Federal Reserve Chairman Ben Bernanke spoke yesterday on the state of the economy, noting that “if actions taken by the Administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability–and only if that is the case, in my view–there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery.”

This is welcome news for those inclined to believe the optimism.

The chairman did acknowledge that the end of the housing boom, or what some consider the bursting of the bubble, was the “immediate trigger” of the crisis our nation now finds itself in.

Bernanke continued, “Conditions in housing and mortgage markets have proved a serious drag on the broader economy both directly, through their impact on residential construction and related industries and on household wealth, and indirectly, through the effects of rising mortgage delinquencies on the health of financial institutions.”

Studies and data indicate that prices continue to fall at this time, and foreclosures continue to infect the market.

The Federal Reserve has taken drastic action in the last year in order to stave off a worsening crisis in the housing market. “To support housing markets and economic activity more broadly, and to improve mortgage market functioning, the Federal Reserve has begun to purchase large amounts of agency debt and agency mortgage-backed securities. Since the announcement of this program last November, the conforming fixed mortgage rate has fallen nearly 1 percentage point,” Bernanke noted.

Of all roofing designs used in homeowner associations, flat roofs are the most problematic, particularly in rain, wind or snow prone areas. The need for consistent and quality maintenance is extremely important for maximum performance and longest life. Recoating built-up flat roofs is a fundamental preventive maintenance which should be performed at least every five years and included in the reserve plan.

There are six reasons for roof coating:

1. To maximize roof service life by reflecting harmful ultraviolet (UV) radiation.

2. To restore a moderately aged roof to a maintainable watertight condition.

3. To restore an earlier coating applications that has deteriorated.

4. To minimize solar gain and reduce a building’s cooling loads.

5. To improve a roof’s appearance that is visible from the ground or from an adjacent building.

6. Certain UL-classified coatings can increase a roof’s flame spread resistance. This type of application typically is specified in conjunction with roof system construction. Flame spread resistance, however, can be upgraded after a roof is in service.

There are at least three situations in which coating is not a good idea:

1. A coating never makes a bad roof good. If a roof has reached the end of its useful life, coating it is a waste of money.

2. Ponded water that remains for more than 48 hours after a rain reduces a coating’s service life. These areas need to be properly repaired to promote positive drainage before applying a coating.

3. Coatings will fail prematurely if they are applied in environments containing excessive dust, debris, steam, liquid discharge or other contaminants. If contaminants can’t be completely removed prior to coating application, the coating will not adhere or flake off.

Coatings come in a variety of types:

Emulsions. Consist of asphalt dispersed in a colloidal clay-water blend and are dark gray, brown or black. Emulsions generally increase the roof’s fire resistance.

Aluminum. A mixture of oxidized asphalt, solvents and aluminum paste, and they are available with or without reinforcing fibers. Aluminum coatings reflect UV radiation, reducing rooftop temperatures, premature aging and building cooling loads. The quality of these products is measured by the aluminum content, expressed as 1, 2, or 3 pounds of aluminum paste per gallon.

Emulsion-Aluminum. A hybrid product with fire resistance and filling/sealing properties of an emulsion coating.

Asphalt Cutbacks. Consist of asphalt and petroleum solvents. Cutbacks are primarily maintenance and restoration products, designed to penetrate, resaturate and restore weathered or aged asphalt built-up roof systems.

Resaturants. Made with either an asphalt or coal-tar base, it penetrates, rejuvenates and weatherproofs existing built-up roofs.

Modified Asphalt Coatings. Made with asphalt, synthetic rubber polymers and solvents and might contain reinforcing fibers. Advantages include increased elasticity and cold-weather flexibility.

Bituminous Coating. Compatible with asphalt or coal-tar built-up roofs or with modified bitumen membranes.

Elastomeric Coating. Formulated from latex/acrylic, Hypalon, neoprene, silicone or urethane. Many elastomeric coatings are compatible with common roof membranes, but they are more widely used with metal and sprayed-in-place polyurethane foam roofing systems.

Consult with a knowledgeable flat roof maintenance contractor to determine the proper coating for yours. The cost of application is usually modest compared to the cost of replacing the roof. To dress it up, you can even custom color it, just like paint. But make sure to apply it at recommended intervals. This is a recoat of many colors that should not be worn out.

Richard Thompson

It may not be the traditional way of unveiling new loft condos in an urban setting, but a Chicago developer hosted a warehouse fete complete with svelte models, tight fitting promotional t-shirts on a runway, and strobe-highlighted music. The promotional center piece? Eco-friendly loft condos in Chicago’s trendy community of Bucktown.

“In a marketing ploy that would only make sense in such an aggressively chic community, developer William Senne is tying his company’s yet-to-be-built, eco-friendly loft apartments on Fullerton Avenue to all that is hip and stylish in Chicago,” reports the Chicago Tribune.

The new condos, called EcoLogic Lofts, speak to everything green, alternative and recycled. The lone model unit sported:

* Living room rugs made of recycled bicycle inner-tubes

* Bathrooms with wall paper from recycled magazines

* Throw pillows created from second-hand Gianni Versace suits.

Planned for seven-stories, the building will highlight wind turbines to assist in the structure’s power source, showing that it’s about green in the downtown condo development. Pricing starts in the $200′s and is geared toward an obvious younger audience as the group’s web site touts photos of the under-30 crowd, outfitted in fashionable dress, and also including one of three people sharing a shower (a young man with about 0 percent body fat in between two wet, but clothed women – headlined: “Eco-friendly living and water conservation were never this fun.”)

In other words, Sene told the Tribune, “it’s urban cool. And, so in the near future, will be green development, he predicted.”

“‘Eventually, eco-friendliness will become embedded in our everyday life,’ Senne predicted, citing the Obama administration’s aggressive new agenda for green development and Mayor Richard Daley’s own fondness for such building.”

M. Anthony Carr

NEW YORK (CNNMoney.com) — There’s a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama’s signature on Tuesday. First-time buyers can claim a credit worth $8,000 – or 10% of the home’s value, whichever is less – on their 2008 or 2009 taxes.

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill – the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns – was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:

“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”

The short answer? Yes, Billings would get back the $8,000 plus what he’d overpaid. The long answer? It depends. Here are three scenarios:

Scenario 1: Your final tax liability is normally $6,000. You’ve had taxes withheld from every paycheck and at the end of the year you’ve paid Uncle Sam $6,000. Since you’ve already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you’ve overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you’ve underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate’s proposal of a $15,000 non-refundable credit for all homebuyers.

“[The Senate version] would have done a lot more to turn around the housing market,” said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). “We have a lot of reports of people who would be coming off the fence because of it.”

Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.

The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. “I think there are many homeowners who would be trading-up but they have had no buyers for their own homes,” Yun said.

Who won’t benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle – they still have to close the sale before claiming the bonus.

One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB’s Dietz.

Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.

And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home – a lawnmower, a rug, a sofa – and, in that way, help stimulate the economy.

Les Christie, CNNMoney.com

Like Walter said, we’re talking about a line in the sand. There’s a very clear line being drawn in the real estate industry these days. The line has always existed in the financial markets, separating bulls and bears. The new line is being drawn between Realtors. Bulls and bears. Pessimists and optimists. For the past decade, we were all optimists, and with markets fueled by dramatic returns, only the foolish were not. Today, the marketplace has changed, yet bulls remain. Unfortunately, it’s the bullish Realtors that are, in many markets, standing in the way of liquidity. The much needed liquidity that is the first step towards recovery.

With Realtors taking divergent sides in this battle for market identification, how does a consumer know which side is right? National news regarding housing is almost entirely negative, yet some markets have held up sans double digit losses, or a glut of foreclosures.

Other markets, like Fort Meyers, Florida, have been hit with nearly 40% price declines, yet sales volume is up 125% this year over last. How on earth does a home buyer or home seller know who to trust? The answer my friend, isn’t written on your Realtors business card. If the devil is in the details, this answer is in the statistics.

Let’s say you’re a buyer. You’re trying to determine if a piece of property is a value or not. Your agent tells you it is, but you know better. She’s hungry for a sale, and you wonder if that hunger is influencing her opinion. Proceed with caution, and remember that all markets are very unique, and within a municipality market, there are potentially dozens (hundreds if you’re an urban area) of individual markets.

The overall city market may be very soft, and the Realtor may provide you with comps to back that up, but dig deeper. You need to look at the specific neighborhood or development that the subject property is located in. Don’t settle for generic zip code comps. Those comps will help you identify an overall trend in the market, but you need more info. Identify a specific association, chart sales for the past 24 months, contrast with inventory for the past 24 months, and it’ll be easy to identify a trend. Don’t look at 6 months worth of comps, look deeper, and it’ll be easier to identify the direction and strength of a market. Do not attempt to judge a market based on what Zillow, Trulia, Homegain, or another national site tells you.

Recently, I was involved in the negotiation of a vacation residence on behalf of a buyer. The overall market I serve is pretty soft, and the specific association he was looking in, even softer. To determine the market on a level deeper than just Realtor opinion, we looked at the past 36 months of sales, then compared the past 10 months of sales to that figure. The results showed an average of 28 home sales per year in the development, yet only 5 sales in 2008. The prices hadn’t declined much, but volume was obviously the telling statistic. This was a market in decline. We negotiated our hearts out, yet the seller would only come 1% off his asking price, an asking price that was 10% higher than averaging 24 months of sales suggested it should be. This wasn’t going anywhere. Why didn’t the seller negotiate with us? Why was he optimistic of the market when the statistics suggested he was wrong? Why was my motivated, informed buyer unable to purchase the property he wanted?

It might have been that darn line in the sand. While the buyer was working with a realist, the seller may have been working with an optimist, in a specific market that doesn’t statistically support that perspective. Opinion is by nature subjective, but couple an experienced opinion with in depth market statistics, and you’ll easily identify value.

Get out there and find a great Realtor, then find an even better value. Don’t blindly listen to your agent without first determining their perspective on the overall market, and their perspective on the individual market affecting your target property. Force them to back up their opinions with rock solid statistics. Follow this advice, and you’ll make sound real estate decisions, even in a tumultuous market.

David Curry

Signs of a cyclical turnaround for housing are on the upswing. Sales are up sharply in many of the hardest-hit markets, and prices are firming in many others.

And now, even some of the country’s previously most-bearish economists and media outlets are seeing the light.

Last week, Dr. Mark Zandi, chief economist for Moody’s Economy.com, surprised analysts by announcing that “the bottom of the housing downturn is in sight for the nation.”

Just days later the Wall Street Journal — which had been among the most pessimistic of major U.S. dailies — ran a prominent article with this headline: “For some, it’s finally time to dive into the housing market.”

The article focused on purchasers in Phoenix, Seattle and Connecticut who recently found that lower prices and affordable mortgage rates made ownership possible for them. They got what appear to be great deals.

The Journal quoted one Phoenix buyer who had just picked up a bargain-priced first home as saying, “six months ago, I didn’t think I would ever own a home. Now I do. It’s so perfect.”

It’s obviously good news that doom and gloom economists like Zandi and the Wall Street Journal are picking up on what’s happening in local real estate markets. More important for the larger market, though, is that they are in the position to spread the word to consumers that it’s now not simply a “good time to buy,” it’s also a safe time to buy.

Mortgage rates continue to hover near historic lows. According to the Mortgage Bankers Association, thirty year fixed rates last week averaged 5.2 percent, down from 5.3 percent the week before. Fifteen year rates average a flat five percent.

But don’t mistake the message here: The economy as a whole still is facing huge problems — unemployment at 7.6 percent, banks taking billions from the government, a stock market that’s still pumping out losses, household consumption down.

None of that is positive for real estate.

But here’s what may be developing: Just as housing’s troubles preceded the rest of the economy on the way down, there are increasing indications that housing could be out ahead on the national economic recovery.

Why? Because pent-up demand is strong, affordable financing is there for buyers with decent credit and a downpayment, and improved federal tax credit incentives make the equation even better.

Once more consumers grasp the fact that the worst is over for real estate, we just might see some very encouraging numbers in the months ahead.

First time buyers will get an improved, higher, nonrepayable version of last year’s repayable $7,500 tax credit under Congress’s massive $789 billion economic stimulus package.

That in turn should lead to 500,000 additional home sales this year, according to new estimates prepared by the National Association of Realtors economics staff and provided to Realty Times.

With the credit eligibility period now extended to September 1, instead of the previous cut-off date of June 30, the 500,000 additional transactions will include purchases not only by direct users of the credit, but also replacement home purchases by sellers who are moving out …or moving up.

This year’s better tax credit should also generate huge amounts of “ripple effect” bang for the buck — $62,000 of additional economic activity for every house sold – or roughly $31 billion in incremental economic benefits, according to the Realtors’ projections.

Why? Because virtually every home purchase triggers other purchases and payments down the line — furnishings, appliances, remodeling, real estate commissions, moving expenses and the like.

Not everybody in Washington is happy with the new credit, however. The National Association of Home Builders pushed hard for a $15,000 credit for all purchases during 2009 — and got it inserted in the Senate version of the stimulus package.

But House and Senate conferees decided that was too costly in a bill that already had $280 billion in other tax benefits, and they cut it back to the smaller version passed earlier by the House.

Though the improved tax credit is drawing most of the attention, the stimulus package has a handful of other incentives and benefits for home owners. For example, it extends or expands all energy-related tax credits — for everything from energy efficient heating and airconditioning units, doors, windows and insulation – through the year 2010.

And the bill should produce a lot of additional economic activity aimed at “weatherization” of up to one million houses owned by moderate-income families — $5 billion worth of new subsidies, according to House Speaker Nancy Pelosi.

Still another big program in the package should create economic ripple effects in neighborhoods where there have been heavy numbers of foreclosures. The bill provides two billion dollars to buy up, renovate and either rent out or resell foreclosed and vacant houses.

The money will go to local governments, but the actual rehab, rental and resales work will flow to people in the private sector.

So if you live or work in an area that’s seen a lot of foreclosures, check in with your local housing and planning departments to see how you might fit in.

Updated Bi-level home on Tree-Lined street. This home features lovely hardwood floors throughout the first and second levels and a gorgeous cook’s kitchen with stainless steel appliances, granite counters and 42inch maple cabinets. Large family room has custom closets and an updated lower level bathroom and exterior access to patio. This home also boasts a spacious 60 x 168 yard and side drive to your attached garage. Come and see what this wonderful home has to offer. Call today 847-967-0022 and schedule your private appointment with Helen to see this wonderful home or view the many pictures we have to offer at http://www.helenoliveri.com/listings/details.php?listing_id=485 .

Giffels-Webster Engineers (GWE), a civil engineering firm with a 50-year industry reputation for its vision for today’s market and beyond, revealed its annual list of Top Five Real Estate and Development Trends. According to GWE, the hottest market-growth areas are:

1. Infrastructure Rehabilitation
2. Urban Redevelopment
3. Energy Generation
4. Life Sciences
5. Healthcare Expansion/Renovation

Intrinsic to each of the following trends is sustainable design and LEED-certified construction. Green elements will continue to be incorporated into projects as energy efficient, healthy spaces remain a top priority.

Infrastructure Rehabilitation

There has long been a need for public investment in the nation’s aging infrastructure – roads, bridges and utilities. The new presidential administration has expressed a substantial commitment to this investment, which will generate significant work for public agencies, private design consultants and contractors.

Urban Redevelopment

Retail and residential re-development opportunities exist in urban areas, where the population and infrastructure foundation is already in place. This year, expect to see an increase in repurposing manufacturing plants and industrial buildings into new mixed-use developments. In addition, public investment to create connected, urban living spaces with walkable and bike-friendly communities are gaining popularity. Creating and improving light rail connections from cities to suburbs will also see investment.

Energy Generation

Government and private investment in energy generation, particularly of renewable sources, will provide opportunities for developers, construction managers and civil engineers as demand for clean energy grows. Many states, especially in the Midwest, are mandating that higher percentages of electricity come from renewable sources like wind energy, which will require site planning and manufacturing for thousands of new turbines.

Life Sciences

The life sciences industry is positioned for growth as a result of the aging baby-boomer population, increases in prescription drug spending and steady investment trends. Many companies are building or expanding research-and-development facilities, labs and office space for biotechnology, pharmaceuticals and diagnostics. It’s an opportunity to provide facilities that meet these companies’ needs now and can easily be scaled up for future expansion.

Healthcare Expansion/Renovation

Healthcare facilities must stay on top of technology developments and treatment needs to remain competitive; new advancements can quickly outdate existing facilities. An aging baby-boomer generation, coupled with a trend toward single-occupancy rooms, will drive many hospitals, nursing homes and hospice centers to undergo substantial renovations and expansions in 2009.

McLEAN, VA — Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.25 percent with an average 0.8 point for the week ending February 5, 2009, up from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.67 percent.

The 15-year FRM this week averaged 4.92 percent with an average 0.8 point, up from last week when it averaged 4.80 percent. A year ago at this time, the 15-year FRM averaged 5.15 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.26 percent this week, with an average 0.6 point, down slightly from last week when it averaged 5.27 percent. A year ago, the 5-year ARM averaged 5.21 percent.

One-year Treasury-indexed ARMs averaged 4.92 percent this week with an average 0.5 point, up from last week when it averaged 4.90 percent. At this time last year, the 1-year ARM averaged 5.03 percent.

“Interest rates for fixed-rate mortgages rose this week amid economic reports that were somewhat better than consensus forecasts had anticipated,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy slowed by 3.8 percent in the fourth quarter of 2008, less than the market consensus, with inflationary pressures held at bay. Meanwhile, personal incomes fell by only half as much as some market forecasters predicted.

Low mortgage rates and falling house prices have made housing the most affordable in 19 years. The National Association of Realtor’s monthly affordability index rose to an all-time record high in December 2008 since records began in January 1971. As a result, pending existing home sales rose 6.3 percent in December 2008 and were up 2.1 percent from the previous December.”