"The safe way to double your money is to fold it over once and put it in your pocket."

- Frank Hubbard

Featured In This Issue

Special Days and Events
May Existing-Home Sales Continue Rising Trend
Bathroom Updates on a Budget
Cooking Corner

Special Days and Events

August 4 ? Coast Guard Day
August 5 ? Sister's Day
August 12 ? International Youth Day
August 19 ? National Aviation Day
August 20 ? National Homeless Animals Day
August 26 ? Women's Equality Day

The birth flower for August is the Gladiolus. The birth stone for August is the Onyx.

May Existing-Home Sales Continue Rising Trend

Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the National Association of Realtors®. May´s increase was the first back-to-back monthly gain since September 2005.

Existing-home sales ? including single-family, townhomes, condominiums and co-ops ? rose 2.4 percent to a seasonally adjusted annual rate1 of 4.77 million units in May from a downwardly revised level of 4.66 million units in April, but remained 3.6 percent below the 4.95 million-unit pace in May 2008.

Lawrence Yun, NAR chief economist, expected an improvement. "Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent up tick in rates," he said. "First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory. However, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 4.86 percent in May from a record low 4.81 percent in April; the rate was 6.04 percent in May 2008. Last week, Freddie Mac reported the 30-year fixed at 5.38 percent; data collection began in 1971.

Total housing inventory at the end of May fell 3.5 percent to 3.80 million existing homes available for sale, which represents a 9.6-month supply2at the current sales pace, down from a 10.1-month supply in April.

Yun said the appraisal problem is serious. "Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales," he said. "In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected."

A NAR practitioner survey in May showed first-time buyers accounted for 29 percent of transactions, and that the number of buyers looking at homes is nearly 10 percentage points higher than a year ago. "This is the time of year when we see large increases in the number of repeat buyers, who are benefiting from sales to entry-level buyers," Yun said. "Investors appear less active, but are more prevalent in areas with large price corrections."

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said appraisals and the tax credit are key issues. "To maximize the potential for a housing recovery and subsequent economic recovery, we need realistic appraisals that are based on proper comparisons and done by a local specialist," he said. "In addition, the first-time buyer tax credit should be expanded to all buyers of primary homes regardless of income. Extending the credit into 2010 would allow more time for the market to catch up with underlying demand, in part because many families with children, who normally time their purchase based on school year considerations, do not have enough time to move before the start of school in late August.

"Freeing a pent-up demand in housing will absorb inventory at a faster pace, strengthen communities and stabilize home prices earlier," McMillan said.

The national median existing-home price3 for all housing types was $173,000 in May, down 16.8 percent from a year earlier. Distressed properties, which declined to 33 percent of all sales in May from 45 percent in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

"The decline in the distressed sales share likely results from an increase of repeat buyers in May," Yun said. "First-time buyers are concentrated in the lower price ranges, which include most of the distressed sales."

Single-family home sales rose 1.9 percent to a seasonally adjusted annual rate of 4.25 million in May from a pace of 4.17 million in April, but are 3.0 percent below the 4.38 million-unit level in May 2008. The median existing single-family home price was $172,900 in May, down 16.1 percent from a year ago.

Existing condominium and co-op sales increased 6.1 percent to a seasonally adjusted annual rate of 520,000 units in May from 490,000 in April, but are 8.9 percent below the 571,000-unit level in May 2008. The median existing condo price4 was $173,800 in May, down 21.9 percent from a year earlier.

Regionally, existing-home sales in the Northeast rose 3.9 percent to an annual level of 800,000 in May, but are 10.1 percent below a year ago. The median price in the Northeast was $243,600, which is 12.5 percent below May 2008.

Existing-home sales in the Midwest jumped 9.0 percent in May to a pace of 1.09 million but are 4.4 percent below May 2008. The median price in the Midwest was $145,800, which is 10.4 percent lower than a year ago.

In the South, existing-home sales were unchanged at an annual pace of 1.74 million in May but are 8.9 percent below a year ago. The median price in the South was $157,400, down 9.9 percent from May 2008.

Existing-home sales in the West slipped 0.9 percent to an annual rate of 1.14 million in May, but are 11.8 percent higher than May 2008. The median price in the West was $197,700, down 30.6 percent from a year ago.

The National Association of Realtors®, "The Voice for Real Estate," is America´s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Reprinted from REALTOR® Magazine [July, 2009] with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2009. All rights reserved.

Bathroom Updates on a Budget

Want to wake up your tired bathroom, but think the price tag might be out of your budget? Don´t be so sure. Remodeling activity may be down, but it´s not out, especially in the bathroom. In fact, the bathroom topped the list of rooms for renovations, according to a recent Consumer Reports survey. Fortunately, there are many simple updates and unique and affordable products that can give your bath a custom-designed look on a bare minimum budget.

Mirror, mirror on the wall
With 30 percent of homes having at least one plate glass bathroom mirror, why not create a focal point in the bath by adding a mirror frame? For approximately $250, products such as Mirrorscapes Mirror Frames from Moen offer a variety of five styles of customizable frames ranging from classic elegance to modern sophistication and come in a wide variety of metallic and wood finishes. The innovative system is available for purchase online (www.buymirrorscapes.com) to help even a novice do-it-yourselfer order the correct pieces with the mirror´s dimensions. In just 30 minutes your bath can have a striking, picture-perfect look.

Freshen up
Don´t underestimate the power of a good coat of paint for your bathroom. A gallon of quality paint costs approximately $20 and is a great way to add some color, freshen up the walls or help pull the room together. And today, most paint manufacturers offer non-toxic paints with low volatile organic compounds (VOCs), like Glidden´s Evermore interior paint, to reduce gaseous pollutants in your home. These paints are not only healthier for you, your family and the environment, but they are vibrant and durable as well.

Eco-fabulous faucets
Until now, eco-friendly options have been less than trendy. Fortunately for environmentally-conscious homeowners, you can inexpensively swap your faucet to save water and update the look of your bathroom with the latest designs.

Installing a new lavatory faucet with a water-saving aerator, such as one from the Banbury bathroom collection from Moen, allows water to flow at 1.5 gallons per minute and reduces water usage by up to 32 percent. This traditionally styled collection, available at The Home Depot, also offers matching bath accessories including a tank lever, robe hook, 18- and 24-inch towel bars, paper holder and towel ring for a completely coordinated and beautiful look.

Maximize shower space
Most homeowners want to make their bathroom larger and enhance their shower. By installing a curved shower rod you can accomplish both goals and feel like you have an oversized, lavish shower without adding any square footage. Plus, it´s an affordable solution that provides up to seven and a half inches of elbow room while adding terrific style and visual appeal.

Curved shower rods are available in both fixed and adjustable lengths that offer easy installation and adjust to fit enclosures from 54- to 72-inches wide. To help complete the look, add shower curtain roller rings that are corrosion-resistant. Most are offered in today´s most popular finishes to complement any bathroom decor.

Quick fixes
Wish you could replace your bathroom cabinets but don´t have the extra funds? One budget-friendly, quick fix is to replace the hardware on your cabinets and doors. Not only is it a simple, yet effective, bathroom remodeling update, but it will make a huge difference in giving your space a new look. You can find the latest styles and finishes at home improvement stores such as The Home Depot, but be sure you update to a style that will match your other new accessories and paint color.

Final finishes
To help complete your budget-friendly bathroom renovation, bring in the finishing touches that make all the difference in a small space. Adorn your new accessories and curved shower rod with high-quality linens, such as a new shower curtain and towel sets. Add fresh flowers; framed, personal pictures; candles; or a lamp for a decorative touch.

You can get a new look for less. These simple projects can be accomplished with very little time or expense so you can start enjoying your renovated bath. For more information on the Banbury collection, Mirrorscapes Mirror Frames or other accessory products available from Moen, visit moen.com.

Courtesy of ARA Content

Cooking Corner

Frozen Strawberry Cheesecake
Courtesy FoodNetwork.com

1/2 gallon good-quality strawberry ice cream
1 1/2 cups fine graham cracker crumbs
6 tablespoons melted butter
1/4 cup plus 2 tablespoons sugar
1 store-bought cheesecake (8 or 9 inch), room temperature
1 pint strawberries, hulled and cut into pieces
1/2 lemon, juiced

Set the ice cream out at room temperature to soften for about 30 minutes. Meanwhile, use a fork to mix together the graham cracker crumbs, butter, and 1/4 cup sugar in a bowl. Press this mixture over the bottom and sides of a 9-inch springform pan with your fingers; then press all over with the flat bottom of a glass to get the crust really well pressed together and compact. Set aside.
When the ice cream has softened, cream it in a mixer with a paddle attachment (or by hand in a bowl with a wooden spoon) until soft and creamy, but not melted. Break the cheesecake into pieces and beat or fold it into the ice cream. Pour the mixture into the prepared springform pan and smooth the top. Put that in the freezer to set.
Now combine the strawberries, the remaining 2 tablespoons sugar, and the lemon juice in non-reactive saucepan and warm over medium heat just until the strawberries begin to break down and give off their juice, 3 to 5 minutes. Stick that into the refrigerator to chill.
When you're ready to serve, remove the sides of the springform pan and put the frozen cheesecake on a cake plate. Spoon the strawberries over the top and serve.

Hope you've enjoyed August´s Newsletter. Please call or send an e-mail if you have any questions about buying, selling, or investing in real estate.