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Sales of newly built, single-family homes rose 14.5% to 501,000 units in 2015, the highest level since 2007, according to newly released data from HUD and the U.S. Census Bureau. Meanwhile, sales in December increased 10.8% to a seasonally adjusted annual rate of 544,000 from an upwardly revised November reading.
“The December sales report is a great end to a very strong year,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and home builder and developer from Bloomington, Ill. “As we move forward in 2016, we should see the housing market continue to make lasting gains.”
“Relatively low interest rates and an improving economy are motivating buyers to make a new-home purchase,” said NAHB Chief Economist David Crowe.
Sales increased in all four regions in December. The Midwest, West, Northeast and South all posted respective gains of 31.6 percent, 21 percent, 20.8 percent and 0.4 percent.
Back in the 1980s, NASA began its Clean Air Study – researching and compiling a list of houseplants that could be used to provide clean and pure air for its space stations. From outer space to your place – this article from BrightNest explains how plants can help you create a healthier home.
Placing plants around your home does more than beautify your space – according to NASA, houseplants are actually good for your health! Here are a few tips to help you decide what plants are best for your home.
For low humidity: If your home has low humidity levels, try a pot of English ivy. This type of plant is a great natural humidifier and will increase the moisture levels in your home.
For congestion: Eucalyptus is great for congestion because it helps to clear phlegm and other blockage from your system. It opens bronchial passages and clears mucus during colds, flu or bronchitis and is also a natural antiseptic.
For common air pollution: Having almost any type of houseplant in your home will help remove volatile organic compounds (VOCs). But Spathiphyllum (Peace Lilly, shown above), Chlorophytum comosum (Spider Plant) and Chrysanthemum are all especially great at removing indoor air pollution.
For insomnia: Since plants give off oxygen, they can help improve your night’s sleep. Gerbera daisies release oxygen at night, so they’re perfect!
Whether you’re tuning in to the big game to actually watch the game, or just the commercials in between, this U.S. News article by Kendal Perez offers some tips on how a little careful game-planning can help you kick off your Super Bowl party without spending too much.
The biggest match-up in American sports is right around the corner, and with it the Thanksgiving-like inkling to indulge in all-things bad for you. What’s a Super Bowl party without mega nachos, fried wings and buckets of onion dip, after all?
For foodies with a bottomless budget, Guy Fieri (of Food Network fame) is organizing a Super Bowl Tailgate Party featuring linebacker-worthy fare including jambalaya, a whole hog and a steak sandwich station, all for a cool $700 entry fee.
For those fans with regular budgets and a healthy respect for moderation, consider hosting your own Super Bowl Bash for much less than the cover charge to a celebrity gathering. To ensure your event is free of fouls and fumbles, follow these tips for a winning celebration.
Choose either snack foods or a main course. Planning a menu for the big game can quickly get out of hand when you consider all the indulgent treats characteristic of Super Bowl viewing party: sliders, nachos, pizza, chicken wings (and an entire pig, if you’re Guy Fieri). These foods are all fan favorites, but purchasing and preparing each one will get costly and time-consuming. Instead, plan for just a couple appetizers and a main course. For example, chips and vegetables with dip make for perfect starters, pairing well with soda and beer. The main course can be as simple as pizza, though opting for homemade over delivery will save you a bundle. You can also create a pizza “bar” by providing all the popular fixings for personal pies created by your guests. This option is especially popular for kids with picky palates and can serve as additional entertainment.
Make it a BYOB event. To save on the cost of beverages, have guests bring their favorite drinks to share. This way, you can focus on food and supplies, and your guests can enjoy an assortment of drinks in addition to their favorites. If children are attending your event, skip individual juice boxes in favor of water mix-ins like punch or lemonade. While drinks are provided by your guests, storage is still up to you. Dust off your coolers and designate someone in the family to make an ice run before the game! Alternatively, you can plan ahead by packaging ice from your ice maker beginning several days before the game.
Include party games for the kids. Watching the game is typically enough entertainment for adults, but children need a bit more stimulation. Free printable templates for kid-friendly party games are available online, and can be themed around the Super Bowl for an added touch. You can also designate a craft area (perhaps the dining room table) where kids can color, put together paper projects or even decorate sugar cookies with various toppings for a post-game treat. And depending on the weather in your region, a pre-game football toss will get both kids and adults on their feet.
Although it may be tempting to purchase big-ticket items when you buy a new home, there are several reasons not to splurge – especially between the time your home loan is approved and the day of your actual closing. This article from Daniel Goldstein of MarketWatch highlights some big mistakes to avoid before you get the keys to your new home.
The loan is approved, the contract is signed, the title is clean, the closing date is set, and everything seems on track to get that home.
And then some people do the unthinkable that costs them their dream home.
“I’ve had clients call me and say they’ve quit their job, or bought a new car,” just before close, says Mark Livingstone, a mortgage broker with Cornerstone First Financial in Washington, D.C. “All I can do say “what were you thinking? I’ve seen a number of deals fall through that way.”
It’s tempting to splurge just before you buy a home. After all, you’ve probably got big-ticket items to buy like a washer and dryer, or a lawn mower, or new furniture, or bedding. And you’ve probably paid down your other credit cards and paid off car loans and otherwise cleaned up anything bad on your credit ahead of applying for a mortgage. Now there’s a store offering you a $10,000 line of credit for furniture with no payments for a year so you can fill your new house?
Don’t do it. At least, not before you close.
“Banks are going to question almost any meaningful transaction you make while you’re applying for a mortgage,” says Douglas Boneparth, a financial planner in New York City. “So, until you close and the keys are in your hands, you are under the magnifying glass,” he says.
There’s one thing most people don’t understand in the home-purchasing process: Their credit is monitored, right up to the day they sign the contract says Tom Wind, executive vice president of home lending for EverBank in Jacksonville, Fla. “When people think they’re approved [they also think] they’re done,” he says. “They’re not done until the loan closes,” he said.
Take, for example, the furniture store line of credit. It doesn’t matter if you aren’t making payments yet on the $10,000 of furniture you just bought, Wind says, because the bank assumes you’ll be making a monthly payment straight from the start, which will likely throw off your debt-to-income ratio.
If you need new furniture to fill your house, consider renting for a few months. There’s often no hard credit check and given that your store-bought furniture will likely take several weeks or months to be delivered, and it can be a more cost-effective option.
Car leases can also trip up potential homebuyers, because the bank treats the lease payments like any other debt payment and the lease includes a hard credit check, says Sabine Schoenberg, a realtor in Greenwich, Conn. “Anything that might gobble up cash is money you should have in your account,” she says.
Even if you avoid the temptation to splurge before the close, another frequent hiccup occurs when home buyers switch jobs at the last minute, Wind says.
It’s awards season for the movie industry, and everyone’s talking about this year’s Best Picture nominees. But there are some films from the recent past that are still worth talking about in regards to the important financial lessons they provide. This U.S. News article by Sabah Karimi highlights some movies we can all learn from.
We often turn to movies for an escape, but many can teach us some valuable life lessons – especially when it to comes to managing money. From the disastrous effects of greed and corruption to the dangers of instant gratification, there are lots of movies with powerful financial lessons.
Whether you’re planning a movie marathon this weekend or just want to tune in to a movie that will give you a fresh perspective, take your pick of any of these five films that deal with money matters.
“The Money Pit”
This popular ’80s movie is the perfect example of homebuyers making an emotional decision versus a more rational one. The stars of the movie rush into purchasing their dream home because they are enamored by the seller. In truth, they should have done more research about the property. Being unprepared for all the house repairs needed left them throwing away their hard-earned dollars into a money pit.
Lessons learned: If you’re thinking about buying a new home or are a first-time homebuyer, make sure you do your homework about the property and the homebuying process. Don’t make emotional decisions at any stage of the buying process, and create a realistic budget to negotiate based on what you can truly afford.
“Wall Street”
In the 1987 film “Wall Street,” young stockbroker Bud Fox falls in love with the flashy lifestyle of the rich and powerful. Fox spends money he doesn’t have on an overpriced apartment and expensive art just to keep up with the Joneses. Fox’s entry-level stockbroker job can’t sustain his spending spree, and he’s forced to use insider trading to help pay his bills. This movie shows how much Wall Street traders might risk in order to keep up the appearance of success.
Lessons learned: Making an honest dollar will serve you well in the long run. Managing those dollars well with a budget and mindful spending – learning to live within your means – can prevent you from falling into the greed trap and even considering illegal activities to fund a lavish lifestyle.
“The Untouchables”
This movie might just make you think twice about neglecting to file your income taxes. In this 1987 film about mob boss Al Capone, the FBI tries everything they can think of to put Al Capone behind bars. But despite the FBI’s best efforts to put Capone away on serious charges like murder or racketeering, the government ultimately catches Capone on the simple charge of tax evasion. Al Capone is finally brought down, not by gun-toting FBI agents, but by accountants wielding ledger books.
Lessons learned: While you might not be a criminal kingpin, failing to file your income taxes can lead to a determination of tax evasion by the IRS – whether it was intentional or not – and will hurt your credit. You may also face fines, serve prison time and end up with a criminal record. File and pay your taxes on time to avoid penalties or an audit. Remember, you can always request an extension to file before tax day if you need some extra time.
When you buy a home, you should never have to compromise – especially when it comes to your family’s health. New homes can be healthier than used homes because they may come with the latest in design, materials and technology to promote good health for your entire family.
This article from BrightNest highlights ways to keep your home healthy, by focusing on one “healthy home” task every day of the week.
Sunday: Pillows & Sheets. Wash your pillows and sheets in hot water – this will kill germs and reduce dust.
Monday: Fridge & Leftovers. Fridge check! Do a quick audit for any expired meats, dairies or other perishable items. Leftovers that are more than four days old need to go, too.
Tuesday: Sponges. Toss your sponges in the dishwasher and run on the hottest cycle! This will disinfect them.
Wednesday: Toothbrush. Give your toothbrush a quick dip in boiling water.
Thursday: Switches & Handles. Use a disinfectant spray to clean your light switches and fridge handle.
Friday: Pay It Forward. Happy weekend! Do a random favor for a housemate or neighbor – it’ll help them out, and make you feel better, too. Great way to start the weekend!
Saturday: Your Mood. Spending the day at home? Open all of your shades or blinds so plenty of light gets in throughout the day – it’ll improve your mood!
If you’re considering purchasing a new home – especially your first home – this U.S. News article by Teresa Mears highlights some of the ways you can obtain a home loan with a low down payment.
For someone who is thinking of buying a first home, the idea of saving enough money for a 20 percent down payment can be daunting. The good news is a first-time buyer can purchase a home for a little as 3 percent down – and even no money down in some cases.
“The narrative that in order to buy a house in America today you need 20 percent down is just not true,” says Marietta Rodriguez, vice president of national homeownership programs and lending for NeighborWorks America, a national nonprofit focused on community development and homeownership. “There are a lot of different products that offer low down payment options.”
If you otherwise qualify for a mortgage, you can qualify for one with a lower down payment, though some options are only available to those with good credit. But you will pay more. That’s partly because if you pay less upfront, your mortgage balance is higher. Another reason is if you don’t make a minimum down payment of 20 percent, you will usually be required to pay private mortgage insurance.
PMI, as it is commonly known, protects the lender if you default on your loan. On a conventional loan, it’s usually added to your monthly payment. For loans offered by the Department of Veterans Affairs, the U.S. Department of Agriculture and the Federal Housing Administration, mortgage insurance is handled differently.
“The less you put down, the higher the mortgage insurance is,” says Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage” and a mortgage professional in the San Francisco Bay Area. “With 5 percent down, the mortgage insurance is quite high.”
The cost of private mortgage insurance depends on your credit score and the size of your down payment. Freddie Mac estimates the cost at $30 to $70 per month for each $100,000 borrowed. The Freddie Mac website calculates that if you buy a $200,000 home with 10 percent down with a 30-year fixed rate of 4.5 percent, you’ll pay $80.75 a month in PMI (at a rate of 0.51 percent), in addition to the $962 monthly principal and interest payment (taxes and insurance are added on top of that). With 20 percent down, you’ll pay $810.70 per month.
If you need to pay PMI, the size loan you can get will be slightly smaller, to allow for the bigger payment. With a conventional mortgage, you can get an appraisal and write to your lender and ask to have the PMI removed once you have more than 20 percent equity in the home. With FHA loans, PMI lasts for the lifetime of the loan.
“Anyone with decent credit can get a loan,” Fleming says. “The limiting factor will always be the PMI.”
If you have a choice, should you make a bigger down payment to avoid PMI? It depends on your personal circumstances. You need to make sure you have enough cash on hand for closing costs and repairs. Some lenders will require a certain level of reserves before they will grant the mortgage.
“There’s really no hard and fast rule out there,” Rodriguez says. “Inasmuch as they have a choice, and have something to put down, they can run through different scenarios.”
Even with no down payment, homebuyers still need some cash to cover closing costs and upfront costs, such as a year’s worth of taxes and insurance. Some loan programs allow buyers to use a contribution from the seller or a gift from family for closing costs and down payments, but others do not.
“That means you need to be putting money aside,” says Sandee Rains, a financial education specialist in Tampa, Florida, with the nonprofit ClearPoint Credit Counseling Solutions.
If you’re considering buying a home, it’s smart to meet with a mortgage officer or broker before you start looking at property. “Sit down with somebody who can show you what all the costs are really going to be,” Fleming says. A good mortgage broker can help you weigh your options and decide how large a down payment to aim for, as well as which loan program is the best option.
Rodriguez suggests consulting a financial counselor who can examine your financial life in its entirety. “It’s really to help you plan your financial future,” she says. “Homeownership might be only one of those goals.”
Homeowners love to cook in their kitchens, have fun in their family rooms and get in gear in their garages. But there’s nothing quite as cozy as your own bedroom. This BrightNest article from Amy Thomson offers some helpful suggestions for making your bedroom the coziest place on the planet.
Welcome to cozy boot camp. If you’ve been relying on that 10-year old pair of flannel pajamas for your sole source of bedroom cozy, then it’s time for an upgrade. Let’s get started.
An electric heating pad. Heating pads are made for all people that like to be warm while they do lovely things like read or watch TV shows. Try turning your heating pad on a few minutes before you plan to snuggle up under the covers to avoid that cold-sheets transition.
More pillows, and then some more pillows. You want to be ready for every occasion: propping up your feet, sitting up straight and crafting, and feeling like you’re sleeping in a sunken pillow fortress. Call yourself the impromptu-pillow-party pioneer, and set sail.
A bedside lamp that actually works. Some bedside lamps can be absolutely adorable and, simultaneously, absolutely useless. We’re talking about those really small ones with cute, navy-blue shades that give off no light and make reading impossible. You need a bedside lamp that makes reading in bed a dream, and that has levels of brightness depending on your mood.
Something that’s alive. We know it’s winter and everything is dead and gray. That’s why you should consider adopting a new orchid or succulent plant. Something easy to care for that can bring some life back into your wake-up call. You could also buy 1-4 canine or feline companions to snuggle with you at all times.
While the overall U.S. economy and housing market continue to recover and strengthen, there are several individual cities that are leading the way. In this New Geography article, Joel Kotkin and Mark Schill rank the cities that are most likely to boom over the next ten years. Topping the list is Austin, Texas – with other top 20 cities including San Jose, Denver, Raleigh, Houston, Dallas, San Antonio, San Francisco, Nashville, Charlotte, Minneapolis, Seattle, Atlanta, Orlando and Phoenix.
Which cities have the best chance to prosper in the coming decade? The question is a complex one, and as the economy changes, so, too, will the best-positioned cities.
To identify the cities most likely to boom over the next 10 years, we took the 53 largest metropolitan statistical areas in the country (those with populations exceeding 1 million) and ranked them based on eight metrics indicative of past, present and future vitality. We factored in, equally, the percentage of children in the population, the birth rate, net domestic migration, the percentage of the population aged 25-44 with a bachelor’s degree, income growth, the unemployment rate, and population growth.
The results show two divergent kinds of ascendant cities. One is driven by the tech industry, the in-migration of educated people and sharply rising incomes; the other type is what we describe as “opportunity cities,” which tend to have a diverse range of industries, lower costs and larger numbers of families. We may be one country, but the future is being shaped by two very different urban archetypes.
The Lone Star Model
The most vital parts of urban America can be encapsulated largely in one five-letter word: Texas. All four of Texas’ major metro areas made our top 10. Austin, Houston, Dallas-Ft. Worth and San Antonio are very different places, but they all have enjoyed double-digit job growth from 2010 through 2014, well above the national average of 8.1%. They also all have posted income growth well above the national average.
But the biggest divergence from the pack may be demographics. The Texas cities have become major people magnets, with huge growth in their populations of young, educated millennials and households with children. The clear star of the show is No. 1-ranked Austin, which has become the nation’s superlative economy over the past decade.
The other Texas cities also do well across the board, with strong domestic in-migration, low unemployment and a rising population of young families.
The Flyover Superstars
There are several dynamic, fast-growing metro areas elsewhere in the country that seem likely to increase their status in the coming years, mostly in the Southeast and the Intermountain West. Like the Texas cities, these areas enjoy lower costs than the Northeast or California, notably for housing, and tend to be pro-business. All are experiencing significant population growth.
No. 2 Salt Lake City and No. 4 Denver have been expanding for years, with significant tech-sector growth. Both are logging population increases, with Denver benefiting from strong domestic in-migration while Salt Lake City has the highest birth rate among major metro areas, 16.9 per 1,000 women from 2010-14, largely due to its fecund Mormon population.
The Southeast has a number of ascendant cities led by No. 5 Raleigh, which, like Austin, has emerged as a tech hot-spot. Some 49% of all Raleigh residents aged 25 to 44 have a four-year degree, higher than any other metro area in the South. The national average is 33.6%.
