After a brief dip in April, the National Association of Homebuilders reports that the Housing Market Index rose 5 points in May to 29. The increase marks the sharpest climb in homebuilder confidence on a month-to-month basis in 10 years, and raises the index to a 5-year high.

The Housing Market Index is scored from 1-100. Readings above 50 indicate favorable conditions in the single-family new home market overall. Readings below 50 indicate poor conditions.

The HMI has not been above 50 since April 2006.

The Housing Market Index itself is a composite reading as opposed to a straight-up homebuilder survey. The published HMI figure is a compilation of the results of three specific questionnaires sent to NAHB members monthly.

The survey questions are basic :

1. How are market conditions for the sale of new homes today?
2. How are market conditions for the sale of new homes in 6 months?
3. How is prospective buyer foot traffic?

This month, builders are reporting strong improvement across all three surveyed areas. Current home sales are up 5 points; sales expectations for the next six months are up 3 points; and buyer foot traffic is up 5 points to its highest point since 2007.

With mortgage rates low and home prices suppressed, the market for new homes is gaining momentum, a conclusion supported by the New Home Sales report which shows rising sales volume and a shrinking new home inventory nationwide.

The basics of supply-and-demand portend higher new home prices later this year — a potentially bad development for buyers of new homes in Colorado and nationwide. With demand for new homes rising, builders may be less likely to make sale price concessions or to offer “upgrade packages” to buyers of new homes.

If you’re shopping for new construction in or around Evergreen , therefore, consider moving up your time frame. Home affordability is high today. It may not be tomorrow.

Supermarket shelves in Colorado are filled with bathroom cleaners that promise to cut through soap scum, but the cleansers don’t always work and those that do often contain harsh chemicals that can irritate your skin.

Cleaning shower doors can be more safe and more pleasant when you use chemical-free household products, many of which you likely have in your kitchen already.  White vinegar makes an excellent soap scum remover, for example.

To remove soap scum from your shower doors using white vinegar, pour non-diluted white vinegar into a spray bottle, and then spray your shower doors until the soap-scummy sections are completely saturated. Let the vinegar sit for several minutes. This allows the white vinegar time begin breaking down the soap scum.  Spritz the surface again, if necessary, to keep the surface wet.

After the white vinegar has had some time to work, wipe the soap scum away with a non-scratching sponge. If the soap scum is particularly stubborn, cutting through it completely may require a mild abrasive.  After letting the vinegar soak for several minutes, sprinkle baking powder on your sponge and remove the soap scum using a moderate amount of pressure and small circular motions.  If your shower doors are textured, you may need to switch to a scrub brush to get into the crevasses.  Reapply baking soda and re-spritz the doors with vinegar as needed to remove the soap scum completely. Then, just rinse away the residue with hot water.  Give the shower floor a final rinse after the residue drains.

In addition, homes that sparkle are more enjoyable for the homeowner, and tend to fetch more money if you are trying to sell.

A “prime borrower” is defined as one with a well-documented credit history, high credit scores, and a low debt-to-income ratio.  The insight comes from the Federal Reserve’s quarterly survey of its member banks.

Last quarter, of the 54 responding banks :

• 0 banks tightened mortgage guidelines considerably
• 3 banks tightened mortgage guidelines somewhat
• 49 banks left guidelines basically unchanged
• 2 banks eased mortgage guidelines somewhat
• 0 banks eased mortgage guidelines considerably

By contrast, in the quarter prior, not a single surveyed bank reported tighter residential mortgage guidelines.  The period from January-March was a step backwards, therefore, for the fledgling U.S. housing market.  Overall, getting approved for a mortgage is tougher than it used to be. Banks enforce higher minimum credit score standards; ask for larger downpayment/equity positions; and require higher monthly income relative to monthly debt obligations.  It’s one reason why the homeownership rate is at its lowest point since 1997.

Another reason why homeownership rates may be down is that prospective home buyers believe the hurdles of today’s mortgage approval process may be impassably high. That’s untrue. There are many U.S. homeowners and renters — even here in Golden — that were approved for a home loan last quarter — prime borrowers or otherwise.  Some had excellent credit, some had modest credit.  Some had high income, some had moderate income.  Many, however, took advantage of low-downpayment mortgage options such as the FHA’s 3.5% downpayment program, and the VA’s 100% mortgage program for military veterans.

Despite a general tightening in mortgage standards, loans are still available and banks remain eager to lend. It is harder to get approved today as compared to 5 years ago, but for those that try and succeed, the reward is access to the lowest mortgage rates in a lifetime.  Mortgage rates throughout Colorado continue to push home affordability to all-time highs.

If you’re in the market to buy a new a home or refinance one, your timing is excellent.

Here’s what to do.

First, you’ll want to launder your winter clothes before you pack them up — even if they were never worn and/or don’t appear to be soiled. Clothes can sometimes have spots or stains that aren’t readily visible. Use unscented detergents, and skip fabric softeners and other additives that could attract insects.

Take items that can’t be washed to the dry cleaner.  Next, you’ll put your clothes into storage containers. Ideally, use bags or boxes that won’t degrade and will seal out dirt, dust, insects and moisture.  Fold clothing neatly before adding it to the container and pack “loosely”, allowing air to circulate.  Tuck a lavender or cedar sachet into each container to help repel bugs.  Both lavender and cedar are safer for use than mothballs and they smell much better.

For bulky items such as coats, use padded hangers and cover the clothing with heavy plastic wardrobe bags. If you don’t have padded hangers and don’t want to buy them, drape wood hangers with folded towels to fill in the shoulders of your coats without stretching them.  Keep the storage boxes and hangers in a dry place, away from sunlight. Sunlight can fade your fabrics.

Then, make sure to clean your closets thoroughly before filling them with the next season’s clothes. Dust the shelves and ceiling, wipe bars and flat surfaces, and give the floor a good vacuum.  Your closet will be clean and fresh and ready for the new season.

At the same time, especially if you are selling your home, we have discovered that buyers like to see homes that are organized, neat and tidy.  Packing away summer clothes in this fashion can actually have a positive affect on prospective buyers who may be viewing your home. This can be considered part of the staging process.  Staging goes way beyond furniture placement.

When people buy homes , there’s a tendency to think “Big Picture” on home improvements.  Flooring, painting and furniture are common “just-moved-in” purchases, as are cable television and utilities packages.

The most important move-in purchase, though, may also be the least expensive — deadbolts for your doors.  Every home has at least one — and sometimes up to dozen — keyed points of entry.   And, until you change those locks, there’s no telling just how many people may have access to your home.

For example, your home’s prior owners may have shared house keys with any/all of the following people :

• Real estate agents
• Neighbors and friends
• Parents, brothers and sisters
• Home cleaning service
• Dog walkers and pet sitters

Those keys will still gain entry into your home until you change the locks. This is why your first act as a new homeowner should be to replace all your home’s keyed entries with new locks and/or deadbolts.

Locks and deadbolts come in a variety of designs and finises, with varying price points. A basic single-cylinder, keyed deadbolt costs less than $15, and a powerful digital-entry, keyless system sells for $200-plus. There are a bevy of models at many price points.  Regardless of which lock system you choose, don’t procrastinate on installation. Ideally, your locks should be changed on the same day of purchase, as close to closing’s completion as possible.  Hardware stores carry most deadbolt varieties and many can be installed with just a screwdriver. For complicated installations, talk to a locksmith.

Of the three sections, it’s Housing Starts that gets the most attention from the press — mostly because, of the triad, it’s the simplest for a layperson to understand.  However, the manner in which Housing Starts data is reported can be misleading.

Today’s newspapers offer up an excellent example.

According to the Census Bureau, total Housing Starts fell by 6% in March as compared to the month prior.  654,000 units were started on a seasonally-adjusted annualized basis.  For Housing Starts, it’s the lowest reading in 5 months, a statistic suggesting that the housing market may have lost some momentum.  Much of the press covered the story from a “housing is slowing” angle.

A few published headlines include : 

• U.S. Housing Starts Unexpectedly Drop To 5-Month Low (BusinessWeek)
• New Home Constructions Takes Pause (CNNMoney)
• A Delayed Winter For Housing (US World And News)

Although these headlines are accurate, they tell just half of the story.

Housing Starts did drop in March, but if we remove a subset of the data — structures with “5 or more units”; a grouping that includes condominiums and apartment buildings — we’re left with Housing Starts for single-family residences only.  It’s this data that matters most to buyers in Evergreen and nationwide.  Few home buyers buy entire apartment buildings. Most buy single-family homes.  In March, single-family Housing Starts were down 0.2% from the month prior, or just 1,000 units on a seasonally-adjusted, annualized basis.

That’s hardly a drop at all.

As a homeowner in Lakewood , to help Mother Nature and your wallet, consider added a rain barrel to your home.  A rain barrel is a rain-capturing system that collects and stores water runoff from your roof. Often attached to a home’s gutter system, a standard rain barrel collects and holds 55 gallons of water which can then be reused to water plants, wash cars, and clean driveways among other uses. Because the water is natural (i.e. not treated with chlorine or lime), it’s also ideal for window washing.    

Rain barrels can be purchases at most hardware or garden stores, or online via Amazon.com, for example. Or, they can be hand-built.

To install your rain barrel, first find a location for it, either under a downspout or near one. Make sure to select a stable location because water weighs roughly 8 pounds per gallon. A full rain barrel will weigh over 400 pounds, therefore, so be sure the ground beneath the it is solid and flat.

Next, if your rain barrel is hand-built, use PVC piping to reroute falling water into the mouth of the barrel itself, making sure to create a water-tight seal between the piping and the downspout.  Or, if you’re using a store-bought rain barrel, follow the manufacturers instructions to “connect” the rain barrel to the downspout.

And, as the last step, be sure that the mouth of the rain barrel is protected from outside debris such as leaves, flowers and bugs.  A formal lid or a covering made of wire mesh makes for a suitable protective cover.  Most store-bought rain barrels will be sold with a covering. That’s it. Just remember that basic maintenance will be needed.  Water caught by a rain barrel should be used regularly to prevent “standing water” and protective screens should be cleaned regularly.

For a step-by-step guide to building your own rain barrel at home, click here.

According to data from the National Association of REALTORS®, February’s Pending Home Sale Index slipped .5% from the month prior, to 96.5.  The Pending Home Sales Index is a monthly report which measures the number of homes under contract to sell, but not yet sold, nationwide.

The index is benchmarked to a value of 100, the average level of home contract activity in 2001,  the first year that pending home sales data was analyzed.  It also happened to be a year of historically-high levels of home contract activity. Therefore, a Pending Home Sales Index reading of 100 suggests a strong housing market nationwide.  The index has read north of 90 since October 2011.

On a regional basis, February’s Pending Home Sales Index varied :

• Northeast Region: -0.5 percent from January 2012
• Midwest Region : +5.7 percent from January 2012
• South Region : -3.3 percent from January 2012
• West Region : -2.6 percent from January 2012

Mild weather may have helped the Midwest Region last month but even regional data can only tell us so much.  Like everything in real estate, housing data must be local to be relevant.

Throughout the South Region, for example, the area in which contract activity fell most on a monthly basis, there are states which performed better than the regional average, and states which performed worse. Furthermore, even within those states, there are some cities which over-performed, and others which underperformed.

It’s why we can’t put too much stock in national housing news. Buyers don’t buy nationally — they buy locally.  Today’s home buyers and sellers in Evergreen , therefore, should look beyond the national Pending Home Sales Index and into local market drivers. The Pending Home Sales Index can paint a broad picture of the U.S. housing market but for data that matters to you specifically, it’s not as widely helpful.

To get relevant, timely local real estate data, talk to a real estate professional.

HARP is not a new program. It was originally launched in 2009.  However, the program’s first iteration reached fewer than 1 million U.S. households because loan risks were high for banks, and loan costs were high for consumers.  With HARP’s re-release — dubbed HARP 2.0 — the government removed many of HARP’s hurdles.

In order to qualify for HARP, homeowners must first meet 3 qualifying criteria.

First, their current mortgage must be backed either Fannie Mae or Freddie Mac. Loans backed by the FHA or VA are ineligible, as are loans backed by private entities. This means jumbo loans and most loans from community banks cannot be refinanced via HARP.

• To check if your loan is Fannie Mae-backed, click here.
• To check if your loan is Freddie Mac-backed, click here.

The second qualification standard for HARP is that all loans to be refinanced must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009.  Mortgages securitized on, or after, June 1, 2009 are HARP-ineligible.  There are no exceptions to this rule.

And, lastly, the third HARP qualification standard is that the existing mortgage must be accompanied by a strong repayment history. Homeowners must have made the last 6 mortgage payments on-time, and may not have had more than one 30-day late within the last 12 months.

If the above three qualifiers are met, HARP applicants in Genesee will find mortgage guidelines lenient overall :

• Refinancing into a fixed rate mortgage allows for unlimited loan-to-value
• The standard 7-year “waiting period” after a foreclosure is waived in full
• Except in rare cases, home appraisals aren’t required for HARP

Furthermore, HARP mortgage rates are on par with non-HARP rates. This means that HARP applicants get access to the same mortgage rates and loan fees as non-HARP applicants. There’s no “penalty” for using HARP.  To apply for HARP, check with your loan officer today.