Housing Market Softens as Economy Shifts

Fannie Mae's Economic and Strategic Research Group releases a forecast each month detailing their outlook for the economy and housing market in the months ahead. The group looks at things like consumer spending, GDP growth, home sales, and mortgage originations and predicts where they're headed through the end of this year. Their August release contains few surprises for anyone thinking about buying or selling a house.

It says the housing market has been softening due to rapid home price increases and the recent spike in mortgage rates. Fannie Mae believes the shift in affordability conditions will cause home sales to fall 16.2 percent this year from the year before. Doug Duncan, Fannie Mae's Senior Vice President and Chief Economist, says the broader economy, and the Fed's response to it, will determine how quickly things level off. “The question for many market observers is how quickly, and with home much additional tightening, the core inflation rate will come down to the Fed's preferred target. In our view, the labor market's continued strength suggests that the Fed is likely to maintain its aggressive posture through the end of the year.”

Source:fanniemae.com

ADD PIZAZZ TO YOUR BLAND KITCHEN

Neutral kitchens are supposed to complement any décor, but they can become bland over time. What can you do to make your kitchen more exciting?

Make it artsy 

Hang a colorful abstract painting in a key location. Have fun with artistic-themed dishtowels, placemats, and dishes, instead of classic motifs like roosters and other farm animals or Italian chefs with curling moustaches. Try a washable rug or runner with a colorful modern pattern. 

Fold in some color

Neutral décor is fine for the next occupant of your home, but put yourself first in items you can take with you when you move. Find your favorite color in cookware, serving pieces, utensils and small appliances to add cheerful interest to neutral decor.

Add texture 

If color isn’t your thing, interesting shapes and textures add vitality to neutral walls, backsplashes, curtains and blinds and kitchen seating. Natural wood accents like artisan-made bowls can also warm up a neutral kitchen.

Repaint

Color can be soft, so try watery colors like sea glass. For more drama and sophistication add a deep blue, black or grey. 

You can still have a neutral kitchen with pops of color, texture, and artistic touches. 

Interested in more design tips? Contact Sallie Elliott at 402-630-5953.

What Couples Should Discuss Before Retiring

Compromise is an important part of marriage. From deciding how much to spend on a new living room set to what to watch on TV tonight, compromise is constant.

It can also be a big part of retirement conversations. While agreeing on the financial and logistical issues around retirement is great if you can get there, chances are, there are some aspects of a life together without work that will be a compromise. Getting on the same page before retirement can make it a lot easier.

Here are some topics couples should talk about before retirement:

When to Retire
Do you both plan on retiring at the same time? Maybe one person wants to wait until age 70 to receive the most Social Security benefits, while the other wants to collect them when they’re first eligible at age 62.

What Are Your Retirement Goals?
Each person may have different dreams of what retirement should be. One may want to travel immediately, while the other wants to stay home.

Both can be done, of course. Discussing what you want to do in retirement is one of the best things about planning for it. Doing those things together—after figuring out what they are—can make your retirement dreams come true.

How to Pay for It
Social Security is an important part of funding retirement, but it shouldn’t be the only way. If your goals are bigger than your assets, you’ll have to make some adjustments. To determine how much money you’ll have in retirement, a couple should meet with their financial advisor.

Each spouse should have access to their savings, investments, pension, insurance and other accounts, and have a short monthly meeting on where they stand. Make sure each person is listed on the paperwork for each account, and that beneficiary information is complete.

What’s in Your Will?
This is the unpleasant part of planning for retirement, but it’s something worth doing. Set up a will together so that your family knows how your estate will be handled, and what they should do about taxes and other financial issues. Your financial advisor should be able to help, as should an attorney.

This is the final step of retirement, and of life, and it’s one you don’t want to avoid. With proper planning, it will be after a long and enjoyable retirement.

Where to Find Free Help With Taxes
Preparing your tax returns can be a chore. The good news is that filing your taxes is free—if you can figure out how to fill out the forms accurately. If not, you may want to buy some tax preparation software or hire a tax preparer to do the detailed work for you.

If you prefer not to spend money for tax prep help, or don’t have the money for it, there are some free alternatives. Here are a few ways to get free help preparing and filing your taxes:

Free E-File Forms From the IRS
The IRS offers free file forms that can be completed online. The program operates from January through mid-October, when accounts are erased from the server. Estimated tax payments can be paid online, and tax refunds can be paid through direct deposit to your bank.

For incomes above $64,000, free file forms are available. The forms offer only basic guidance, and you must know how to do your taxes yourself. You must have your tax return available, and state tax prep isn’t available.

Free File
For incomes below $64,000, another IRS program, called Free File, offers help. It works with a dozen tax software companies in the Free File Alliance to provide free tax filing assistance.

The program is geared toward low- and moderate-income taxpayers. Some may have restrictions on age and where you live, and the program will walk you through programs that meet your criteria. After selecting the software that works best for your tax situation, you’ll be transferred from IRS.gov to the company’s website to complete your returns.

Volunteer Income Tax Association
Known as VITA, this program from the IRS offers free tax help to people who generally make $54,000 or less, persons with disabilities, and limited English-speaking taxpayers. IRS-certified volunteers provide free basic income tax return preparation with electronic filing.

Tax Counseling for the Elderly (TCE)
The TCE program is another IRS program, offering free help for all taxpayers, but focusing on people 60 and older. Its volunteers specialize in questions and pensions and retirement issues that are unique to seniors. It’s offered at the same types of sites where the AARP program is, and many of the TCE sites are operated by the AARP Tax-Aide volunteers. Some sites also offer free help with web-based tax prep software to file basic federal and state tax returns.

Real estate is one of the most important investments. Find out more about your Omaha area real estate by contacting Sallie Elliott at 402-630-5953.

Setting Up Your Surround Sound Speakers

When you move into a new house, there are numerous things you’ll want to do early on to get your house in live-in shape, and one thing you should think about early is setting up the surround sound system in your new home.

Techies love this sort of stuff, but not everyone is adept at understanding all the wiring and how to properly set up speakers and an audio system. While you could hire someone to come in and do the job, watching a few DIY videos on YouTube may be enough for you to handle it yourself.

One of the most vital components of the surround system is the speaker and the placement of the speakers around your media room is paramount in creating an ideal surround sound system environment.

Start by locating the “sweet spot” in your room where you will most likely be sitting to watch TV. Of course, multiple people watch at one time, and you might not always sit in the same place, but try to find the central area so you can work everything off of that area.

When it comes to setting up each speaker correctly, it is important to follow the display model. For example, the center channel speaker should be located directly above or below the display as the majority of the dialogue from a TV show or movie comes through this speaker. It’s recommended to place the center speaker as close to the television as possible while also being careful to angle the speaker towards your ears.

The front left/right speakers provide the off-screen effects and project all the stereo soundtrack information including the background environments. Avoid placing these speakers too close together to avoid a sound stage or placing them too far apart, which will create a large gap in the sound stage. It’s best to place them as close to ear level as possible. One common mistake is putting them in corners, but that will muffle their sound.

The surround speakers are primarily the area in which homeowners tend to mix up the most. Despite their name, they aren’t supposed to be behind you, and are actually best when they are set up directly on your left and right. Most experts recommended that surround speakers be placed approximately 2 feet above ear level.

TVs are getting bigger and better and it would be a shame to have the HD picture of your dream and just the standard sound emulating from the set. Invest in a nice surround sound system and feel like you’re at the movies every time you watch.

Interested in more real estate tips? Feel free to contact me directly! Sallie Elliott, 402-630-5953

Eco-Friendly Tips With Low Costs and High Savings

Most homeowners have weather-stripped their doors to maximize climate control, and have switched out traditional incandescent light bulbs with eco-friendly CFL models. Short of installing double paned windows or making other costly home improvements, what more can you do to make your home “greener” without emptying your wallet?

Change filters often. Change air conditioning filters monthly to keep the system running at peak performance.

Dry bigger loads. Your dryer has more capacity than you think. Dry two or more loads at once so the dryer cools down and heats up less frequently. And clean out the lint filter often.

Check the fridge seal. Feel for cold air around your closed refrigerator door to be sure the seal is in good condition.

Adjust stove top cooking. Avoid wasting heat by matching up your pot/pan size to the correct burner.

Unplug battery chargers. Many chargers continue to draw power even when not connected to a device, so unplug yours after charging.

Use a laptop. They use less energy than your desktop computer, so use them instead when you can.

Reduce hot water consumption. Install low-flow, aerating faucets and shower heads. Select a shower head with a flow rate of less than 2.5 gallons per minute.

Choose drought-tolerant plants. Any number of plants and ground covers can add greenery to a yard without gulping lots of water – including clover, certain breeds of grass like Bermuda and Zoysia, and edible plants like herbs and strawberries. (Note: you may want to put in some type of wood or brick border to contain groundcovers or plants in the area you want them to stay in.)

How to Prepare Your Home for Flooding

While no one ever wants to imagine their home filling with water, for many areas of the country, flooding is a scary reality for many homeowners. Whether a natural disaster is on the way or you simply want to be aware of how to protect your home when flash flood warnings sound, we have five steps to preparing your home for flooding.

Clear gutters. If flooding is predicted in your area, help your home out by clearing all gutters, downspouts and drains so your home can battle the rising water.

Elevate outdoor electric units. Outdoor generators, fuel tanks and air-conditioning units should not be left on ground level outdoors. Elevate them as best you can and securely anchor them so they don’t float away if flooding occurs.

Power down. Shut off your electricity via your breaker panel to stay safe.

Move items upstairs. When flooding is likely, take charge by moving items upstairs and further from the flood zone. Furniture, rugs, electronics and important paperwork should all be moved to the highest ground possible. Make copies of important paperwork and store them digitally so you don’t lose them.

Raise appliances. While you likely can’t lug your refrigerator upstairs, you can elevate your appliances on concrete blocks to minimize damage if only a few inches of water floods in.

Local Real Estate Market Update

Although there’s been some marginal improvement in the market, existing home inventory remains low and the average closed price of homes are still higher than last year in Douglas and Sarpy counties. Now is a great time to sell. Contact Sallie Elliott at 402-630-5953 for more information.