supply that has occurred over the past two years. It can't last forever. If we peruse any long-term chart of consumer and producer prices, we see that prices rise persistently higher. As a corollary, when we peruse a chart of the US dollar, we see a persistent drop in value.

Eventually, all the new money in circulation will begin chasing consumer goods, and then we will see an increase in price inflation. We expect the bond market to anticipate this event, which is why we think mortgage rates will head higher before price inflation becomes more of a front-burner issue.

Sunday Funday!

Design a Dress-Up Area in your Kid's Room!

Childhood is a time of unlimited possibilities. Little boys can be cowboys one minute and superheroes the next. Little girls can be trapeze artists, soccer stars or princesses--all within an hour.  
As is frequently the case in bedrooms, corner areas are often underutilized.  After completing the functional area of the room, you may realize you have a fairly large area in the corner that needs attention. .
Unfortunately, we all know that little princesses tend to grow up way too fast, so you'll want to create the dress-up area in a way that will cause no permanent damage to the room.
Use a closet rod to create this special place. When your prince or princess grows up, only a few small holes will have to be filled to restore the room to normal.
The first step was to determine the placement of the closet rod. Measure four feet from the corner on both adjacent walls and mark a spot three inches from the ceiling.
In order to mount the closet rod hardware, it will be necessary to cut a four-inch piece off a two-by-four board. Then cut this block diagonally from corner to corner, creating two triangular blocks.
Predrill the blocks and mounted them with the uncut side to the wall using self-anchoring mollies. These blocks created the mounting surface for the closet rod hardware. After mounting the hardware, place the rod in the supports.
To make it easier for little hands, use a lightweight fabric to drape the dress-up area. Rather than make these drapes, you can purchase two shower curtains in the same color as the walls. Mount the shower curtain to the closet rod with shower rings.
Although the drapery system functions very well, it may not seem very festive. To make it more colorful and fitting for a fairytale, you can cut varying lengths of a complementary ribbon and create streamers that are tied to the shower rings.
Next comes the fun part: accessorizing. Since momn will want to keep the area neat, add two shelves to the area. One shelf to hold pretty dress-up dresses and boas, the other used to store hats, purses and all the other fashion accessories a young dreamer requires.
Just in case your little one has a change of heart and decides to become an astronaut, add a toy chest, which serves as both a seat and storage for other costumes and accessories. With the addition of a mirror, your dress-up area is complete.
 I bet the little prince or princess in your life will be delighted!