By Luke Mullins, USNews.com                                                                      Dec 21st, 2008

In the face of an intractable credit crisis and a recession that could be the deepest since World War II, economists are expecting another downcast year for housing in 2009. Mission Residential Chief Economist Richard Moody, for example, projects home prices to continue along their downward slope for the entire year before hitting bottom in early 2010. But while there's no shortage of gloomy data-rising unemployment, higher mortgage delinquencies, increasing foreclosures-glass half-fullers do have a number of hopes to cling to. And while these more optimistic factors might not be enough to spring housing back to life in 2009, they could-with a few lucky breaks-prevent the market from declining as sharply as it otherwise might.

Here are the five best reasons to be hopeful about housing in 2009:

1. Cheap mortgage rates: With inflationary pressures easing and economic concerns mounting, shell-shocked investors are seeking the protection of government securities, such as 10-year treasury notes, driving down yields. The lower yields, coupled with the Fed's recently announced plans to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac have dragged mortgage rates to multi-year lows. Thirty-year, fixed mortgage rates hit an average of 5.47 percent last week, the lowest they've been since 2004, according to Freddie Mac.

To be sure, not everyone will be able to take advantage of these attractive rates: Tougher lending standards will prevent many would-be buyers from getting into the market, while homeowners whose houses are now worth less than what they owe on their mortgage won't be able to refinance. Still, the rates present a welcome incentive for qualified borrowers to step up to the plate. "Lower mortgage rates mean more people with those credentials will be able to qualify," says Patrick Newport, a U.S. economist at IHS Global Insight. While that might not make a dramatic impact on the market, it could be enough to keep home sales from declining as much as they otherwise would, Newport says.

2. Lower prices: Home prices at the national level have already fallen 21 percent from their 2006 peaks. And in certain bubble markets, the crash has been even steeper-prices have fallen more than 30 percent in Phoenix and Las Vegas over the past year alone. Although that's a big blow to homeowners-the housing bust is expected to wipe out more than $2 trillion in home values in 2008-lower prices do help stimulate buyer demand, which is badly needed to mop up the excess housing inventory. And while home prices are expected to drop further in 2009, values in certain markets are already at levels low enough to tempt bargain hunters. "Falling home prices aren't part of the problem, they are part of the solution," says Mike Larson, a real estate analyst at Weiss Research.

3. Fewer housing starts: In the face of dwindling demand, home builders have been forced to sharply pull back on new construction. The government reported Tuesday that November housing starts dropped to their lowest level since 1959, when officials started keeping the statistics. While that's bad news for the economy-because it means fewer jobs for builders and others-it's an important step in bringing housing supply back in line with demand. The cutback will limit the supply of new homes coming into the market, which helps to reduce the glut of unsold homes that is putting such downward pressure on housing prices. "In order to get rid of the inventory, builders have to cut back even further and prices have to drop," Newport says. "It's very painful, but there is no way to get around the fact that that's what you need to do to equilibrate the market."

4. Obama stimulus: In an attempt to hoist the economy out of its rut, President-elect Barack Obama has announced plans for a massive federal spending program. The initiative is expected to put between $500 billion and $1 trillion into infrastructure repair and other projects in an effort to keep Americans working. Should this program succeed in preventing unemployment from skyrocketing and keeping the economic contraction from hitting the dourest projections, certain housing markets may firm up quicker than expected, says Susan Wachter, a professor of real estate at the University of Pennsylvania's Wharton School of Business. In the best-case scenario, "the housing market declines become contained to those markets where house price declines are significant," Wachter says.

5. Credit programs: It will be tough for the housing market to come back to life until the credit markets-which have been log-jammed by fear for more than a year-begin to unlock. Like the fight to limit unemployment, reviving the credit markets is a daunting challenge. But remember, the federal government has already taken a number of steps designed to do just that. The Federal Reserve has slashed its benchmark interest rate to between 0 and 0.25 percent and committed nearly $2 trillion to new lending programs, bailouts, and additional measures designed to bolster the financial markets. Meanwhile, Congress passed a $700 billion bailout and the Treasury has already injected a chunk of that money into banks of all sorts. While these efforts haven't been enough to restore the credit markets to health, they have produced results. Interbank lending, for example, has eased. And should this modest victory lead to a broader recovery in the credit markets, the economy-and the housing demand that comes with growth-could turn around quicker than expected. "Right now, panic is driving the credit markets," says Moody of Mission Residential. "If, for whatever reason, confidence were to resume and people's appetite for risk was starting to increase, then you could start all of a sudden seeing credit flowing much more freely, which obviously supports spending in both business and households."

The Happiest of Holidays to each and everyone. May the spirit around these days touch you and your family deeply and profoundly! I would be remiss if I did not take the time to say thank you for your support. There are many realtors out there that you could turn too - and you came to me... Thank you!

There is a science to selling. The answers to the following 10 questions will tell you all you need to know about the next realtor you choose. The fact that they can answer the questions at all is a big deal - most realtors have no idea about the questions, let alone the answers. What the answers are will tell you important facts about the realtor. The realtor gleens ongoing knowledge from these numbers to help you sell quickly and for the most money in your pocket. An important point and really the ONLY point for you: it is not about a realtor taking your listing - it is only about selling your home!

1. What is your listing dollars to selling dollars ratio for the last 6 months?

2. What is the average number of days on the market for your listings?

3. How many homes, similar to ours, sold in your area within the last 180 days?

4. Of your listings that did not sell last year – How many and Why not?

5. What percentage of sales last year was Buyer? And Seller?

6. How many units sold last year? (A unit is when an Agent is representing a home as a Buyer Agent or Seller Agent. It is 2 units if an Agent is both on the same home)

7. Could you provide Names and Phone Numbers of last 5 sales?

8. Do you do have any other job besides real estate agent?

9. How many people do you speak to about real estate each day?

10. Will you show me a copy of your daily schedule?

When we get together I would be glad to share my “up to the minute” answers to these questions. Remember, if a realtor can answer these questions it says alot about them. What the answers are says alot more!

I have always counted my success in the people I have met. My closest friends and business associates, for the most part, come from my association with Real Estate. My $$$ success always follows my abilities in relationships.

The region's real estate market continued to outperform many other areas of the country and the nation as a whole in the third quarter, according to a study released today by Zillow.com, the real estate search engine.

The study, which covers Philadelphia, Camden and Wilmington as a single entity, said home values in the third quarter fell 5.5 percent from the same period of 2007 - slightly more than half that of the United States as a whole in the same time.

What's more, just 4.4 percent of area homes bought in the last five years were considered "under water" - meaning that more was owed on them than they could bring if they were sold today.

The national figure for homes with negative equity is 14.3 percent, reported Zillow, which is based in Seattle.

The Philadelphia area is showing more stability than most other markets, said Stan Humphries, Zillow's chief economist, even though "the area is undeniably in the midst of a correction."

With a market peak in 2007 - one full year after most of the nation's markets experienced theirs - "it could take Philadelphia longer to reach a bottom," Humphries said.

Indicators suggest that the area's value declines may stay relatively small, he said. Negative equity is much lower than in the rest of the country. The area has a "healthy five-year annualized appreciation of 6 percent," compared with 3.4 percent nationally, he said.

While many experts question Zillow's home-value estimates, some believe they are in the ballpark.

"These are very reasonable estimates for the area," said Mark Zandi, chief economist at Moody's Economy.com in West Chester.

Joel L. Naroff, TD Bank's chief economist, said, "I am not sure how they figured this, since there are so many submarkets," but, while "conditions are not great, the region hasn't been hit by major housing problems."

During the last 12 months, 30.2 percent of homes sold in the United States were done so at a loss, up from 23.7 percent at the end of the second quarter, according to Zillow.

In this region, just 9.3 percent were sold for a loss.

In 17 markets - 14 of which are in California - more than half of homes sold in the last year went for a loss.

Major home-price drops in those areas are being fueled by high numbers of foreclosure sales.

Foreclosures made up almost one in five, or 18.6 percent, of all transactions in the last 12 months nationally. Not surprising, areas with the highest foreclosure rates are the markets with some of the greatest home-value declines.

In California's Central Valley, 57.6 percent of transactions in Merced were foreclosures, and in Stockton, foreclosures made up 56.4 percent of transactions.

Put another way, one in every 60 houses in Stockton is in foreclosure; in Merced, one in every 88 is. By comparison, one in every 2,500 houses in Delaware County had a foreclosure filing in September.

There are no other comparable Zillow data available for this region, although Zandi said that, based on Equifax credit-file data, 0.87 percent of first-mortgage loans in the region were in default at the end of September, compared with 1.38 percent nationally.

With continued intervention by the state and the city, it can take a year or more for a default to go to foreclosure sale, so the number of sales, anecdotally, remains minimal.

A third-quarter study by Philadelphia economist Kevin Gillen for single-family homes in the city (condos are excluded) showed median prices down 6.8 percent.

In the same period, the composite price of houses in 10 cities tracked by Standard & Poor's Case-Shiller Index was down 20.8 percent - including Los Angeles, Las Vegas, Miami, and Washington.

Philadelphia prices are still overvalued about 2 percent, according an IHP Global Insight/National City measurement - meaning that they have that much more to fall before they reach bottom.

Gillen points out, however, that Philadelphia prices in the 1990s continued to fall for much of the decade after hitting bottom, so there are no guarantees.

Said Humphries: "It seems Philadelphia may escape the worst of the housing market woes affecting much of the rest of the country."  By Alan J. Heavens  Inquirer Real Estate Writer

 “This is the type of Real Estate market that two years from now everybody is going to say, “I wish I had bought then.”  All the factors are lining up for the next six to twelve months to be that year.  Let’s look at those factors. 

Financing

Interest rates are dropping below 6% on residential mortgage loans.  Rates are seldom that low and when they have reached that level, mortgage loan rates do not stay there for long.  According to HSH Associates, the nation’s largest publisher of consumer loan rates (HSH.com) from mid 2003 through mid 2005 rates hovered just above and below the 6% threshold, never below for more than a few months.  Before that they had not been below 6% for forty years.  The most likely conclusion is that mortgage loan rates will not stay below six for long.  So, Buyers would be wise to be actively looking to buy and take advantage very soon. 

Mortgage money is available.  Real Estate Agents and mortgage brokers from coast to coast are all telling me that there is money available with five percent down or less.  The Buyers do need to have steady employment, and a reasonable credit rating.  The days of Buyers needing to prove employment, have some cash on hand and credit worthiness have returned for good, hopefully.  Violating those obvious principles contributed enormously to our current global financial crisis.

Requiring stability of employment, credit and some cash is not the banks being cautious.  It is the way lenders have made decisions since paper money was invented.  The last ten years when those fundamentals were ignored have been the exception.  Bottom line, solid Buyers can get the best rates and buy at what I believe is at or near the bottom of the market.   

Inventory, Foreclosures and Pricing

New home inventories are being absorbed.  According to HWMarketIntelligence.com “the number of new homes for sale continues to steadily decline and have not recorded a monthly increase since May 2007.”  According to the Mortgage Bankers Association the number and rate of properties entering foreclosure is slowing. 

My anecdotal research from my Real Estate Agent Clients around the country is that the foreclosure properties are being purchased at a much higher rate as first time home Buyers and investors in market after market are deciding that we are near enough to bottom.

This Buyer and investor activity will create its own momentum.  As more Buyers and investors choose to buy now the demand they create will stabilize and lead to market appreciation.  Did people who bought at the height of the boom in late 2005 and 2006 lose equity?  In most markets yes, in some markets they lost a lot.  Are the Buyers who buy over the next year likely to be buying at the bottom of the market and benefit from excellent appreciation?  Every indication that I see says yes. 

As Real Estate Agents you need to decide if you are comfortable recommending that this is the time for Buyers to buy, that prices may be at or near the bottom.  I suggest that we are at or near the bottom and the Buyers you encourage to buy over the next twelve months will be forever grateful for your advice.

Some Considerations

The Real Estate market, specifically for residential homes is typically not a speculative market.  The vast majority of people buy a house to live in it as their home, not to resell it for a profit.  Over the last forty years Buyers have come to expect that their home will build equity and appreciate in value.  But, the decision to buy is usually based on factors other than anticipated appreciation.  The Buyers you encourage to buy want to own the space in which they live.  The fact that this is a fabulous time to make that decision just makes your job easier. 

Second, there is a continuous demand in most markets.  People graduate from school, get better jobs, get married and divorced, have children, upgrade and downsize, among dozens of other reasons that new Buyers come on the market.  These life events keep occurring.  However over the past two years these Buyers have paused.  They still want to buy but they are waiting.  Historically when there is a time that Buyers are reluctant to buy for any reason this creates a pent up demand. 

As Buyers realize that it is a good time to buy but not necessarily for Sellers to sell; demand will begin to absorb and exceed supply.  Over the next year or two the additional demand is likely to lead to a Seller’s market.  Because of the severity and magnitude of the current housing supply this turn to a Seller’s market will likely be gradual. 

The signs of this shift are occurring now, that is, the supply of new construction and foreclosure homes are being absorbed by first time Buyers, investors, and secure homeowners taking advantage of their financial strength.  This spring may be the tipping point when market activity flourishes.  I believe it will.  

Inflation: The X Factor

I remember a rapidly inflationary period.  I remember it for a funny reason.  I used to drink a lot of Coca Cola.  One day when I put a quarter into the machine to vend my Coke I realized that it was going to cost me forty cents.  Soon after that it was fifty cents and within five years it was seventy five cents.  Now it is at least a dollar.  This is inflation.  Your money buys less and the cost of what you buy increases.

If you owned Real Estate during this same period you were very happy because the property you owned in 1981 also doubled in price or more by 1986.  That is true even if you didn’t live in a highly populated area.  This inflationary period did not discriminate by locale. 

Are we on the verge of another inflationary surge?  I don’t know.  I have been reading what I can find on this and it seems to be a largely ignored topic.  I notice that gas prices are declining but not much else.  I think about the trillions of dollars worldwide being spent on the bailout.  The definition of inflation is when the amount of money in circulation increases and the available goods decreases.  It seems to me that is what is happening. 

If inflation does devalue our money then house prices, along with the price of almost all other hard goods will increase and this year’s Buyers are going to get benefit tremendously.  Whether this happens or not it is time for buyers to get in the market. 

First Time Buyers and Investors

For certain Buyers it is time to get active.  I am saying to anyone and everyone that will listen.  FIRST TIME BUYERS THIS IS YOUR TIME!  The federal government is still offering a $7,500 tax credit that is scheduled to conclude in the summer of 2009.  Prices and interest rates are down.  If you are employed and credit worthy you can buy with a small amount of cash out of pocket.  FIRST TIME BUYERS THIS IS YOUR TIME!

Another group that I am encouraging to buy now is investors of residential rental property.  Investors still have to do their investment analysis.  They still have to carefully look at occupancy and vacancy rates.  In other words, investors have to make smart, calculated buying decisions.  This is always the case.

The reason it is a good time for these investors is because the market is soft.  As long as there has not been a population exodus in your community, that is, as long as people are choosing to live in your community and employment is stable, the rental property is going to sustain value.  At the same time market conditions right now, with more challenging underwriting standards and only those who really need to sell putting their property on the market creates the opportunity all investors are looking for, buy low, particularly those with some cash. 

Get in the Game

So, I have been telling my Agent Clients and my audiences to shout from the rooftops that first time Buyers and investors should get in the game.  Call the people in your spheres of influence and your past Clients and be honest with them about whether it is a good time to sell. 

At the same time encourage them to tell their relatives, friends and any one that they care about that if they are first time Buyers to call you and start looking.  If they are investors with some cash suggest that they start looking for golden opportunities with you.

Look for articles from legitimate sources about what is going on with the global financial crisis.  But then look at your local market and discover the opportunities for first time Buyers, investors or any other group or type of property that may be a shining beacon through the fog.

Be the optimistic and intelligent voice of opportunity and you will both survive this market you will become a roaring success as the market improves; which it will.  When?  For most markets, the prediction is late 2009.  For some it will be spring of 2009 and for others it will be longer. 

I have led Agents to success in four of these major shifts since 1979.  Every one of these soft markets creates strength in those that survive it.  And those who survive it by discovering the opportunities for their Clients become the highest producers and the leaders of the healthy market that is likely to be just around the corner. 

Home Prices: Now for the Good News

By Brad Reagan and Elizabeth O'Brien

Oct 20th, 2008

When the headlines about the housing market are apocalyptic, the last thing a homeowner wants to do is sell. But a funny thing happened to Jeff and Jennifer Boyd when they put their three-bedroom house in Philadelphia's Graduate Hospital district on the market this summer: They turned a profit. Just 45 days after the listing went up, a buyer snapped up the property for $555,000-$29,000 more than the Boyds paid in 2006. "We were pretty hesitant, knowing what the market is like," says Jeff. "But a few weeks later, it was gone."

Here's a surefire way to start an argument: Suggest that the housing market has reached bottom. To be sure, the near-term outlook is still grim, and nobody is forecasting a rapid nationwide rebound. But there are signs that the overbuilding and speculative pricing that inflated the bubble are working their way through the system. In October 2005, near the peak of the boom, the median sales price for a U.S. home reached 7.3 times per capita income; by this May it had fallen to 5.7, in line with historical norms. Nationally, the rate of decline in sales is slowing, and in some regions sales numbers have actually perked up. "The indicators are starting to look better," says Adam York, an economic analyst with Wachovia.

Why the disconnect? For starters, the national sales figures that get so much attention-and remain depressing-are brought down by boom-and-bust markets like Las Vegas, Miami and Phoenix. David Berson, chief economist with mortgage insurance firm The PMI Group, says that if hard-hit states like California, Arizona, Nevada and Florida are taken out of the statistical mix, the picture is much more promising. According to PMI's "risk index," which estimates the odds of prices falling in a given market, at least 65 percent of the nation's 386 metro areas have less than a 10 percent chance of seeing lower prices two years from now. What's more, the government's sweeping bailout of the financial sector could boost the housing market by making borthe rowing easier for buyers.

We dug into those numbers as well as other forecasts and analysis to determine which markets are in the best shape for a rebound. We also talked with housing experts to learn which kinds of neighborhoods and suburbs are thriving. Our search led us to 25 metropolitan areas that look particularly promising, and there are more than a few surprises. Here, we profile seven of the best-looking markets; for the full list of 25, see November's issue of SmartMoney magazine.

Philadelphia

Philadelphia bashers like to note how the city doesn’t quite keep pace with its northeastern neighbors New York and Boston. When it comes to real estate, that may be a good thing. While prices in the Big Apple and Beantown soared during the bubble years from 2003 to 2006, the City of Brotherly Love charted slow and steady growth. Over the past year, Philadelphia prices have stayed stable, while New York and Boston suffered small declines. And only 7 percent of Philly-area homeowners sold for a loss in the past year, according to Zillow—well below the national average of almost 24 percent.

The region did see some overbuilding, but employers such as pharmaceutical and other health care companies are drawing an influx of newcomers to the suburbs. That’s especially true in many communities in the Delaware Valley including Collegeville, a former bedroom community 30 minutes northwest of Philly’s city center that is now home to operations of both Wyeth and GlaxoSmithKline, with mutual fund giant Vanguard just a few towns down the road. So named for the leafy campus of Ursinus College, Collegeville offers multi-acre horse farms and country estates for executive types, with more quaint accommodations in town for tweedy academics. Keller Williams Real Estate, a local brokerage which actually has sales figures in the Delaware Valley that are going up, says Collegeville prices are up 16 percent this year. “Based on the National real estate outlook, buyers are putting in low-ball offers and we are having to educate the buyers to the local scene which is a lot better than almost any place else,” says Realtor, Richard Hopkinson. Other Philly suburbs are benefiting from the more traditional migration of young families from the city center. The Boyds, the couple who sold their house in town at a profit, are using the proceeds to buy a four-bedroom, 3,000-square-foot home in a new development in Skippack, Pa.

Below is an article from CNN Money explaining why the Fed lowered its fed funds rate and the discount rate by half of a percentage point to bring them 1.5% and 4.5%, respectively. Wednesday's cut was the Fed's eighth since September 2007 and the second outside of a regularly-scheduled meeting. By lowering the Fed rates, the Fed is trying to spur on the financial markets / stock market. However, when this is done, it usually weakens our dollar, which is inflationary. Increased inflation will result in increased long term rates / mortgage rates. Fortunately or unfortunately, due to the global financial crisis today's cut was made in conjunction with other central banks around the world including the European Central Bank and Bank of England. Because the world's banks lowered their rates together it will keep our dollar at the same level and we should not see a major change, up or down, in the long term / mortgage rates. Please call Cornerstone Financial Mortgage (215) 654-6070 representative, Eric Baitinger  or Bruce Neuman for more details.

Fed: Emergency cut

Fed joins 5 central banks - cuts 1/2 point and cites 'intensification' of crisis.

NEW YORK (CNNMoney.com) -- The Federal Reserve, working in coordination with other central banks worldwide, enacted an emergency interest rate cut on Wednesday.

The Fed lowered its fed funds rate by half of a percentage point to 1.5%. The central bank's statement said the move was necessary because of the worsening crisis in global financial markets.

"The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability," the Fed said.

The rate cuts are just the latest in a series of groundbreaking moves by the world's top central banks to try to breathe life into embattled financial markets.

Earlier in the week, the Fed took steps that could potentially make trillions of dollars available to banks and the nation's leading businesses. That's on top of the controversial $700 billion Wall Street bailout approved by Congress Friday. Earlier Wednesday, the Bank of England announced a bailout plan of that nation's banks, as it said at least $350 billion will be made available to British banks.

U.S. stock futures soared on the news of the rate cuts, after five days that saw the Dow Jones industrial average plunge more than 1,400 points.

Stocks in Japan closed down nearly 10%, their worst drop since the crash of 1987 and their third worst day in history. European markets were down early, even with the British bailout, before rebounding on the rate cut news.

The Fed on Wednesday also reduced its discount rate, the level at which it lends money directly to banks and Wall Street firms, by half of a percentage point to 1.75%.

But the fed funds rate is the central bank's main tool to affect the economy. Lowering the rate pumps money into the economy by reducing the borrowing cost on a broad range of loans, including credit cards, home equity lines and many business loans.

Coordinated response

The moves were made in coordination with other central banks around the world including the European Central Bank and Bank of England.

The ECB, which had kept rates unchanged as the Fed engaged in a string of rate cuts over the last year, cut its rate by a half-point to 3.75% - its first cut in five years.

The Bank of England also cut its rate by a half-point to 4.5%. The Swiss, Canadian and Swedish central banks also made cuts.

The Bank of Japan joined the statement of the other six banks expressing its strong support of these policy actions. But with its rate already at 0.5% before the joint cut, it did not follow with a cut of its own.

Central banks have followed each other in coordinated cuts in the past. For example, the ECB and the Fed both made emergency cuts a week after the Sept. 11, 2001, terrorist attacks. But the joint statement announcing a cut at multiple banks is still rare.

Wednesday's cut was the Fed's eighth since September 2007 and the second outside of a regularly-scheduled meeting. But the Fed had left rates unchanged at its last three meetings ahead of this emergency cut. The Fed's next monetary policy meeting is a two-day session that concludes on Oct. 29.

Attacking the lending problem

The cut follows a Fed announcement on Tuesday that for the first time it will start to loan money directly to the nation's major businesses by buying their commercial paper, a form of lending that is considered crucial to the operations of many large and mid-size companies as well as most leading financial institutions. There is $1.8 trillion in commercial paper outstanding. The Fed said there was no limit on the amount it was willing to purchase.

On Monday, the Fed dramatically increased the size of its term auction facility, a way to loan money to the nation's central banks. It said it would immediately double the amount of funds it was loaning out in that program to $300 billion, and signaled it could be loaning out $900 billion by the end of the year.

Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson were also the main advocates of a controversial plan for Treasury to buy $700 billion in damaged mortgage-backed securities in a bailout of banks and Wall Street firms who have seen their profits and balance sheets hit by declines in those assets. The decline in home prices, and the resulting record levels of home foreclosures, caused the value of the assets to plunge in the last year.

The House approved an updated version of the bill on Friday after rejecting an earlier version last Monday.

In a speech Tuesday, Bernanke warned that the global financial markets crisis is likely to restrain the economy well into next year and said it appeared the threat of inflation was retreating. Central banks can be reluctant to cut rates because it can feed inflation pressures.

"Overall, the combination of the incoming data and recent financial developments suggests that the outlook for economic growth has worsened and that the downside risks to growth have increased," he said in a speech to the National Association of Business Economics.

The speech signaled that a rate cut was coming. "In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate," Bernanke said.

The Fed's statement on Wednesday said the decline in energy and other commodity prices and the weaker prospects for economic activity have reduced the upside risks to inflation.

Even Dallas Fed President Richard Fisher, a so-called inflation hawk who has worried about inflation pressure, voted in favor of this cut. Fisher had voted no on several previous cuts, advocating smaller cuts than the Fed was making at the time, and had voted for a rate hike at two of the meetings at which it left rates unchanged.

It is possible that the Fed could go ahead ahead and cut rates again at its regularly scheduled meeting on Oct. 29. Some had called for the Fed to cut rates by as much as a full percentage point, and the Fed has cut rates again at its regular meeting after its previous three emergency rate cuts - in January 2008 and in January and September 2001. http://money.cnn.com/2008/10/08/news/economy/fed_move/index.htm?cnn=yes" \l "TOP http://money.cnn.com/2008/10/08/news/economy/fed_move/index.htm?cnn=yes" \l "TOP

During the real estate boom, staging and cosmetic touch-ups were often all it took to launch buyers on a desperate race to make an offer before they ended up in a price-escalating, multiple-offer showdown. Now that calmer conditions exist for buyers, superficial or fashion-based make-overs may not be enough to trigger an offer. They may even turn buyers off a property.

Sellers, who may be anything but calm, must squeeze out every drop of buyer-oriented value in their house or condominium if they want to generate an offer.

When buyers have time to view a property more than once and to compare it with other listings in the area and in a price range that meets their "want & need" list, quality becomes one of the deciding factors.

Experienced real estate brokers and salespeople may understand what a listed a property needs to boost buyer interest, but they may not be the best professionals to call on to improve functionality and quality.

Registered Interior Designers complete strict education and internship requirements set out by provincial accreditation organizations, which usually provide "Find an Interior Designer" access for consumers.

Contrary to impressions fostered by television and magazines, interior designers are not just into "pretty." They are trained to see the flaws in a property and value potential, and to translate their clients' needs and wants into the best solution within a budget and time frame.

Fast Forward to 2009, an annual collection preview hosted by Toronto's Designers Walk offered an excellent opportunity to learn what consumers may not understand about what designers do and what they know. Here are a few tidbits which may encourage you to do your own research into the value an interior designer may add to your home:

• Ochre and golds define the Spring '09 pallet, but there's much more. It's sheen not shiny in fabrics, with glass and crystal the main glitter factor. As financial belts tighten, what happens to decorating? "An update or a lift, there's always a budget for accessorizing or adding a colour punch or a new pallet, or one chair, a feature wall, a wall hanging, a table runner, pillows..." said Margaret Dietsch, Director of Sales-Canada, The Robert Allen Group. Take the penthouse virtual tour with internationally-renowned designer Larry Laslo and you'll see Robert Allen's 2009 collection in action and receive practical design suggestions about sheers, crystals and "dropped meatballs."
• One showroom host, Suzanne Brown & Associates, presented one of the firm's exclusive lines which uses an innovative production approach that trademarks it as "affordable and in stock." Brown stresses that since styles change, expect to change: "Everyone goes for the same old thing. You can be innovative in different ways, expressive on a budget. Good design is always affordable, and well worth it." Tip: Charcoal is replacing chocolate.
• Telio, an importer of high-fashion fabrics, wallpapers and interior furnishings, presented Christope Guillemot of Perennial Outdoor Fabrics, who explained the sustainable design principles behind outdoor furniture. The Canadian Tire approach to disposable lawn furniture must give way to long-term thinking about patio living. Durable, stain-proof fabrics, teak frames and designs which are "evolving rather than revolutionary" are the key. By using certified plantation trees, which are harvested and replanted, and a state-of-the-art factory, which recycles wastewater to "better than before" levels, his company ensures the longevity of the furniture and the environment. This "last a lifetime" approach to outdoor furniture does not cost them business but builds a clientele also interested in lasting quality and reducing waste.

Nothing illustrates the knowledge that goes behind creating beauty like upholstery. In a continuing education program, Fabric 101, high-end upholster Steve Mittman reviewed tips and concepts that guarantee a professional job:

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  1. Silk, silk velvet and natural leather are among the fabrics that should be used for clients who appreciate imperfections and wrinkles that do not detract from beauty, but create it. [small bullet] Mohair should be railroaded, or run the width of the piece since seams always appear irregular.
  2. Chenille with a pile must be backed to prevent migration with use.
  3. Vertically repeating patterns may require more length in an upholstery project, but caution should be used with horizontally repeating fabrics where the repeat is half the width. For instance, with a 27 inch pattern and a 30 inch chair cushion, there's no satisfactory solution. Mittman cautions: "Cutting fabric for upholstery is more art than science, and so, hard to learn, but it is always a compromise between the designer's intent and the piece of furniture."

"Designers think about function before the rest of the story," said Ray Staples of Ray Staples Interiors, a provocative guest on City TV and an acclaimed designer. "Designers can help people realize they are starting at the wrong end."

Staples explains that consumers ask 'What color should I paint my living room?' when the problem that should be addressed is the out-dated couch, an odd ceiling, worn-out fabric or another significant, quality-undermining deficiency.

Staples also stresses that consumers should not confuse television with their lives. "On TV, we have to think instantaneously. The first thing we see—for example, the doorway—is a problem, but the viewer asks about curtains. I say 'That's hardly the least of your worries.' What they expect now—what we're doing with all the [design] shows—is convince people we can do it overnight, in 24 hours. That's not reality, that's television. (End of Article)

I would like to introduce you to a fantastic Interior Designer who is the owner of DEZIGN INTERIORS, Marianne Zwicker. Marianne has award winning ideas for new spaces and goes beyond the ordinary into actually helping you sell your home! Once your home is priced right, she knows how to set up your home to sell! You can reach her at (267) 226-4638 or www.dezigninteriors@verizon.net.   

           October 1st, 2008 at the Center Square Golf Course we will have our annual golf outing to benefit KW Cares (Keller Williams). KW Cares is an international, philenthropic organization that supports many charities world wide. This year we are presenting all the proceeds to the Tyler Aaron Bookman Memorial Foundation. Tyler's life was cut short at 11 because of a brain tumor. His parents, based on Tyler's love of learning, started the foundation with the money they had saved for his college education. Education is key to breaking the cycle of poverty.

           October 1st Richard Hopkinson of Keller Williams Real Estate - Blue Bell, will be celebrating his birthday! He will consider it a gift if you show up!

           So come on out for a good cause, good times, and great company. The festivities start at 11:00 am in a scramble format (which simply means you do not have to be a very good golfer - it just means if you are not very good, you cannot play on Richard's team. Only one person on the team gets to be the "not very good" and that position is filled!). There is a dinner to follow. $125.00 for the round of golf and dinner. Just dinner is $40.00. There is event and hole sponsorship available. Please call Richard Hopkinson of Keller Williams Real Estate - Blue Bell for further details. (215) 654-5431

             I know, if you knew, you would care... It is a week-end, quite a lovely one to be searching for your new home. Earlier in the week, you met with me, Richard Hopkinson from The Richard Hopkinson Realty Group at Keller Williams Real Estate – Blue Bell, and I showed you all the upside (with no downside) of being represented to help you find your home. We went over and signed the necessary paperwork to satisfy the regulations my real estate license requires. This paperwork essentially says that when we find your new home I will have earned a commission. Almost always, this commission is paid by the seller at closing. If it is not paid by someone, you would be asked to pay it.

             So you and your "partner in crime" are out riding when you "stumble" across this new development you did not even know was going to be constructed. You both wander in and you get a tour. You really love it! If you buy that property... Did you know that if I do not accompany you to that property that I would not get credit for helping you find it. The builders have a different set of standards. In my mind, it is no different if you chose to go into an Open House without me. The agent running the Open House would honor our Business Relationship. So, if you run into that situation... at bare minimum, mention and sign in that you are represented by Richard Hopkinson from The Richard Hopkinson Realty Group at Keller Williams Real Estate – Blue Bell. The builders should register me and I will have earned my commission. By the way, The Business Relationship does say that if no one else pays my commission, you pay... I would never ask you for it because you have no way of knowing that the builders behave this way. Thank you for caring and for our relationship. I remain "YOUR REALTOR FOR LIFE"!