Nationwide, there are currently about 3.48 million homes for sale, but as we enter the autumn and winter seasons, available housing inventory will typically decrease and real estate activity will slow. The National Association of Realtors predicts that this number will probably drop to less than 3 million over the next few months. Meanwhile, would-be buyers will shift their focus towards the holidays, waiting for the boost in available properties that usually comes in the spring.

On a local level, our inventory is also low but unlike the national statistics, we have many buyers who are eager to purchase a home, despite the approaching holidays!

Looking forward, there are good indicators that some areas will see significant changes in the market next year:

• New residential construction surged 15% in September - the best performance in 17 months.
• Mortgage applications increased 1.3% for the week ending October 7, 2011, according to the Mortgage Bankers Association.
• Pending home sales this past September were 6.4% higher than in September of 2010.

SOMETHING TO THINK ABOUT:

Is this a good time to buy a rental property?

Lower home prices in some areas combined with low interest rates make this the best time in years to become a real estate investor. News sources like MSNBC have been reporting a strong rental market since summer, calling it a “landlord’s market” in many cities and anticipating rising rents.

If you’re considering purchasing a property to rent, location is of prime importance. Safe neighborhoods that are near good schools and public amenities like parks, public transportation, and shopping districts are especially attractive to renters. What type of property are you interested in buying? Condominiums can be a good choice for first-time investors. But they appreciate more slowly and command smaller rents. Single-family homes tend to attract longer term renters. Also, don’t forget duplexes, triplexes and fourplexes which are great investment opportunities.

Now is a great time to buy an investment property. Let’s talk about your options.

IS YOUR HOUSE READY FOR WINTER?

The following tips will help you save money on your heating bills in the upcoming colder months.

Add insulation in your attic – Do you have enough insulation in your attic? The US Department of Energy has some helpful recommendations on insulation levels at their website. They even have a calculator that will tell you based on your zip code how much you should have in your home. When adding new insulation atop old insulation, don’t use the kind with paper backing. It forms a vapor barrier that can cause moisture problems in the existing insulation.

Maintain your ducts – You can lose up to 60% of your heat through ducts. If you’ve had your system for awhile, consider hiring a professional heating and cooling contractor to locate and seal areas where you may be losing warm air. If you’re in an especially cold climate and your ducts pass through unheated spaces like a basement, insulate them.

Reverse your fans – If your ceiling fans have reverse settings, run them in cold months; they’ll push warm air downward, circulating it throughout the room.

Block drafts – Cold air coming from beneath doors can waste up to 30% of your energy bill. Stuff a necktie or a scrap of fabric sewn into the shape of a tube with sand or kitty litter (or just roll up a towel) and lay it at the base of the door.

Lower the thermostat – For every degree you lower your thermostat, you can save up to 3% on your monthly heating bill.

Replace filters – Clogged air filters restrict airflow and add to your energy bill. Replace them once a month during the winter. Better yet, with reports suggesting that disposable filters trap as little as 10-40% of debris, consider replacing yours with a HEPA filter. HEPA filters can remove up to 99.97% of airborne particles.

Buy an energy monitor – There are two kinds of energy monitors. Smart Plugs plug into an individual outlet and calculate the amount of energy being used by a single appliance. Energy (or power) monitors for the whole house track energy usage at your breaker panel. You can find out in real time how much energy you’re using, how much it’s costing you, and how much you’ll save just by turning off an extra light or any appliances like laptops and televisions that have standby modes. Research has shown that people who use power monitors naturally become more aware of - and reduce - their usage. Shop your local home appliance store for an energy monitor and save on your overall power bill this winter.

FINANCIAL UPDATE:

September and October saw home refinance activities reach an all time high.  With interest rates so low, it is also a great time for homebuyers as well as investors to purchase real estate properties.  Non-conforming (otherwise known as jumbo) loan rates, are at an all time low.  In fact, for many buyers who qualify, they are seeing jumbo rates on par with standard conforming rates.  Remember, with the change in the conforming level, any loan that is above $625,500 is considered a jumbo loan.  Below are rates for purchase transactions:

CONFORMING (up to $417,000)

30 year fixed: 4.0%

15 year fixed: 3.25%

7/1 ARM: 2.625%

HIGH BALANCE CONFORMING (up to $625,500)

30 year fixed: 4.0%

15 year fixed: 3.25%

7/1 ARM: 2.75%

NON-CONFORMING (over $625,500)

30 year fixed: 4.25%

15 year fixed: 3.75%

7/1 ARM: 3.25%