Are you aware that almost 6-MILLION American adults (ages 25-34) are living with their parents? These young people are “prime” would-be, might-be clients for buyer-agent Realtors. This number of youth represent close to a 50% increase since 2003 available statistics. If you are among the “parents” supporting your adult children, there is no better support for today’s Realtor: You, as parents, are encouraging your children to buy real property! Yes!

Middle-aged parents, who are home owners themselves, not only understand the benefits of owning a home but are happy to encourage and help their family with what they consider to be a great long term financial investment as well as a true value in today’s economy. Homeownership usually does lead to long term wealth.

In a recent Fannie Mae survey, the question was asked “Are the benefits of owning a home a major reason to buy”? This question was divided into two categories, financial and non-financial reasons, pros and cons for home ownership. The four major-top reasons for realizing the “American Dream” were not related to money:

1. A good place to raise children & provide a good education.
2. A physical structure of safety for family members.
3. Affordable living space for one’s family.
4. Control of this space as far as improvements and decisions made by the one living in said space.

This is a family affair: Our parents purchased their homes, which is the very same reason we have purchased our homes and, of course, we want the very same for our own children and more importantly, our grandchildren. It is our American way and what we, as American citizens believe to be in the best interest of the ones that we love.

Because today’s homeownership (what a long word!) is at an all time low, we can enjoy support for our cause:

HUD: Homes today are more affordable for average families than they have been since 1971(!) Our median-income families have nearly twice the funds needed to purchase an “average” home.

MSNC.com: Anyone who plans on staying in one location for 7 years will come out ahead by approximately $9,000 if they purchase a median-price home rather than leasing a rental with the same monthly payment.

J.P. Morgan Chase: Our young families today have an important message to digest regarding the direction of our housing market; “five years ago, at the peak of home-buying, it was emphatically a time to rent. Today, when home ownership is depreciating more than ever before, the numbers tell us it is a time to BUY.”

THE BOTTOM LINE:

The sign that today’s economy is at the turning point, the stabilizing of our real property values, the helping of our youth’s return to their core family believes, is moving forward to the heart of America’s “dream”: owning one’s own home. It is a high priority. Is this our current “opportunity of a lifetime”? I would suggest “yes”!

Per my email friend and broker in New Hampshire, Mary, here are the real facts behind the Obama healthcare bill: “In the healthcare bill is the additional Medicare tax due on investment income. It is applicable IF the taxpayer has an income of over $250,000. If ones investment income (interest, dividends, capital gains and real estate investment property income and gains) is over $250,000, it is taxable at 3.8%. It is NOT a sales tax. It is NOT just a tax on real estate. It CANNOT apply to a personal residence, because that is not an investment property. It MIGHT apply to the gain on a second home and it will most likely apply to rental property. REMEMBER, ones income has to be over $250,000.”

Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.

Proper Pricing & Help:   "Staged To Sell" By Julie

With fewer homebuyers in today's marketplace, we agents need all of the help we can get!  Clients that understand the dynamics of our economy are a true blessing.  They are proactive, appreciative and willing to do whatever it takes to make sure their home is the one that sells!

Most recently my success story centers around a very talented woman and her business.  I met Julie Stone, owner of Staged to Sell by Julie, through Women's Council of Realtors.    I have witnessed, first hand, her ability to organize and follow through and she's terrific with people; kind, intelligent and a true leader.

During the past summer, I had the good fortune to list a very nice 2-story home in Belmont.  This house is well built and has a functional floor plan, a nice lot and it is situated in a well established neighborhood, with few homes available.  The dilemma:  it was vacant!  After the first 30 days on the market, without an offer, I suggested to the owners they consider staging their home.  When asked my opinion of who would be a good choice, I immediately thought of Julie Stone and passed her name along.  In fact, the owner had found Julie's web site and had contacted her prior to my listing contract.  It just took my suggestion to get the ball rolling and shortly thereafter, Julie arrived, crew and furniture too, and the home was immediately transformed into some comfortable and attractive living areas, great visuals for anyone previewing it for purchase.  Within a few weeks,  the owners received an offer and I am happy to report that this home has SOLD and is now enjoying a family that loves it!  Thank you, Julie!

Are you in the saving mode?  Here are ten tips to make your household more energy efficient!

Forced air heating systems work best where air can flow freely:  Rearrange your furniture.

Make sure your furnace filter is changed on a regular basis.

Use cooking appliances, such as a crock pot, toaster oven or microwave,  skipping use of the stove top or oven.

Lock your windows.

Use light dimmers whenever or wherever possible.

Wash your clothes in cold water.

When not in use, turn off your computer.

When sunshine is available, open blinds and let the sun warm your rooms.

Make sure your water heater is set around 120 degrees.

Unplug appliances, electrical devices and phone chargers when not in use.

Which is most important, buying a home or money?  Indecision may be a costly mistake.  There is no formula for rock bottom, best price or finding that last little bit of depreciation when purchasing a home.  In truth, if one were to find that ultimate bargain, the mortgage rates may not be at the historic lows we’ve been enjoying.

Why buy a home today?  Owning a piece of our American dream gives one a quality of life:  a great school for families with children, a location near work, or having a close proximity to family and friends.  If one can experience income stability, have the financial situation of savings and the ability to shoulder costs of home ownership, there only remains a long term commitment to stay and enjoy!  Are you straddling the fence?

This piece from The KCM Blog has so much interesting information regarding homeownership.  Click to read more...

April's NAR statistics show that 11% of sales contracts were cancelled due to appraisals coming in below the purchase price negotiated between the buyer and the seller.  10% of the sales contracts had delays in closing, while 14% reported that the sales contract was renegotiated to a lower sales price as result of lower appraised value.

During this next year, home prices will be driven by the number of homes that come to our market and in the rate in which these homes are absorbed.  The old "supply and demand" theory!  According to Freddie Mac, the pace of REO acquisitions will increase in the remainder of 2011, in part due to the resumption of foreclosure activity by servicers as well as many seriously delinquent loans to REO.