National Mortgage Rates

Mortgage buyer Freddie Mac said Thursday that the average interest rate on 30-year loans fell to 3.84%, lowest since long-term mortgages began in the 1950s. That’s below the previous record of 3.87% in February.

The 15-year mortgage, a popular option for refinancing, dropped to 3.07%, also a record. The previous record of 3.11% was hit three weeks ago.

Cheaper mortgage rates haven’t done much to boost home sales. Rates have been below 4% for all but one week since early December. Yet sales of both previously occupied homes and new homes fell in March.

Analysts suspect some of that weakness reflected a warm winter, which pulled sales into January and February that would normally occur later, in the spring buying season.

National overnight averages Today +/- 30 yr fixed mtg 3.82% 15 yr fixed mtg 3.05% 5/1 ARM 2.72% $30K home equity loan 5.76% $30K HELOC 4.59% About these rates To compare rates in your area: Enter zip code

Still, many potential buyers can’t qualify for loans or afford higher down payments required by banks. Home prices in many cities continue to fall, making those that can afford to buy uneasy about entering the market. And many who can afford to buy or refinance have already taken advantage of lower rates.

Mortgage rates are lower because they tend to track the yield on the 10-year Treasury note. Mixed news on the U.S. economy and Europe’s debt crisis have led investors to buy more Treasurys, which are considered safe investments. As demand for Treasurys increases, the yield falls.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday each week.

The average rage does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.

The average fee for 30-year loans was 0.8 last week, up from 0.7 the previous week. The fee on 15-year loans was 0.7, same as last week.

The average interest rate on one-year adjustable rate loans also dropped to a record low 2.7% last week, from 2.74% last week. The fee on one-year adjustable rate mortgages was 0.6, unchanged from last week.

Mortgage rates have been below 5% the past year. Yet homes sales have slumped and remain well below healthy levels.

A Flicker of Hope Appears in the Housing Market

By FLOYD NORRIS

THE boom in housing in the middle of the last decade created a huge oversupply of homes in the United States. But now that oversupply appears to be close to vanishing, at least in most parts of the country.

That reduction of supply does not in itself guarantee a revival for the depressed homebuilding industry, but it does remove one obstacle.

Historically, there was a loose relationship between the population over 16 years of age and the number of new homes sold each year, with an average of 376 homes sold for every 100,000 people from 1963 though 1996. The rate fluctuated with the economy, of course, falling during recessions and when interest rates were high, and rising when the economy recovered or interest rates were declining. But the booms were mild compared with the one that came in the middle of the last decade. Then, when the credit crisis and recession arrived, homebuilding collapsed.

Combining the boom and the bust, new-home sales have actually adhered to the historical average. From 1997 through March of this year, the average rate was 375 homes sold per 100,000 people. But, during the boom from 1997 until 2007, 1.8 million more new homes were sold than would have been expected under the historic average. Since 2007, two million fewer homes have been sold than would have been expected.

That calculation would seem to indicate that there is no longer a large overhang of available new homes for sale. That is confirmed by government figures indicating that at the end of March, there were only 144,000 new homes for sale, the lowest level since the government began collecting data in 1963. Of those, 48,000 had been finished, with the rest either planned or under construction. In early 2008, 199,000 finished homes were for sale.

The supply has not been exhausted in all areas, of course. Areas where speculation was most intense, like Las Vegas, still may have too many homes available for sale.

A low supply of new homes does not, by itself, affect demand, and there are reasons demand remains subdued. Many new homes are historically sold to homeowners moving up. Those homeowners need buyers for their existing homes, and they may be hard to find now. In addition, many homeowners cannot trade up now because they owe more on their old homes than the houses are worth.

Other impediments to a significant rise in new-home sales include stringent credit standards for new mortgages and the psychological scars left from the collapse in home prices.

There are indications that fewer households have been formed in recent years than would have been expected from population growth. More young adults have stayed with their parents, while other people who lost their homes or jobs were forced to move in with relatives. If and when the economy improves, many of those people could seek housing of their own, creating a sudden increase in demand.

A major reason the recovery from the 2007-9 recession got off to a slow start was the lack of a contribution from the homebuilding industry. That may be changing. In the first quarter of this year, reported Friday, residential investment was estimated to have grown at an annual rate of 19 percent. The figure was up 8.8 percent from the same quarter a year ago, for the largest annual rise since 2004.

Similarly, while sales of new homes remain low by historic standards, the number of sales in the first quarter of this year was up 17 percent from the same period of 2011. That was also the best year-over-year gain since 2004.

Stunned Home Buyers Find the Bidding Wars Are Back

By NICK TIMIRAOS

Pending-home sales in March hit their highest level since April 2010, spurring the return of real-estate bidding wars. Nick Timiraos reports on The News Hub. Photo: Peter Earl McCollough for The Wall Street Journal.

A new development is catching home buyers off guard as the spring sales season gets under way: Bidding wars are back.

From California to Florida, many buyers are increasingly competing for the same house. Unlike the bidding wars that typified the go-go years and largely reflected surging sales, today’s are a result of supply shortages.

Peter Earl McCollough for The Wall Street JournalDebbie and Bill Wetherell received multiple offers for their home.

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“It’s a little surprising because we thought bidding wars were done with,” said Andy Aley, who is looking to buy his first home in Seattle’s Beacon Hill neighborhood. The 31-year-old attorney was outbid this year when he offered up to $23,000 above the $357,000 listing price and agreed to waive inspections and other closing conditions.

Competitive bidding in the current environment isn’t producing huge price increases or leaving sellers with hefty profits, as occurred during the housing boom. Still, the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump.

An index that measures the number of contracts signed to purchase previously owned homes rose in March to its highest level in nearly two years, up 12.8% from a year ago and 4.1% from February, the National Association of Realtors reported on Thursday.

“We very much believe we’ve hit bottom,” said Ivy Zelman, chief executive of a research firm, who was among the first to warn of a downturn seven years ago. Earlier this week, she raised her home-price forecast for the year, calling for a 1% annual gain, up from a 1% decline.

The Wall Street Journal’s quarterly survey found that the inventory of homes listed for sale declined sharply in all 28 markets tracked. Real-estate agents consider a market balanced when there is a six-month supply of homes for sale. At the height of the housing crisis, in 2008, there was an 11.1-months’ supply. In March, there was a 6.3-months’ supply.

Inventory levels in many markets were at the lowest level in years. At the current pace of sales, it would take just 1.5 months to sell all the homes listed in Sacramento, Calif., and 2.4 months to sell all the homes listed in Phoenix. San Francisco and Washington, D.C., each have 3.4 months of supply, while Miami has 4.1 months of supply.

Other markets have plenty of homes. Chicago, for example, has 9.4 months of supply, while New York’s Long Island has 16.1 months of supply. Even in those markets, the number of houses for sale is edging down.

Increased competition is frustrating buyers and their agents. “We’re writing a record number of offers, but we’re not seeing a record number of closings and that’s because it’s so competitive,” said Glenn Kelman, chief executive of real-estate brokerage Redfin Corp. in Seattle with offices in 14 states.

Nearly 83% of offers that Redfin agents have made on behalf of clients in the San Francisco Bay area this year and 71% in Southern California have had competing bids. Redfin represented a buyer that made the winning bid on a Gaithersburg, Md., home earlier this month after agreeing to adopt the dog of the seller, who was relocating and looking to find a new home for “Buddy,” a white toy poodle.

Inventories are declining for a number of reasons. Some sellers, unwilling to accept prices that are still down from their peak by one-third, are taking their homes off the market in anticipation of higher prices down the road. Meanwhile, investors have been outmaneuvering consumers for the best properties, often making cash offers that are quickly accepted by sellers.

In addition, some economists say that inventory levels are being held artificially low because Fannie Mae, Freddie Mac and the nation’s biggest banks have been slow to list for sale hundreds of thousands of foreclosed homes they currently own. The lenders slowed down foreclosure sales and repossessions after record-keeping abuses surfaced 18 months ago.

Banks and other mortgage investors owned nearly 450,000 foreclosed properties at the end of March, and another two million mortgages were in some stage of foreclosure.

Inventories could rise, putting more pressure on prices, if the banks and other lenders step up their efforts to sell their properties. Real-estate agents say they aren’t concerned. “There’s an enormous appetite for foreclosures. Release the inventory. It will sell,” said Richard Smith, chief executive of Realogy Corp., which owns the Coldwell Banker and Century 21 real-estate brands.

The declining inventory of older homes is spurring sales of new homes. New home sales are up 16% so far this year, compared with a year ago, while inventories of new homes fell in March to their lowest level since record keeping began in 1963.

Meritage Homes Corp., a builder based in Scottsdale, Ariz., reported Thursday a 36% increase in orders for the quarter ending in March versus the previous-year period.

Even though bidding wars are pushing prices higher, many homes are still selling for prices far lower than a few years ago. Increased demand is “entirely affordability driven, which tells me there will be strong resistance to price increases” by buyers, says Jeffrey Otteau, president of Otteau Valuation Group, an East Brunswick, N.J., appraisal firm.

Rents are rising at a time when mortgage rates have fallen to very low levels. The result is that the monthly mortgage payment on a median-priced home is lower than any time since the 1990s. Freddie Mac reported on Thursday that mortgage rates fell to 3.88% for the average 30-year fixed rate mortgage, near its lowest recorded level.

Rates are “so low that we can afford a house that was out of our price range before,” said Aarthi Srinivasan, who is looking with her husband for a home around Palo Alto, Calif., one of the country’s hottest real-estate markets.

Ms. Srinivasan says she fears that prices are being bid up too quickly. She says she had her “aha moment” earlier this year while touring a 50-year-old house that needed extensive remodeling. The home, listed at $1.1 million, received nearly 10 offers and eventually went under contract for more than $1.3 million to a buyer who hadn’t even viewed the property.

“There are only so many buyers who are going to be in such a hurry, so we’re hoping it’ll top off soon,” she says. On Monday, they offered to pay more than the $1.2 million list price for a four-bedroom, bank-owned foreclosure. They haven’t found out if they made the top bid.

On the other side of those transactions are sellers like Debbie and Bill Wetherell, who had 17 offers in four days for their four-bedroom home in Danville, Calif. “I was floored. It was so fast, it was surreal,” says Ms. Wetherell. The home sold on Wednesday for $796,000, more than $50,000 above the asking price.

Still, the sale is for nearly $180,000 less than what they paid for the house in 2005. Ms. Wetherell’s husband has commuted to Reno, Nev., for five years and they have decided to relocate.

Housing markets face other headwinds. More than 11 million homeowners owe more than their home is worth. It is a big reason that the “trade-up” market has been stalled. These homeowners can’t sell their current homes, let alone come up with the down payment for their next home.

Mortgage-lending standards remain tough. Real-estate agents say an unusually high share of deals are falling apart because homes won’t appraise at the price that buyers have agreed to pay sellers.

Still, borrowers with stable jobs are looking to make deals. Kelly Pajela-Fu and her husband offered to pay the asking price of $600,000 for a four-bedroom home in Marblehead, Mass., within a day of the property hitting the market.

“We just knew this house would go quickly,” says Ms. Pajela-Fu, a 31-year-old doctor who had lost out on an earlier offer. Their strategy to avoid a bidding war paid off: The sellers accepted their offer before having an open house.

Having low inventory presses buyers to look further than the multiple listings to find their dream home

^[1](MCT)—House hunters frustrated with the market’s supply of homes have shifted their search from the streets to underground.

More buyers are targeting homes that haven’t yet hit the market, a trend agents say will grow as inventory shrinks and the mismatch of what’s available and what’s desired continues.

Such back-pocket deals used to involve mostly luxury homes where buyers and sellers wanted to keep the sale hush-hush. But lower-priced houses are becoming a bigger part of the mix because even those are in short supply.

Working behind the scenes gives buyers access to the deep well of homeowners who would like to sell, but don’t think the market is healthy enough to list. Agents say they identify these sellers through referrals, as well as track those who listed their homes but backed out when they couldn’t sell. There are also buyers who work with agents to make unsolicited bids on homes they think fit their needs.

“There is a shadow market out there with a lot of people who want to sell,” says Joe Grunnet, a broker in Minneapolis. Homeowners “just don’t know they can sell in this market. They still think the world is coming to an end.”

Housing experts say there is a robust stash of homes that aren’t on the Multiple Listing Service. CoreLogic says that for every two houses available in the United States in January, there was one in the “shadow,” or not yet on the market. There’s also a deep overhang of prospective sellers who have already decided to rent their homes rather than sell.

Mike Blood, who struggled to find a $150,000 to $200,000 home in the northern suburbs, recently caught a break. He spotted a construction dumpster in front of a house in Blaine, Minn., that he saw during an earlier hunt.

After learning that it was being readied for resale, he and his agent made an offer even though the home was months from being listed.

“I was so frustrated,” says Blood, who expects to close on the home next month. “And felt like I didn’t have anything to lose.”

Blood didn’t disclose the purchase price. He said he looked at about 60 homes, but they needed too much work or he got outbid.

Grunnet, whose firm specializes in sales and rentals of urban condos, said the stock of available units downtown is so tight that he often runs down the list of owners who are renting out their units to see whether they would sell.

During the first four months of this year, he said his brokerage has already sold more off-market properties than in the previous three years combined.

For Alison and Fred Parks, the decision not to list was a way to test the market and avoid having strangers traipsing through their $1 million-plus condo near the Mississippi River in downtown Minneapolis.

“We’re private people, living in a popular neighborhood,” they said.

The Parkses contacted Cindy Froid, a local agent who says that, on average, 30 to 40 percent of her deals come together before a public listing.

The couple gave Froid three months to sell, and it ended up selling within days to someone who already lived in the neighborhood for the full list price of $1.4 million.

Unusually low inventory is forcing Froid to get more creative in her efforts to reach prospective sellers. “It is a function of necessity,” she said. “It’s hunting and gathering. If it’s not online, I’m going to try to find it for you.”

Graham Smith, the agent who helped Blood, said that in some ways these premarket deals are simply a return to the basics.

“It’s good old-fashioned networking, that’s all it is,” he said. “It’s just using the tools available today to make it easier and more efficient to sell houses.”

©2012 the Star Tribune (Minneapolis)
Distributed by MCT Information Services ^[2]

 

BIF movie recommendations from our friends at Bolde Reach

Call 2 Action films of the Boulder International Film Festival begin tomorrow. The Boulder International Film Festival (Feb 16-19) offers a superb array of insightful films that inform and expose issues that are relevant to the mission of BoldeReach.    We urge you to attend any / all of the suggested films below!   Friday, February 17 BITTER SEEDS 12:30P          Boulder Theater Co-presented by GMO Free Boulder   After 250,000 farmers, including her father, commit suicide, an aspiring Indian reporter begins an investigation into questionable government-imposed farming practices in central India.   SOMEWHERE BETWEEN 2:45P           Boulder High School   As a result of China’s “One Child Policy”, over 80,000 Chinese girls have been adopted into US families since 1989. This film follows four strong young women as they explore who they are both as individuals and as a nation of immigrants.   NOTE:  Due to mature content this film is not recommended for ages 14 and under.   Saturday, February 18 RAJU 12:14P          Boulder Theater   Raju is an orphan who is to be adopted by a German couple. Before they can take him home, Raju suddenly disappears and they begin to realize they may be part of a larger problem.   LUCKY 5:00PM          First United Methodist Church   After his mother dies, 10-year-old Lucky journeys to Durban with the hope of going to school.   Saturday, February 18 HIGH GROUND - World Premier! 5:00          The Boulder Theater Co-presented by Soldiers to the Summit, Veterans Expeditions and Veterans Helping Veterans   This film is special for BoldeReach – One of the people who climbed in support of the veterans is Matt Murray, husband of BoldeReach Board member Lisa Prassack. WAY TO GO MATT!!   Since 2002, almost 50,000 U.S. soldiers have returned home from Iraq and Afghanistan with their lives radically altered by war. They face long, painful paths to recovery. This beautiful, powerfully moving film tells the story of 11 wounded veterans whose road to recovery takes them to one of the guardians of Everest- the 20,161-foot Himalayan peak known as Lobuche.   One veteran is blind, three have lost limbs, and all 11 suffer from the mental and emotional ravages of war. Blind adventurer Erik Weihenmayer and his history-making team of Everest climbers guide the soldiers, and together they take on a formidable mountain challenge, all in the name of celebrating the return of our nation’s heroes.   A new film by Academy Award-nominated producer Don Hahn (The Lion King) and Boulder’s own Emmy award-winning director Michael Brown (Farther Than the Eye Can See).  Directed by Michael Brown. Produced by Don Hahn and Michael Brown.  Don Hahn, Michael Brown and many of the veterans in person.   Sunday, February 19 NICKY’S FAMILY 10:00AM          Boulder High School   During WWII, the British “Oskar Schindler”, Nicholas Winton, arranged visas and admission to British families for nearly 700 Central European Jewish children. At 102 years old, Sir Nicholas Winton, nominated for the Nobel Peace Prize, is still unbelievably active and engaged in charity work.   THE LADY 2:30P          Boulder Theater   Nobel Laureate Aung San Suu Kyi becam a symbol of the Burmese people’s struggle against military rule.  She spent years in prison or under house arrest.  A heartbreaking and triumphant portrait of one of the most courageous people of our time.   Saturday, February 18 and Sunday, February 19 CHASING ICE Produced in Boulder by Oscar-nominated filmmaker Jerry Aronson (The Divided Trail) and Oscar-winning producer Paula DuPré Pesmen (The Cove), this breathtakingly beautiful film is one of the most anticipated documentaries of 2012. Famed National Geographic photographer James Balog deploys revolutionary time-lapse cameras throughout the Arctic to capture a multi-year record of the world’s changing glaciers. His electrifying videos compress years into seconds and capture ancient mountains of ice in motion as they disappear at a breathtaking- and rapidly accelerating-rate.   Chasing Ice is a hair-raising adventure story as cinematographer and director Jeff Orlowski follows Balog and his team through brutal weather on three continents while Balog bravely documents the biggest story facing humanity.   Saturday, February 18  5:00 pm        Boulder Public Library Canyon Theater   Free student (13 to 19 years old) screening. No tickets for the general public.    Sunday, February 19  8:00 pm          The Boulder Theater   Music 6:15-7:30pm. Awards Ceremony at 7:30pm. Film at 8:00pm    Q&A follows.   Filmmakers James Balog, Jeff Orlowski, Jerry Aronson and Paula DuPré Pesmen will participate in person.   Co-presented by Extreme Ice Survey. Introduced by James Balog, filmmaker and Extreme Ice Survey founder extremeicesurvey.org   Proceeds benefit the non-profit, year-round activities of the Colorado Film Society and BIFF.

5 Tips For Organizing Paperwork for a Smooth Tax Filing Process from

Great tips from Grant Hickman at Premier Mortgage Group

There’s no better time to sort through the growing pile of papers in your home office than when you’re preparing to file year-end taxes. While organizing paperwork and personal files can seem like a daunting task, it certainly doesn’t need to be. Master Lock has provided the following tips for organizing and safely storing important documents for a smooth tax filing process and more organized year.

“Eliminating unnecessary paperwork and storing tax files in one organized, secure place is vital to a stress-free tax filing process,” said Rebecca Smith, vice president, marketing for Master Lock. “By creating and maintaining a master storage system, individuals can not only ease the tax filing process, but also enjoy a feeling of preparedness year-round.”

1. Purge the paperwork

First things first-clear the clutter. Go through all of your paperwork and eliminate anything you no longer need, shredding identifying documents to protect against identity theft. Get rid of expired warranties and year-old receipts and bank statements.

2. Safely store crucial records

Designate a specific storage space for vital documents including birth certificates, marriage licenses, passports, wills and social security cards. These items, as well as any important memorabilia, should be stored in a locked, fire retardant box. Not only will you always know where these items are, they’ll be safe from home mishaps.

3. Create a tax file

Create a separate file for all of your tax documents. Organize this file into 10 categories: income (pay stubs, W-2s, interest statements), medical (medical expenses and health insurance out-of-pocket), donations (cash and non-cash donations), real estate (interest statements from mortgage, tax assessments), child care (payment receipts), tax correspondence (important IRS or state revenue service letters), student loans (statements of payment), miscellaneous receipts (any receipts that might be needed for deductions), payments (records of advance payments) and old tax papers (old tax returns). Continue to use your tax file year-round, and you won’t have to scramble for these documents when it comes time to file next year.

4. Back up everything

Make digital copies of important documents and store them in your fireproof box on a zip or thumb drive. Use a secure online organization and security solution to store log-in and password information for bank accounts and credit cards as well as lock combinations or key numbers to your file boxes. Consider appointing a guardian as an additional security measure who knows where and how your records are stored for easy access in your absence.

5. Make it a tradition

Select a specific time of year (perhaps when tax time rolls around again) and make your review of these records an annual occurrence. This will ensure your information is streamlined and up-to-date and that finding or organizing this information is never an overwhelming process again.

Trend #1: Integrated Refrigerator

Text by: Jennifer Gilmer, CKD

ReadJennifer Gilmer recommendations on hottest trends in Appliances:  Though some kitchen design trends come and go, other elements become instant classics. Take stainless steel, for example. Once found only in  commercial kitchens, stainless appliances and counters now work in almost any home kitchen. Discover the hot items to have, what’s on the way out, and what’s here to stay.

One current must-have is a built-in or integrated refrigerator. You have the option of wood panels matching surrounding cabinetry to make the fridge look like a piece of furniture, or you opt for stainless steel as a shining accent in your kitchen. Also trendy are retro-style refrigerators for traditional or whimsical kitchens. These refrigerators look great paired with an old-fashioned style range like an Aga, La Cornue, or Bertazzoni, all of which come in fun colors to match the refrigerators.

Trend #2: Side-By-Side Single Ovens

Although tried-and-true double ovens can be very functional, two single ovens, in a side-by-side installation, are proving to be even better. Side-by-side ovens put both units at a comfortable height, and if one breaks, it can be replaced without having to address the entire unit. Side-by-side ovens are a perfect solution if you want the appliances to be unobtrusive in your overall kitchen design.

Trend #3: Multi-Function Ovens

Many people like a 36”-inch range because it has a very large oven. With a range oven, it’s wise to have a second oven that’s also a microwave. The Miele speed oven is both a convection oven and a microwave. Another option is to use a steam oven, which heats food with steam but can also be used as a convection oven. These two appliances look great next to a built-in coffee machine—another appliance that’s becoming popular.

Trend #4: Hidden Appliances

Another way to hide appliances is to put them behind bi-fold doors that slide open on a track or simply fold back. The doors then stay open while the unit is in use, then cleverly keep appliances out of sight when they’re not needed. For a kitchen that opens onto a family room, this helps the kitchen feel like part of the living area rather than a cooking prep space.

Trend #5: Built-In Beverage Centers

Wine coolers are an innovation that is here to stay! But now you can opt for a beverage center holding not only wine, but also beer, sodas, and mixers. Warming drawers, on the other hand, are waning in popularity as people realize that microwaves or steam ovens can serve the same purpose.

On The Way Out

Trash compactors and instant hot-water fixtures are also becoming less requested. With recycling commonplace, trash compactors aren’t as useful as they were in the past. Instant hot fixtures are energy hogs that require another spout at the sink—which can make the countertop look cluttered.  Moreover, these two appliances also have a reputation for breaking down on a regular basis.

Take-Home Message

New trends emphasize practical use and attractive form, as well as the changing trends in cooking and entertaining. Choose what works best for you and your lifestyle among all the appealing, convenient options available.

Budget Tip #1: Stick With Basic Finishes

Photo By: Eric Roth; Designed By: Sandra Vitzthum

Cabinetry is costly—no way around it. In fact, it’s the most expensive item by a wide margin in any new or remodeled kitchen, and most homeowners have to balance what they want with what they can realistically afford. Here are ten ways Scott Stulz recommends to make the most of your cabinet budget—and preserve your kitchen wishes without breaking the bank.

Specialty finishes can add as much as 40 percent to the cost of your cabinetry, and glazing, hand distressing, or polishing are all expensive extras. Simple stains or standard traditional paint keep costs under control.

Budget Tip #2: Use Fewer, But Larger, Cabinets

You might sacrifice some convenience features in doing so, but one large cabinet in a given space costs less than two smaller more specialized cabinets.

Budget Tip #3: Use a Worktable as an Island

Custom-built or ready-made, open counter-height worktables can function as islands at a lower cost than closed cabinetry. Some even have shelves or baskets near the floor for frequently used large items or produce.

Budget Tip #4: Think Simple

Avoid curves, angles, changes in depth, and height, or anything that requires more components or custom fabrication for your cabinets.

Budget Tip #5: Choose Cabinets That Look Good Without Moldings

This is usually best accomplished with clean, contemporary styles. Moldings—and the labor to cut, fit, and install them— are expensive.

Budget Tip #6: Go Light On Internal Accessories

Rollout shelves, drawer dividers, and spice racks are convenient, but they add to the cost of your basic storage system.

Budget Tip #7: Designate One Focal Area

A room full of plain and relatively inexpensive cabinets with one elevation that is more detailed or elaborate can make a strong statement on a budget.

Budget Tip #8: Decide On a Budget and Stick To It

You’ll have to do a little research to be realistic about the categories of cost and how much cabinetry you’ll need, but decide what your budget is and let your contractor or kitchen designer know that you’re serious about it.

Budget Tip #9: Buy Used

Try scouring the classifieds, perhaps placing an ad, and see if there is a used cabinet supplier that serves your locale. There are plenty of companies out there that buy good used cabinetry from homeowners who are doing complete remodels. Some even offer limited design services.

Budget Tip #10: Hire a Competent Designer

You have to pay design fees, but a really experienced and resourceful designer can provide you with a wonderful, budget-minded solution while saving you the headaches associated with doing a complicated project as a novice. You’ll want to find someone who is not only creative, but who also has a broad understanding of fabrication, available products, and all aspects of contracting.

Parting Advice

Don’t take on a “do it yourself” strategy to save money unless you are completely clear on what you’re getting into. For most homeowners, working with the right professional is really the best way to get what you want, as long as you’re up front about your budget and other requirements. With these suggestions in mind, you can keep the cost of cabinetry within your budget while still creating a kitchen that will suit your lifestyle and needs.

Dishwashers Most of the energy used by a dishwasher is for heating water. The Energy Guide label attached to new dishwashers estimates the annual power needed to run the appliance and heat the water based on natural gas and electricity costs. Dishwasher Tips Check the manual that came with your dishwasher for the manufacturer’s recommendations on water temperature; many have internal heating elements that allow you to set the water heater in your home to a lower temperature (120°F). Scrape, don’t rinse, large food pieces and bones from dishes. Soaking or prewashing is generally only recommended in cases of burned-on or dried-on food. Be sure your dishwasher is full, but not overloaded, when you run it. Avoid using the “rinse & hold” on your machine for just a few soiled dishes. It uses 3 to 7 gallons of hot water for each load. Let your dishes air dry; if you don’t have an automatic air-dry switch, turn the control knob to “off” after the final rinse and prop the door open slightly so the dishes will dry faster. Long-Term Savings Tip When shopping for a new dishwasher, look for the ENERGY STAR label to find a dishwasher that uses less water and 41% less energy than required by federal standards. Excerpted from U.S. Department of Energy.

Despite record low mortgage rates, 2011 has seen a surprisingly high level of cash home purchases, according to the real estate research firm Hanley Wood Market Intelligence. Jonathan Dienhart and Ken Lee, two analysts with the company, say between tight lending standards and a desperate search for yield by investors, cash purchases of homes – particularly for distressed properties – became even more common in 2011 than last year.Dienhart and Lee analyzed data collected through Hanley Wood’s Housing IntelligencePro, and shared their findings in a blog post.

The two discovered that 38 percent of homes purchased in 2011 were bought with all cash. That’s up from 34 percent in 2010, and double the 19 percent rate in 2006.

According to Dienhart and Lee, this trend is likely to continue in the near term. They note that cash-paying investors are responsible for an increasing share of home purchases nowadays as prior homeowners abandon the ownership market and head back to rentals.