Johnson County KS Housing Slump? Homeowners Don't Believe It

Despite numerous reports showing home values in historic decline, more than three out of four homeowners believe their own home has not lost value in the past year, according to an online survey.

The survey was conducted by Harris Interactive for Zillow.com, a Web site that gives estimated home values.

The survey of 1,619 homeowners found 36% believe their home has increased in value, and another 41% believe their value has stayed the same. Only 23% believe their home has lost value.

Figures from the National Association of Realtors show that the median price of an existing home sold in 2007 fell 1.4% from 2006, the first decline in that key price measure the trade group has ever recorded.

We'd love to hear what you think.  If you're a homeowner, do you feel that your home has decreased, or increased, in value?  Leave us your comment at the "comment" link below.

Paying Down Mortgage vs Investing Your Money

You've got a little extra cash coming in…do you invest it, or would it be smarter to pay extra on your mortgage? 

Let's find out: simple answers to complex questions are in this video (runs 1:28)

Tell us what you think.  Are you better off paying down the mortgage, or investing those same dollars?  Use the comment link below to give us your feedback.

A Great Blog for Travel Questions

Yes, we realize our blog here is supposed to, and is, 99.5% about real estate related matters, however, polls show that over 72% of the American publc does fly at some point in time, so we thought we'd pause momentarily from telling you about real estate to tell you about a great new blog the TSA has started to answer questions from us, the flying public, about why they do some of the things they do at screening checkpoints around the country.

Polls also show that the TSA is one of the least liked govenment agencies, but this agency is tasked with making sure our airports and skies are safe.  To combat the less-than-stellar image they maintain, the TSA has started a blog, answering common questions.  We found the blog very informative and some of their responses to reader questions very enlightening.  Some of the posts the TSA are putting up there might just change your attitude the next time you fly.

You can also post questions or comments there yourself.  Take a look at what others have written, it's a very informative read.  http://www.tsa.gov/blog

Will Rate Cuts Kill the Housing Market?

The latest rate cut from the Fed was again good news for the stock market. Unlike the last several Fed moves, however, this one didn't make mortgage borrowers very happy.

The Fed has cut interest rates quickly and dramatically in recent weeks and months, and the entire yield curve has responded.  Although the interest rates that the Fed controls are all short-term rates, the rest of the bond market followed suit as yields fell across the board.  As a result, mortgage rates fell, and homebuyers seeking mortgages benefited greatly.

This time, however, it's a different story.  Although the Fed cut knocked another 0.5% off short-term rates, interest on fixed mortgages actually rose after the last rate cut announcement, making it harder for potential buyers to afford to buy a home.  And even if the Fed keeps cutting, there's no guarantee that any further action won't actually be counterproductive — at least as far as the housing market is concerned.

The rise in longer-term interest rates means those seeking a new mortgage may not get the lowest rates they might have hoped for.  But the recent moves actually re-establish a normal pattern in the bond market, where investors are rewarded with higher rates by committing their money for longer periods of time.  Unfortunately for savers, the normal-sloping yield curve came back mostly because of the huge drops on short-maturity bonds, which will reduce their income.

It would be ironic if the Fed's actions to try and stimulate the economy and prevent a catastrophic failure in the financial markets actually turned out to stifle a recovery.  Recent rallies on Wall Street with major homebuilders suggest the industry isn't worried yet.  But if rate cuts continue and the mortgage market doesn't cooperate, those higher stock prices could evaporate in a hurry — and you might miss out on the lowest mortgage rates in a generation.

Automatic Bill Pay: Good Idea?

Paying your bills online not only saves money, but trees, water and all kinds of other resources as well.  But making electronic payments…especially automatically…carries some unique problems as well.  Should you or shouldn't you?  (Video runs 1:31)

Do you use automatic online bill pay?  Have you encountered problems?  We'd love to hear your feedback and experiences, good or bad.  Just post your comment below…