Charming 3 bedroom 1 bath ranch home with basement, extra large yard and 2 car garage. Updated through with fresh paint, new carpeting and kitchen and bath remodel. Home has original molding and hardwood floors.
By MARTIN CRUTSINGER
AP Economics Writer | Tuesday, March 17, 2009 |
WASHINGTON | Housing construction posted a surprisingly large increase in February, bolstered by strength in all parts of the country except the West.
The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent in February compared with January, pushing total activity to a seasonally adjusted annual rate of 583,000 units.
Meanwhile, the Labor Department reported that wholesale prices edged up a slight 0.1 percent in February as a big drop in food costs offset a second monthly increase in energy prices.
While the surge in housing construction was far better than the continued decline economists had expected, the rebound is likely to be viewed as a temporary gain given all the problems the housing industry still faces.
Even with the big increase, construction activity remains 47.3 percent below where it was a year ago. The strength in February was led by a big increase in apartment construction, which can be highly volatile from month to month.
All areas of the country reported an increase in February, except the West, which has been hardest hit by the current housing slump.
The 0.1 percent increase in wholesale inflation was much lower than the 0.8 percent surge in January and smaller than the 0.4 percent increase economists had expected. Compared with a year ago, wholesale prices are actually down 1.3 percent.
Core inflation, which excludes energy and food, edged up 0.2 percent in February, only slightly higher than the 0.1 percent gain economists had expected. Core prices had risen 0.4 percent in January.
Only last summer, officials at the Federal Reserve had started to worry that a surge in energy costs could spread to other areas of the economy and boost inflation to unacceptable levels. But after the financial crisis struck in the fall, the Fed switched signals and is now aggressively fighting a deepening recession with no real threat of inflation.
On Wednesday, Fed officials are expected to signal that they will continue to keep a key interest rate at a record low near zero percent for as long as necessary and use other unorthodox means to jump-start the economy.
The Fed has the leeway to focus on the weak economy because inflation pressures are expected to remain law in the face of widespread layoffs that are depressing wage demands.
The 0.1 percent rise in wholesale inflation in February reflected a 1.3 percent increase in energy prices, which have been rising for two months after having retreated for five straight months.
Gasoline prices jumped 8.7 percent in February after a 15 percent surge in January.
Food costs fell for a third straight month, dropping 1.6 percent in February, the biggest one-month decline in three years. The costs of eggs, fruits, vegetables and dairy products were all down.
Outside of food and energy, prices for cigarettes rose 2.7 percent, the biggest increase in two years, while the price of light trucks rose 1.3 percent, a gain that is not expected to last given the weakness in auto sales.
Prices for computers dropped 4.5 percent, the biggest one-month fall since January 2005.
Inflation is not expected be a problem for some time to come given the prolonged recession, which is already the longest downturn in a quarter-century. Overall economic growth fell at an annual rate of 6.2 percent in the October-December quarter and many economists expect the drop in the gross domestic product for the current quarter will be a similarly steep decline.
Many economists say the Fed will not even contemplate interest rate increases until the unemployment rate, which soared to a 25-year high of 8.1 percent in February, declines.
For more on this story: http://nwitimes.com/articles/2009/03/17/updates/breaking_news/doc49bfa633ebc1b443686335.txt
Gina Bombin, Your Hometown Agent in Wheatfield, Indiana
McColly Real Estate
In these uncertain times of job loss and home values deflating many home owners are lost in what to do when they are faced with the heart wrenching fact that they can’t make their mortgage payments. So, when faced with this realty what do you do? What are your options? Well, what so many people don’t know is that your mortgage company will work with you to help you avoid foreclosure. The fact is they don’t want your home; they want you to make your payments because that is how they make their money. So the question is…
Is there a way to avoid foreclosure?
Well the answer is yes! If you know ahead of time that you are just not going to be able to make the mortgage payments on your home, you have options to help save your credit and avoid foreclosure.
You might fit into one of these two situations:
- You have no equity because you, either just bought your house, or you just refinanced.
- You have built up equity in your home, but can’t refinance because you have lost your qualifying income.
Well, what do you do?…Foreclose or Short Sale?
If you fit into the second scenario, then you need to sell and sell fast, to avoid foreclosure. The way to do that is to sell and list below everyone else in your neighborhood. Many people think that selling high will give you money to pay off other bills, loans, money for expenses, etc. Well, this would be great, but selling your home will relieve you of a huge burden of not being able to make the mortgage payments and save you from going into foreclosure. Everything else can be paid off later. Like my grandma always said, “Don’t count your chickens before they hatch”.
Second, for those of you that have no equity you are faced with having to bring money to closing or you have to foreclose. Well, you have an option of doing a short sale with the bank instead of waiting till the bank forecloses. You will have to sell your home, but the bank will allow you to sell for less than what you owe on your home. Keeping you safe from foreclosure.
So once you believe that you won’t be able to make a mortgage payment, you need to call a real estate agent that has experience with short sales and have them put your home on the market. Notify your bank that you are planning to sell, because you can’t make your payments. The earlier you do this the more time you will have to sell in this slow market. Don’t wait till it is too late, because the bank will not wait to foreclosure on you.
Gina Bombin, Short Sale Professional, Wheatfield, Indiana Real Estate
McColly Real Esate
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