A Home After the Holidays

Have you ever wondered what happens to the giant Rockefeller Center Christmas tree after the holiday season is over? This year the tree has a much more important job to do when it leaves the city — it's traveling back to its home state of Connecticut to frame a house being built by an affiliate of Habitat for Humanity International.

According to a recent article in the New York Times , the 76-foot high Norway spruce will be sliced into boards and hammered into place to form a 1,250 square foot house. Ms Iveth Bowie, the homeowner-to-be, is so excited that her home will be made from the Rockefeller Center tree she likens the experience to “winning the lottery or a million dollars.” Bowie, her three children and grandchild are expected to move into the home in March 2011.

The 70-year-old tree was on display in the Big Apple from December 2 to January 7. Before being milled it was approximately 40 feet across and weighed 10 tons. This is the third time a Rockefeller Center Christmas tree has been used for a Habitat for Humanity home.

What are some other charitable ways the tree could be used after the holidays?

Take a Jaunt to Jupiter

By Guest Contributor Judie Wilcox, Assistant Manager,
Coldwell Banker Jupiter/Hobe Sound office

Sunrises and sunsets radiate in all magical colors in our Jupiter skies. When you visit our azure blue inlet and peer out over the inland waterway you might have a clue of what drew settlers to Jupiter over 5,000 years ago. That’s right, we do have an incredible history as well as areas of undisturbed beauty. Jupiter is a town of great real estate diversity offering both urban and rural properties and, of course, plenty of waterfront condominiums and homes. Our Coldwell Banker Jupiter and Hobe Sound offices serve both Palm Beach and Martin Counties and have both established roots in the communities. Our agents care about their communities, many serve on local organizations such as the Chamber of Commerce, Boys and Girls Clubs, Maltz Theatre, Hospice and Woman’s Club. Activity in our local Jupiter Tequesta Hobe Sound by our agents is extraordinary — past presidents, committee chairmen, a Humanitarian of the Year and five Realtors of the Year. Our community interest and knowledge of local history prepares our agents to fully serve buyers and sellers. Stop by and have a cup a coffee with one of our agents and learn why Jupiter is #1 with us.

High-Speed Train Coming to Florida

It was announced on Wednesday that Florida will receive a down payment of $1.25 billion toward installing high-speed trains from Orlando to Tampa. According to a January 28 Orlando Sentinel article, the $2.56 billion project could start as early as this year and begin operations in 2015.

As proposed right now, the 160 mph train would start at Orlando International Airport and run along the BeachLine Expressway and Interstate 4, and will have stops at the Orange County Convention Center, Walt Disney World, Lakeland and Tampa. Disney has comitted to supporting the train and has offered up to 50 acres of free land for a train station.

Fares have not yet been determined but a 2002 state estimate said a one-way ticket on the train from Orlando International Airport to Tampa would be $29. People who used the train to commute would receive a reduced price.

If you currently commute on this corridor, would you be willing to give up your car to commute by train? Do you think the train will be used more by local residents or tourists?

Dallas/Fort Worth Markets Hot Again

Homes are selling above list price — but not as distressed properties — in three Dallas/Fort Worth zip codes, according to ZipRealty’s quarterly Home Hunter Report, Q4 2009.

While some of the nation’s “hottest” real estate markets in the country — those where homes are selling above list price — continue to be distressed areas dominated by heavily discounted prices, the Q4 2009 top 10 list revealed some notable exceptions. Homes in Fort Worth’s 76135 zip code sold for an average of 134.65% of asking price. Homes in Rowlett (75089), an upscale Dallas community, commanded on average 110.81% of asking price. Zip code 76001 in Arlington, Fort Worth’s largest suburb, also made the top 10 list. How is the distressed inventory level affecting average market price in your market?

Why scapegoat the appraisal

By Guest Contributor Carlos Lobato, Sales Associate, Coldwell Banker Miami Lakes office

Appraisals are killing real estate deals. This should come as a surprise to no one. As a matter of fact, the appraisal has come up short on my last four transactions. It's quite common for appraisals to come in at $25,000 or more below contact prices. Just this week I had a property appraise at $140,000 below the contract price! Needless to say, all parties are shocked. Yes, the listing agent, the seller, the buyer, and I expected that we would come up short and would have to renegotiate, however, this is more than 100% off from any of our wildest estimates.

For now, we're in limbo. The buyer still wants it, the seller still wants to sell it, yet the buyer can only buy it for the amount that their lender will lend. So you ask “What can we do - blast those appraisals?" I think our industry is barking up the wrong tree. The appraisals are merely a reflection of what properties are currently selling for, and the buyers by and large will pay the appraisal value. Unfortunately, we're just not adequately educating the home sellers. It's a bitter pill to swallow for a homeowner, but a reality nonetheless. Let’s start off on the right foot by having the homeowner order an appraisal before listing their property.

Palm Beach Sees Rise in Home Sales

By Guest Contributor Donald Smith-Browne, Manager, Coldwell Banker Residential Real Estate, North Palm Beach office

According to a recent article in The Palm Beach Post, Palm Beach county's used home sales bounded back in 2009 with the prices and volume of sales breaking years-long declines.

The sale of 8,684 homes last year was up 25% compared to 2008, marking the first end-of-year gain in Palm Beach County since 2003.

While the county's home prices dipped 21% to a year-end median of $239,000, December's median sales price of $247,900 inched up 1% compared to the same time in 2008. That's the first increase in year-over year pricing since 2006.

The 2009 housing statistics, released Monday by Florida Realtors, supported the "cautious optimism" preached in the fall by some real estate watchers.

Mature Homebuyers Want Easy Living Lifestyle

A recent survey conducted by the National Association of Home Builders (NAHB) revealed the top 10 “wants” from homebuyers 55 and over.

1. Washer/dryer in unit
2. Storage space
3. Windows that open easily
4. Garage door opener
5. Easy-to-use thermostat
6. Master bedroom on first floor
7. Private patio
8. Porch
9. Attached garage
10. Bigger bathrooms

In addition to the items mentioned in the survey, mature homebuyers are also interested in purchasing homes that include services such as home maintenance and repair, housekeeping, onsite health care and transportation.

According to Mike McGowan, a 50+ builder from Binghamton, N.Y. and chair of NAHB’s 50+ Housing Council, "Most buyers in this market are looking for an easy-living lifestyle. They would like access to services that will free up their time from maintenance both inside and outside their homes. This data tells builders that the homes we build for older active adults will remain attractive to the consumers who will be entering that market for the foreseeable future."

Over 55 and looking for a home? If so, what features are important to you?

Coldwell Banker Sponsors Winter Games

Coldwell Banker is participating in a special month-long sponsorship with SNOW Magazine at the 2010 Winter Games in Vancouver. Called SNOW House 2010, this will be the site of the evening medal ceremonies.

Coldwell Banker will present their Microsoft Surface touch screen technology application, allowing SNOW House visitors to view their listings and a Previews® property showcase. Watch for the SNOW House during the Winter Games next month.

Will you be watching the Winter Games? What's your favorite event?

Closing Costs Made Clear

Did you know that closing costs account for an average of 5% of a home’s purchase price? Since these costs can vary, many homebuyers don’t know what to expect until the day of closing, but new RESPA (Real Estate Settlement Procedures Act) regulations will give consumers a better idea of what the total costs will be.

RISMedia reports that as of January 1, 2010, RESPA will require that lenders fully disclose all closing costs, costs of obtaining a loan, and estimated costs for title insurance, settlement and other services within three days of a buyer applying for a mortgage. Not only that, forms used in the closing process, including the Good Faith Estimate (GFE) have been revised to make them easier for consumers to understand. The new GFE form is intended to encourage buyers to shop around and compare costs from different lenders before choosing a mortgage. With the new regulations, the Department of Housing and Urban Development estimates that consumers will save an average of $668 on every loan.

Have you been confused by closing documents? Do you think that this new regulation will make it easier for consumers to understand what they are paying for at closing?

2010 Already Sees SW Florida Home Sale Spike

The Florida Association of Realtors reported Monday that for December, home sales in the Sarasota-Bradenton area climbed significantly at a rate of a 43 percent increase and a 42 percent increase in Charlotte County-North Port area. Meanwhile, the nation dropped about 17 percent. An incrase in distressed sales in the region coupled with lower prices are contributing factors to a wave of buyers getting into the market grabbing up deals.

Also out yesterday was The Conference Board's Consumer Confidence Index report of a January increase to 55.9 - reflecting the third straight month for forward movement, and the highest index level in more than a year. This result was better than forecasted by economists who anticipated 53.5.

Helping to ease the short sale approval process, banks are also beginning to shorten their approval turn around time. The market is seeing cash-deal investors buying properties. And, for the first time in four years, sales of previously occupied homes rose in 2009.

The market saw a dip in first-time homebuyers, down to 43 percent in December - only about half of November's reported activity, according to a report in yesterday's Herald Tribune.

Are you considering jumping into the market and taking advantage of the federal homebuyer tax credit program? If so, where are you in the process? Are you finding deals that suit your needs?

Help for Haiti

Realogy Corporation, Coldwell Banker's parent company, is working to raise funds through the its charitable foundation to help the earthquake victims in Haiti. The Realogy Charitable Foundation will distribute all funds directly to the American Red Cross International Response Fund.

“Our hearts go out to the people of Haiti, and we want to do all we can to support the international relief efforts in the wake of this natural disaster,” said Richard A. Smith, president and CEO of Realogy Corporation. “We invite all those who are able to donate to give whatever they can to help the American Red Cross provide the assistance that is so desperately needed.”

You can make a donation to the American Red Cross International Response Fund through the Realogy Charitable Foundation. Your secure online donation can be made with a credit card/debit card or electronic check. All gifts are tax-deductible to the extent allowable by law. You should consult a tax professional to determine the amount can be claimed as a tax deductible contribution.

Easing Condo Financing Criteria?

Fannie Mae is reviewing hundreds of condominium projects in an effort to allow them to become eligible for Fannie Mae loans through a new "Special Approval" designation.

These new reviews were prompted because many condo buildings haven't been able to meet Fannie Mae’s established rules relating to financial reserves, number of owners delinquent on association fees and the percentage of owner-occupied units. If people were interested in purchasing a condo they had to pay cash or find other ways to secure financing if the building didn't meet the criteria. With little to no financing available to potential condo buyers, the condo market has seen significant price decreases.

Some, like Craig E. Polejes, president of Florida Bank of Commerce, aren't sure if loosening the lending requirements is the right thing to do. He asks “If they’re looking to make exceptions on a case-by-case basis, what are the parameters of the exceptions?” Polejes added, “The overriding issues should be the quality of the building and the creditworthiness of the buyer.”

So far, Florida is the only state getting these special reviews. Condos on their “approved” list can be found at www.efanniemae.com under “frequently searched pages.”

What do you think of these reviews? Do you think that it will improve condo sales?

Help with Home Listings

Ever looked through a real estate classified ad and thought "I need a code to crack this! What do all of these acronyms and abbreviations stand for?" Here is a basic real estate-to-English dictionary that can help:

appls - appliances dk - deck fr/dr - family room/dining room frplc, fplc, or fp - fireplace FSBO - for sale by owner gar - garage grmet kit - gourmet kitchen hdw, hwf - hardwood floors ofc - office pvt - private sf - square feet vw, vu - view wic - walk-in closets

3bd/2ba or 3B/2B means three bedrooms and two bathrooms. Keep in mind that not all bathrooms are created equal. A full-bath consists of a sink, commode, shower, and tub; a three-quarter bath has everything except the tub, and a half-bath (or powder-bath) only has a sink and a commode.

Have you seen any other abbreviations/acronyms that you need help decoding? What are some other common real estate abbreviations that you've seen?

Maintenance Fees and the Current Market

By Guest Contributor Yuri Flores, Sales Associate, Coldwell Banker Residential Real Estate, Aventura office.

In our previous market (which a very good friend referred to as "real estate on steroids"), buying a condo meant buying into a low-maintenance way of living. Condos can still be an affordable and stress free way to live, as each month the owner pays maintenance fees to the condo/homeowners’ association to cover common expenses in the building such as security guards and pool and grounds maintenance. In a condo building, maintenance fees are usually based on the square footage of a unit, therefore the larger the unit, the more the owner is contributing to common expenses. The fees are usually increased on a yearly basis as features of the building begin to wear out and need replacing.

There isn’t one day that goes by where I don’t have a client asking me to find them a "STEAL" or the "BEST DEAL." While we may find a condo or a home that was $300k and is now $100k, the maintenance fees remain the same. Maintenance fees do not go down with the market; if anything they tend to increase. These days, a condo building or a single-family home community may have numerous foreclosures, which means that many owners have stopped paying their fees. The owners who are still living there can be responsible for covering the difference, so their monthly fees might go up dramatically.

As you can see, you may be finding a $100K home but you may end up paying more in monthly maintenance fees than you will on your mortgage. This is why it is our job as Realtors to better educate our clients when calling us to ask for that “STEAL or BEST DEAL” so they aren’t surprised when the fees increase.

Coldwell Banker Associate Helps Ronald McDonald House Patient

Marcelo Dalto, an 8 year-old transplant patient from the Ronald McDonald House, was recently featured by Redota.com in collaboration with ESPN (the video segment is in spanish). The feature covers his struggles and recovery through the assistance of the RMH and his love of soccer. Marcelo touched the heart of Foundation Representative Rosa Aguiar, a sales associate with Coldwell Banker Residential Real Estate Kendall Town & Country office who spearheaded local fundraising efforts in his honor.

Before Shopping for a Mortgage

In the past couple of years, banks have tightened their purse strings when it comes to lending money to homebuyers. Gone are the days when anyone with a pulse could get a loan, now good credit is essential. In a recent NBC Today Show segment (http://www.msnbc.msn.com/id/21134540/vp/34935747#34935747), real estate correspondent Barbara Corcoran talks about credit scores and what to keep in mind before shopping for a mortgage.

1. Check all three credit reports and scores – Banks will check the reports from Trans Union, Experian and Equifax, and scores can vary as much as 50 points! Review all three reports and look for errors prior to applying for a mortgage.
2. Don’t close charge accounts or ask for lower limits – Banks want to see that you have credit available to you. If you carry a balance on any charge account your debt to credit ratio should be less than 30%.
3. Don’t make big purchases before you lock in your rate – It’s not uncommon for people to find their dream home and then immediately go out and buy all new furniture or appliances. Wait until after you have locked in your mortgage rate before you do this, especially if these items will be bought through in-store financing or put on a credit card.
4. Too much mortgage shopping dings your credit – It’s smart to shop for a mortgage to get the most favorable rates, but don’t drag it out over for than 30 days. Anytime a lender checks your credit after the 30 day timeframe you’ll lose five points off your credit score.
5. Don’t pay off one credit card with another – While this may be a simple case of wanting to transfer your balance to a credit card with a lower rate, this will lower your score because it opens a new line of credit.

Corcoran says that there are three things consumers need to remember to keep their credit score as high as possible:

• Always pay your bills on time
• Keep your balances below 30% of the total credit available
• Don’t be shy to ask a creditor to remove a late payment from your report, especially if you have established a long history of on-time payments

Do you agree with these tips? Do you have any other advice for people currently shopping for a mortgage?

Mortgage Rates Down Slightly

According to RealtyTimes the latest Freddie Mac survey shows that 30-year fixed-rate mortgages (FRM) averaged 5.06% for the week ending January 14, 2010. This is slightly lower than the previous week's 5.09%. During the same week last year, the 30-year FRM averaged 4.96 percent.

The 5-year adjustable-rate mortgage (ARM) averaged 4.32 percent this week, down from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.25 percent.

Frank Nothaft, Freddie Mac vice president and chief economist says, "With fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance. For instance, over the past three-and-a-half months, on average more than 75 percent of conventional mortgage applications were for refinance transactions, according to the Mortgage Bankers Association."

He adds, "The Federal Reserve recently reported positive news in both the housing market and the overall state of the economy in its January 13th regional economic report, which spanned the last few months of 2009. Economic activity improved in 10 of its 12 districts. Home sales, especially for lower-priced homes, increased due in part to the homebuyer tax credit and house prices appeared to have changed little since its last report."

Are you thinking about buying now with the current interest rate?

Thinking about a Kitchen Renovation?

A kitchen renovation is one of the best ways to enhance your home and get a return on your investment. If you're considering remodeling your kitchen, HGTV’s frontdoor.com lists some quick tops for their top five kitchen projects.

• Upgrade your appliances so they're modern and functional.
• Stick to the standard in your area when it comes to sinks, faucets and counters. There is no need to “over-improve.”
• Try a fresh coat of paint and new hardware to update cabinets before you replace them.
• Your kitchen floor will have lots of foot traffic and inevitable spills, so choose something that is durable and easy to clean.
• Organization is key for ensuring adequate storage space. Things like built-in shelves, pull out drawers, and drawer organizers are great ways to keep counters free of clutter.

What kitchen features are most important to you? What are some new trends that you’ve seen in kitchens?

A Day For A Disney Day

This month, Disney launched a program called “Give a Day Get a Disney Day” in hopes that the event will inspire a million people to volunteer a day of services between now and December 15, 2010. The average price of a one day ticket to a Disney park is over $75, but if you're can give your time and volunteer at one of the participating organizations you can earn a ticket for free admission* to one of the theme parks of Walt Disney World® Resort or the Disneyland® Resort.

Are willing to donate eight hours of your time for a free ticket to one of Disney’s parks? Which theme park wouuld you visit?

Give Where You Can - Haitian Earthquake Relief

Realogy Corporation, Coldwell Banker's parent company, is promoting a campaign to raise funds through the Realogy Charitable Foundation to support the victims of the catastrophic earthquake that devastated Haiti on January 12. The Realogy Charitable Foundation will distribute all funds directly to the American Red Cross International Response Fund.

Should you wish to make a donation to the American Red Cross International Response Fund through the Realogy Charitable Foundation, this secure portal is an online donation system that allows any individual to use a credit card/debit card or electronic check. All gifts are tax-deductible to the extent allowable by law, and individuals should consult their tax professional to determine the amount they can claim as a tax deductible contribution.

Land Vesting

In a January 7 "Good Money" segment of ABC NOW, reporters talked about the phenomenon of "land-vesting" - the growing trend of consumers purchasing plots of land in rural areas to expand their personal asset portfolios. With the uncertainties of stocks and 401(k)s, many are buying generally 1-2 acres of land in areas typically 40-50 miles outside of metro areas for personal uses to grow their own produce, raise small livestock, build their home on the property, work from home and away from city life, or a number of other reasons.

Wall Street Journal says nationwide, the rural side of real estate seems to be doing ok, since they didn't experience the large spikes in prices during the boom. Rural land offers more afforability, tax credit relief and green options such as geothermal or solar heating.

Watch the ABC Now interview with Wall Street Journal to learn more. Have you considered purchasing land in rural areas? How do you feel about "land-vesting" as an option to investing in the stock market or 401(k) programs?

Everyday Feng Shui

A house had been for sale for almost six months and not getting much activity. Noticing the owner's frustration, a thoughtful friend paid her a visit one day with a small gift in her hand. It was an odd looking three-legged gold frog, with a ruby-red coin in its mouth. Her friend declared it to be a "Feng Shui frog meant bring wealth and prosperity" which would certainly "help bring positive energy into my home that potential buyers would appreciate." This was the first time she ever heard about Feng Shui - the ancient Chinese art of placement - and was mildly intrigued.

Unfortunately, the frog wasn't much help when it came to selling her home, but there are other more modern aspects of Feng Shui she has found useful which can be easily implemented into everyday life. Feng Shui consultant Liz Brown recently wrote, "Top 10 Feng Shui Tips to Enhance Your Home and Change Your Life"

• Clear the clutter. If there isn’t a good reason for something being out in the open, put it away.
• Replace all burned-out light bulbs and consider increasing the wattage in key areas
• Create an inviting entryway to your home using welcome mats, wreaths, flowers, etc.
• Make sure all your drawers and doors don't stick because they cause little aggravations and waste energy
• Remove obstacles that block the pathways in your home to create a meandering flow of energy

Do you believe that Feng Shui can create a more harmonious living environment? Do you have any additional Feng Shui tips that you’ve found useful?

Palmetto Bay and Pinecrest Sales Statistics

By Guest Contributor Joanna Sherman, Branch Manager, Coldwell Banker Residential Real Estate, Pinecrest office

The average sales price of single family homes in Palmetto Bay vs. Pinecrest is substantially different; however, a higher sales price does not necessarily reflect a higher value.

On average, the homes in Palmetto Bay had a 4.8% higher sale price/original list price than did homes in Pinecrest (89% vs. 84.9%, respectively). Palmetto Bay also had a 5.05% higher sale price/list price when sold (meaning the original list price less any reductions in asking price) when compared to the same ratio in Pinecrest. Additionally, the average number of days a property was on the market was 14.6% less in Palmetto Bay as compared to Pinecrest.

 

 

 

 

 

 

 

 

 

The housing bust has affected the entire country dramatically and, as can be expected, Palmetto Bay and Pinecrest weren’t immune to the overall conditions of the market. The sales price per square foot has decreased in Pinecrest as well as Palmetto Bay from 2008 to 2009. As shown in the diagram, the average sales price per square foot in Pinecrest is much higher than Palmetto Bay. However, the decrease in sales price per square foot from 2008 to 2009 was 5.7% less in Palmetto Bay as compared to Pinecrest.

With this being said, do you think Palmetto Bay is ahead of the curve on the way to price stabilization?

Source: SEFMLS as of 1/11/2010. Based on properties listed and sold in their respective year.

Below are three properties currently listed for sale in Palmetto Bay.

WINTER EVENTS IN THE GROVE

By Guest Contributor John Thompson, Sales Associate, Coldwell Banker Residential Real Estate, Coconut Grove Office

Coconut Grove is blessed with a myriad of cultural and sporting events throughout the year. Below are my top picks for events you won’t want to miss in January and February

The Coconut Grove Arts Festival
This is held annually over Presidents Day weekend (February 13-15) and is one of the largest and best art shows in the U.S. Over 150,000 people attend and last year over $4 million in art was purchased. The artists and attendees come from all over the world, and the people watching can be as much fun as viewing the art! General admission is $10, and Grove residents pay only $5.

Coconut Grove Art Stroll
On the first Saturday of each month this event is held from 7-11 pm at the Mayfair Promenade, and there are free food and drink samples. On January 16, the Grove House, located on the Mayfair Promenade, has an artists’ reception scheduled from 7-9 pm. These events offer a great opportunity to meet artists and fellow art collectors.

Shakespeare in the Park
Shakespeare Miami will be performing "The Taming of the Shrew" at the Barnacle on January 15, 16 and 17 at 7:30 pm, and a 2 pm matinee on January 17. In addition, there is a Children's Tea with Shakespeare story hour on Saturday, January 16 at noon. There is no charge for any of the performances.

Mayfair Promenade Green Market
On Wednesdays from 11 am to 6 pm, a Green Market is being held in the Mayfair Promenade, with veggies, fruits, honey, flowers, and other "goodies" being sold.

U.S. Sailing’s 2010 Rolex Miami OCR
From January 25 to January 30, the second event of the 2009-2010 International Sailing Federation (ISAF) comes to the sparkling waters of Biscayne Bay. The competing 640 sailors from 45 countries represent the who’s who of Olympic and Paralympic medalists and world champions.

Attend as many of these great events as you can, and enjoy the world-class international atmosphere that Coconut Grover offers!

The Next Big Thing

By Guest Contributor Carlos Lobato, Sales Associate, Coldwell Banker Miami Lakes office

www.FloridaMoves.com/Carlos.Lobato

Many industries spend a lot of time, effort, resources, and money trying to find the “next big thing.” After all, why not be the first to capitalize on the next trend in technology, housing, consumer tastes, etc?

The downturn in our economy has led to a shift in the minds of a growing group of affluent homebuyers. Up until a few years ago, the homes that these folks were buying were show pieces, and the huge amount of money that was available further exaggerated this trend. Today, however, a quiet revolution is taking place. It is an evolution from excess to responsibility, from self to community and most notably from consumption to responsible environmental stewardship. My personal experience has been that today's buyers are more frequently inquiring about energy saving home features and are seeking homes that have cutting-edge green technologies. Unfortunately, the challenge is that homes that have any of these green features are few and far between, but rest assured, this IS already the next big thing! So, if you’re thinking about selling, a green makeover is sure to differentiate you from the competition. These green improvements won’t necessarily require a large capital investment. To set your home apart from others on the market, try using energy efficient lighting, installing better insulation or upgrading to Energy Star rated appliances.

Has your home recently undergone a green makeover? If so, what tips do you have for other homeowners who are considering going green?

Higher Pending Home Sales

According to a recent press release from the National Association of Realtors , contracts for pending homes fell after a flurry of recent activity due to the tax credit. The Pending Home Sales Index (PHSI) fell 16% to 96.0 based on contracts signed in November 2009, but is still 15.5% higher than it was for the same period in 2008 when it was 83.1.

The study shows the PHSI in Northeast U.S. dropped 25.7%, yet is 14.7% higher than the same time last year. The Midwest index fell 25.7%, but is 9.2% higher than November 2008. Pending home sales in the South fell 15.0%, but is 14.7% higher than a year ago. In the West the index declined 2.7% but is 21.4% above last November.

NAR chief economist Lawrence Yun says, "The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own."

He expects another surge when additional homebuyers take advantage of the tax credit before it expires this spring.

What are you seeing in your communities for sales activity?

A Colorful New Year

It’s a new year and a new decade — the perfect time to consider updating your home with new interior colors. Choosing a color scheme can seem daunting, but HGTV has a few tips to keep in mind when picking your palette.

Know the color wheel basics. A mix of several colors can be stunning, but it can also look disastrous if you select too many or the wrong colors. Decide on a color scheme, like monochromatic or complementary to find an eye-pleasing palette.

Use the 60-30-10 color principal - a basic rule used by design professionals. Divide your color choices into percentages: 60% is a dominant color, 30% is a secondary color and 10% is the accent color.

Not all light is the same. Various types of lighting have different effects on color. See how the color reacts with the lighting in the room. Some colors that look great in natural daylight look horrible under incandescent or fluorescent lighting.

Don’t be too trendy. The Pantone Color Institute may have selected turquoise as 2010’s Color of the Year, but that doesn’t mean that you should paint all your walls turquoise. Adding a trendy color can be a great way to update, but choose where you use the trend wisely. Accessories can be easily switched out but when selecting furniture choose pieces in shades that are timeless.

Science has shown that color can affect our mood, senses, and emotions, so the most important thing to remember when choosing a color is to select something you like and can live with everyday.

Do you have any tips for choosing interior colors? What colors do you think will be popular this year?