This is my Good News/Bad News report for potential clients:

First let’s start our day out with the GOOD news:

• Housing affordability is at its highest levels since at least 1970, said David W. Berson, chief economist of mortgage insurer PMI Group.
• Falling prices have caused sales to perk up. Palm Beach County’s January sales were up 11 percent from a year ago, while Treasure Coast volumes soared 81 percent. www.palmbeachpost.com
• Mortgage rates are near historic lows, with Freddie Mac reporting an average 30-year-fixed rate of 5.04% with 0.7 points and a 15-year-fixed rate of 4.68% with 0.6 points. Nothaft said refinances have risen as a result. Depending on when you bought your home, this may be a good time to refinance.
• It is still possible to get a mortgage, as long as you have a down payment, a good credit score, full documentation underwriting, and a conforming loan balance. Nothaft said so far in 2009, overall loan originations on single-family homes have increased 12% over 2008. www.freddiemac.com
• You can save money by trying to lower your cable bill by at least 22%. You can negotiate your phone bill and cell phone bill rates. Right now you can negotiate almost any business to meet or beat the rates of its’ competitors.
• For middle-income buyers, Palm Beach County suddenly has become affordable again. In the fourth quarter of 2008, 53.5 percent of new and resale homes in the county were in reach for a family making the county’s median income of $66,000, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

The BAD news:

• According to The Palm Beach Post (www.palmbeachpost.com) Unemployment rates are at 7.6% as of January 2009 and are expected to be higher this month.
• It will take two to three years for the residential building industry to stabilize, estimated Berson. That means housing starts returning to about 1.5 to 1.9 million annually; 2008 saw less than 1 million starts. (IBS 2009)
• Getting a home equity line of credit (HELOC) for a remodel is tough, Nothaft said, because banks don’t want to offer what amounts to a second mortgage. Depending on when you bought your home, you may want to consider a cash-out refinance of your first mortgage instead. www.freddiemac.com

The sky isn’t falling. Yes-times are hard. But homeowners, potential buyers, and businesses can make it though these rough times. People who can’t sell are renting. Potential renters have many more options today. As a homeowner-you need to make your house stand out from the rest. Make small improvements to attract renters. If you can’t afford new kitchen cabinets, simply get new granite, a new sink, a new faucet and new cabinet hardware. Your floor is important. Tile is easy to maintain and makes a big difference compared to carpet or old dirty tile. A new floor can brighten up the entire house. Can’t afford a new bathroom? Simply replace the bathroom cabinet, countertop and toilet. These are the first things a potential buyer/renter sees when they walk into a house. Small improvements can make a big difference! Let Celtic Kitchen & Bath Design Center help you.