By Robert Freedman, senior editor, REALTOR® Magazine

A piece in the Wall Street Journal yesterday took issue with a recent Time cover story calling into question some of our most cherished beliefs about homeownership. Much of what the Journal talks about isn’t new. In fact, it recites benefits of homeownership that you already know better than anyone. But in pulling them together in the way it does, it makes you realize just how compelling homeownership is from just about every standpoint. If you haven’t seen the piece, by Brett Arends, here’s a thumbnail sketch of its 10 points:

Why is now a great time to buy?

1. You can get a good deal. Prices are down 30 percent on average. They’re at a level that makes sense for people’s income.

2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.

3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.

4. It’ll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?

5. You can get a better home. In some markets, it’s simply the case that the nicest places are for-sale homes and condos.

6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.

7. It’s risk capital. If the economy picks up, you stand to benefit from that, even if you’re goal is just to have a nice place to live.

8. It’s forced savings. A part of your payment each month goes to equity.

9. There is a lot to choose from. There are some 4 million homes available today, about a year’s supply. Now’s the time to find something you like and get it.

10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.

Read the story yourself.

Clogged drains are a common problem that nearly every homeowner will encounter and have to resolve. Because the plumbing pipes are designed only to bring in clean water and eliminate wastewater, poorly maintained plumbing systems can result in clogged drains. There are various substances that can create clogs. These items are not supposed to be put in the drains. In order to prevent clogs, it is important to know what kinds of items make drains clogged in home plumbing systems.

1. The bathtub drains can become clogged with a variety of substances such as hair, soap, and chemical cleaning agents which can accumulate in the drain and build up in the pipes. To prevent build up of debris and matter causing clogs, you can insert strainers in the drain hole and keep them cleaned out. As well, after bathing or showering, make sure that you run the tap water thoroughly in order to make sure all matter has been pushed through the pipes.

2. Kitchen drains can become clogged due to food, grease, and debris being put in the drain. Pour grease into a can and put it with the trash instead of pouring it down the sink. Make sure you have cleaned off all dishes that held food before you rinse and wash them. Once a week, run hot water down the sink drain to keep the pipes clear of debris. You can also add a homemade drain cleaner consisting of vinegar and baking soda down the sink once a week and flush it with hot water to remove accumulation of matter. As well, never use the garbage disposer without running water down the pipes to flush out the food particles and organic debris. Don’t put tough, fibrous foods into the garbage disposal such as chicken bones and celery pieces.

3. Some people will dump harmful products such as hot wax, paint thinner, and motor oil down the sink drain. This will not only contribute to clogs, but it can damage the plumbing system. Never pour these items into your sink drain and use non corrosive drain cleaners.

Slow drains are extremely frustrating, but a clogged drain is even more annoying. If you have something in your drain causing a clog, overtime it will only get worse and cause a more serious problem. By properly maintaining your plumbing system, you can reduce the chances of getting a clogged drain. Annual inspections by a professional plumber will help your plumbing systems stay clear, clean, and working properly.

If you do get a clog, there are items you can use to clear the clog such as sink augers, plungers, plumbing snake, and non corrosive chemical drain cleaners. There are also bacteria-based enzyme cleaners that eat away at a clog without causing damage to the pipes. Remember, for clogs that cannot be removed even after you have tried everything, it is important to contact a plumber who will have the skills and tools to identify the cause of the clog and repair the problem.

How does it work? An unknown person will telephone an elderly resident and tell them that a family member has been arrested and needs bond money to be released from jail. The suspects will identify the victim’s family member, usually a son or daughter or grandchild, and then identify themselves as a ranking representative of a certain police agency.

Then the victim is told a lengthy set of unusual circumstances surrounding the arrest, often portraying the arrested family member as an unfortunate participant that happens to be in the wrong place at the wrong time. The trap is now set and unsuspecting elderly family members begin the process of feeling sorry for their relative and engage in the conversation of how to wire the money to the police representative.

When the elderly victim conducts the initial wire transaction, a routing number is provided only to the victim. After the money is "wired" the victim is told to call the "police agency" back at a provided number. An unknown person will answer with the name of the police agency and when the victim requests to talk with the ranking officer they believe they had talked with previously, the person will "page" the requested officer. When that person answers, a conversation occurs where the victim is told to change the routing of the cash to a different city in the US. The routing number is then requested by the suspect and usually provided by the unsuspecting victim. Once the routing number is given, the cash can be obtained from any location in the world.

ISP reminds Hoosiers to use extra caution when dealing with unknown individuals by telephone or internet.

I have some good news to report based on August pended (accepted purchase agreements) results.  August pended transactions increased for the fourth consecutive month.  As I have mentioned a couple of times over the past few months, the now expired tax credit makes month to month comparisons difficult.  The tax credit clearly stimulated, then depressed the housing market.  As expected May pended transactions dropped dramatically after the spectacular March and April numbers.  This coincided with the expiration of the tax credit on April 30^th. 

We have gone from 269 pended transactions in May to 387 pended transactions in August.  This represents a 44% increase.  Although that is good news, it is important to keep in mind that the 44% increase is from a low starting point.  What is good however is that the 387 pended transactions is slightly higher that the preceding twelve month average of closed transactions.  The average sales price in this May-August period has been virtually unchanged.  Both of these pieces of information suggest that our market has stabilized, both in terms of price and units sold.

I do not anticipate continued growth at these levels over the next few months.  Until the unemployment rate drops and our economy begins growing at a faster rate there will not be additional significant improvement in the housing market. 

We did add another enhancement to FCTuckerEmge.com last month.  In the detail section of every listing there is a “Community Info” section.  In this area you can click on “What’s nearby”, “Nearby Schools”, “Nearby Sold Listings” or “Community Stats” to get detailed location specific information about every listed home.  If you are not at your computer you can always get property information on your smart phone at Tuckermobile.com

Hopefully you had a chance to enjoy the fabulous weather over the Labor Day Weekend.  I’ll be back in touch next month with more current local housing information.

Congratulations to Holiday World for their great achievement.

Holiday World & Splashin' Safari in southern Indiana has won six Golden Ticket Awards by Amusement Today magazine. In addition, late owner Will Koch is the second inductee into the magazine's Legends Series. Golden Tickets were presented to the Wildebeest water coaster for Best New Ride in a Water Park and Best Overall Water Park Ride, and the Voyage roller coaster as the top-ranked Wooden Coaster on the Planet for the fourth consecutive year. Holiday World also collected top awards for Cleanest Park and Friendliest Park.

The new Wildebeest water coaster at Holiday World & Splashin’ Safari was named the Best New Ride in a Water Park and Best Overall Water Park Ride at Saturday evening’s Golden Ticket Awards, presented during an Academy Awards-style ceremony at Busch Gardens Williamsburg.

In addition, Holiday World's Voyage roller coaster was named the #1 Wooden Coaster on the Planet for the fourth year in a row.

Presented by Amusement Today publisher Gary Slade, the industry’s “best of the best” awards include theme, amusement and water parks from around the world. Holiday World & Splashin’ Safari won a record six Golden Ticket Awards at this year’s ceremony.

For the eleventh consecutive year, Holiday World & Splashin’ Safari were named the #1 Cleanest Park, outranking such parks as Disney World, Kings Island, Dollywood, and Cedar Point. The parks also received #1 Friendliest Park award for the twelfth year.

“For these awards, we humbly thank our wonderful Hosts and Hostesses,” says park matriarch Pat Koch, who attended the ceremony with daughter-in-law Lori and grandson William. “It was a long, hot summer and they all worked together to keep smiling and keep cleaning.”

In an emotional tribute, the late Will Koch was honored as only the second inductee in Amusement Today’s Legends Series for being “a true visionary, leader and dear friend to the industry.” The park’s leader for more than two decades, Koch passed away unexpectedly in June at the age of 48.

Amusement Today is an international monthly trade journal for the amusement and water park industries, based in Arlington, Texas. The Golden Ticket Awards are determined by surveys submitted by well-traveled park enthusiasts from around the world.

Holiday World & Splashin’ Safari will be open September 18 and then closed to the public September 19 for a private outing. From September 25 through October 10, Holiday World will be open weekends-only before closing for the season.

Source: Holiday World & Splashin Safari & Inside INdiana Business

http://www.insideindianabusiness.com/newsitem.asp?ID=43614

Commercial real estate sectors, hurt by weak job growth, are offering incentives in many areas that are conducive to business expansion, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said fallout from the recession continues to impact commercial real estate.  “Vacancy rates are beginning to level off in some sectors, but rent discounts and moderate levels of landlord concessions are widespread,” he said.  “This is very much a tenant’s market, which is quite favorable for businesses that are considering expansion.  It’s also encouraging that there is a modest improvement in the sentiment of commercial real estate practitioners.”

The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 600 local market experts,¹ shows vacancy rates are beginning to level, but rents remain depressed, and subleasing space is high.

The SIOR index, measuring 10 variables, rose 2.8 percentage points to 41.0 in the second quarter, but remains well below a level of 100 that represents a balanced marketplace.  This is the third consecutive quarterly improvement after nearly three years of decline; the last time the commercial market was in equilibrium at the 100 level was in the third quarter of 2007.

Fifty-seven percent of respondents expect improvements in the office and industrial sectors in the third quarter.

Commercial real estate development remains stagnant in all regions with low investment activity; 88 percent of respondents said it is virtually nonexistent in their markets, but development acquisitions are beginning to grow in many areas in what is described as a buyer’s market.

Looking at the overall market, vacancy rates will shift modestly in the coming year according to NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK.²  The NAR forecast for four major commercial sectors analyzes quarterly data in the office, industrial, retail and multifamily markets.  Historic data were provided by CBRE Econometric Advisors.

Office Markets

Vacancy rates in the office sector, with high levels of available sublease space, are expected to increase from 16.7 percent in the second quarter of this year to 17.0 percent in the second quarter of 2011, and then ease later next year.

The markets with the lowest office vacancy rates in the second quarter were New York City, Honolulu and Long Island, N.Y., with vacancies around the 9 to 11 percent range.

Annual office rent should fall 2.7 percent this year and decline another 2.1 percent in 2011.  In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is projected to be a negative 13.6 million square feet this year and then a positive 22.6 million in 2011.

Industrial Markets 

Industrial vacancy rates are likely to decline from 14.1 percent in the second quarter of 2010 to 13.7 percent in the second quarter of 2011, and then continue to ease modestly as the year progresses.

The areas with the lowest industrial vacancy rates in the second quarter were Los Angeles, San Francisco and Kansas City, with vacancies ranging between 8 and 11 percent.

Annual industrial rent is estimated to drop 5.4 percent this year, and to decline another 4.7 percent in 2011.  Net absorption of industrial space in 58 markets tracked is seen at a negative 31.7 million square feet this year and a positive 157.2 million in 2011.

Retail Markets

Retail vacancy rates should hold steady at 13.1 percent in both the second quarter of this year and in the second quarter of 2011, with a level pattern for most of next year.

Markets with the lowest retail vacancy rates in the second quarter include San Francisco, Honolulu and Miami, with vacancies of 7 to 8 percent.

Average retail rent is expected to decline 2.6 percent in 2010 and then flatten out, slipping 0.1 percent next year.  Net absorption of retail space in 53 tracked markets is forecast to be a negative 2.3 million square feet this year and then a positive 6.4 million in 2011.

Multifamily Markets

The apartment rental market – multifamily housing – is benefiting from modestly higher demand.  Multifamily vacancy rates are likely to decline from 6.0 percent in the second quarter of this year to 5.6 percent in the second quarter of 2011.

Areas with the lowest multifamily vacancy rates in the second quarter include San Jose, Calif.; Pittsburgh; and Philadelphia, with vacancies of less than 4 percent.

With additions from new construction, average rent should slip 0.6 percent in 2010, and then hold even in 2011.  Multifamily net absorption is expected to be 105,200 units in 59 tracked metro areas this year, and another 138,000 in 2011.

The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the commercial community.  NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR.

The NAR commercial components include commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and the NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors^® Land Institute, Society of Industrial and Office Realtors^®, and Counselors of Real Estate.

Approximately 79,000 NAR and institute affiliate members specialize in commercial brokerage services, and an additional 263,000 members offer commercial real estate as a secondary business.

The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

¹ The SIOR Commercial Real Estate Index, conducted by SIOR and analyzed by NAR Research, is a diffusion index based on market conditions as viewed by local SIOR experts.  For more information contact Richard Hollander, SIOR, at 202/449-8200              202/449-8200      .

²Publication of additional analyses will be posted under Economists’ Commentary in the Research area of Realtor.org in coming days.

The next commercial real estate forecast and quarterly market report will be released on November 29.

Source: http://tinyurl.com/25h89m7