Why is it a GREAT time to buy a home?

…because low rates and amazing supply have created superb conditions for home buyers. For those of you who did not know these are things to know in regards to Real Estate right now;

1. You now have more homes to choose from then ever before.- Currently there are 3.75 million homes for sale in the United States. These record levels offer consumers the greatest choice in decades.
- However, inventory levels are falling, and the selection of homes will become limited once again. Former Federal Reserve Chair Alan Greenspan recently said, “Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter.” According to these results, 2006 will be the third-best year on record for home sales.

2. Interest rates haven't been this low for nearly 40 years
- At 6.4 percent, the average 30-year fixed rate mortgage rate remains near 40-year lows. This is more than an entire percentage point below 2000 levels. For example a $250,000 loan, a drop from 7.5 percent to 6.5 percent means an annual savings of $2,000.

3. Real estate is a great investment
- The average home value increased by 88 percent over the last ten years.
- In the decade to come, the number of US households is expected to increase by 15 percent, which means housing will stay in high demand.

While conditions for buyers are perfect now, that is likely to change next year as sales pick up, prices gain traction, and conditions improve for sellers. In today's real estate market, the best time to buy is now. For advice on Real Estate in your area please contact us at Nolting Real Estate by calling 636-391-9997 and/or visit us on the web www.NoltingRealEstate.com.

Rates Continue to Climb

For the second week, Freddie Mac puts the average 30-year fixed rate at 6.13 percent, up a from 6.12 percent last week. The 15-year fixed rate, popular among refinancing borrowers, also rose to 5.89 percent from 5.86 percent. All of this follows a month long downward trend. Initial interest on five-year adjustable-rate loans increased as well, rising to 5.96 percent from 5.92 percent. One-year ARMs, however, fell from 5.45 percent to 5.44 percent.

But overall we see that interest rates remain low. Frank Nothaft, Freddie Mac chief economist says, "This could bode well for housing in the new year," He goes onto say, "Indeed we have seen a spike in refinancing activity over the past few weeks as rates have come down. Borrowers who have adjustable-rate mortgages that are scheduled for a rate adjustment in 2007 may want to consider refinancing those loans now."

More on this subject, click here. To learn more about Real Estate in your area contact Nolting Real Estate www.NoltingRealEstate.com and/or 636-391-9997.

An Attitude of Gratitude

The theme around NRE this holiday season has been "An Attitude of Gratitude." We have so very much to be thankful for this holiday season. Most of my blog audience is from the St. Louis metro area. How grateful am I to be in this beautiful city! The media has made a big deal about St. Louis being the most dangerous city in the country. There may be some statistical significance to the report. But my experience with St. Louis has been fantastic. Born in Town and Country, I continue to live within 1/2 mile of my childhood home. I love the wide open spaces of my aptly named community.

St. Louis is a town of wonderful restaurants, reasonably priced museums and cultural sites, and eclectic shopping. My St. Louis is a place where the cashier at the local Straub's knows my girls' names. My St. Louis offers me an outlet for my cooking passion through courses at the Kitchen Conservatory. My St. Louis is friendly, clean, and orderly. The hospitals are world class. The schools are without peer. It's a great place to raise a family.

I am grateful for teachers this year. So many educators spend their days toiling with our nation's youth for little compensation and less acknowledgement. This year, I want to remember and recognize their gifts and passions.

I am also grateful for family. I have been blessed with a loving wife and three beautiful little girls. Each holiday season, we take a photograph of the girls to use with our holiday cards. At the risk of being too cliche, I can't believe how big they are getting.

During this holiday season, I intend to spread my gratitude to others by being thankful and expressing gratitude to those around me. I have a large stack of "Thank Yous" scheduled to go out each day. The act of showing a little kindness to those around you can multiply to many more than just the intended recipient. And, you know, it makes you feel good too.

10 Best Real Estate Books of 2006…

According to Bob Bruss – St. Louis Post Disptach – these are the 10 best real estate books of 2006.

1. "Trump-Style Negotiation," by George Ross
2. "The Automatic Millionaire Homeowner," by David Bach
3. "Buy Even Lower," by Scott Frank and Andy Heller
4. "Real Estate Debt Can Make You Rich," by Steve Dexter
5. "Bubbles, Booms, and Busts; Make Money in Any Real Estate Market," by Blanche Evans
6. "Success as a Real Estate Agent for Dummies," by Dirk Zeller
7. "Everything You Need to Know Before Buying a Co-Op, Condo, or Townhouse," by Ken Roth
8. "Who Says You Can't Buy a Home?" by David Reed
9. "Confessions of a Real Estate Entrepreneur," by James A. Randel
10. "The Reverse Mortgage Advantage," by Warren Boroson

For a complete description and further mention of this list, click here. For all your Real Estate Needs contact www.NoltingRealEstate.com and/or 636-391-9997.

Rebound Expected in Real Estate (2007)

We should expect a rebound in Real Estate according to chief economist for the Mortgage Bankers Association, Doug Duncan. He expects the 30-year mortgage rate to hang around around 6.5 percent for the remainder of the year, but climb to 6.8 percent by the end of 2008. Duncan is positive about a bounce back in the housing market next year, citing still-low long-term interest rates, robust capital expenditures, and rising equity prices, among other factors.

Meanwhile, the National Association of Realtors expects existing-home sales to slip just above 6.4 million in 2007 from an estimated 6.47 million this year but recoil in construction will spark an 8.7-percent decline in new-home sales to 975,000 from 1.07 million over the same time span. Also the median resale price will likely edge up 1.7 percent to $227,500 next year, and the median new-home price is forecasted to climb 1.3 percent to $241,400.

To learn more about this expected rebound, click here. For all your Real Estate needs contact Nolting Real Estate at 636-391-9997.

Makeover Planned For Historic St. Louis Area

From the St. Louis Post-Dispatch;

We have recently learned that Lenigan Development of Oak Park, Ill., plans to build a $34 million single-family housing development in the Ville, a section of north St. Louis that was home to the city’s black professionals from the late 1800s to the mid-1900s. The area has since become dilapidated.

Lenigan’s founder, who was born in St. Louis says, "In order to preserve the future, we must remember our past.” Lenigan plans to rehab some of the homes. Others will be newly built. Prices will start at $200,000, and the homes will range from 2,200 to 2,600 square feet. The subdivision will be gated.

To learn more about such developments contact us at Nolting Real Estate by calling 636-3991-9997.

What Women Look For When Buying A House...

Women make up 21% of all recent home purchases, according to a recent study by the National Association of Realtors. Beyond this statistic women are estimated to be responsible for making the final decision about home purchases 87 percent of the time. It is because of these statistics that we have noticed that home builders are designing home layouts with the woman buyer in mind.

Home builders have been asking women what kinds of layouts and amenities they prefer. In response to its surveys of women buyers, they have created separate workspaces for men and women. They have also added open loft areas on the second floor and located laundry rooms and craft rooms near the kitchen. These floor plans were created specifically for mom or females who are working from home.

Also since mothers are such big voices in the renewed popularity of urban living there has been a concentration on in-fill developments. They also are building homes with porches that encourage neighborliness, and they are paying attention to the proximity of parks.

For more information on this development, click here. For local real estate contact us at http://www.noltingrealestate.com/ and/or 636-391-9997

Mortgage Insurance Fees to be Deductible

According to the 109th Congress - beginning in 2007 fees for mortgage insurance will be tax-deductible for a large number of homeowners. Mortgage insurance makes home purchases possible today and thus is the key to homeownership for millions of buyers. Lenders have traditionally wanted homebuyers to purchase with 20 percent down. The logic for this requirement is fairly clear: If something goes wrong and the home must be foreclosed, the lender is still likely to get back most or all of its loan balance.

Mortgage insurance help those buying a house get around the problem of having little money to put down on a house. Instead of putting up dollars buyers get insurance coverage. Lenders accept mortgage insurance because it performs the same function as 20 percent down: If a property is foreclosed lender risk is reduced because mortgage insurance pays for much or all of the lender's possible loss.

And now it seems that with this new legislation – Mortgage Insurance will become tax-deductible. For the specifics of this new legislation, click here. For all your Real Estate needs contact Nolting Real Estate at www.NoltingRealEstate.com and/or 636-391-9997.

Making Your Life Easier in the Holiday Rush!!

Since 1984, Nolting Real Estate has been focused on providing the best customer service possible to our clients. We are committed to continue this tradition of excellence. At Nolting Real Estate, we continue working hard to enhance our Client Appreciation Program (CAP). Hannah Wood has recently taken over this program.

Through Hannah's hard work, we are now offering the NRE Perks Program (that was spoken of in the previous blog entry). This innovative service rewards our past, present, and future clients with services that make their lives easier. Please call us to set up the following free services. Or just stop by, Monday through Friday, 9 am to 5 pm;

• Notary
• Fax
• Copy
• Package mailing through USPS, FedEx, DHL, UPS
• St. Louis, St. Charles County Courier
• License renewal through DMV
• Annual Analysis of your home's value
• NRE's Annual Referral Directory
• Two-hour interior design consulation
• A personalized pre-payment plan for you mortgage
• Seasonal coupons and miscellaneous "freebies"

We would love to speak to you about your needs. Please contact Nolting Real Estate at 636-391-9998 and/or www.NoltingRealEstate.com.Thank you for your time,Russell Nolting

Making Home Improvements Pay II

Realtor Magazine is looking at cost vs. value in home remodeling as seen in the previous blog. Here is there same look but at bathrooms.

National Average
Job Cost - $12,918
Resale Value - $10,970
Cost Recouped - 85%

St. Louis
Job Cost - $13,924
Resale Value - $10,395
Cost Recouped - 74.7%

To learn more about cost vs. value reports, click here. For all your Real Estate needs contact http://www.noltingrealestate.com/ and/or 636-391-9997.

Making Home Improvements Pay

Realtor Magazine asks the questions, "What's the return for remodeling?” They found the answer through Remodeling magazine’s annual report which compares construction cost with resale values for 25 common remodeling projects in 60 U.S. markets. They call these the cost vs. value reports. For example a minor kitchen remodel for a 200 square foot kitchen;

National Average
Job Cost - $17,928
Resale Value - $15,278
Cost Recouped - 85%

West South Central
Job Cost - $18,354
Resale Value - $13,471
Cost Recouped - 73%

St. Louis
Job Cost - $18,819
Resale Value - $13,530
Cost Recouped - 71.9%

To learn more about cost vs. value reports, click here. For all your Real Estate needs contact http://www.noltingrealestate.com/ and/or 636-391-9997.

November Housing Statistics

Nolting Real Estate focuses on the Central Corridor of St. Louis County - In the Central Corridor there are 1717 homes currently listed on the MLS with an average listing price of $925,651 (Average days on the market: 132). In November 2006, 215 homes were sold with an average sale price of $484,202 (Average days on the market: 58).

To learn more about Real Estate in this area contact us at 636-391-9997 and/or www.NoltingRealEstate.com.