Zeller's Blog

Eighty-seven percent of Americans recently surveyed say that owning a home is something they dream about, according to a survey by JPMorgan Chase. 

"Owning a home is at the heart of most Americans' dreams," says Kevin Watters, CEO of mortgage banking at JPMorgan Chase. "And people are saving as much as possible to achieve home ownership."

Sixty-six percent of Americans surveyed say that they believe home ownership is a good financial investment. Seventy-five percent say it’s a crucial part of raising a family. 

First-time home buyers are getting more optimistic about being able to achieve home ownership too. The number of potential first-time home buyers who say they are optimistic about being able to put money down on a home over the next six months doubled in the last six months, compared to previous survey results. 

"First-time home buyers are crucial to the housing market and the overall economy—and to their communities," says Watters. "As families buy their first home, they are investing in their communities and enable other families to move up. That will eventually spur more new construction, generating additional jobs."

Source: “Survey shows homeownership is still the American Dream,” HousingWire (March 15, 2013)

A U.S. Court of Appeals has thrown out the rules adopted in 2011 by the Department of Energy to try to regulate gas-log fireplaces so that they use less energy. The court has ordered the Department of Energy to rewrite its efficiency rules for the “faux hearths” that simulate a wood fire with artificial logs and a natural-gas flame, The Wall Street Journal reports. 

In a 2-1 decision, the U.S. Court of Appeals for the District of Columbia rejected the DOE’s attempt at regulating the energy efficiency of the gas-log fireplaces, but left the door open for future regulation. 

Judge Janice Rogers Brown, writing for the majority, said that the department needed to do extra research in justifying the efficiency standards on “decorative” fireplaces. 

The DOE had argued that under the 1987 National Appliance Energy Conservation Act that it had the right to regulate gas-log fireplaces “designed to furnish warm air.” But the court ruled that DOE could not regulate the fireplaces as heating devices under that rule, but that it could regulate the decorative products separately from that rule. The court ruled that the agency could attempt to regulate the gas-fireplaces, but it would need to justify the rule by analyzing the products’ energy use and improvements manufacturers could feasibly make.

Source: “Court Snuffs Out Rule on Fake Fireplaces,” The Wall Street Journal (Feb. 11, 2013)

2013 is here and we hope for your families well being and success. Changes await along with opportunities. Friendships, trust, and communication seem to be more important than ever.

Real estate related issues are more than ever affecting about everyone. Families and friends ask about selling, buying, financing, renting or other issues like short sales, foreclosures, etc. 

Our objective is to provide “multiple sources” to assist you and the general public. Current information, trends and other resources of interest have been expanded with our social media sites :

• www.SierraProperties.com is a combination of news articles, market research, MLS listings, and numerous features.
• Zeller@realtor.com email offers you a quick and easy way to ask questions or request personal assistance.
• Facebook/Sierra Properties page is a new benefit we are developing to give you more avenues of data resources.

Please remember, “the right agent makes all the difference in the world” and we’re here to personally help you!

Small cities -- with populations between 200,000 and 500,000 -- are some of the places to invest in housing, according to Local Market Monitor and HomeVestor’s latest quarterly rankings of best real estate markets for investing in single-family homes as rental properties. 

“Many of these markets not only have unemployment rates well below the national average, but they show strong job growth and housing prices have bottomed out,” says Ingo Winzer, president of LMM. The smaller markets are “great places to rent out single-family homes because strong economic growth can quickly use up the existing housing options.” 

The top 10 smaller markets for investors, according to LMM, are: 

• Lafayette, La.
• Fort Wayne, Ind.
• Erie, Pa.
• Corpus Christi, Texas
• Houma, La.
• Fayetteville, Ariz.
• Tyler, Texas
• Longview, Texas
• Lincoln, Neb.
• Ann Arbor, Mich. 

LMM cautions investors to be wary of markets that were overdeveloped during the housing boom. More investors should consider smaller markets for investment. David Hicks, co-president of HomeVestors, agrees. 

“We often see that the smaller markets are the best-kept secret of investing,” Hicks says. “Many of these smaller markets offer a consistent demand for rental properties. Investors can discover for themselves that the big city isn’t the only place with a great deal for investors.” 

Source: Local Market Monitor

Nearly one in four working families spend more than half their income on housing costs, which includes utility costs, according to a new study by the Center for Housing Policy. 

The organization found that about 23.6 percent of working households devoted more than half of their income to housing costs in 2010, which was an increase of 1.8 percentage points compared to 2008 data. Researchers define “working households” as those that earn less than 120 percent of a region’s median income. What about your region?

Housing experts generally advise home owners to not devote any more than 30 percent of their pretax income toward housing costs. Really, so who knows what the future holds?

"The data show that home owners have been hit hard by the housing crisis in more ways than just lost equity," Jeffrey Lubell, executive director at the Center for Housing Policy, said in a statement. "Many working home owners have been laid off or had their hours cut."

More information  at source: “1 in 4 Spend More Than Half of Income on Housing, Study Says,” AOL Real Estate (Feb. 27, 2012)

The bipartisan group of lawmakers are concerned that the vacant homes will attract crime and further deteriorate neighborhoods. 

In the letter to Obama, the lawmakers said their local governments need “federal support to demolish the decaying properties on a large scale,” the Associated Press reports. 

“Home owners are depending on us to help stop the free fall of their property values,”  Congresswoman Marcia L. Fudge said in a statement. “It’s time we develop and pass meaningful legislation that promotes the revitalization of our neighborhoods.” 

Source: “Ohio, Mich. Lawmakers Write Obama on Vacant Homes,” Associated Press (Jan. 23, 2012)