|
Reasons to Read
Coverage of the surreal estate market continues with more gloomy national data, though it appears that the Cleveland market has made it through the storm with some recent price advances. Also, read on for helpful tips on how to properly hire paid and unpaid interns, document construction project activities, and turn your old toilet into a dual-flush water saver.
 As always, I appreciate the time you have taken to review this e-newsletter. Please feel free to contact me if you have any questions, comments, or suggestions for future articles.
Jim Dixon
216-515-1642
|
|
Surreal Estate: Waiting Until 2011?
New terms are creeping into my residential real estate lexicon. A "dirty sale" is one that involves either a short sale or an REO sale. "REO Sales" are those where the bank or a trustee has assumed ownership following an unsuccessful foreclosure sale. When dirty sales increase, prices decrease. As explained by an interesting article in the May 28 issue of The Plain Dealer, while dirty sales have already done their damage to home prices at the low end (below $350,000), default and foreclosure rates on the highest end (over $750,000) and in the jumbo end (over $500,000) are high enough that more dirty sales will result, as will a "whipsaw" of the market. While 41% of sales in the mid-range (over $350,000) were dirty, there are enough defaults and foreclosure sales (the highest concentration) in that range that the forecast is even gloomier. And, this analysis pertains to prime loans as opposed to sub-prime or FHA loans. Gloomy news indeed, though this data is drawn nationally, and it appears from it that Ohio has felt the blow already because a larger part of its market is at the low end of the spectrum. According to regional data, prices in the Cleveland market are what they were in late 2000. Obviously, not a great ten-year ROI for homeowners. However, among the twenty cities in the S&P/Case-Shiller index, the Cleveland market had the strongest price gain (1.8%) from February to March 2010, with March 2010 coming in 6.7% ahead of March 2009. That same article references an economist who does not see nation-wide recovery until 2011. As I reported last month, with the tax incentive expiring in April, we will see distorted figures for that month that will draw activity forward and thus presage low figures for May and maybe June. With those months typically the busiest, it may be several months before economists can draw meaningful comparisons. Hopefully, the fact that mortgage rates are nearing record lows will help. |
|
Because There Are No Smoking Guns, Contractors Must Properly Document Project Events To Maintain Their Position at Trial or in Arbitration Writing in Building Profits magazine, published by the Construction Financial Management Association ("CFMA"), Construction Group Chair Andy Natale discusses how the proverbial "smoking gun" piece of documentary evidence rarely exists to prove or disprove a claim, and thus contractors must maintain complete, accurate, and timely product documentation and avoid inadvertant waivers to enhance their prospects for victory in any dispute resolution proceeding. For more information about CFMA, which is a nonprofit dedicated to assisting construction financial officers, visit their web site. |
|
Green Product Plug: Dual-Flush Toilet Retrofit I was glad to learn from an episode of This Old House that I do not have to buy new dual flush toilets. A few products are available that retrofit most old toilets to provide two flush volumes (1.0 gallon and 1.5 gallon). Some of the rusty parts in our toilet made my project a bit of a challenge, but after a test run we have ordered two more kits from One2Flush. For about $30, the pay-back comes quickly when converting a 3.5 gallon toilet. |
