Lee Morof's Real Estate Blog

Last week’s economic news was mixed. Construction spending grew, but fell below the expected level. CoreLogic reported that April home prices continued to rise, but did so at their slowest growth rate in more than a year. Employment reports for private sector and government jobs indicated fewer jobs, but the national unemployment rate was steady. Here are the details:

Construction Spending, Home Price Growth Slows

Construction spending reported by the Department of Commerce reached $953.5 billion annually, and increased by 0.20 percent month-to-month against expectations of an 0.80 percent increase and the March reading of 0.60 percent growth.

According to CoreLogic, the rate of home price growth slowed to 10.50 percent year-over-year in April as compared to the 11.10 year-over-year rate of increase in April 2013. Home prices increased by 2.10 percent over March; these gains in home prices were the slowest posted in more than a year, but there was good news.

No states posted a drop in home prices, and eight states posted new record highs for home prices.

CoreLogic said that although a short supply of available homes has driven home prices up, price gains lost momentum due to affordability; CoreLogic expects home prices to increase at a slower pace and projects that home price growth will reach a pace of 6.30 percent by April 2015.

Mortgage Rates Mixed

Freddie Mac reported that mortgage rates for fixed rate mortgages rose while the average rate for a 5/1 adjustable rate mortgage fell. The average rate for a 30-year fixed rate mortgage increased by two basis points to 4.14 percent; discount points fell to an average of 0.50 percent. The average rate for a 15-year fixed rate mortgage also increased by two basis points to 3.23 percent; discount points were unchanged at 0.50 percent. Rates for a 5/1 adjustable rate mortgage averaged 2.93 percent, a drop of three basis points. Average discount points rose from 0.30 to 0.40 percent.

Jobs, Unemployment Data Suggest Economic Strength

Labor markets impact consumer decisions to buy homes; several labor-related reports released last week indicated that the economy continued to gain strength as more jobs were added and fewer workers filed jobless claims.

ADP reported that 179,000 private-sector jobs were added in May as compared to 215,000 jobs added in April. The Bureau of Labor Statistics released its Non-farm Payrolls report for May; 217,000 jobs were added as compared to projections of 210,000 jobs added and 288,000 jobs added in April.

New weekly jobless claims were reported at 312,000 as compared to expectations of 311,000 new jobless claims and the previous week’s 304,000 new claims. The four-week rolling average of weekly jobless claims fell by 2250 new claims to 310,250; this was the lowest reading since June 2007, and was 10 percent lower than the reading for the same week in April 2013 and was 17 percent lower than for the same week in 2012.

Another sign of economic growth was reported last week. Continuing jobless claims dropped to a seasonally-adjusted annual rate of 2.60 million for the week ended May 24; this was the lowest reading reported since October 2007.

The national unemployment rate for May matched April’s reading of 6.30 percent, and was lower than projections of 6.40 percent for May. The Federal Open Market Committee of the Federal Reserve (FOMC) has repeatedly cited an unemployment rate of 6.50 percent as a benchmark indication of economic recovery; it appears likely that the Fed may continue its tapering of asset purchases as it winds down its quantitative easing program.

What’s Ahead

This week’s scheduled economic news includes Retail Sales, Retail Sales without vehicle sales, and the Producer Price Index. Freddie Mac mortgage rates and Weekly Jobless Claims will be released Thursday, and the University of Michigan will release its Consumer Sentiment Index on Friday.

Growing a home garden creates beauty, oxygen and even food for our families to enjoy. If you’re looking to get more from your home garden, here are four easy ways to improve a green thumb.

A Good Foundation For Your Garden

Good soil is the foundation of a healthy garden. By using quality soil, you can give your garden the best start possible. Adding a variety of organic matter to soil will give plants a happy home to grow in.

Add two to three inches of organic matter to your garden bed at the beginning of each season. Compost, dried leaves, grass clipping and dry manure are all good organic materials to use in your garden.

Manures provides nitrogen, which is a great contributor to soil aeration and composting efforts. Being so far along in the decomposing process, the nutrients in manure are readily available for plants.

Fresh manure, however, is more likely to leach out of the soil into groundwater and streams (where the nutrients it provides can become pollutants).

Design Fundamentals To Achieve Harmony And Flow

Although landscaping your home garden is a matter of personal taste and preference, there are some fundamental principles for creating a good garden.

Balance and proportion establish the basic structure of a garden. Order is obtained through symmetry, repetition of plants, and colors or thoughtful contrast. This will create a garden space that is both balanced and proportioned.

Harmony and unity is achieved when different aspects of your garden work together as a whole. Strong focal points and a limited color palette can help with the overall look of your garden.

Prevent the eye from making sudden stops with good flow and transition in your garden. Gradual changes in height and color create the illusion of a larger space, and will make for a full and finished look in your garden.

Variety Is Important And Maintenance A Must

Have a good combination in your garden of annuals, perennials, shrubs, trees and food producing plants. Plants that require little maintenance and come back each year will take some of the pressure off when it comes to seasonal changes and garden preparation.

With more time to focus on bedding plants and vegetable gardens, you’ll yield a bigger reward for your gardening efforts. Water features and other structural focal points work in much the same way; they provide your outdoor space with added beauty and appeal that is easy to maintain throughout the year.

Don’t Be Bothered By Pests And Bugs

Although people have differing opinions on pests, at home a greener garden is always a healthier garden. Harsh pest control products can hurt wildlife and pollute groundwater.

You may be solving one problem, but using chemical pesticides contributes to another. There are many ways keep pests under control without chemical products.

With so many easy to make homemade pesticides to discover, gardeners can ditch the chemical alternative without sacrificing quality. There are also plants such as marigolds that can be incorporated into your garden that deter pests.

A garden is a labor of love that creates a welcoming outdoor space that your family can enjoy. Call your local real estate professional for more information on creating or finding your perfect home garden.

Burglaries are a concern for many North Americans. Although some communities report more break ins than others, everyone should be aware of their home’s safety and security. Protecting yourself and your home from thieves can contribute to a better quality of life.

Know And Connect With Your Neighbors

There is much to be said about knowing your neighbors. By establishing connections with the residents around you, you’ll be better equipped to spot suspicious people. When neighbors look out for other members the community, they give thieves less opportunity to case homes unnoticed.

You may consider getting your neighbors together to exchange contact information, or even form a community watch program.

Protect Your Privacy By Locking Up

Thieves often gain entry to homes through an unlocked door or garage. Make sure that when you leave your home you lock up behind you. Give yourself an extra moment or two to walk through the house and make sure that everything is properly shut and locked.

You may also consider reinforcing ground level windows and doors with additional safety locks. Wrought iron bars can mean better security for ground level windows out of street view, as they are popular targets for burglars and thieves.

Always Know Who’s Knocking

Installing a peephole on the front door works wonders for a person’s peace of mind. It’s important to know who is at your doorstep so you don’t open your door to an intruder. Burglars have been known to knock on a target’s door to see if they’re home. This also gives thieves important information, such as whether you have pets, deadbolts or security systems.

Be wary of suspicious visitors that come knocking at your door, and write down their description in case you end up needing it later.

Security Systems To Protect Your Home

Monitored security systems are a great way to feel good about your home security. There are many products available at a variety of different price points. These systems are easily installed by a professional, and are monitored by a security company. The monthly cost of the service will be offset by savings on your home insurance, and is well worth the protection the systems provide.

Stop Break Ins While You’re On Vacation

If you’re planning on going out of town, keep your plans on a need to know basis. Don’t let people know you’re away on your answering machine greeting or with auto respond email. These may be suitable for the workplace, but they are not safe for your personal messaging systems.

Have a neighbor gather your mail and take out your garbage to keep your home looking lived in while you’re away. You may also consider lighting and electronic timers to give the illusion that someone is home.

Spare Yourself From Burglaries

Spare keys can save the day, but can also tempt thieves. If you have a spare key hidden, make sure it’s hidden well in the back of the house. If you do use it, don’t return it to its hiding spot right away, and change its place from time to time. A better idea may be to leave a spare key with a neighbor or with a friend.

Security is an important component to a good quality of life. By taking simple steps to improve the security of your home, you can feel safe knowing that your house is protected from thieves.

Call your trusted local real estate agent to learn more about home security, or to find the safest neighborhoods in your area.

Building a tree house is a time honored tradition for many families. One of the benefits of having a yard is the ability to build a tree fort for your children.

If you’re planning to build a fun fort for your kids, here are seven steps to help you create the ultimate tree house.

The Ultimate Plan For The Perfect Playhouse

The best projects are often the most thought out. Sit down with your children and lay the plans for their tree house. Let them contribute their thoughts and ideas so they feel a part of the planning process.

Although you won’t need an engineering degree to build a quality tree fort, it’s important to calculate all the measurements and specifications of the build.

A Solid Foundation For Your Tree House

Prepare the location for your future tree house by trimming away any precarious branches or boughs on the tree you plan to build on. Ensure that your tree house will be well supported, and reinforce any questionable spots.

If your tree fort is being built from the ground up, make sure you’re working with a level foundation.

Have The Right Tools For The Job

Make sure you have all the tools you’ll need to construct your tree house. Power tools and construction equipment can be borrowed from friends and neighbors or rented from your local hardware store.

When the time comes to gather your building supplies, be creative and consider re-purposed supplies. These materials are less expensive and add character and charm. You can find recycled and salvaged items at various recycled construction supply companies and through online classifieds like Craigslist.

Construct Your Tree House With Confidence

When you’re constructing your tree house, make sure it’s structurally sound. Watch tutorials online – you’d be amazed at the things you can learn from watching YouTube videos!

Make sure to measure twice and cut once. Using the proper cutting tool for each cut will help you achieve cleaner, more precise cuts. Also make sure to obtain any permits that may be required for the project.

A Personalized Theme Encourages Creativity

Choose a theme that relates to your child. If they love fairies, use that as the inspiration for your design. Pirate forts and superhero lairs are perfect places to spark imaginative play and creativity.

Incorporate cannons, cupboards and ropes with pulleys to create a unique and fun space for your children to play.

A Colorful Paint Job Brightens The House

When the walls are up and the building is done, it will be time to choose paint colors. Bright colors are a great way to brighten and liven up an outdoor space.

You could even consider creating a mural. Choose something in fitting with the theme. This is something that you and your child can do together, or that you can do on your own as an added surprise.

Perfecting Your Child’s Play Space

Once your tree house is built, it’s time to get it ready for play. Decorate the space with fun decor, and functional items. Throw pillows and rugs can add color and personality to a child’s play space. Window coverings can be made from scrap fabric or flat bed sheets.

Creating a tree fort for your child is a memorable experience and a labor or love. A unique space that sparks imagination and nurtures creativity is a wonderful gift to give a child.

Call your trusted local real estate agent today to find the perfect yard for your ultimate tree house.

Last week’s economic news was fairly quiet due to the Memorial Day holiday on Monday and no scheduled news released on Wednesday.

Home Prices Post Modest Gains, But Growth Rate of Home Prices Slows

Tuesday’s release of the S&P Case-Shiller Home Price Index for March showed that home prices are edging up, but at a slower pace than last year. Home prices increased by 12.40 percent year-over-year as compared to February’s reading of 12.90 percent year-over-year.

Analysts expected prices to fall as construction picks up and more homes are listed for sale. Lower demand due to strict mortgage lending standards and high home prices continued to keep many moderate-income and first-time home buyers on the sidelines.

FHFA Reports Home Prices Increased By Over 6 Percent

FHFA, the agency that oversees Fannie Mae and Freddie Mac also released its home price index for properties connected with Fannie Mae or Freddie Mac owned or guaranteed loans. As of March, FHFA reported that home prices increased by 6.50 percent year-over-year as compared to February’s year-over-year reading of 6.90 percent.

Consumer confidence rose by 1.30 percent for May with a reading of 83.0, which matched expectations.

Last Thursday’s news included the weekly Jobless Claims report, which showed 22,000 fewer jobless claims than expected with a reading of 300,000 new jobless claims reported. Thursday’s reading was also lower than the prior reporting period’s reading of 327,000 new jobless claims filed.

The four-week rolling average of jobless claims also showed improvement with 11,250 fewer claims filed and an average reading of 311,500 new weekly jobless claims filed. This was the lowest number of jobless claims filed since August 2007. Analysts look to the four-week rolling average as more accurate than the weekly readings, which can be volatile.

U.S. jobs have increased by 200,000 jobs per month over the last three months reported.

Pending Home Sales Up for Second Consecutive Month

Pending home sales in April rose by 0.40 percent from the March reading of 97.4 to 97.8. The April reading was the highest for pending home sales since November. Pending home sales provide an estimate of future home sales.

Lower mortgage rates likely supported expanded home sales. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage was 4.12 percent, a drop of two basis points from last week. The rate for a 15-year fixed rate mortgage fell by four basis points to 3.21 percent.

The average rate for a 5/1 adjustable rate mortgage was unchanged at 2.96 percent. Discount points were unchanged at 0.60 for a 30-year fixed rate mortgage and 0.50 percent for a 15 year mortgage. Discount points dropped from 0.40 to 0.30 percent for a 5/1 adjustable rate mortgage.

What’s Ahead

In addition to construction spending for April, this week’s economic news includes several reports that can provide insight about employment and consumer spending.

News events include Motor Vehicle Sales for May, The Fed’s Beige Book report, and Thursday’s usual release of Freddie Mac’s average mortgage rates and weekly Jobless Claims. Non-farm Payrolls and the national unemployment rate for May are also scheduled for release