Sussex County, Delaware Home Sales - as of Jan 26, 2009

It is snowing outside! This confirms that it is indeed winter -- I was beginning to wonder with the weather lately, and the lack of white stuff falling from the sky! With the cold months of winter comes a slow time of year for real estate. The Delaware beach areas are managing to hang on and chug along smoothly. We aren't seeing the numbers we have seen in years past, but homes are selling. I have a feeling once we thaw out and colors start appearing in yards, we will see a change in the market, but not as quick a comeback we experienced in 2003 through 2005. Below is a breakdown of what has closed for 2009 thus far.

Single Family - 41

Condo / Town Home - 13

Mobile - 6

Multi-Family - 0

Lots / Land - 8

Farms - 0

Commercial - 3

The total closed real estate transactions for the year is 71. That is a difference of 21 from this time last week. I should have averages and statistics for January by mid-next week, so I will post those at that time.

New Frannie, Freddie rules on the way

Regulator will issue new rules governing the mortgage finance company's portfolio holdings. Also coming, new capital requirements for Federal Home Loan Banks.

NEW YORK (CNNMoney.com) -- The federal regulator of Fannie Mae and Freddie Mac will set new rules early next week governing the mortgage finance companies' portfolios, which play a crucial role in the nation's housing market.

The Federal Housing Finance Agency is required by Congress to issue regulations ensuring the companies' portfolios are backed by sufficient capital, while keeping in mind their ability to provide funding for the mortgage market by turning home loans into securities. Their portfolios contain mortgages and securities backed by home loans.

The agency will also establish new capital rules for the 12 regional Federal Home Loan Banks, which provide much-needed low-cost funding for more than 8,000 banks nationwide. The home-loan banks have suffered in the economic crisis and may have to reduce their lending to shore up their finances.

"The regulations will address items critical to the safety and soundness of the 14 government-sponsored enterprises, which play a vital role in the nation's mortgage market," said James Lockhart, the agency's director.

Analysts, however, say it's more important to determine the future of Fannie and Freddie, which were taken over by the federal government in September, than to issue portfolio regulations.

"What Congress decides to do with these two companies is the real question," said Jonathan Koppell, associate professor at the Yale School of Management.

Portfolio problems

Fannie and Freddie are the largest sources of funding for the U.S. housing market. They buy mortgages from lenders and either hold them on their books or bundle them into securities. The companies also buy mortgage-backed securities.

Their $1.7 trillion portfolios have long been a source of controversy. Regulators had capped the growth of the companies' portfolios after the pair emerged from accounting scandals earlier this decade in an effort to minimize their riskiness.

But as the mortgage crisis unfolded over the past two years, the federal government has leaned more heavily on Fannie and Freddie to keep the housing market afloat. With investors shying away from buying mortgage-backed securities, the two companies are essentially the only players in the arena nowadays. Regulators lifted the portfolio caps last March.

Fannie and Freddie, however, continue to suffer as delinquencies rise. On Friday, Freddie announced it would ask the U.S. Treasury for up to $35 billion more in assistance as it anticipates losses in its fourth-quarter results. The company has already drawn down $13.8 billion of the $100 billion in federal funds made available to it when it was placed into conservatorship in September.

Trouble at FHLB

Meanwhile, the agency must also set capital requirements at the Federal Home Loan Banks, which are owned by the 8,000 member banks but have an implicit government guarantee. Established during the Great Depression, the home-loan banks are the nation's largest source of residential mortgage and community development credit. They provide low-cost loans, called advances, to member institutions, taking collateral such as high-quality mortgage-backed securities in exchange. Banks nationwide have increasingly relied on the home-loan banks for crucial funding as other sources dry up.

But as the value of the mortgage-backed securities drops, the home-loan banks are facing a credit crunch of their own. Some have cut back their dividends. Others have announced they may fall below their current capital requirements.

If the Federal Housing Finance Agency ups the home-loan banks' capital rules, they may not be able to lend as much. But that may not be a bad thing, experts said.

"The problem of the last five years is that people were doing too much lending," said Thomas Stanton, a lecturer at Johns Hopkins University. "They cannot be as big as everyone would like."

By Tami Luhby, CNNMoney.com senior writer

January 23, 2009: 7:01 PM ET

Existing Home Sales in Surprise Jump

Sales of existing homes in December rose 6.5% from November. But prices continued to fall, down over 15% from last year.

NEW YORK (CNNMoney.com) -- The number of existing homes sold in December rose 6.5% from the previous month, according to a report released Monday, as bargain hunters took advantage of plummeting prices.

The National Association of Realtors said that home sales increased to a seasonally-adjusted, annualized rate of 4.74 million units. That's up from a revised pace of 4.45 million units sold in November and more than the rate of 4.4 million units projected by a consensus of industry analysts as reported by Briefing.com.

"We have some months to go before we are out of the woods on the housing front," said Robert Dye, senior economist at PNC financial services group. Especially considering "weak consumer confidence and ongoing rapid deterioration in labor markets."

Still, December's existing home sales are down 3.5% compared with December of 2007, when the seasonally-adjusted, annual sales rate was 4.91 million. Existing homes include single family homes, townhomes, condominiums and co-ops.

For all of 2008, there were 4,912,000 homes sold, which was the lowest volume since 1997, when there were 4,371,000 homes sold. Sales volume in 2008 was down 13.1% from the 5,652,000 existing homes sold in 2007.

Bargain hunters: Bargain prices are bringing buyers back into the market. The median existing home price was down 15.3% to $175,400 from December 2007, when the median price was $207,000. The median price measures where half of the homes sold for more and half sold for less.

"Americans love a bargain, and the housing market is no exception," said Mike Larson, real estate and interest rate analyst for Weiss Research in a written statement.

Thanks to the sales increase, the number of homes available on the market decreased 11.7% in December from the previous month, to 3.68 million. That represents a 9.3-month inventory supply at the current pace of sales, down from a 11.2-month supply in November.

"That's exactly what we need to see if the housing market is ever going to get back to a state of equilibrium," said Larson.

Home prices were pushed lower by the high volume of distressed sales, which accounted for 45% of December transactions according to the report.

"The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal, balanced conditions," said NAR chief economist Lawrence Yun in a written statement. He warned that the housing market is far from healthy. "Buyers will continue to have an edge over sellers for the foreseeable future."

Surge in the West: The number of homes sold nationwide was buoyed by a surge in the West, where the housing market has been hardest hit by a record number of foreclosures.

Existing home sales in the West surged 13.6% to an annual rate of 1.25 million in December, up 31.6% from a year ago. But the median price in the West was $213,100, down 31.5% from December 2007.

In the South, existing home sales increased 7.4% to an annual pace of 1.74 million in December, but that was still 11.2% lower than December a year ago. And sales in the Midwest increased 4% in December to an annual rate of 1.04 million, but were down 10.3% from the same period last year.

The Northeast saw sales edge 1.4% lower, to an annual pace of 720,000 in December, down 14.3% from December 2007.

In the months to come: Analysts said that the weakening job market would slow any recovery in housing.

On Monday morning, a slew of companies announced a massive wave of job cuts. Home Depot (HD, Fortune 500), the No. 1 home improvement retailer, announced it would eliminate 7,000 jobs, or 2% of its total workforce, while Caterpillar (CAT, Fortune 500) said it will cut 20,000 jobs.

"Unfortunately, we are seeing fast and furious [layoffs] now," said PNC's Robert Dye. "And that does add to the level of uncertainty and it does put workers and consumers on edge."

Mike Larson from Weiss Research echoed that sentiment. "It's hard to imagine a lasting turn in the housing market with thousands of layoffs being announced every few days," he said.

The Obama administration is now at work on an economic recovery plan, and Yun said that this will be critical to the revitalization of the housing industry.

"The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery," Yun said in a statement.

By Catherine Clifford, CNNMoney.com staff writer

Last Updated: January 26, 2009: 12:30 PM ET

Sussex County, Delaware Home Sales - as of Jan 19, 2009

Happy Inauguration Day! Today we made history, and the promise of new beginnings. I am inspired and excited to see what this new president will do for our nation.

In terms of real estate -- things have been moving down here at the shore! We have had a little activity, and a good start to the new year. There have been 51 closed real estate transactions since the new year. Below is a breakdown of what has sold.

Single Family - 26

Condo / Town Home - 11

Mobile Home - 5

Lots / Land - 7

Commercial - 2

I don't have any averages yet, but, as mentioned before, if you are interested in getting those figures, please email me, and I will see what I can do!

Fannie and Freddie give borrowers more time

The companies extend a moratorium on foreclosures hoping that more borrowers can solve mortgage payment woes.

NEW YORK (CNNMoney.com) -- Mortgage giants Fannie Mae and Freddie Mac have extended a moratorium on foreclosure suspensions for another three weeks, directing the mortgage servicers they work with to postpone any foreclosure or eviction proceedings through January 31.

Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) projected that, under the original moratorium, which began Nov. 26 and was scheduled to lapse on Jan. 9, 6,000 homeowners would avoid bank repossession and eventually qualify for mortgage modifications. The companies don't have any actual statistics tracking how many borrowers the moratorium has helped.

The extension should give servicers more time to help these at-risk homeowners enroll in the companies' Streamlined Modification Program.

That program is aimed at helping borrowers who are 90 days or more late on payments, who own and occupy their primary residences and who have not filed for bankruptcy to reduce mortgage payments to no more than 38% of their income. It was launched by Freddie and Fannie on December 15, 2008.

"Freddie Mac is committed to pursuing every responsible opportunity to reduce foreclosures and accelerate the return of stability to the U.S. housing market," said Freddie Mac CEO David Moffett in a prepared statement. "Today's announcement will provide Freddie Mac and its servicers additional opportunities to help put more families on the path to stable homeownership."

Renters benefit too

The foreclosure grace period applies to owners of single family homes as well as multiple family houses of two to four units that are occupied by renters. In addition to cutting the number of foreclosures, it could also help some families who rent apartments remain in their homes.

In the past, when building owners were foreclosed on their renters often faced immediate eviction, even when the renters were up to date with their payments.

In December, Fannie announced a new policy for renters called the National REO Rental Policy, which allows these renters to stay in their homes as long as they have legitimate leases and keep up with their rent payments.

The company said the additional three weeks of the moratorium will enable Fannie to put this new REO Rental policy more fully into operation.

It will also give Fannie more time to make sure all of its seriously delinquent borrowers who are eligible receive help from the company's "Second Look" initiative.

Under this program, which launched early last fall, Fannie Mae personnel work with servicers to make sure that all homeowners facing foreclosure have been contacted and told of the possible workout options available to them.

The more information the companies can get to homeowners, the more likely they are to save their homes.

By Les Christie, CNNMoney.com staff writer

January 8, 2009: 1:12 PM ET

Mortgage help gains momentum

Hundreds of billions will be spent to spur the economy. The elephant in the room - foreclosure prevention - hasn't gotten much notice. That is changing.

NEW YORK (CNNMoney.com) -- There are many ways to spend $800 billion to revive the economy. In recent days, President-elect Barack Obama has ticked off many of them: invest in infrastructure projects, help states pay for Medicaid, cut taxes on the middle class, expand use of renewable energy.

But what about helping those at risk of foreclosure, and by extension the housing market as a whole?

Lawmakers in Washington are demanding that more be done, and they are aiming their sights both at the $700 billion financial rescue package known as TARP and the massive economic stimulus bill Obama is pushing as vehicles for new housing measures.

Already, Treasury Secretary nominee Timothy Geithner is working on plans to revamp the way TARP is used to make foreclosure prevention a bigger priority, two transition aides told CNN. Congress has made it known that it likely won't release any more TARP funds until some of the money is earmarked for housing.

For his part, Obama has been shy on details but has said that within a month or two he would unveil "a sweeping effort to address the foreclosure crisis so that we can keep responsible families in their homes."

Meanwhile, Senate Budget Chairman Kent Conrad, D-N.D., on Wednesday said it would be a mistake to pass a stimulus bill without also tackling the housing crisis.

"The housing market is 16% of the economy," Conrad said. "To think that we are going to have a package of economic recovery that does not address housing adequately I think would miss the boat."

What's on the table

Use TARP for homeowners: House Financial Services Chairman Barney Frank, D-Mass., is writing a bill that would impose conditions on the use of any more TARP money and in a memo to colleagues this week called for "substantial efforts" to be made to reduce foreclosures, a spokesman for Frank's office said in an e-mail.

Frank said Friday that his bill will call for $40 billion or $50 billion from TARP funds to be used for foreclosure mitigation. And he's calling on the Treasury to implement a plan by April 1.

That plan essentially must be a version of a plan proposed by FDIC Chairwoman Sheila Bair. Bair's plan would systematically modify loans and provide a government guarantee to protect investors in the event a homeowner re-defaults after the loan has been modified.

The plan also must reduce the costs and writedown requirements for lenders and borrowers of the Hope for Homeowners program, which began in October but has helped virtually no one.

That program offers full government backing for lenders that agree to write down a mortgage to below a home's appraised value. But the loss to lenders can be greater than that reduction because many troubled homeowners are also "under water" due to falling home prices - meaning they owe more on their home than its current market value. So as the law was initially passed, to participate in Hope for Homeowners, lenders in many cases would have to lock in a sizeable loss.

"We wrote it too restrictively. ... [Now] we'll make it more user-friendly," Frank told reporters on Friday.

Reform bankruptcy law: On Thursday, Senate Banking Chairman Christopher Dodd, D-Conn., and Sen. Richard Durbin, D-Ill., said that Citigroup (C, Fortune 500) has agreed to support a proposal that the lending industry has strongly opposed that would allow bankruptcy judges to write down the primary mortgages of homeowners filing for bankruptcy.

The bank's support of the proposal is based on the condition that the change only apply to existing mortgages and that homeowners filing for bankruptcy notify their lenders 10 days before to give them a chance to modify the mortgage.

Other lenders and housing industry interests -- including the powerful National Association of Home Builders -- have also started to lower their resistance to so-called bankruptcy cramdowns.

The long-held argument against cramdowns is that they would cause rates to rise because mortgage securities investors would demand a higher interest rate to compensate for the risk that a judge could rewrite mortgage contracts on terms disadvantageous to the investor.

Offer bigger tax break to home buyers: NAHB has been pushing for all home buyers to get a temporary tax credit for buying a primary residence worth up to 10% of the purchase price. A tax credit is a dollar-for-dollar reduction of one's tax liability.

Currently, only first-time buyers may get a temporary tax credit worth up to $7,500 for a limited period of time. But that credit functions more as an interest-free loan from Uncle Sam because the home buyer has to repay it over time.

Neither Dodd nor Senate Finance member Charles Schumer, D-N.Y., speaking to the press on Thursday, endorsed the idea of an actual tax credit. Dodd said a tax credit would not help prevent foreclosures but could spur economic growth.

And Schumer said there was "broad support" among members of the Senate Finance Committee to make tax policy changes to support housing, particularly existing homes as opposed to newly constructed ones.

Push interest rates down: The National Association of Realtors, among others, has pushed for the Treasury Department to take a more active role in driving mortgage rates down by buying securities backed by 30-year fixed-rate mortgages from Fannie Mae and Freddie Mac.

Frank has suggested that in order to use TARP funds, Treasury must commit to using some money to "stimulate demand for home purchases ... including through ensuring the availability of affordable mortgage rates for qualified home buyers."

A plan already in place at the Federal Reserve has already had the effect of lowering rates on the 30-year fixed to record lows. The Fed is buying up to $500 billion in mortgage-backed securities backed by Fannie and Freddie, a move that bolstered confidence in the mortgage giants' ability to continue to buy and back loans in the secondary market.

Another idea that has been floated recently is to have Uncle Sam use money to buy down points on home buyers' mortgages to lower interest rates.

By Jeanne Sahadi, CNNMoney.com senior writer

Last Updated: January 9, 2009: 1:04 PM ET; CNN's Jessica Yellin contributed to this report.

Sussex County, Delaware Home Sales - as of January 13, 1009

Well, it is a new year. A fresh start. New beginnings. We had a bumpy second half to 2008, but we got through it! We have a new president taking over in a matter of days, and I am hopeful that things will turn around. It will take some time -- we have big wounds that need to be treated and heal, but we have seen signs that the bottom is nearly here. All we can do now is climb our way back up. Here's to a prosperous 2009!

Here is a breakdown of what has sold for 2009 thus far.

Single Family - 10

Condo / Town Home - 6

Mobile - 3

Multi Family - 0

Lots / Land - 3

Farms - 0

Commercial - 0

The total for closed real estate transactions thus far is 22. We do not have average list price and sales prices figures as of yet, but if you are interested, please contact us on our website and I will be glad to calculate the numbers.

Stay tuned every week for a sales report update.

Refinancing for LE$$

You do need a new title insurance policy when you refinance, but you might be able to get one for less than you think.

(Money Magazine) -- Question: I'm refinancing my mortgage, and my lender tells me that I need to get a new title insurance policy, which will cost more than a thousand dollars. We haven't made any changes to our home, and there aren't any outstanding liens on the property. Is there any way around this fee?

Answer: There's no way to get out of paying for title insurance altogether. All lenders will require you to purchase a new policy when you refinance, since your current one is only in effect for the duration of that mortgage. This fee is normally 0.5% to 1% of your loan amount.

But if you ask title insurance providers the right questions and shop around for the best deal, you may be able to knock hundreds of dollars off the price.

If it has been less than 10 years since you got your original loan, contact your title search company and ask if you can have your title reissued (also known as a special refinance or substitution rate). This can cut the price by 40% to 70%, depending on whether you use the same lender or a new one and how long it's been since you last had a title search on the property.

Also ask about any other discounts they might provide, such as reduced fees for public service employees or seniors.

You can also ask a title search provider to perform a "quick" search, which mostly hunts down new lien problems that may have occurred since the most recent title search. A quick search could be about 40% cheaper than getting a new policy.

Finally, try buying directly from a title insurance company. Studies show that agent fees can account for about 70% of the cost of title insurance. You can find a list of local independent title insurance companies at the website of title industry trade group American Land Title Association (homeclosing101.org). Or see if your state is one of the 31 covered by new online title insurer EnTitleDirect.com, which sells directly to consumers.

More costs you can negotiate

Application fee. Ask that it be waived or credited toward your closing costs. Potential savings: about $300 and up.

Document-preparation fees. These go toward the lender's bottom line. Don't accept them. Potential savings: $150 to $300.

Home inspection. This cost is passed on to you, so ask your lender to shop for a better deal. Potential savings: at least $50.

By Dee Depass, Money Magazine

January 5, 2009: 10:56 AM ET

Your house can make you sick

You may be exposed to dangerous toxins. Get rid of them without getting ripped off.

(Money Magazine) -- You're sniffling and wheezing your way through another winter. A run of bad luck with germs? Sure, but it also may be the result of something more insidious: toxins.

Chemicals found in common home furnishings can cause asthma and flu-like symptoms, and your basement or bathroom may be harboring allergy-inducing mold. You could even be experiencing a reaction to a more dangerous substance that could cause kidney damage or cancer.

The problem of home toxins has increased in recent years, says Linda Kincaid, an industrial hygienist in San Jose. It's a nasty byproduct of the well-meaning drive to become more energy-efficient. "We used to live in houses that were not well insulated and allowed a lot of air to come in," says Kincaid. Now that homes are tightly sealed to prevent airflow from outside, chemicals can become more concentrated in your indoor space. That risk goes up in the winter, when your doors and windows generally remain shut.

Banishing toxins from your home isn't an exciting improvement, but it's a crucial one, since many states counsel home buyers to do environmental checks before closing on a home. Below you'll find five of the most dangerous and common toxins to watch for, along with the most wallet-friendly ways to nip them in the bud.

TOXIN RADON DANGER LEVEL: HIGH [4]

It's the second-leading cause of lung cancer behind smoking.

Who's at risk: Everyone. It's an odorless, colorless gas that comes from the soil and can leak into your home. It's been found in every type of house and in every state.

What to do: Radon test kits are available at most hardware stores for $10 to $20. Place one in your basement and leave it for two days. If the level of radon in your home is high, you'll need to spend about $1,200 to have a contractor who's an expert in radon removal put in a venting system, which will direct the gas away from the house. Unfortunately, your homeowners insurance probably won't cover the cost.

If you have recently installed granite countertops, you'll need to buy a second test kit for your kitchen too, since some granite that includes uranium can emit radon gas. It's not likely that your countertop will cause a high radon reading (it affects only about 5% to 10% of granite on the market), but if yours is affected, you'll have to either revamp your kitchen ventilation or replace your granite counter.

TOXIN ARSENIC DANGER LEVEL: HIGH [4]

The poison has been linked to various kinds of cancer and a range of unpleasant side effects, from nausea to blindness.

Who's at risk: Anyone who has a wooden deck, porch, fence, tree house or outdoor play furniture built before 2005. Arsenic is a preservative, and until four years ago, wood was treated with it to prevent rotting. The chemical can leach into surrounding soil (affecting plants growing in the ground nearby), and it's possible to touch arsenic-treated wood and come away with it on your hands. Young children are especially vulnerable, since they tend to put their fingers in their mouths.

What to do: No need to pony up for a new deck; just treat the wood every year with an oil-based stain so that when you touch the wood, you're touching the sealant, not the arsenic. It's best to do it in the spring, says Gary Ginsberg, Ph.D., author of "What's Toxic, What's Not," so your deck will be ready for the summer, when it's going to be used the most. You can find various weatherproofing stains for about $25 a gallon.

TOXIN LEAD DANGER LEVEL: MODERATE [3]

Lead can damage the central nervous system, kidneys and blood cells; even low levels in the blood can impair mental and physical development.

Who's at risk: Those living in homes that date back to the '70s.

What to do: Don't use home test kits for lead -- they aren't reliable. Instead, get recommendations for private labs from your state housing department. The test will cost you about $20 to $30; if it comes back positive, cover your walls with a coat of encapsulant (about $40 a gallon).

Unfortunately, the biggest problem probably isn't the paint on your walls -- it's the paint on your windowsills. "The window grinds it down to a fine powder and the breeze can blow it in," Ginsberg says. "It can contaminate the whole room." Your best bet is to replace the windows, including the woodwork and tracks. If there's a toddler in the house, consider replacing moldings and baseboards as well, since kids can chip off paint by chewing on it.

TOXIN FORMALDEHYDE DANGER LEVEL: MODERATE [3]

Formaldehyde and other volatile organic compounds (VOCs) can cause nausea, dizziness and allergy symptoms. Chronic exposure can damage your liver and central nervous system.

Who's at risk: Anyone who has recently added new floors, carpets or furniture; moved into a new home; or used common brands of paints or aerosol sprays. The adhesive used in carpeting and to hold together pressed-wood products contains formaldehyde, which releases that and other chemicals into the air. (That "new carpet" smell may be your Berber emitting chemicals.) Many paints, sealants and lacquers also release compounds.

What to do: If you've been in your home for a few years, relax. "The building has had a chance to outgas," says John Banta, an industrial hygienist and co-author of "Prescriptions for a Healthy House."

If you're refurbishing, one option is to opt for VOC-free building materials, but you'll pay a steep price: Formaldehyde-free bamboo flooring from EcoTimber, for instance, costs $5.79 to $6.49 a square foot, compared with $3.87 to $4.57 a square foot for bamboo wood flooring from Home Depot.

Can't afford to go totally VOC-free? Splurge on the bedroom; it's generally where you spend the majority of your indoor time, so you'll reap more benefit from the change. Alternatively, simply renovate and buy new furniture during warmer months, when you can leave your windows open. When you order a new carpet, ask the factory to let it air out for a couple of weeks in the warehouse before delivering it. Almost all VOC chemicals will dissipate into the air over time.

TOXIN MOLD DANGER LEVEL: LOW [2]

Mold doesn't present a severe health risk, but it may worsen asthma. If you're allergic to mold, it can also cause nasal congestion, irritated eyes or wheezing.

Who's at risk: If you've had a water problem, such as a roof or plumbing leak, and the area was wet for more than 48 hours.

What to do: Toxic black mold has gotten a lot of press in recent years, but regular mold spores "are everywhere," Ginsberg says, and the Centers for Disease Control and Prevention says they rarely cause adverse health conditions.

That said, if mold is unsightly or causing your sinuses to act up, you'll probably want to get rid of it. If it's a small area (less than three feet by three feet), remove it yourself with detergent and water. If it's a larger section, you'll want to bring in a professional to prevent spreading mold spores around your house.

Expect to pay $150 to $200 for a mold inspection and $500 and up for removal, depending on how widespread the problem is. Your homeowners insurance may cover it, but be warned: After insurers were slapped with lawsuits over black mold a few years back, they began excluding mold coverage and socking homeowners who reported water damage with higher premiums and deductibles.

Regardless, it's certainly worth spending $150 or so for a dehumidifier in your basement to draw extra water out of the air. Sometimes an ounce of prevention is the healthiest possible fix.

By Kate Ashford, Money Magazine contributing writer

Last Updated: January 6, 2009: 1:41 PM ET

End of Year 2008 Home Sales in Sussex County, Delaware

Well, the year has finally come to a close. And what a year it's been. We watched history be made with President-Elect Obama, have seen the stock market crumble, the financial giants fall to their knees, gas prices hit new high records, and the car moguls faltered on the brink of collapse. The real estate market fought hard to recover and regain in the shadow of the Housing Crisis Bailout, and we even saw multiple contracts, and homes sell for over list price. Here in Sussex County, Delaware, we saw the market fight hard, and hold fairly strong. There were 2,909 closed transactions for the year, with an average list price of $365,038, and an average sales price of $339,029. Homes were selling at 91% of list price and averaged about 191 days on the market. Below is a breakdown of what sold. But, before you scroll down, let us raise our glasses, virtually, to 2009! May it be a year of new beginnings and fresh starts. May it win the battle in the financial and real estate markets, and may we all benefit from it's efforts. Every cloud has a silver lining, and every negative becomes a positive. It may just be a hard hill to climb to get to the top. But we will get there.

Single Family - 1,584

Condo / Town Home - 624

Mobile - 283

Multi-Family - 5

Lots / Land - 343

Farms - 8

Commercial - 62

The graph below reinforces my belief that a housing stimulus could turn the housing market on a dime. Thus, supporting the argument that to “Buy at the Bottom” you need to buy prior to the announcement of Obama’s Stimulus Package on or shortly after January 20th.

Anyway, the last time the gov’t intervened in the housing market by providing a tax credit and reduced mortgage rates (as the NAHB is requesting now) was in 1975. Housing starts immediately reacted to the stimulus and turned up within 2 months. Now, keep in mind that Housing Starts typically occur (on average) about two months after the home sale (contract signed). So, what this chart shows is that Home Sales literally turned on a dime the moment the Stimulus went into effect. This should be expected . . . it’s very similar to a Black Friday sale at a retail store. The first people to get in the doors and buy benefit from having the most products available. This is why people line up outside the doors of store for hours before the doors open . . . they want to have the best selection and make sure they get to buy products before they’re sold out. This phenomenon actually caused people to get trampled this year and push the doors down at Walmart . . . which is crazy and disturbing but it shows you how badly people want to be the first to capitalize on a major sale. Well, it’s the same with housing. For those who have been waiting to buy a home and can still afford to do so, they will benefit by being the first people “through the doors” and thus get the greatest selection of homes and maybe even capitalize on Builder incentives that the Builders haven’t yet removed. And make no mistake, Builders will be very quick to discontinue their incentives once they see a pickup in housing demand. I know because I am one of these builders who intends to remove or at least reduce my incentives shortly after the announcement of Obama’s stimulus package.

So, here’s the thing that smart buyers already know . . . they can get special entrance through the side door of the housing store right now, capitalize on the sale prices, have the best selection, and have a private showing of all the store merchandise. What I’m saying is that for those who have been waiting to buy a home, the best time to capitalize on Obama’s housing incentives is right now, prior to them being announced (assuming you setup settlement for late January/early February). The only reason not to do this is if you believe that Obama will not incorporate some sort of housing stimulus into his Economic Recovery Package. In my opinion based upon everything I’ve read and based upon the sound logic that fixing housing is the most important factor in fixing the economy, I think it is highly unlikely that Obama won’t enact a housing stimulus shortly after inauguration. If your buyers are worried that by buying now, they might not be eligible for any housing stimulus incentives announced on January 20th, here’s what I recommend they do: Include a contingency in the sales contract that says the buyers intend to capitalize on the housing incentives in the anticipated Economic Recovery Package and have the option to cancel this contract if: 1. A package is not passed prior to settlement or 2. If contracting prior to settlement somehow makes them ineligible for the incentives. To protect the seller, I would include a clause that says: In the event that the Buyer is not eligible for the housing incentives due to the contract being executed prior to the incentives being enacted, a new contract will be written between the Buyer and the Seller with the same price and terms of the existing contract and executed immediately after the housing incentives are enacted. Once the new contract is executed, the existing contract will be declared null and void. Anyway, you get the picture . . . the point is that there are ways to incorporate language into the contract that allows the Buyer to “Have their Cake and Eat it Too” by protecting the buyer in the event that they are not able to eligible for the housing stimulus incentives as a result of contracting prior to the incentives being implemented.

Remember, the main reason to buy now is so Buyer’s can negotiate a good deal for themselves at the point when Sellers are the most desperate. As I explained in my prior email, after the housing stimulus is announced, Seller’s won’t be willing to offer the types of deals they are now. The pressure will be off and the balance of power between Buyer and Seller will be somewhat restored.