This Week in Real Estate 6-26-2015

Lots of news this week.

#1. Great news for the economy.

U.S. consumer spending recorded its largest increase in nearly six years in May on strong demand for automobiles and other big-ticket items, further evidence that economic growth was accelerating in the second quarter.

#2. Interest Rates are climbing.

For the third week in a row, the 30-year fixed-rate average remained above the 4 percent mark, according to the latest data released Thursday by Freddie Mac. It rose to 4.02 percent with an average 0.7 point this week. (Points are fees paid to a lender equal to 1 percent of the loan amount.) The 30-year fixed rate was 4 percent a week ago and 4.14 percent a year ago.

As the Federal Reserve contemplates raising its benchmark federal funds rate, home loans are becoming more expensive. Indications are that the days of the 30-year fixed-rate home loan at a rate below 4 percent are gone, if not for good, certainly for a long time.

#3. The Supreme Court is making some big decisions

The Supreme Court upheld the Affordable Care Act’s (Obamacare) provision for national subsidies. This was widely considered the best opportunities for the opponents of this bill to dismantle it. But with a 6-3 decision it looks like it is here to stay. With it the tax provisions that are included for real estate. 3.8% on the proceeds of the sale of commercial properties and rents as well as proceeds for personal homes above the normal exemptions.

-Kris

Home Tip of the week

Summer is the time for outdoor chores. I know you were thinking I was going to say Fun, but these tips will allow you to have more fun (and fewer expenses) in the long run.

One of the most common areas for wood damage we see over and over in our home pest inspections is on decks. The reason is simple these wooden structures face the elements every day and night exposed.

But with just a little maintenance you can keep your deck in good shape.

#1. Power wash your deck to remove debris and dirt. Debris and dirt hold water and can accelerate dry rot.

#2. Inspect the deck for damage when it is all cleaned off. Dry rot most often happens at the ends of the boards. To test, poke with a screwdriver to see if the wood is solid. Replace boards that have dry rot, since it can worsen quickly.

#3. Make your deck is sealed well. There are several improved products that work very well. Stains, sealants and deck coating (extra thick paint).

Home sales this week in your area.