New Home Construction Continues to Rise Across the Country

Home construction remained on a hot streak last month in Colorado Springs and surrounding areas, according to a report Tuesday by the Pikes Peak Regional Building Department.

Here's a look at August's report, the reasons behind a recent surge in homebuilding and what some builders say will happen next:

The numbers: In August, the Pikes Peak Regional Building Department issued 265 building permits for the construction of single-family homes in El Paso County, a 44 percent increase over the same month in 2014. Building permits now have increased for seven straight months on a year-over-year basis. And through the first eight months of 2015, single-family permits totaled 1,902, up 12.5 percent over the same period last year.

What's going on: Historically low mortgage rates remain one of the housing market's biggest drivers. Last week, 30-year, fixed-rate loans averaged 3.84 percent nationally, dipping to their lowest level since late May.

Meanwhile, some builders have said an extremely tight resale inventory means there are fewer homes available for buyers to consider. As a result, they're instead looking to buy new homes.

Buyers also feel more confident because they've seen the housing market and economy improve.

As a result, they don't have as much trepidation about purchasing and believe property values will rise after they invest in a home, said John Bissett, owner of JM Weston Homes in Colorado Springs. His 6-year-old company is having its best year in terms of annual sales and closings - completed transactions. "We've seen a number of very good months and the public has seen it, as well," Bissett said. "The public is feeling more confident about making a home purchase."

Greeley-based Journey Homes, which caters to active and retired members of the military, is seeing strong demand in its Painted Sky at Waterview community south of the Colorado Springs Airport, and said Dan Worden, Journey's Springs general manager.

"There's been enough people moving in and out of Fort Carson that we've busy and our market is strong," Worden said.

Why homebuilding matters: The homebuilding industry employs thousands of people. So, when the economy is strong and homes are under construction, there's plenty of work for drywallers, electricians, roofers and members of various trades.

At the same time, sales taxes collected on the purchase of building materials pump millions into the coffers of the city and other local governments, which use the money to fund public safety, parks and other basic services. In July, for example, sales taxes collected on building material sales generated nearly $2 million in revenue for the city of Colorado Springs.

The outlook: Despite the recent stock market turmoil, Bissett expects the new home market to stay healthy; consumers and businesses remain confident and the nation's economic indicators continue to be positive, he said.

"I think we're going to continue to see steady, moderate growth (in homebuilding) over the next 12 to 18 months," Bissett said.

Home Depot Sales Higher Due To U.S. Housing Recovery

An improving U.S. housing market helped Home Depot Inc (HD.N) beat quarterly sales forecasts on Tuesday, and the world's No. 1 home-improvement retailer lifted its full-year earnings and revenue forecasts.

Shares of the Dow component rose 3.3 percent to a record $123.60 in morning trading. The stock has far outperformed the broader market this year with a 17-percent gain.

"The pace of growth was always bound to moderate as we came out of the exceptionally bad winter ... That the momentum has not slowed further is down to both a more confident consumer and greater activity in the housing market," said Stephen Ward, director at retail research firm Conlumino.

Sales of appliances, tools, plumbing materials and lighting products were strong in the quarter, Home Depot said.

Despite moderate 2015 U.S. GDP projections, housing data pointed to continued growth in the home-improvement industry, Chief Executive Craig Menear said on a conference call.

U.S. housing starts rose to a near eight-year high in July as builders ramped up construction of single-family homes, suggesting the economy was firing on almost all cylinders. That followed Monday's strong homebuilder sentiment data.

“Home Depot and the home-remodeling space remains one of the strong areas of U.S. consumer spending,” said Peter Keith, senior research analyst at Piper Jaffray in New York.

Net income rose to $2.23 billion, or $1.73 per share, in the quarter ended Aug. 2. Excluding items, the company earned $1.71 per share, in-line with the average analyst estimate.

Home Depot incurred $153 million in gross expenses in the quarter for a data breach last year when hackers stole about 56 million payment cards.

Net sales rose 4.3 percent to $24.83 billion, beating analysts' estimate of $24.69 billion, according to Thomson Reuters I/B/E/S.

Same-store sales rose 4.2 percent, also ahead of estimates, according to research firm Consensus Metrix. U.S. same-store sales rose at a faster clip.

(Reporting by Nandita Bose in Chicago and Sruthi Ramakrishnan in Bengaluru, additional reporting by Rodrigo Campos in New York; Editing by Kirti Pandey and Nick Zieminski)

How to Keep Your Lawn Looking Great

According to Audubon.org, the average homeowner spends roughly 40 hours mowing their lawn each year, and we Americans spend $8.5 billion on lawn care products and equipment. Lawns are a major part of the gardening scene, with millions of acres in this country alone.

Keeping a lawn in tip-top shape can be a big job, but here is an approach that is a little more relaxed than others.

Fertilizing your Lawn
I only fertilize my lawn a couple of times a year, once in the spring and then again in midsummer with a food specially blended for lawns. You'll find these blends higher in nitrogen than other elements (the first number in a series of numbers on the fertilizer bag). Nitrogen is what stimulates vigorous growth and deep green color.

I feed only a couple of times a year because I discovered that fertilizing more often meant too much growth — I was working myself to death trying to keep it mowed and watered. So, by reducing the amount of fertilizer, I've saved myself time and energy. Also, by allowing my grass to grow longer, just by an inch or so more in summer, I've reduced my watering a bit more. The taller blades of grass cut down on water evaporation from the soil.

Fertilizing can be confusing because there are so many different blends out there to choose from. For instance, there are some that actually have pre-emergent herbicide mixed with the fertilizer to keep weed seeds from germinating. Turf growers have told me that if you are going to use pre-emergents, it's better not to use the blends because they're not as effective as applying pre-emergents separately from the fertilizer.

Fertilizer Spreader
It's always best to fertilize your lawn after mowing and when the grass is dry. If the grass is wet, the fertilizer will stick to the blades and burn the lawn.
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I prefer using a spreader because it ensures equal distribution of the fertilizer across the lawn, and I always load the spreader on a sidewalk or a drive just in case I spill some, which I usually do.

To get even distribution, I set the gauge at a low setting and go over the area several times, making sure that each pass of the spreader overlaps the last. This will give the lawn a nice even color without dark streaks from over-fertilized areas.  After I have fed it, I just water it in.

Lawnmower Tips
The lawn mower can be one of the most neglected tools in the garden, and that's pretty ironic when you consider it's also one of the most expensive.

To keep your mower in tip-top shape, start by disengaging the spark plug. This should be done anytime you are working on your mower. Next, drain the gasoline and oil from your lawn mower.  Any gasoline that stays in the tank for over a year can gum up your carburetor. You can handle these jobs by using just a few things from around the house.

A turkey baster is great for extracting the gasoline from the tank. It works better and easier than turning the mower upside down. For collecting the oil, try using a disposable aluminum roasting pan. After you've collected it, you'll want to dispose of it responsibly. You'll find many automobile maintenance businesses take used motor oil for recycling, and this is the most environmentally safe way to discard it.

Next, you should replace the spark plug. It's the spark plug that ignites the engine. If it's worn or corroded, you'll have difficulty starting your mower. Spark plugs are inexpensive and easy to replace.

When preparing your lawnmower for spring you should also clean the air filter and remove any old grass or debris clogging the fins of the engine cover.

And one last tip, take your mower in and have the blade sharpened and balanced. This will keep the engine working more efficiently and you will get a smoother cut on your grass.

Watering
It's best to water in early morning, very early, like 5 a.m. This gives the lawn an opportunity to dry before nightfall, a time when many types of fungus are most active. This is also usually a non-peak time for most communities' water supply. It's also much better to water early only a couple of times a week than to water lightly more often. Deep soaking encourages deep root growth, whereas light watering encourages the roots to stay close to the surface of the soil, making your lawn more susceptible to heat and drought.

Another thing to keep in mind is that an actively growing lawn this time of year will require about 1 to 1.5 inches of water per week. This of course will depend on your soil type.  Lawns can be a source of pride — just don't let the summer heat get the most of it, and you.

Brown spot repair
According to several Web sources, more than 60 million Americans own dogs and that means that many of these pet owners are facing the challenge of brown spots on their lawns.

What causes the brown spot? It's just like over-fertilizing! There is a high nitrogen content in pet urine, which causes the urine to burn the grass.  The number one thing pet owners can do to avoid brown spots is to water the area well within eight hours to dilute the high nitrogen level. When these spots go untreated you'll need to reach for the repair kit to green the grass back up. Grass repair kits are sold commercially or you can make your own by mixing sand, seed and slow-release fertilizer.

Survey Says Americans View Real Estate as Best Investment Option

Is Real Estate Really the Best Investment? Americans Think So

Last decade's housing bubble is becoming a distant memory. Mortgage rates are near historic lows, interest-only loans are back and everyone loves real estate as an investment again.

More than 1 in 4 Americans (27 percent) said real estate was the best investment for money they would not need for at least a decade, according to a new Bankrate.com survey of 1,000 investors. Cash came in second with 23 percent of investors, only 17 percent said the stock market is their preferred place for long-term money and just 5 percent said they would put their long-term money in bonds.

It is the first time real estate has taken the top spot in the three years Bankrate has been conducting the survey. Cash was investors' favorite in 2013 and 2014. "It begs the questions if more Americans are once again viewing real estate as a golden ticket," said Greg McBride, chief financial analyst for Bankrate.

Credit is harder to come by than a decade ago and lenders face more regulations, but financial advisers say many clients are catching the real estate bug again.

"Just last week, a high-tech corporate boomer client with no experience in renovating and selling real estate told us he wanted to go into flipping a property with his friend, who does this for a living," said Jon Ulin, certified financial planner and managing principal of Ulin & Co. Wealth Management in Boca Raton, Florida. His client wanted to liquidate 25 percent of his IRA to invest in the project and told Ulin it would "diversify" his portfolio.

"I advised him that putting a quarter or more of his life savings into flipping and renovating one property with the hopes of making a possible 14 percent profit is not a good idea and a gamble," Ulin said.

But real estate has curb appeal that other financial assets can't match.

"For many investors, the tangible nature of real estate simply offers much more peace of mind than the intangible nature of stock and bonds," said Stephen Doucette, a certified financial planner and vice president of Proctor Financial in Sherborn, Massachusetts. "Real estate pricing also adds peace of mind to investors as pricing seems more stable because it is not updated daily by the media."

Investors should weigh the long-term return potential of real estate investing compared with other assets.

The S&P/Case-Shiller 20-City Composite Home Price Index, which measures the value of residential real estate in 20 major metropolitan areas, has generated a hearty annualized 9.2 percent return over the past three years through June 30, but produced an annualized 0.4 percent loss over the past decade. Meanwhile, the S&P 500 index, a broad measure of the U.S. stock market, grew an annualized 14.8 percent over the past three years and 5.87 percent over the past 10 years.

But investors with good credit can borrow to buy real estate, which can enhance returns — or magnify losses, depending on the market. "The singular and best reason to own real estate as an investment is to use leverage," said Stephen Lovell, a certified financial planner in Walnut Creek, California. "Without it, your return on investment tends to be about 2 percent to 3 percent."

Tips for Maintaining Your A/C System

An air conditioner's filters, coils, and fins require regular maintenance for the unit to function effectively and efficiently throughout its years of service. Neglecting necessary maintenance ensures a steady decline in air conditioning performance while energy use steadily increases. Check out our Energy Saver 101 Infographic: Home Cooling for more ways to help improve your comfort and the efficiency of your air conditioner.

AIR CONDITIONER FILTERS

The most important maintenance task that will ensure the efficiency of your air conditioner is to routinely replace or clean its filters. Clogged, dirty filters block normal airflow and reduce a system's efficiency significantly. With normal airflow obstructed, air that bypasses the filter may carry dirt directly into the evaporator coil and impair the coil's heat-absorbing capacity. Replacing a dirty, clogged filter with a clean one can lower your air conditioner's energy consumption by 5% to 15%.

For central air conditioners, filters are generally located somewhere along the return duct's length. Common filter locations are in walls, ceilings, furnaces, or in the air conditioner itself. Room air conditioners have a filter mounted in the grill that faces into the room.

Some types of filters are reusable; others must be replaced. They are available in a variety of types and efficiencies. Clean or replace your air conditioning system's filter or filters every month or two during the cooling season. Filters may need more frequent attention if the air conditioner is in constant use, is subjected to dusty conditions, or you have fur-bearing pets in the house.

AIR CONDITIONER COILS

The air conditioner's evaporator coil and condenser coil collect dirt over their months and years of service. A clean filter prevents the evaporator coil from soiling quickly. In time, however, the evaporator coil will still collect dirt. This dirt reduces airflow and insulates the coil, reducing its ability to absorb heat. To avoid this problem, check your evaporator coil every year and clean it as necessary.

Outdoor condenser coils can also become very dirty if the outdoor environment is dusty or if there is foliage nearby. You can easily see the condenser coil and notice if dirt is collecting on its fins.

You should minimize dirt and debris near the condenser unit. Your dryer vents, falling leaves, and lawn mower are all potential sources of dirt and debris. Cleaning the area around the coil, removing any debris, and trimming foliage back at least 2 feet (0.6 meters) allow for adequate airflow around the condenser.

COIL FINS

The aluminum fins on evaporator and condenser coils are easily bent and can block airflow through the coil. Air conditioning wholesalers sell a tool called a "fin comb" that will comb these fins back into nearly original condition.

CONDENSATE DRAINS

Occasionally pass a stiff wire through the unit's drain channels. Clogged drain channels prevent a unit from reducing humidity, and the resulting excess moisture may discolor walls or carpet.

PREPARING FOR WINTER

In the winter, either cover your room air conditioner or remove and store it. Covering the outdoor unit of a central air conditioner will protect the unit from winter weather and debris.

HIRING A PROFESSIONAL

When your air conditioner needs more than regular maintenance, hire a professional service technician. A well-trained technician will find and fix problems in your air conditioning system.

The technician should:

Check for correct amount of refrigerant

Test for refrigerant leaks using a leak detector

Capture any refrigerant that must be evacuated from the system, instead of illegally releasing it to the  atmosphere

Check for and seal duct leakage in central systems

Measure airflow through the evaporator coil

Verify the correct electric control sequence and make sure that the heating system and cooling system cannot operate simultaneously

Inspect electric terminals, clean and tighten connections, and apply a non-conductive coating if necessary

Oil motors and check belts for tightness and wear

Check the accuracy of the thermostat.

Upgrade Your Kitchen Without Breaking the Bank

Freshening up your kitchen decor doesn't have to be a nightmarish haze of blown budgets and chaotic schedules. In fact, making over your kitchen can be as easy as pie! Toronto-based interior stylist Lisa Canning, offers her five go-to budget-friendly tips for cooking up amazing decor schemes for your culinary space.

Kitchen makeover tip #1: Redoing the counters 

When it comes to revamping the counters, Lisa suggests spending as much as you can afford. "Counters, especially in open concept layouts, play a prominent visual and functional role in the kitchen. When we work with clients on kitchens, I often build the budget around the countertops," she says.

Popular marble options and other natural stones often require a lot of maintenance, which is a lot of additional cost on top of an already sizable price tag. So Lisa recommends quartz, because it is available in a variety of colors and is virtually indestructible. In other words, it's a lasting investment.

For a more cost-effective option, try laminate. "My favorite place to source economic, modern looking laminate counters is IKEA," says Lisa. "They sell pre-cut counters with a very simple profile that make a great statement on a budget."

Another insider tip, Lisa says, is to source off-cuts. "Many stone fabricators will keep on hand off-cuts from larger pieces and these off-cuts are sold at a reduced cost," she explains.

Kitchen makeover tip #2: Kitchen cabinets 

The easiest way to get fabulous new cabinets without breaking the bank is to simply reface your doors. "Refacing cabinet doors is a process where your original doors are removed, sprayed off-site and then installed back in place," explains Lisa. After all, how often do guests go nosing through your kitchen cabinets to if the doors perfectly match the interior? It can be your little secret!

Just be sure to check for any sagging or warping in the shelves before refacing, says Lisa. "And look for mould or water damage in the interior of the cabinet," she adds.

Kitchen makeover tip #3: Spectacular sinks

To achieve a seamless look, Lisa recommends buying an undermount sink. "Keep in mind scale when selecting your sink size," she advises. "In smaller condo kitchens (especially ones that include a dishwasher) a large sink may eat up your counter space and look disproportionate."

For color-loving enthusiasts, Lisa recommends Jonathan Adler's designs for Kohler - her personal favorite line. "Bright pops of color are unexpected and very fun in the kitchen sink," she says. 

Kitchen makeover tip #4: Back to backsplashes

"The backsplash is like jewelry in the kitchen," says Lisa. "It's a spot where you can inject personality, color, pattern and shine."

Porcelain subway tile is a pretty go-to option when budget is a concern. It always looks effortlessly elegant and suits a variety of color schemes and decor styles.

"Another way to stretch your dollar (so you can afford quartz counters) is to visit retailers like Habitat for Humanity's Re-Store and see what treasures you can find by way of tiles or stone off-cuts," says Lisa.

Of course, Craigslist and Kijiji are other fantastic places to scour for great, unexpected kitchen makeover deals.

Kitchen makeover tip #5: Fabulous floors

Surprisingly, Lisa's all-time favorite flooring options for kitchens on a budget is marmoleum. "What's fun about marmoleum is that you can create stripes, borders and patterns in the many colors and textures this product comes in," she says. "It's incredibly comfortable underfoot and requires very little maintenance."

Sticker tiles designed to mimic the aesthetic of wooden plans are another easy option for DIY kitchen renovators.

A third option to consider is porcelain tiles. "I like using a grout colour that is as close a match as possible for a seamless, integrated look," says Lisa about using porcelain flooring in her design projects.

General kitchen makeover tips

Although it may seem obvious, Lisa says that the greatest advice she can give when it comes to designing a kitchen on a budget is to, well, start with a budget. "Pick one thing in the kitchen that you really want and crunch the numbers backwards from there," she suggests.

Swapping kitchen accessories in and out, such as dishtowels and counter-worthy accessories, is another simple and effective way to change the color and feel of a kitchen with minimal cost.

Lastly, Lisa adds, never underestimate the power of paint. You can update your kitchen with paint in a variety of ways and change hardware on cupboards and drawers to give your space the feeling of a brand new kitchen.

Whatever your kitchen dreams may be, following these budget-friendly tips are a recipe for success!

Housing Market Up Any Way You Look At It!

About two years ago, I declared that the U.S. housing market had “officially” recovered.

And now, with some indicators showing that real estate is the healthiest it’s been in a decade, I hope I can now officially declare my previous declaration as spot-on.

I know, I know … all of you who recently bought a home are asking me to find the nearest wooden object and knock vigorously on it. But current and prospective homeowners shouldn’t let the epic pain of the previous housing crisis color their expectations forever. With each passing month, the recovery in housing looks to be not only sustainable, but even gathering steam.

For the record, I do not view any of these encouraging metrics as grounds for irresponsible speculation or reason to attend a house-flipping seminar at the airport Marriott. I also do not think houses should ever be viewed as investments in the traditional sense — and not just for cold logic, such as the fact that real estate is illiquid, but also because of philosophical reasons such as the concept of a home being valued at more than simply what’s on your property assessment. But all that said, there are good reasons to expect home values to keep rising.

Here’s why:

Prices

Yes, the pace of increases in home prices has cooled, but given past experiences with an overheated housing market, that’s not a bad thing. According to the latest Case-Shiller data from the end of May, home values rose 5% from a year earlier in the 20-city index. Separately, real estate data firm FNC tallied a 5.3% increase in its larger 100-city price survey. So prices still are rising, albeit at a more moderate pace.

Equity

Digging deeper into prices and home values, CoreLogic just released a report that revealed another quarter of a million U.S. homes had equity that topped mortgage debt in the first quarter. The slow but steady trend of homeowners moving back into the black has quietly become an impressive story, with 44.9 million homes now reporting equity, or 90% of all mortgaged properties, according to CoreLogic data. Not only does this kind of environment breed confidence, it also creates stability as homeowners are not struggling to make payments on an underwater home or biting off more than they can chew.

Loans

The Mortgage Bankers Association reported in its latest weekly survey that applications from prospective borrowers were up 8.4% on a seasonally adjusted basis. The American Bankers Association said in its recently released annual survey that loans to first-time homebuyers have ticked up to 14%, the highest level in the history of the 22-year-old survey. More applications and loans are great, but it’s also crucial to note that the quality of those loans is strong, too. Consider the number of loans in foreclosure are at the lowest level since November 2007, with just 1.4% of mortgages in distress.

Construction

While housing starts pulled back a bit in May, it’s important to remember that came after a red-hot April that shows big optimism on the part of homebuilders as they broke ground on new homes at an impressive clip. The latest numbers showed upward revisions to the past two months, too, after impressive numbers previously. Also, permits surged 12% to the highest level since summer 2007 to show strong momentum that should carry this trend of robust construction through the coming months.

Confidence

The National Association of Home Builders reported that builder confidence was rebounding after a slow start to the year, and up to a nine-month high. Not only did this top expectations, but it put the NAHB survey firmly in expansion mode, with a reading of 59; anything above 50 signals a favorable view. Furthermore, expectations of sales now and in the future “are at their highest levels since the last quarter of 2005, indicating a growing optimism among builders that housing will continue to strengthen in the months ahead,” according to the NAHB.

Supply

There is plenty of room for new supply, too, considering that Federal Reserve data show the current inventory of existing homes is only 4.8 months, down sharply from a one-year supply at the peak of the housing crisis and back in line with 2005 levels. The National Association of Realtors reports that total listings are down 15.7% year-over-year.

Consumer finances

It’s reductive but fairly true: The health of the housing market is a reflection of the health of American family budgets, with the two waxing and waning together. And as I noted recently in my bullish assessment of the U.S. economy and stock market, consumers are doing very well, thanks to a better job market, and upward movement on wages, as indicated in the May unemployment report. Retail sales have reflected this strength, too, with better numbers lately. And according to the Federal Reserve, American families’ net worth has surged to a new record, owing to a rebound in the economy, stock market and home values. That all adds up to a bright outlook for consumer confidence, and for the housing market as a result.