August Energy Smart Tip

Creating an "Energy Budget"

Do you know what you are spending on utilities each month? While gas prices are in the headlines everyday, you might not know that natural gas prices are expected to increase approximately 60% on an average basis between 2007 and 2008 (see the EIA Short Term Outlook). Even if you have a budget to manage your bills, your budget could easily be blown by energy cost inflation.

Following are a few recommendations for establishing an energy budget and controlling costs:

• Have your utilities switched to "budget billing" that sets your monthly bill based on an average of the previous year or quarter's usage. (Duke makes this very easy on their website.)
• Track your average usage from the previous 12 months and make a serious effort to reduce it in some way each month.
• Set aside a specific amount each month for efficiency improvements, then set out a plan to upgrade as your budget allows. An energy audit can help identify what will save you the most on your utility bills.
  
• Moving soon? Make your new home as efficient as possible before you move in. If you can include the cost for energy efficiency into the mortgage, you could actually save money each month and earn dividends over the long haul.

In coming months, I will discuss options for financing improvements and understanding "payback" periods.

For more ways to save, see the Alliance to Save Energy website.

July Market Watch

Positive trends continue into May

The Cincinnati market continues to show resilience in the face of larger economic pressures.

Following is an excerpt From the Cincinnnati Area Board of Realtors June 26th Press Release:

"Local Realtors sold 1,913 homes last month, marking the fourth consecutive month of increased sales this year. The inventory of unsold homes also improved, shrinking to 8.38 months compared to 9.49 months in April, 9.75 months in March, 11.32 months in February and 13.31 months in January.

Months of
2008 Home Sales Inventory

January 1,130 13.31
February 1,334 11.32
March 1,557 9.75
April 1,636 9.49
May 1,913 8.38

The average price of a home sold in May was $168,833. That compares to $152,419 the previous month and $176,726 a year earlier.

The local housing affordability index is 216%. An index of 100% means a family with a median income can afford to buy a median-priced home with a 20% down payment and a 6.35% mortgage. Anything over 100% is favorable. In Ohio, the affordability index is 188%. Nationally, it is 132%. The higher the number, the better."

July Finance Corner

HUD offers homes with $100 down payment

The department of Housing and Urban Development has an incentive program through 9-30-08 for owner-occupied homes with FHA financing through approved lenders. The incentive allows you to purchase the home with as little as $100 down AND another $2500 to use on repairs, closing costs, or to lower the mortgage amount.

What is a HUD home? These are homes acquired by HUD as a result of a foreclosure on an FHA-insured mortgage. They must be purchased "as-is," but good bargains can be found.

You can find a list of HUD homes through their Ohio representative's website, National Home Management Solution, then contact me if there's a home you'd like to see!

July Energy Smart Tip

Stay cool and conserve energy at the same time!

Well, the hot weather did finally arrive. To help stay cool and improve your home's efficiency check out this great interactive guide: Energy Star 'At Home Guide'

Those of you in older, 2-story homes where the upper floor gets very warm in the summer may find that correcting the ventilation in your attic can be an inexpensive way to cool your home and allow you to actually go upstairs in the summer! If you use an attic fan (and I recommend a solar-powered one if you do), use caution to make sure you have adequate insulation in your ceiling to prevent the cool air from your AC from being drawn out along with the attic heat. Otherwise, you may be paying to cool the outside and defeating the potential for savings. Proper ventilation can also help avoid "ice dams" from forming in the winter and may give your roof a longer life.