Home Prices Rise Four Straight Months - Is Anyone Listening?

Amidst the gloom on Wall Street about housing someone forgot to check the stats. The National Association of Realtors® has now reported four straight months of rising housing prices, but it seems no one is listening.

According to NAR statistics, the median home price has fallen from a high of $230,200 in July 2006 to a low in February 2008 at $195,600, a drop of 15%. Since February, however, it has risen steadily every month. By May the index had risen to $208,600, up $13,000 and a full 6.6%. Another indicator, the mean home price (otherwise known as the average home price), has also shown strength and has risen from a low of $242,000 also in February of this year to $253,100, a rise of $11,100 or 4.5%. It, too, has risen every month since February of this year.

So why the crisis? Why the continual gloom and doom reports? Is this the bottom?

No one can know for sure until we all look back and can clearly define where the bottom was, but the hard data is clear. The median price has risen four straight months. The average American is out there taking advantage of bargains in their local real estate market. They are not listening to Wall Street but following their own belief that the best time to buy is when no one else is, and they are out there buying. If this keeps up, February may prove to have been the low in prices.

What do you think? Have we passed the bottom of this mess? Use our comment link below to sound off and give us your opinion. Your email address will never be published here to protect your in-box from too much mail.

Credit Ignorance: What You Don't Know CAN Hurt You

Consumers remain in the dark about how the credit-scoring system works in obtaining mortgages, insurance and credit cards, costing individuals as much as $28 billion each year, according to a recent survey.

Credit scores are a vital but often overlooked part of people's financial health. The number, also known as a FICO score, determines interest rates on credit cards and is being used increasingly by insurance companies to set rates, as well as by prospective employers in hiring decisions.

Taking steps such as paying bills on time and not maxing out credit cards will improve scores. Scores also can be improved by paying off debts, rather than moving balances between accounts. Paying more than the minimum due on credit cards also improves your FICO score. Missing a single payment by more than 30 days may lower your score by 25 to 50 points.

One of the most important steps individuals can take is to obtain their reports from one of the main credit-rating companies: Equifax Inc., Experian Group Ltd. and TransUnion. An easy way to do this is through the www.annualcreditreport.com Web site the three companies run together. Consumers can obtain one free credit report each year.

According to Stephen Brobeck, executive director of the Consumer Federation of America, "People responding to the survey didn't understand that credit scores are based on payment histories and how they've used credit in the past. Many respondents said factors such as income, age, marital status, and education levels influence credit scores. They don't."

A low credit score means you'll spend more money to borrow. Raising a credit score by 30 points translates into an annual credit card finance-charge saving of $105, according to Anthony Vuoto, president of Washington Mutual Card Services. If all consumers raised their scores by that margin, he said the savings would reach $28 billion.

Have you obtained a copy of your credit report since they became free once a year? If not, you should. Getting a copy of your credit report is also a good way to detect identity theft, because there will be evidence of anyone trying to open new accounts or obtaining credit cards in your name.

Fears Grow Over Mortgage Giants

Stocks of Fannie Mae and Freddie Mac are being hammered as the housing slump spreads, but the Bush administration says it's not planning a federal takeover of the mortgage giants.

Here's the latest on the growing fears of Fannie and Freddic from AP reporter, Mark Smith…. (Video runs 2:00)

Do you think the Federal government should intervene, or stay out of it? Tell us what you think by clicking on the comment link below and sounding off on this subject. Your email address will never be published here…

Selling Your House? Try Staging It

Staging a house can be the difference between its sitting or selling. Here are some findings and simple staging tips to help turn lookers into buyers at your next open house.

Studies have shown that staged homes sell quicker - sometimes up to 40% faster - than non-staged homes. Simply stated, staged homes sell faster for more money than those that aren't staged.

Three basic staging rules:

1. Entice buyers to enter. If people don't like what they see on the outside, they may not come in. Doors are the one exception to the neutral-color rule. Rich colors say "welcome" and "come inside." Some suggestions: red, black, charcoal and chocolate brown.
2. Curb appeal to sell a house. Curb appeal is 360 degrees around a house - and includes the neighbors and the neighborhood. Sellers should focus first on what they can control, especially landscaping outdoor spaces and lighting. Sadly, many sellers skip this obvious step and lose equity - and many prospective buyers - as a direct result.
3. Clobber the clutter. Go room by room and purge. Get rid of anything personal.

Hiring a professional home stager has great benefits to any seller. The seller doesn't have to spend every night and weekend trying to get the house ready for people to see. The seller can continue with their normal routine and have one less thing to worry about.

Consider this simple rule of thumb, the investment in staging your home will always be less than the first price reduction on your home if you don't stage it and it just sits on the market.

Wedding Insurance: Is It For You?

Most people have insurance for their car, their home, their health, their life. But who thinks about getting "Wedding Insurance" ? And exactly what does such a policy cover anyway?

Summer time usually means more people are getting married than any other season of the year, and your wedding should be the best day of your life, so why not insure that things turn out perfectly?

Money Editor Stacy Johnson explains in this short (1:42) video…