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 It seems that gasoline prices continue to hit new records day after day.  Lawmakers have been trying to ease the nation's pocketbook pain by demanding higher vehicle efficiency standards.  But in the meantime, here are some tips that can save you gas and cash!

One thing's for sure: Before the sun shines again on the housing industry, a good amount of excess inventory will have to be sold, according to the center's "State of the Nation's Housing" report, released Monday. Employment growth will play a role as well in the recovery, as will interest rates, the report said.

In a telephone interview, Nicolas P. Retsinas, director of the center, said the housing industry was going through a "bumpy landing." Yet despite the severe contractions in home sales and starts seen during this correction, home prices have flattened but haven't crashed, and as a result, "we're not seeing a return to affordability," he said.

If you were an economist, you would think that prices would have fallen precipitously," Retsinas said. Instead, home-price gains have been near flat, relative to the high appreciation rates seen over the first half of the decade -- which in many markets amounted to home price gains of 60% or more during those five years, he said.

According to the report, median house prices increased at least 10% in 2006 in 23 of 149 metropolitan areas studied; prices fell in 34 of the metros. Of the 11 metros that had declines of greater than 3%, nine were in economically depressed areas in the Midwest -- suggesting local economic trends had a greater influence on markets than national trends.

Home prices should slide further, however, according to the report. As for home sales figures, Retsinas said sales of existing homes could bottom out and begin to recover by the end of this year, with the new-home market following in 2008. The Mortgage Bankers Association also expects the market to hit its bottom at the end of the year, gradually improving from there as homes become more affordable.

And after markets burn through excess inventories, demand for new and remodeled housing will be lifted to new highs, the report predicts. In fact, if it weren't for some of the population trends -- including the influx of immigrants into the country -- the slowdown could have been much worse, said Moises Loza, executive director of the Housing Assistance Council.

The Correction - Records were set for home sales, single-family starts and house-price appreciation in 2005. The next year ushered in contrasting numbers, according to the report.  Total home sales fell 10%, starts fell 13% and house-price appreciation slowed to a few percentage points in 2006. Between the end of 2005 and the end of 2006, the number of vacant homes on the market jumped more than 500,000 units, the report noted -- and that figure might even understate the overhang because some homes including seasonal or occasional-use homes might be brought back on the market when conditions improve.

Falling interest rates and unprecedented house-price appreciation started the boom, inspiring more Americans to become homeowners and more investors to buy with the intention of flipping their properties to make a quick profit. Builders tried to meet the demand, but lag time between predevelopment work and completions brought about bidding wars. "Affordability" products with lower initial payments helped more people jump into homeownership.

The study pegs the turning point of this boom in late 2005, when rising mortgage interest rates and higher home prices started forcing out buyers. Indeed, affordability remains an issue for many low- and middle-income Americans, the report pointed out, calling for a combination of structural and public policy shifts to address it.

"In just one year the number of households spending more than half their income on housing increased a startling 1.2 million to 17 million in 2005," Rachel Drew, research analyst for Harvard's Joint Center of Housing Studies, said in a news release.

Now, too, stricter standards of some lenders are having an effect on the ability of some would-be homeowners to get into the market, said Jonathan Kempner, CEO of the Mortgage Bankers Association. While products such as subprime and Alt-A loans were "controversial for some people," they did address the affordability issue for many Americans.  "Some people will have to wait longer on the margin," delaying their home buying, he said. Already, evidence of that wait is showing up in new and existing home sales, he added.

A look ahead - The report also points out the persistence of a wealth effect in 2006, which kept Americans borrowing more against their equity to support their spending. The amount of home equity cashed out set a record last year, as the volume of refinances dropped. The effect of the housing slowdown on consumer and remodeling spending hasn't been seen yet, according to the study.

Look farther ahead, however, and the outlook for housing is bullish.

For one, the baby boomers will continue to move into the age where second-home ownership is at a high. Evidence of this demographic trend has already been seen, with the sale of vacation homes hitting a record in 2006, according to the National Association of Realtors.

At the same time, children of the baby boomers will continue to move into the ranks of homeownership, boosting housing demand.  In addition, immigration is expected to hit a record 12 million between 2005 and 2015.

The upcoming growth in new households puts estimates for new-home demand at about 19.5 million units from 2005 to 2014, surpassing the 18.1 million units added between 1995 and 2004, according to the report.

 If you, or someone you know, is thinking of buying or selling a home this summer, give me a call.  I'd love to help you with your real estate needs. Feel free to contact me by phone at 925.487.5065 or email me at homes@judypipkin.com.

Whether you are a first-time homebuyer or a move-up buyer, if you’ve been house hunting for more than 6 months, it may be time to rethink your home search criteria. Most home buyers claim they're picky. And why shouldn't they be? The home that you buy needs to provide more than just a roof over your head, it needs to satisfy your emotional needs as well. You may have come close to making an offer several times, but have backed away after reconsidering. Each property may have had defects in terms of your ideal wish list and you weren't willing to compromise.

HOUSE HUNTING TIP: Buyers who find they've been looking for the right house for more than six months should pause to consider whether their expectations are in line with reality. For instance, if you want a bay view and a level lot, you may find that you'll wait forever. Bay views tend to be available only in homes that are built on hills. Home buying involves making compromises if you're serious about buying.

In order to decide how you will compromise, you need to research the local housing stock to discover what is realistically possible. In other words, you need to do your homework. The perfect house won't just magically appear. To save time, use the Internet to whittle down the list of homes for sale until you find the ones that suit your needs. Then make a point of visiting these in person, either with a real estate agent or at an open house.

Buyers with pressing needs usually have less of a problem finding the right home to buy. For example, if you live in an area with a school district you don't particularly like and you have children who are about to enter school, you probably will need to move if you can't afford private-school tuition. You have an urgent reason to move that preempts the desire for a perfect house. You'll settle for the right number of bedrooms and baths, a yard and a good school district. You may be willing to give up on the Old World charm or character that you were hoping to find.

You may be getting out and seeing the current listings that might work for you and still aren't having success. In this case, you could be suffering from approach-avoidance. This syndrome can keep you from making a decision, even when you see the right house to buy. You come close to making an offer but never carry through.

Buying a home can be frightening, particularly if you are doing it on your own. It's a big commitment, perhaps to a lifestyle that you're not used to. It's helpful to consult with advisors when you find that you're getting nowhere. Talk to a trusted financial advisor to see if you're looking in the right price range. If you're over your head financially, scale back to a level that feels comfortable.

It can be useful to reconsider your wish list in terms of what you've learned about your local market and what to expect. By realigning your expectations and readjusting to a comfortable price range, you may feel more comfortable moving ahead.

If you are considering a move to the Bay Area and would like to work with a Realtor® who has the knowledge and experience for making your home buying process as smooth as possible, while keeping you informed of current market conditions, Call Me Today. I will listen to your needs and only show you those homes which meet your criteria. Call Me at 925.487.5065.