How To Keep Your Granite Countertops From Getting "Cloudy"

Granite is a popular "finishing choice" for homeowners in Scottsdale because of its good-looks and its strength. A well-maintained granite counter-top boasts natural beauty and outlasts most other finishes.

But granite is also natural rock, mined from the earth. It's porous and highly absorbent.

Therefore, if your home features granite in its kitchen, its bathrooms, or other living spaces, you'll want to make sure the counter-tops are cared for to prevent staining and/or clouding over time. 

The first step is to seal your countertops every 12 months -- 6 months in areas of heavy use.

Sealing a counter-top is akin to applying polyurethane to hardwood flooring; it protects the material's natural traits, while keeping out "the elements". Specifically, sealing granite creates a non-porous layer on the surface that is impenetrable to juice and grease, as examples.

Sealant can be purchased at a local hardware store, or on Amazon.com. Prices start around $10. Just make sure you're following the manufacturer's application instructions. Sealant won't work if applied improperly.

Then, once sealed, avoid harsh cleansers. Instead, opt for a warm sponge and mild detergent. Cleaning with soap will help leave a reflective finish on the surface that will not strip the seal. Using soap also prevents the "cloudy counterspy" condition that's so common with granite.

And, lastly, every day, take preventative measures to keep your granite shining. Just because a countertop is sealed, that doesn't mean it's immune to damage. Use coasters under beverages, put hot plates under dishes, and clean up spills as they happen. 

A granite counter-top will last years will proper care.

Home Supplies Plummet, Putting Pressure On Prices To Rise

Existing Home Sales surged 12 percent last month, closing 2010's housing market with strength. An "existing home" is a home that cannot be categorized as new construction; a resale.

According to the National Association of REALTORS®, seasonally-adjusted, annualized Existing Home Sales figures climbed by more than a half-million units in December as compared to November. It's the 3rd straight month of home resale improvement nationwide.

Sales volume is now as high as it's been since May 2010 -- just after the federal home buyer tax credit's expiration.

In addition, the number of months needed to sell the complete, current home inventory at the current pace of sales fell by 1.4 months, tying December for the biggest one-month home supply improvement in 2 years.

It's yet another signal that the housing market is in recovery. Not that this data should surprise anyone. November's Pending Home Sales report told us to expect it two weeks ago.

Broken down by buyer-type, home sales split as follows:

• First-time home buyers : 33% of all sales
• Repeat buyers : 47% of all sales
• Real estate investors : 20% of all sales

Cash buyers represented 29 percent of all transaction, down 2 ticks from November. This may suggest that mortgage guidelines are loosening -- another sign of economic improvement.

So, take note, Cave Creek home buyers. This spring, along with mortgage rates, home values should rise, too. Expect less "bang for your buck" as the housing recovery takes hold here in Anthem and across the nation.

The best deals of the year may be the ones made this month.

Building Permits Surge In December; Signals A Strong Spring Housing Market

Each month, in conjunction with the Department of Housing and Urban Development, the Census Bureau releases its New Residential Construction report. The report is comprised of several sections, one of which counts the number of homes that have "broken ground" in Arizona and nationwide.

They're called "Housing Starts" and, by most measures, they faded quickly as 2010 came to a close.

According to the Census Bureau's report, Housing Starts of single-family homes fell to 417,000 units on a seasonally-adjusted, annual basis. The figure marks a 9 percent drop-off from November, and is the lowest reading since May 2009.

Not surprisingly, the press went bearish on housing post-release:

• U.S. Home Building Stuck Near 50-Year Lows (AFP)
• Housing Starts Slowed Sharply In December (New York Times)
• Housing Starts Fall In December To One-Year Low (Bloomberg)

Despite being truthful, these headlines are somewhat misleading. They each ignore a key element of December's New Residential Construction report -- Building Permits. Building Permits rose 6 percent to an 8-month high last month.

A building permit is a local-government certification that authorizes home construction. 

Permits are a precursor to Housing Starts with 82% of homes starting construction within 60 days of permit-issuance. More permits in December, therefore, should lead to more Housing Starts in January and February.

It's unclear whether permits were up because the economy was improving, or because builders raced to beat new building code for 2011. Regardless, expect additional "new home" supplies this spring which would ordinarily help home prices drop if not for the normal surge in spring buyers to gobble those new homes up.

Look for home prices to stay flat, but with rising mortgage rates contributing to higher costs of homeownership overall.

Home Builders Slowed By Economy, But Seeing More Foot Traffic

Homebuilder confidence held firm for the second straight month this month, according to the National Association of Home Builders.

The monthly Housing Market Index registered 16 out of a possible 100. January's reading is three points higher than the 2010 low-point, set in September, and in-line with last year's average reading.

According to the NAHB, the market for newly-built, single family homes remains relatively weak "following a below-expectations finish in 2010". Builders expect a better 2011.

The Housing Market Index dates to 1985. It's a composite of surveys which gauge the builders' perceptions of the new home-buying market.

There are 3 surveys and they ask:

1. How would you rate market conditions for sales of new homes today?
2. How would you rate market conditions for sales of new homes 6 months from now?
3. How would you rate the foot traffic of prospective buyers of new homes?

The answers are then collated and weighted, and used to produce the Housing Market Index.

In January, market conditions for current and future sales were deemed to be flat. Foot traffic is seen as increasing. For homebuyers of new homes in Cave Creek , this data may foretell of more bidding wars in the months ahead.

More active buyers means more competition for homes. It may also mean fewer concessions from builders as confidence starts rising.

If you're in the market for a newly-built home, watching the Housing Market Index may be sensible. Each builder is different, of course, but as the overall market sentiment falls, buyers can be more likely to get "a deal". That's not the case once confidence is rising.

The HMI is plateaued. If it resumes rising later this year, expect new homes to get more costly.

Is This Home Renovation Going To Be Worth It?

Home remodeling projects can add function to a home, but don't always add value. Consider the latest report from Remodeling Magazine. 

In it, the average cost of 35 projects are evaluated for the value they retain at the time of resale. Function beats flash, it seems, in today's housing market.

Expansive kitchens and custom vanities are returning less value to homeowners in Cave Creek  on a percentage basis than energy-efficient doors and windows, for example.

A sampling of Remodeling Magazine's Cost vs Resale report shows the following cost recovery, by project:

• Attic Bedroom Remodel : 79.90 percent cost recovery
• Bathroom Addition : 74.90 percent cost recovery
• Bathroom Addition (Upscale) : 72.80 percent cost recovery
• Home Office Remodel : 63.40 percent cost recovery
• Minor Kitchen Remodel : 85.20 percent cost recovery
• Major Kitchen Remodel : 75.90 percent cost recovery
• Roofing Replacement : 73.90 percent cost recovery
• Window Replacement (Wood) : 85.30 percent cost recovery

Overall, "green" projects are returning a high percentage of costs to remodeling homeowners -- especially for respect to homes that are "over-improved" with respect to the neighbors.

CNNMoney.com hosts a "Will This Renovation Pay Off?" calculator on its website, based on the data from Remodeling Magazine's annual report. It may be a helpful guide for you. That said, before starting a home improvement project, regardless of whether your goal is increase your home's resale value or to improve its function, be sure to talk with a real estate agent that knows your neighborhood well.

At worst, you'll gain insight to what's "typical" for your area to work into your plan, and, at best, you'll keep yourself from over-improving your home.

Retail Sales Weak In December; Home Affordability Gets A Boost

Consumers keep spending, the economy keeps growing.

Mortgage rates are easing lower this morning on just-released, slightly worse-than-expected Retail Sales data from December 2010.

Excluding motor vehicles and auto parts, December's sales receipts were $1.5 billion higher from November. Analysts had expected a number north of $2 billion.

Despite falling short of estimates, however, December's reading is the highest in Retail Sales history, surpassing the previous record set in July 2008, set during the recession. In addition, December's strong numbers helped 2010's year-over-year numbers go positive for the first time in 3 years.

Although the data is a mixed bag for Wall Street, home affordability in Phoenix is improving today.

The link between Retail Sales and home affordability may not be up-front obvious, but in a post-recession economy like ours, it's often tight. Retail Sales is another name for "consumer spending" and consumer spending makes up more that 70% of the U.S. economy.

As spending grows, the economy tends to, too.

Investors recognize this and start chasing "risk". It becomes a boost for the stock market, but those gains are made at the expense of "safe" asset classes which include mortgage-backed bonds. Mortgage-backed bonds are the basis for conforming and FHA mortgage rates so, as bond markets sell off, asset prices fall and rates move up.

Thankfully, rate shoppers will avoid that scenario today -- at least for today. December's Retail Sales results are a factor in the bond market's early-day improvement. Conforming and FHA mortgage rates across the state of Arizona should be lower today.

Despite the good news, if you're shopping for a mortgage, consider locking your rate as soon as possible. Mortgage rates are coming off a 2-week rally and look poised to reverse appear -- especially with a full docket of data due for next week. As mortgage rates rise, purchasing power falls.

Foreclosure Activity Falls For The Second Straight Month, Drops To 30-Month Low

According to foreclosure-tracking firm RealtyTrac, the number of foreclosure filings nationwide dropped for the second straight month in December. After falling 21 percent in November, filings were down by an additional 2 percent in December.

"Foreclosure filing" is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.

Like most months, a small number of states dominated December's national foreclosure figures. 6 states accounted for more than 50 percent of all bank repossessions.

1. California : 17% of all repossessions
2. Florida : 11% of all repossessions
3. Arizona : 6% of all repossessions
4. Michigan : 6% of all repossessions
5. Texas : 6% of all repossessions
6. Nevada : 4% of all repossessions

December's foreclosure filings fell to its lowest levels since June 2008, but we can't read into the report too much just yet. Foreclosure volume continue to be dampened by lawsuits and moratoriums related to controversy surrounding the so-called robo-signers.

Foreclosure activity may have lessened in December anyway, but we can't know for certain. 

Distressed properties are in high demand among home buyers, accounting for one-third of all home sales; typically sold at a steep, 15 percent discount as compared to non-distressed properties.

Buying foreclosures can be a terrific "deal".

That said, buying a foreclosed home is different from buying a non-foreclosed home. Specifically, because you're buying from a bank and not a person, contracts may vary from what's "customary" and negotiations may be drawn-out.

It's one reason why buyers in Cave Creek  -- first-timers and investors alike -- should talk with a real estate agent before writing an offer for a foreclosed property. You can learn a lot from the internet, but when it comes time to actually purchase a home, you'll want an experienced professional on your side.