GOOD NEWS ON THE HOME SALE FRONT JUST IN...

"The upswing in April sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback" ahead,” says National Association of Realtors Chief Economist Lawrence Yun. He further states that  “Not only do consumers have growing confidence in the economy and their own incomes, but home buyers no longer fear further price declines -- and that's a crucial turning point in the cycle.”

THINKING ABOUT SELLING YOUR HOME?

THINKING ABOUT SELLING YOUR HOME?

Have you heard that STAGING can make a difference and may help sell your home?

Learn all about it at Robb & Stucky by attending one of their seminars, “Staging to Sell”.  Robb & Stucky Design Consultant Ron Hammond will tell you how to “prep” your home for a faster sale and make it stand out from other homes on the market.   

Your real estate agent can also be helpful, e.g. convincing you to remove clutter, open up spaces… after all, “it is all about the buyer,” and they are not interested in the sellers collections nor family photos, but rather, how their collections and furniture will fit in your home if they buy it.  It may be hard for sellers to understand that, but can make the difference for a faster sale.

The seminars will be held in the Boca Raton store in Mizner Park on May 27^th and June 24^th at 2 pm.  Reserve by calling 561-862-5597.

GETTING A NEIGHBORHOOD HISTORIC DESIGNATION

Why do it?  Being designated as a historic district can result in higher property values and access to grants and financial assistance for maintenance and repairs.

How long could this take? Working up to 20 hours a week, it could take 6 months or more.  Be ready for intensive research, paperwork, local government involvement, surveys, and you may want a consultant. 

What to research? Neighborhood architecture, be sure it is historic, photograph homes and streetscapes, survey property lines, and contact local and state historic officials and any historic preservation society, city or state groups nearby.  Learn about any well known people who lived in the area in the past as well as currently.

Why hire a consultant ($5000-$20,000 or more)?  A qualified consultant can do the paperwork, understand architectural terms, determine if properties are historic, usually meaning 50 or more years old.  Exceptions could be properties associated with major events.

Suggestion: Contact your town’s state representative to determine boundaries of the historic district you want to create.  Local designations may involve a town zoning board vote.

Know this: you may find opposition from neighbors and if so, an individual owner can decline to have their home listed.  People may be upset if they cannot change any parts of their homes without a lot of paperwork to get permission. 

What are the Designation differences: Restrictions differ with local, state and national designations, so learn the differences.  National designation is the most lenient; state designations tend to follow them.  Local designations are the most restrictive and usually are included in municipal preservation ordinances.  Restrictions can include colors of paint, additions or how windows and/or roofing are replaced.  The National Park Service administers the National Register of Historic Places, which is considered the most prestigious designation.  It is honorary and does not limit what owners can do to their homes.  National and State designated properties are usually overseen by State Historic Preservation Officers.  Most complaints are at the local level, but homes with local AND national designations tend to increase in value more than those with only a national designation, perhaps due to more oversight and more neighborhood involvement. 

For more information on Historic Homes.

LIFE IN WISCONSIN as painted by ROBERT DUNCAN

While this is NOT typical Florida life, I think you will enjoy watching this power point show.  If download does not work, click view.  Sit back and enjoy the sights and sounds.

	RobertDuncan'spaintings.pps 5149K   View   Download

South Florida Business Journal: EXISTING HOME, CONDO SALES RISE-in 2010 homes and condos are unlikely to be as cheap to buy or as cheap to finance.

The latest monthly Standard & Poor's/Case-Shiller home price index came in higher last week. Prices were up in 12 of the 20 major markets that Case Shiller monitors.   Home price indexes increased nationwide in August, including in South Florida where an S&P Case-Shiller report released today showed a 1.1 percent step up.  The index does include all single family homes sold, which may account for any difference between it and National Association of Realtor figures released last week that showed a small dip in local median home prices. The NAR looks at MLS listings only.

The Commerce Department released parallel findings last week - that consumers are finally beginning to loosen up on spending, and are making purchases they deferred during the scary months of 2009.   If that rate of expansion in consumption continues, not only will it begin to whittle away at the unemployment rate, but also stimulate the entire US economy, since consumer spending accounts for 70 percent of the national gross domestic product or GDP.  The housing and mortgage sectors could also begin to show some of that confidence and willingness to spend.

Home sales are expected spike upwards in the coming several months as the two federal housing tax credits head for expiration.  Mortgage Bankers Association reported last week that applications for new loans to buy houses - a bellwether indicator - jumped by seven percent and now stand at their highest level in six months.

UPCOMING LOCAL TOURS

Downtown West Palm Beach Historic Trolley Tours: 3, 4 p.m. Fridays; 11:30 a.m., 12:30 p.m. Saturdays, leaves from Richard & Pat Johnson Palm Beach County Museum, North Dixie Highway & Third Street. $5; ages 10 and younger free. RSVP 561-833-8873.

Boca Raton Historical Society Hotel Tour: 2 p.m. Tuesdays at Boca Raton Resort & Club, 501 E. Camino Real. $15; $9 valet fee. RSVP 561-395-6766 ext. 100 or bocahistory.org.

Boca Raton Historical Society Trolley Tour: 10 a.m. second and fourth Thursdays of the month leaving from Boca Raton Historical Society, Town Hall, 71 N. Federal Highway. $20; members $15. RSVP 561-395-6766 ext. 100 or bocahistory.org.

Narrated Bus Tours of Historic Delray Beach: Museum of Lifestyle & Fashion History. Registration 10 a.m., departure 11 a.m. Feb. 27 from Delray Beach Library, 100 W. Atlantic Ave. Adults/seniors $15; under 18 free. delraybeachbustours.org, 561-243-2662.

West Palm Beach Antiques Show: Early buyers 9 a.m.-noon March 5 ($25); regular hours: noon-5 p.m. March 6, 9 a.m.-5 p.m. March 7 at South Florida Fairgrounds, 9067 Southern Boulevard. Adults $7, seniors $6, under 16 free. 561-793-0333, wpbaf.com.

Lake Worth Parrot Cove Home and Garden Tour: Includes nine homes/gardens, two bed & breakfasts and St. Andrews Episcopal Church 2-6 p.m. March 7. Tickets $20 in advance, $25 day of event. 561-586-8612, parrotcove.org.

Arts & Crafts Trunk Show: 10 a.m.-6 p.m. March 13, 12-5 p.m. March 14 at Art-Sea Living Gallery, 1628 S. Federal Highway, Boynton Beach. 561-737-2600, art-sealiving.com.

Spady Museum Ride & Remember Trolley Tour: Leaves 10 a.m. March 13 from Delray Beach Parking Garage, NE First Street & NE First Avenue. Cost $15; $10 children; $12 members. 561-279-8883, spadymuseum.org.

American Orchid Society: 16700 AOS Lane, Delray Beach. "Orchid Design Clinic" 1 p.m. Feb. 27. Members $5, non-members $10. 561-404-2031. Orchid Judging 2 p.m. Feb. 27. Orchid Doctor 1-4 p.m. Saturdays, Sundays; 10-11:30 a.m. Wednesdays. 561-404-2000.

Gardening Classes: "Landscape Design Techniques Used by Professionals" 7-8:30 p.m. Mondays, through March 1; "When Your Garden Misbehaves" 7-8:30 p.m. Mondays, March 15-29 at Community Center, Boca Raton. Residents $38, non-residents $48. 561-338-5436.

Boca Raton Garden Club: Clubhouse, 4281 NW Third Ave. "History of Boca Raton" 1 p.m. March 2 Free. Rummage Treasures ‘N Plants Sale 9 a.m.-2 p.m. March 13. Free. 561-395-9376.

Mounts Botanical Garden: 531 N. Military Trail, West Palm Beach. "Designing, Creating & Maintaining Your Home Landscape" workshop series 6-9 pm. March 3-27 (Wednesdays). $50 members, $60 non-members. Bonsai Society 7 p.m. March 2. J.harman2006@yahoo.com. PBC Beekeepers Association 7 p.m. March 5. 561-686-6557. Begonia Society 7 p.m. March 8. 561-434-3745. Herb Society of PBC 9:30 a.m. March 9. 561-640-7943. Orchid Society of Palm Beaches 7:30 p.m. March 11. pottedorchid@aol.com. Rare Fruit Coucil 7:30 p.m. March 12. 561-495-4694. Enchanted Garden Spring Benefit/Auction 4:30-7 p.m. March 14. Tickets $75. General info: 561-233-1757, mounts.org.

Morikami Museum and Japanese Gardens: Art of Bonsai classes begin March 7 (9 a.m.-noon Sundays through April 11) at 4000 Morikami Park Road, west of Delray Beach. Members $81, non-members $91; additonal material fee of $35. 561-495-0233 ext. 210, morikami.org.

Ann Norton Sculpture Gardens: 253 Barcelona Road, West Palm Beach. Marino Marini Sculptures, Etchings and Lithographs on view through March 8. 10 a.m.-4 p.m. Wed.-Sun. 561-832-5328, ansg.org.

SEA TURTLE DAY AT GUMBO LIMBO IN BOCA RATON

On March 13^th, Gumbo Limbo will celebrate their 5^th Annual Sea Turtle Day from 10 a m to 4 pm.  Included in the celebration will be marine life, our oceans, terrestrial species and habitats along with a fun-filled day of environmental education.  Learn about conservation to help make our world a better, cleaner place, and how all species and habitats are interconnected.  This year’s focus will be on responsible fishing.  Children must be accompanied by an adult. 

CBS Channel 12 will feature on their morning show on February 21^st a live broadcast from Gumbo Limbo Nature Center, from 6-9 am.  CBS recently showed surgical treatments for 35 green sea turtles affected by fibropapilloma, a virus which manifests in fleshy tumors on the turtles skin.  It is contagious among turtles, but does not affect humans.  Currently, only surgery can remove the tumors.  After surgery and a short recovery period, the turtles will be released to the ocean.  There were 5000 “cold-stunned” turtles rescued during 2 weeks of abnormally cold temperatures in Florida. 

Come to Gumbo Limbo and stroll around the butterfly garden, climb the observation tower on the boardwalk through coastal hammock, sit in a hut, see saltwater tanks brimming with marine life and take photos of the 7 giant turtles in the sea turtle garden. 

Wiggy, the Kemp’s Ridley turtle pictured about was captured as an adult in 1971 and is presumed to be born about 1960. 

The turtle pictured here, FeeBee, a Loggerhead, survived pneumonia and was hatched in July 2002 in Spanish River Park in Boca Raton.

Above is Milton, another Loggerhead, hatched in July 2002 south of the South Beach Pavilion in Boca Raton.  97 out of 102 of Milton’s eggs hatched.

You can adopt a sea turtle, including FeeBee or Milton, to help support their care and feeding.

GOING THROUGH END-OF-LIFE ISSUES WITH FAMILY MEMBERS?

Head over to the CARING INFO website.  Find out there about caring for someone, planning ahead, living with an illness.  You can download an advance directive form, fill it out and add it to your google health profile so it will always be easy for a family member to find.  There is hospice info there and a legal guide for the seriously ill.  There is also information on grieving a loss and using community outreach resources.

BOCA WHISPER WALK COMMUNITY GUN CLUB VERY ACTIVE

In order to get a Florida state gun permit, according to the Treasurer of the Whisper Walk Gun club in West Boca Raton, you need 6 hours of intense coaching and a final period of shooting the gun at a range. The club is 14 years old and has 50 members including retired professionals, a few ex-law enfocement officers, neighbors and people from other communities. They meet monthly in the community clubhouse. 

During class you

·        see a 10-minute NRA video about the safe and responsible use of firearms

·        go through the NRA training manual, “The Basics of Pistol Shooting

o      pistol parts

o      operation

o      ammunition

o      using a pistol safey

o      operating a pistol

o      shooting basics

Three fundamental gun safety rules are mentioned:

·        always keep the gun pointed in a safe direction

·        keep your finger off the trigger until ready to shoot

·        always keep the gun unloaded until ready to use

The group learns how to shoot and care for their weapon.  They go to a Pembroke Pines shooting range a few times a month.  
 

For more information call 561-483-5636.  Cost of course is $40.

MORE NEWS ABOUT HOME SALES...

The median single-family home in Palm Beach County sold for $238,000 in January – 9 percent higher than in 2009, according to the Realtors Association of the Palm Beaches. Inventory in January was down to eight months, less than half of what it was in January 2009.  Are we experiencing the start of a seller's market?

Realtors say part of the problem is that people hear the hype about the down market and expect to find a steal in a great neighborhood.  Last year, more than 500,000 Florida homes received some type of foreclosure notice, according to RealtyTrac who charts foreclosures.  But while foreclosures are usually priced low, they’re not always good deals. They could be tagged with liens, have missing appliances or be in general disrepair.

Buyers have said banks will sometimes set a low asking price on a short sale to attract buyers, but with no plans to actually settle for that price. While short sales have traditionally taken months to settle, new federal guidelines that go into effect in April require banks to respond to short sale offers within 30 days.

WHY IS RIGHT NOW THE BEST TIME EVER TO BUY A PROPERTY IN FLORIDA?

LATEST FLORIDA HOME SALES NEWS: Florida single family home sales in Florida were up 33% for the month of JANUARY 2010  compared with the prior year, and condo sales gained 91%.  REALTY TIMES reports that Lawrence Yun, chief economist for the National Association of Realtors which conducts the pending sales survey said the swings from month to month are "masking the underlying trend (in housing) which is a broad improvement over year-ago levels."   Yun also predicts that that the two home purchase tax credits -- the extended $8,000 credit and the new $6,500 credit -- will have a significant impact on closed sales in the coming several months.  He forecasts that the two credits combined will stimulate 2.4 million sales in 2010, and most of that activity will be compressed into the first six months of the year. December's pending sales contracts were 11 percent higher than December 2008's.

STORY OF RUDOLPH THE RED NOSED REINDEER... confirmed true by SNOPES

A guy named Bob May, depressed and brokenhearted, stared out his drafty apartment window into the chilling December night. His 4-year-old daughter, Barbara, sat on his lap quietly sobbing. Bobs wife, Evelyn, was dying of cancer. Little Barbara couldn't understand why her mommy could never come home. Barbara looked up into her dads eyes and asked, "Why isn't Mommy just like everybody else's Mommy?" Bob's jaw tightened and his eyes welled with tears. Her question brought waves of grief, but also of anger. It had been the story of Bob's life. Life always had to be different for Bob. Being small when he was a kid, Bob was often bullied by other boys. He was too little at the time to compete in sports. He was often called names he'd rather not remember.

From childhood, Bob was different and never seemed to fit in. Bob did complete college, married his loving wife and was grateful to get his job as a copywriter at Montgomery Ward during the Great Depression. Then he was blessed with his little girl. But it was all short-lived. Evelyn's bout with cancer stripped them of all their savings and now Bob and his daughter were forced to live in a two-room apartment in the Chicago slums. Evelyn died just days before Christmas in 1938. Bob struggled to give hope to his child, for whom he couldn't even afford to buy a Christmas gift. But if he couldn't buy a gift, he was determined a make one - a storybook!

Bob had created an animal character in his own mind and told the animal's story to little Barbara to give her comfort and hope. Again and again Bob told the story, embellishing it more with each telling. Who was the character? What was the story all about? The story Bob May created was his own autobiography in fable form. The character he created was a misfit outcast like he was. The name of the character? A little reindeer named Rudolph, with a big shiny nose.

Bob finished the book just in time to give it to his little girl on Christmas Day. But the story doesn't end there. The general manager of Montgomery Ward caught wind of the little storybook and offered Bob May a nominal fee to purchase the rights to print the book. Wards went on to print Rudolph the Red-Nosed Reindeer and distribute it to children visiting Santa Claus in their stores. By 1946 Wards had printed and distributed more than six million copies of Rudolph. That same year, a major publisher wanted to purchase the rights from Wards to print an updated version of the book. In an unprecedented gesture of kindness, the CEO of Wards returned all rights back to Bob May. The book became a best seller. Many toy and marketing deals followed and Bob May, now remarried with a growing family, became wealthy from the story he created to comfort his grieving daughter.

But the story doesn't end there either. Bob's brother-in-law, Johnny Marks, made a song adaptation to Rudolph. Though the song was turned down by such popular vocalists as Bing Crosby and Dinah Shore , it was recorded by the singing cowboy, Gene Autry. "Rudolph the Red-Nosed Reindeer" was released in 1949 and became a phenomenal success, selling more records than any other Christmas song, with the exception of "White Christmas." The gift of love that Bob May created for his daughter so long ago kept on returning to bless him again and again. And Bob May learned the lesson, just like his dear friend Rudolph, that being different isn't so bad. In fact, being different can be a blessing!

OLD SCHOOL SQUARE’S CREST THEATER PRESENTS WINTER WONDERLAND ON ICE

With 3 performances coming up, you don’t want to miss the international cast of champion pairs an soloists, colorful costumes and exciting music, electrifying jumps, lifts and spins and enchanting vocals.  Olympic Bronze medalist and 2-time European Champion Jozef (“Jumpin’ Joe) Sabovcik will WOW us with his skating performance.  Performances are Friday, December 18^th at 8 pm; Saturday, December 19^th at 2pm and 8pm; Sunday, December 20^th at 2 pm and 7 pm.   

Tickets are $42 and can be ordered online at http://www.oldschool.org/ or by calling 561-243-7922, ext 1.  The Crest Theatre is located at Old School square, 51 No. Winton Avenue, Delray Beach.   

Come early with the elementary school (and pre-school) children who can ride the Carousel.  Carousel hours are 5-9 pm weekdays and 1-9 pm weekends and during school break.  Rides are $2 each.

DEED FOR LEASE PROGRAM (DL-4)

New program announced by Fannie Mae (Federal National Mortgage Association) to keep mortgage-challenged borrowers in their homes.  Qualified borrowers relinquish the deed to their property and rent their home at market rate for 12 months.  To read more about it, see Chris Thorman’s informative blog.   Your comments are most welcome!

DEED FOR LEASE PROGRAM (DL-4)

New program announced by Fannie Mae (Federal National Mortgage Association) to keep mortgage-challenged borrowers in their homes.  Qualified borrowers relinquish the deed to their property and rent their home at market rate for 12 months.  To read more about it, see Chris Thorman’s informative blog.   Your comments are most welcome!

1st TIME HOMEBUYER CREDIT EXTENDED TO APRIL 30, 2010

The $8000 tax break for first-time home buyers would require a signed purchase agreement contract, and will have a 60-day cushion beyond the end of April to complete the closing.

In addition, existing homeowners who have lived in their current residence for at least 5 years but want to relocate to a new primary residence can use a $6,500 tax credit.

Income limits for both would be $125,000 for individuals and $225,000 for couples.

The tax break would be offered on homes priced at $800,000 or less Recipients who sell the home or stop using it as their primary residence within 3 years would be required to repay the credit

ART REIGNS SUPREME

The New York Times reports that prices at Sotheby’s Auction far surpass estimates. A recent auction was well represented by buyers from the US, China, Latin America and Russia. A Derain, “Barque au Port de Collioure sold for $14MM recently, the highest price for one of the artists works at auction. It was estimated to sell for $8MM but there were 3 bidders and one was determined to win the painting.

AUCTIONS: BEST BUYS IN TOWN & HISTORIC HOMES: WHAT’S OLD IS NEW AGAIN

For BEST BUYS IN TOWN and WHAT'S OLD IS NEW AGAIN See The Examiner.

WEEK OF 10-12-09 PENDING SALES ROSE BY 2% IN SOUTH FLORIDA

Buyers are becoming aware that NOW is the BEST TIME EVER to buy in Florida, and the best properties are being bought up as you read this. Front runner Palm Beach County was up 3%. Have you been out looking for the best possible deal? Better hurry….

HOW LONG WILL FOODS STAY OKAY IN YOUR HOME?

Keep it or toss it? Head over to http://www.stilltasty.com, and find out shelf life, and length of time it’s ok in the refrigerator or freezer. Search for the foods you want to know about. You might find some surprises!

529 COLLEGE SAVINGS PLAN CHANGES PROPOSED

Among recommendations from the White House Task Force on Middle-Class Working Families (Treasury Department) here are some proposals:

• 529 plans getting greater availability of age-based index funds that shed equities and add fixed-income assets as beneficiary approaches college
• eliminating a “home-state bias” for fee and state tax assessments which currently force families to use funds offered in their home state rather than in others
• put limits on balances on a per-beneficiary bases rather than on state-by-state basis
• Treasury should collect data from surveys re 529 plan participation and investments
• Strengthen compliance and monitoring of Section 529 accounts and disbursements
• Simplify the Free Application for Federal Student Aid (FAFSA) which currently has 153 questions, some having no impact on student aid – over 1MM eligible students fail to fill out this currently complex form
• Tailoring the form to individual students
• Allowing students to electronically retrieve their tax info from the IRS and enter it into the online FAFSA

MARILYN FARBER JACOBS is a Licensed Advisor / Independent Insurance Agent – who has College Savings Plans to tell you about, using a 529 Plan, term, universal life or whole life plans so that you, or someone you know, can make an educated choice.

HOME BUYERS GUIDE FOR FIRST TIME HOMEBUYERS

FIRST TIME HOME BUYERS GUIDE

SEPTEMBER 2009 HOUSING NEWS

HOUSING INDUSTRY GROUPS WORKING ON APPRAISAL REFORMS

Things are looking up as this thorny appraisal vs.comparables problem is faced at last. Among the issues being discussed jointly by the NAR (National Association of Realtors), NAHB (National Association of Builders), MBA (Mortgage Bankers Association and appraisal groups are:

· Appraisers not using proper adjustments on comps (comparables) on foreclosed or other distressed properties

· The HVCC (Home Valuation Code of Conduct) impacting the ability to get quality appraisals in distressed markets

· Some appraisers for comps in area they are not familiar with and that impacts the appraisals, driving down home values

· Urging federal regulators to adopt and enforce more clear regulatory guidance on appraisals for distressed and foreclosed properties for realistic valuations and truly comparable sales

· Calling for immediate action to address these appraisal-related claims

· Sometimes appraisers do a “drive by,” only looking at the exteriors of homes as they do not have access, and distressed properties often have apparent problems inside as compared to new, updated, and “market-ready” homes.

Okay government, let’s get this fixed. It IS BROKE.

MAKING HOME AFFORDABLE PROGRAM

FOR THOSE WITH PROBLEMS PAYING THEIR MORTGAGES THESE LINKS MAY BE OF INTEREST

MAKING HOME AFFORDABLE PROGRAM

BUYING FORECLOSURES

FORECLOSURE PREVENTION

SHORT SALE GUIDE, ISSUES, PITFALLS AND MORE

Keep in mind: Marilyn's team includes CDPE Graduates (CERTIFIED DISTRESSED PROPERTY EXPERTS) and if you know someone who could use our help, please let us know who they are, or suggest they call us. We will do the best that we can to be of help. Call Marilyn at 561-988-0070 for more information.

DID YOUR PRELIMINARY PROPERTY TAX BILL GO UP?

While local headlines SCREAM that Florida properties were devalued even more this year (did I hear 18%?), the property taxes, inexplicably, are going UP UP AND AWAY. Appeals to the county’s Value Adjustment Board by angry taxpayers for their 2009 property tax bills are expected to climb, perhaps by over 20% up from 13,200 appeals in 2008, challenging property assessments and homestead and tax exemption classifications. Petitions can be file online or in person at 301 N. Olive Avenue, West Palm Beach, until September 14^th, and there is a $15 filing fee. For more information call the Clerk and Comptroller's office at (561) 355- 6289. The Clerks office says that while the increase in appeals may be due to the economic downturn, a state law has changed requiring the property appraisers office to prove their assessments are accurate. In the past the property owner had to prove the assessment was wrong. Special magistrates must be hired to settle disputes between property owners and the county property appraisers office. Responsibility for processing petitions and scheduling hearings lies with the Clerks office. Preliminary tax notices were mailed Friday to all county property owners.

FIRST FLORIDA POPULATION DROP SINCE MILITARY PERSONNEL LEFT IN 1946

Blaming the recession and steep drop in new residents of 58,000 over the past year for plunging tax revenues jobs in construction, real estate and mortgage lending have disappeared. This has resulted in empty classroom seats, down about 10,000 statewide compared to the previous year. Current popular is about 18.3 million, says the US Census Bureau.

Florida’s unemployment rate in June was 10,6%, highest rate since 1975, one of the highest rates in the US. Estimates used data from residential electric hookups, building permits and homestead exemptions.

Another factor fewer people are moving to Florida is their inability to sell their homes elsewhere to be able to move here.

However, growth is expected to resume as the economy improves.

WANT TO SEE THE US DEBT and PER CITIZEN LIABILITIES?

US DEBT CLOCK

CASE-SHILLER HOME PRICE INDEX RISES

A May 2009 increase of 0.5% in the closely watched Case-Shiller home price index indicates that the US housing recovery is seen possible now. Prices tumbled more than 32% from their peak in 2Q 2006. Case said that prices may be at the bottom now.

· Preventative risk--management must be a priority going forward, according to Shiller.

· He also stated that the mortgage contract structure must be made to protect home-buyers in case of a downturn. “The new standard for mortgage should be a continuous work-out mortgage,” so that “if home prices fall then your mortgage payment will go down.”

· Shiller cautioned that recent bank bailouts were “extraordinary events that we should want to prevent as much as possible in the future.”

· In June new home sales jumped 11%, the biggest monthly gain in 8 years according the US Commerce Department.

· National association of Realtors said existing home sales rose for the 3^rd straight month in June.

But, with unemployment and foreclosures still rising, caution was advised. Shiller said that confidence in the US financial system is crucial for an economic recovery, and can be best restored by having a clear regulatory framework for investors. He mentioned that foreign investors who were thinking about putting money in this country are feeling somewhat less assured.