Nearly 16M Homes Are Now Underwater

Zillow just reported that their data shows nearly 16 million homes in this country are now in a negative equity position where the house is worth less than the mortgages on the home. This number is dramatically higher than the approximate 11 million reported by other entities. Why the huge difference? Zillow professes to take into consideration ALL loans on the property not just the most recent loan (purchase or refinance).
The key findings in the study:

• Nearly one-third (31.4 percent) of U.S. homeowners with mortgages – or 15.7 million – were underwater on their mortgage.
• A slower pace of foreclosures after the robo-signing issues of 2010 contributed to slower progress in working down negative equity. Foreclosures cause homes to come out of negative equity when a bank or third party takes ownership.
• Nine in 10 homeowners continue to make their mortgage and home loan payments on time, with just 10.1 percent of underwater homeowners more than 90 days delinquent. 
• Nearly 40 percent of underwater homeowners, or 12.4 percent of all homeowners with a mortgage, owe between 1 and 20 percent more than their home is worth. 
• An additional 21 percent of underwater homeowners, or 6.6 percent of all homeowners with a mortgage, owe between 21 and 40 percent more than their home is worth.
• About 2.4 million, or 4.7 percent of all homeowners with mortgages owe more than double what their home is worth.

How can negative equity impact the housing market? In the report, Zillow Chief Economist Stan Humphries explains:

“Not only does negative equity tie many to their homes, by making homeowners unable to move when they may want to, but if economic growth slows and unemployment rises, more homeowners will be unable to make timely mortgage payments, increasing delinquency rates and eventually foreclosures.”

Keeping Current Matters 5/30

What To Watch For When You're House Hunting

If you're thinking about buying a new (or old!) home, our list of the "Top Things to Look for When Buying a Home" can help to get your search off to the right start. While the number of rooms, condition of the kitchen, and size of the yard are important, there are other things to consider before you make an offer.

• Location, Location, Location
  They say that the 3 most important things to think about when buying are home are location, location, location. You can live with almost any imperfection in a home if you love the neighborhood and your neighbors. You can change almost everything else. But, once bought, you cannot change your home's location. When you go house hunting, consider any potential home's proximity to your work, the charm of the neighborhood, how the home is situated on the lot, ease of access, noise from neighbors, traffic, or pets, and access to parks, shopping, schools, and public transportation.
• Situation Factors
  Beyond location, look at the particular site of the home. If the home is on a hill does it have a view, a walkout basement, or lots of stairs to climb? Do neighbors' windows look directly into the home? Is the yard suitable for kids, pets, gardening, or other uses? Is access to the property safe regarding driveway elevation, stairs up to (or down to) the front door?
• Check Out the Neighborhood
  Be sure the neighborhood, and not just the house, meets your expectations. They say that you should own the smallest home in the nicest neighborhood that you can afford. You'll have a great view! Drive around on week days and weekends, during the day and in the evening. Are homes in the neighborhood consistent in size and features? Do the neighbors keep the yards clean and tidy or are there old cars and trash around? Is the neighborhood safe enough for people to walk, run, or bike and are there children playing in the yards?
• Consider a Home's Curb Appeal
  Your home should reflect your lifestyle. Do you live a laid-back life? Then you might not want a formal Victorian or Tudor style home. Something simpler and more contemporary might be in order. Look at the exterior features. A brick home is easier to maintain, unless you live in an earthquake-prone area! Is the roof in good condition? Is the landscaping attractive and are the sidewalks leading to the home safe?
  Read here about choosing, buying, and applying exterior Paint.
• Size and Floor Plan
  You may be thinking about buying your dream home. But is your dream home impractical? Do you really need 4 bedrooms and 4 baths when you live alone? A large home can give you the extra space you've always wanted for a home office or crafts or art projects. But you'll pay higher heating bills and have higher taxes. It will take more furniture to furnish and money to decorate. Think about how the new home space will be used and whether it will fit your lifestyle now and in the future.
  Get information here on design Tools

Where Are House Prices Actually Headed?

We are often asked where we believe home values are headed. To answer this question we want to quote three separate reports that have been published in the last 60 days: the Home Price Expectations Survey (HPES), the Urban Land Institute Real Estate Consensus Forecast (ULI) and the Demand Institute’s Report (DIR): The Shifting Nature of U.S. Housing Demand. Here are their projections:

A slow but steady return is projected by all.

Keeping Current Matters: 5-23-12

What Drives You?

Video of Daniel Pink talking about what truly motivates us.

Time For Some Family Fun

Fun family night ideas are something all ages can cherish. A study by the Nielsen Company shows the average parent spends 38.5 minutes per week in meaningful conversation with his or her children. From a cozy evening with board games to do-it-yourself candied apples, you can plan a great family night, too!
Quality time needs to be fun … but with today’s busy schedules, planned. Work family night into your calendar just like you would plan dinner with your girlfriends, or happy hour. After that, the options are as wide as your family’s imagination. Here are a few ideas to inspire your next evening.

Fun family meal ideas

Great family meals start with a big dose of fun. Try the following next time:

• Have breakfast for dinner (in your PJs).
• Make-your-own pizza night (followed by make-your-own sundae, of course!).
• Flash back to the ’70s with fondue night, serving an array of savory foods for the cheese fondue or strawberries and marshmallows for the chocolate version.
• Kids Cook Night is a good way to get your kids in on the action (but be prepared to eat unlikely combinations like blueberry pancakes with mashed potatoes).

Game night

Kids have their usual favorite game du jour. Mix it up by playing Mancala, an African marble game, poker (you can bet with pennies or candy), dominoes, Battleship, or charades.

Movie night

Even the busiest week can be tamed by a stress-free family movie night with a warm fire, thrown-together dinner buffet on the coffee table, and hot cocoa with homemade whipped cream.

Take it outside

A family football game is always a good time, but for something a little different, arm everyone with a flashlight for a game of flashlight tag. For retro family fun, try pingpong or croquet. A fire pit also opens up an array of chilly weather options, from hot dogs and s’mores to ghost stories and stargazing.
With these ideas, you can even pack a cool-weather picnic. With the family at your side, good times are ahead!

Excerpted from Entertaining at www.AssocialLiving.com