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Generally speaking, it appears that real estate hasn't improved since the beginning of the year. However, certain regions happens to be doing better than others. Seattle seems to be bucking the trend, depending on who you speak with. However, if you speak to realtors in general, most seem to still be doing less than their expectation levels.Translation, it means that overall, things have not improved in this area as well. Housing prices still at an extreme low and potentially could go even lower throughout the year, and including into 2012. Mortgage rates are currently at its lowest for 2011 and historically near its all time lows.

Here are some predictions from different experts on the housing future of 2011 and beyond.

Paul Bishop, an economist at the National Association of Realtors, predicts that the housing market will have a small positive upturn, but it won't bounce back like people are expecting it to. Bishop believes that the market will get slightly better because of the low mortgage rates, affordability of houses, and the slow economic growth.

Barbara Corcoran, a nationally well known business and real estate expert, feels we will see more of the same in 2011 that has already been taking place in the past several years. She feels there are too many foreclosures still taking place, and even though interest rates remain at an all time historic low, borrowers will have a difficult time qualifying for a loan, until credit scores improve from a general perpsective. Additionally, Corcoran also feels that until the market absorbs many of these foreclosures, the market will continue to be soft for sellers, and great for buyers.

Dan Green, a loan officer at Waterstone Mortgage, says that mortgage rates have more room to rise than fall. He tells his clients to get locked into something now, while the rates are low, because he feels that when they start to rise, they will rise quickly. But, he also says that mortgage guidelines will be getting tighter, and more difficult to meet the requirements of them.

My opinion for the housing is that Western Washington will make a comeback sooner than other states. This is predicated upon the fact we have major industries, such as Microsoft and Boeing, as well as others, that are creating jobs and economic growth. We also have large military bases that draw in a lot of troops and populate homes.

Back in January home prices had dropped 28% from their peak. More important, interest rates were at historical lows. By locking in a mortgage for 15 or 30 years on a value-priced home, you were getting an incredible deal, even if home prices decreased. (I took my advice and bought a New York City apartment.)

At the time, I thought that prices and rates were more likely to rise than fall. I was half right: Home values have been inching up since the spring, but mortgage rates, incredibly, dropped further.

By August (the latest numbers available) the median home price had risen 1% over a year ago, but 30-year rates had dropped a half-point to 4.5%. Assuming 20% down and a 30-year mortgage, the total cost of owning a median-priced home is now down $16,000 from a year ago.

Home values may waffle over the coming year, but because Americans take out such large, long mortgages, rates are what really matter. And I am more likely to grow hair than see 30-year mortgage rates drop below 4%. It's far more likely that rates (and the cost of ownership) will rise.

Is a house a good investment?

First, it depends on what you mean by investment. If your definition is strictly about dollars returned, a house probably won't be a great use of your capital. If you bought the median-priced house today with 20% down, to recoup your total costs (and I'm not including property taxes and maintenance here) over three decades, the home's value would have to rise about 3% a year.

That's likely, but you'll almost certainly (we all hope) do much better than that in the stock market. The fact is, however, that that's the normal case for housing; the booms that began after World War II and in the late 1990s were the exceptions.

How can you improve your credit score?

It's virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.

Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.

Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.

It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.

There has been plenty of buzz around the news regarding changes to FHA guidelines. Expect the news to escalate in the days ahead.

FHA-insured mortgages are thought to be a problem in the future. Government officials, who only a few years ago were clamoring for more lenient guidelines to increase home ownership percentages, are now pulling a 180 to further tighten guidelines. If you or someone you know are looking into FHA-insured mortgages here are some basics you should know:

• It will raise the minimum down payment required for borrowers with credit rating scores below 580 to 10%, while the down payment for higher-ranked borrowers would stay at 3.5%.
• The up-front MI premium is also going from 1.75% to 2.25%.
• HUD is seeking congressional approval to allow it to raise annual mortgage insurance premiums -- which are paid out by the borrower over the life of the loan -- above the 0.55 percent maximum.
• Lastly, the FHA also said it was cutting the amount of aid sellers could provide buyers to 3 percent of the purchase price from 6 percent; a move it said could help lessen incentives to inflate appraised home values.

With these new guidelines in place, will this be a good start in the road to a housing recovery? After all, average credit scores of FHA borrowers is lower than other types of loans, delinquencies are much higher, and the market share of FHA loans is between 25-50% in many parts of the US.

What is the phrase “Cash for Caulkers” that’s been circulating around as of late mean to you? The Obama Administration recently proposed a plan to provide incentives for homeowners who purchase energy efficient items for their homes.  While information may be scarce, there has been some news circulating regarding the structure of the plan.  CNN provided initial details to keep in mind:

[A contractor licensed to conduct an energy audit] will figure out how much energy the home wastes. [The contractor will conduct tests to identify] leaks in windows, doors, walls…and [appliances] to see how much energy it draws.

Then, all this is fed into a computer model that generates a checklist with everything that could be replaced, how much it will cost, and how much in energy savings can be expected out of it. The homeowner decides how much work to do, and negotiates a price.

When the work is done, the homeowner pays [the contractor] directly. [The contractor] then submits paperwork to the state agency that runs the program. The homeowner then gets a reimbursement check from the agency for 10% of the project cost, up to $3,000, usually within 30 days.

*Source: http://money.cnn.com/2009/12/14/news/economy/energy_retrofits/

This program is modeled based in part on New York’s energy efficiency program. The reimbursement may not seem like much, and frankly, it isn’t. However, legislation may be pushed in the future to increase rebates upwards of 50% of the project cost with a maximum reimbursement of $12,000.

There are some caveats to take note of, however. In the above article by CNN, energy efficient upgrades must be professionally done, meaning do-it-yourselfers (DIY’s) cannot benefit from this. DIY’S may be able to receive partial reimbursement for the purchasing of energy efficient appliances. Furthermore, there is an increased chance for fraud resulting from this program being implemented through third-parties. As a result, control systems and regulation must be implemented to safeguard consumers.

What do you think of this program? Is the cost-benefit sufficient to merit this program? On the one hand, weatherizing your home will save energy expenditures over the long run. Consumers may or may not realize the long-term savings, however, because it is contingent on how long consumers plan to live in their home. This program will most certainly create jobs and stimulate the economy—but does the government spending justify this increase? We’d love to hear your thoughts and any additional information regarding this program!

The holiday season is upon us! Shopping, busy malls, family, and of course, lots of food. Food is one of the highlights of the holiday season--loosening up those belt buckles to make extra room for pie seems, somehow, a bit more justified and well-earned this time of year. Eating the food is the fun part, cooking is another beast.

Odd as it may seem, kitchen fires peak on Thanksgiving as a result of, believe or not, cooking turkeys! According to the National Fire Protection Association (NFPA) fires are three times as likely to occur on Thanksgiving than any other day of the year. Back in 2006, fire departments around the nation responded to approximately 1.6 million fires, translating to one every 19 seconds. Many of these fires were a result of stovetops going unattended.

There are several things you can do to prevent kitchen fires. This may seem obvious, but don't leave your cooking unattended and be mindful of your surroundings. Make sure combustibles like towels, plastic, and food packagings are away from the stove. Furthermore, many kitchen fires start when the cooking oil catches fire in the pan. To combat these fires, the NFPA recommends turning the knob to cut off the heat source and putting a lid over the fire to smother it.

For more tips, follow this link: http://www.cnn.com/2007/LIVING/homestyle/11/21/toh.stove.fire/index.html

Remember, taking precaution during the holiday season could mean the difference between cooking a turkey and cooking your house!

Is it just me or do you miss summer? It seems like yesterday we were experiencing daily 90+ temperatures! This season has definitely been a crazy one (for instance, the record 103 degree day) and we may be in for another rough ride this winter. Remember last year's snow fall? It was crazy, to say the least.

Speaking of winter, it may be a good idea for you to begin winterizing your homes. Here are some tips about what to keep in mind:

Inside Your Home

• Have your furnace system serviced to ensure it's working efficiently and not emitting carbon monoxide.
• Clean permanent furnace filters and replace paper or disposable filters.
• Replace the batteries in smoke and carbon monoxide detectors.
• If you have a wood stove or fireplace, have your chimney swept thoroughly. It should be cleaned before the soot build up reaches one-fourth inch thickness inside the chimney flue.
• Check your hot water heater for leaks and maintain proper temperature setting (120 degrees recommended by Department of Energy). On older water heaters with less insulation, for every 10 degrees Fahrenheit you lower the temperature, you save 6 percent of your water heating energy.
• Check the attic to see if insulation needs to be added or replaced. This is the most significant area of heat loss in many homes, so it is also important to see that it has proper ventilation. Inadequate ventilation could lead to premature deterioration of the insulation materials. You may also need to check insulation in exterior walls, crawl spaces and along foundation walls.
• Check all windows and doors for air leaks. Install storm windows and putty, caulk or add weather stripping as needed.
• Check basement and cellars for seal cracks or leaks in walls and floor.
• Make sure all vents are clean and operating properly.
• Clean and vacuum baseboard heaters, heating ducts and vents.
• Remove or winterize air conditioning units.

Outside Your Home

• Store or cover outdoor furniture, toys and grill.
• Purchase rock salt for melting snow and a shovel or snow blower if you don't already have one. Make sure you have the right kind of gas and oil on hand for your snow blower in the case of an unexpected snowstorm.
• Caulk joints and minor cracks on exterior walls and siding.
• Look for deteriorating finishes. Minor problems can be patched to preserve the wood. Put bigger jobs, such as scraping and refinishing painted or stained areas, on the calendar for next spring or early summer.
• Drain and shut off sprinkler systems and other exterior water lines to avoid frozen and broken pipes. Leave all taps slightly open.
• Insulate exterior spigots and other pipes that are subject to freezing but can't be drained or shut off.
• Rake and compost leaves and garden debris, or put out for yard-waste pickup.
• Clean storm drains, gutters and other drain pipes.
• Check the foundation for proper drainage. To do this, spray yard with a hose to see if water runs away from the house. A little shoveling to reshape the earth next to the house may make the water run away from the foundation.
• Make sure dirt or piles of wood don't come into contact with or touch siding, inviting termites and carpenter ants into the house.
• Seal driveway and walkway cracks, if needed, before ground freezes regularly.
• Inspect the roof for loose, damaged or missing pieces.
• Check attic vent openings for nests or other blockages.

These tips are especially important if you plan on purchasing or selling a home this autumn or winter. Whether you are buying or selling a home, you should have a professional home inspection performed. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the deal is closed.