The Best Places to Buy a Home Right Now

By Nathan Vardi and David Whelan, Forbes.com
May 12, 2011
Though home prices in most areas around the country remain weak, the attractiveness of purchasing a home continues to diminish in the wake of the real estate bust. Fears of price erosion, a weak economy and foreclosure dog markets coast to coast.

But not everywhere. In places like the suburbs of Rochester, N.Y., houses look like a great buy. You can get a relatively new 3,000-square-foot home on a nice quarter of an acre lot in a good school district for between $300,000 and $400,000. "The real estate here is very inexpensive, it's about the same as renting and it actually makes sense for families," says Delores Conway, a real estate economics professor at the University of Rochester. "The houses are solid investments with good school systems that are fairly priced."
In Pictures: Best Places to Buy a HomeIn Pictures: Best Places to Buy a Home

According to recent data put together by real estate website Zillow, Rochester is the best place to buy a home in the United States. One of the reasons Zillow rates Rochester so highly is that its foreclosure rate is a minuscule 0.24%.

In order to figure out the best places to purchase a home in the country, Zillow looked at four statistical measures in 125 metro areas as of the end of February. These factors included affordability, as measured by home price to income ratios; the unemployment picture (both the absolute figure and how it's trending over time); the foreclosure situation; and year-over-year housing price trends.

"The list is populated by markets that did not participate in the housing run up from 2000 to 2006 and therefore their housing recession has been milder," says Stan Humphries, chief economist at Zillow. "These markets are very affordable, where people are typically spending under 2.5 times their income on a house so it's pretty affordable, and they are now spending what they were paying in the 15 years between 1985 and 2000."

The housing recession in places like Pittsburgh was relatively mild, helping to land Pittsburgh second on the list of best places to purchase a home. Like Rochester, Pittsburgh depends on major university employers such as the University of Pittsburgh and Carnegie Mellon. The former Steel City's median home price is an inexpensive $103,900.

The best places to purchase a home in America are mostly in the heartland, reflecting the coastal nature of the housing boom and bust. None of the best places to purchase a home are located on the West Coast in states like California, Oregon and Washington, not to mention Nevada and Arizona.

There are, however, places in the center of the U.S. that figure to be great for home purchases. In Oklahoma, Oklahoma City and Tulsa are both energy belt areas with strong economic fundamentals and housing markets that have been steady for years. And at 4.1% Lincoln, Neb., has the lowest unemployment rate of any metro area in the nation, and it's falling. All three cities made the list.

Here are the nation's five best places to buy a home right now:

5. Tulsa, Okla.

Tulsa is the 5th best place to buy a home now
Photo: Mark Gibson/DanitaDelimont/Newscom

The energy belt is a good place for homeownership as Tulsa residents can attest.
Midpoint price: $105,400
Foreclosure rate: 0.27%
Price appreciation quarter-to-quarter and year-to-year: -4.1% / -9.3%
Unemployment rate: 6.5%
Year-over-year change in unemployment: -1.8%

4. Oklahoma City, Okla.

Oklahoma City is the 4th best place to buy a home now
Photo: John Elk III/Lonely Planet Lonely Planet Images/Newscom

OKC has been booming job-wise, while the rest of the country recovers more slowly from the downturn.
Midpoint price: $109,400
Foreclosure rate: 0.24%
Price appreciation quarter-to-quarter and year-to-year: -3.6% / -3.9%
Unemployment rate: 5.2%
Year-over-year change in unemployment: -1.6%

3. Utica, N.Y.

Utica, NY is the 3rd best place to buy a home now
Photo: Richard Cummins/Alamy

This old industrial hub in upstate New York is still small. But it's been quietly reviving by attracting immigrants from Eastern Europe and Asia while remaining affordable.
Midpoint price: $98,600
Foreclosure rate: 0.08%
Price appreciation quarter-to-quarter and year-to-year: -0.7% / 2.1%
Unemployment rate: 8.6%
Year-over-year change in unemployment: 0.1%

2. Pittsburgh, Pa.

Pittsburgh is the 2nd best place to buy a home now
Photo: Jeremy Edwards/Istockphoto

Where else can you find a typical home that costs just barely six figures, root for championship sports teams, and get hired by a top university or hospital? Pittsburgh, the host of 2009's G-20 conference, has it all. What's more, Western Pennsylvania's nascent natural gas industry should provide growth for years to come.
Midpoint price: $103,900
Foreclosure rate: 0.50%
Price appreciation quarter-to-quarter and year-to-year: -2.2% / -1.5%
Unemployment rate: 7.4%
Year-over-year change in unemployment: -1.5%

1. Rochester, N.Y.

Rochester is the best place to buy a home now
Photo: Andre Jenny Stock Connection Worldwide/Newscom

Known as the historical headquarters of past-their-prime corporate icons like Kodak, Xerox and Bausch & Lomb, Rochester suffered decades of painful contraction before finding its equilibrium. The end result is affordable housing underpinned by strong remaining employers like the University of Rochester.
Midpoint price: $116,000
Foreclosure rate: 0.24%
Price appreciation quarter-to-quarter and year-to-year: -2.0% / -3.9%
Unemployment rate: 7.7%
Year-over-year change in unemployment: -1.0%



Source (http://realestate.yahoo.com/promo/the-best-places-to-buy-a-home-right-now.html)

" Why a Housing Double Dip Could Kill the Recovery "

At a bargain-basement auction of foreclosed homes held on Jan. 29 in a New York City Sheraton hotel, one of the music tracks that played as bidders prepared to pounce on distressed properties was James Brown's "Living in America."
It was either a major planning blunder or a brilliant thematic choice. Either way, the song's lyrics ("everybody's working overtime ...") were a strangely fitting sound track to a new American reality: while corporate profits rise and economic growth returns, the housing market is only getting worse.

The latest figures from the Case-Shiller home-price index, showing a fifth straight month of price decreases — including major drops in cities such as Boston, Washington, Las Vegas and Dallas — have economists worried that we may be headed for a double dip in the housing market this year, which could restrain the economic growth we're finally starting to see. And 2011 was supposed to be the year housing recovered; now, analysts are betting on anything from a 5% to 20% price decline.

A rising number of foreclosures, tied to persistently high unemployment, is smothering housing's rebound. According to the Mortgage Bankers Association, there are already 4.5 million homes in some stage of foreclosure. Some experts believe an additional 1.5 million may be added to the pile this year. With that kind of distressed inventory on the market, it could take four to five years for prices to come back up, according to Capital Economics senior U.S. economist Paul Dales.

What's particularly troubling is that data suggests a good number of those properties belong to lower-income, higher-risk borrowers who had already gotten a break on their mortgage payments via federal programs designed to reduce defaults. November data (the latest available) on these so-called modified loans showed that 45% of them had been canceled, meaning that the borrowers very likely redefaulted, even after the payments had been adjusted.

This is yet another example of the bifurcated nature of America's economic "recovery." The Fed can keep interest rates low to encourage lending, and the government can dole out tax breaks to encourage spending, but as Dales points out, "If you don't have a job, you aren't going to be able to pay your mortgage." Indeed, the biggest factor in mortgage defaults is unemployment — and as we all know by now, the unemployment rate is still unnaturally high for this point in a recovery, especially among vulnerable groups like minorities and those without college degrees.

Unfortunately, the trouble in the mortgage market contributes to the trouble with job creation. "Lower home prices don't help jobs, because they constrain consumer spending," notes Yale economist and housing expert Robert Shiller. Job growth is tied to spending, because without more expected sales, companies won't hire.
But people whose homes are decreasing in value won't spend; it's the wealth effect in reverse. So the poor housing market is holding back everything. Shiller, who just returned from the World Economic Forum in Davos, Switzerland, believes that the world leaders and policymakers who were there "don't really realize the extent of the suffering that's occurring. They are too insulated. But it's a vicious cycle that can make people feel worthless."

Don't get too comfortable if you live in an area that hasn't suffered big price cuts, because the problem could spread in the coming months. The latest numbers indicate that the lower end of the housing market is seeing the sharpest declines. But those declines could well drag down the value of higher-priced properties. Given that U.S. households still keep about a quarter of their wealth in property, the implications for consumer spending are sobering. "More than keeping interest rates low, the best thing that Washington could do for the housing market is to try and create some jobs — quickly," says Dales.

In lieu of that, policymakers might also get more creative about how mortgages are structured. In his 2008 book, The Subprime Solution, Shiller suggested a drastic fix to the current problem — a continuously changing mortgage balance that would be reset periodically based on both home prices and unemployment.
Thus, mortgages would reflect ongoing economic reality, and banks would have to keep lending. Meanwhile, to help banks cope with the risk involved, a market would be created to let them trade home-price futures, rather than splicing and dicing baskets of high-risk mortgages and then passing the risk on to investors. (A small market of this kind already exists at the Chicago Mercantile Exchange.) "We need to be creative.
It's all about democratizing finance and bringing more of the benefits of it to individual consumers," says Shiller. These and other housing-market reform ideas were deemed too radical when the crisis began. As it is now, they might not be radical enough.
(Source: http://www.time.com/time/business/article/0,8599,2045854,00.html)

Earth Day 2011: Five Ways to Help the Environment From Home

In honor of Earth Day this Friday, April 22, we're offering up a few tips on how to be more green at home and in your community. There are many ways, both small and large, to be more environmentally friendly from home. Here's a grab bag of our top five:

1. Recycle
Waste Management has made it easy to do curbside recycling in Arcadia. Items that are accepted for recycling are paper products, including computer paper, catalogs, junk mail, copier paper, phone books, grocery bags, gift wrap and envelops, even if they have “windows”; cardboard, including food packaging such as cereal boxes, cake-mix boxes, frozen food boxes, egg cartons and soda/beer carriers; all beverage containers marked “CA Redemption Value” or “CA Cash Refund”; plastic containers labeled #1-#7; aluminum and tin cans, liquor bottles, empty aerosol cans, pie tins, glass jars and bottles. See the full list here. Just drop the recyclables in the blue bin and put it on the curb on trash day.

2. Replace light bulbs
Buy some compact florescent light bulbs (CFLs) to replace your incandescents when they burn out, or if you're feeling really "green," save some energy and replace them all now. They last a lot longer and save quite a bit on the energy bill overtime.

3. Install a low-flow showerhead
Low-flow showerheads cut down on the amount of water coming out when you shower, but you really can't tell the difference, except for a lighter water bill! They pay for themselves quickly.

4. Ditch your dryer
We pay a lot of hidden taxes for the wonderful sun that we get all year long, why not put some of that instant solar power to work and reap the reward of sun-fresh clothes. The dryer takes a lot of energy to run, so start out trying half-time loads, hanging the clothes out to dry when they're damp, then eventually go all the way and ditch that dryer.

5. Compost
According to the Environmental Defense Fund, 18 percent of the waste in an average U.S. household comes from the yard and garden, a huge amount of mostly bio-waste that can be returned to the garden.

The composting process essentially involves setting aside certain types of organic waste apart from normal trash and collecting it in a composting bin somewhere outside, where it decomposes and becomes a nutrient-rich soil additive or fertilizer.

Not only does this reduce waste in the dumps, it reduces the energy spent to take it there, can save you money on soil and fertilizer, reduces the use of chemical fertilizers, and plants love it!

A lot of kitchen waste (except meats, oils and bones) and most yard waste (except seeds, roots and large branches) can be used. To see a full list of what can be composted, go here, or read the Homeowner's Guide to Composting for even more details.

The City of Arcadia offers 3 x 2 foot compost bins for $30.00. Compost bins with worms can also be purchased for $65.00.

The City of Arcadia's Web site has a very infomative section on recycling, composting and disposing of e-waste that you can view by clicking here.
(Source: http://arcadia.patch.com/articles/earth-day-2011-five-ways-to-help-the-environment-from-home)

Top 10 Business Predictions for 2011

Michael Friedenberg, president and CEO of IDG Enterprise, offers up what he thinks will be the top ten trends in the IT community in 2011.
CIO — It’s the time of year for bold and brazen predictions, so I’m jumping on the bandwagon with my forecast of the Top 10 trends, priorities and events of 2011:

10. Social media will keep dominating the business conversation, following the same evolution e-commerce did as it became e-business. Soon we’ll just call it “social business.”

9. The CIO-CMO relationship will change for the better, growing closer and more collaborative. Instead of confrontational relationships, CIOs and CMOs will find common ground around customer engagement.

8. Cloud will move from an overhyped theory to an adopted practice in mainstream business. Private, public or hybrid clouds, when applied to the right business need, will be game-changing in some industries.

7. Mobile moves aggressively into the data and applications arena as enterprises leverage these devices to empower the workforce, speed decision making and grow top-line revenue.

6. Real-time analytics will define and drive the real-time organization. As analytics is layered onto the megatrends of cloud, mobile and social, its capacity to create real-time businesses becomes closer than it appears.

5. Security breaches will hit an all-time high as data keeps getting pushed beyond the enterprise walls.

4. A battle will break out between IT and the lines of business over who really owns the user interface. Who will own that “last mile” to the customer?

3. CIOs will continue evolving beyond an operational focus, spending more time transforming business processes and setting strategy.

2. Vendor consolidations will cause major support issues at your organizations and IT vendors will need to reinforce and extend their commitments to you.

1. CIO turnover will increase if businesses can’t scale. More of your energies will be spent reducing cycle times and helping your organizations increase revenue instead of cutting costs.

So, what did I miss? What are you seeing that I’m not? I welcome your thoughts, as always, and thank you for being a loyal reader of CIO.
Onward to 2011!
(Source: http://always10.blogspot.com/2011/03/top-ten-business-predictions-for-2011.html)

Serena Williams at the Beach

Serena Williams enjoys some downtime at South Beach

Absolute Financial Freedom

Before discussing how everyone can become rich, we must agree in advance about the definition of rich. Rich is relative. Some people feel rich when it has ten million dollars. Some people do not feel rich already have money even ten billion dollars. According to Forbes magazine rich people are those who have income of at least 1 million American dollars a year.

Robert T. Kiyosaki has another opinion. He quotes from Buckminster Fuller and his teacher says that the rich are not measured by how much active income. People called rich if its passive income is greater than the cost of living. The definition of passive income here is the money coming without having to work.

As an illustration exemplified Mike Tyson. He earns U.S. $ 300 million while boxing, but in 2004 he was declared bankrupt and still have a debt of U.S. $ 35 million. Therefore, Mike Tyson is not classified as rich. Included also in the category of people who are not rich are people who have an income of U.S. $ 1 million a year but the expenditure of U.S. $ 1.2 million a year.

Anthony Robbins has another opinion. For him there are 6 steps people can be called rich:

1) Financial Protection

a financial situation where we have enough money to meet the minimum monthly expenses for 2 months to 24 months without working

2) Financial Security

a financial situation where we have invested a lot of relatively safe, and results can meet these needs without having to work again, unless we choose to work. Requirements are:

1. Installment home
2. The cost of meals
3. Electricity, gas and water
4. Transportation
5. Insurance
6. Taxes (eg property tax)

3) Financial Vitality
a financial condition where we achieved quite a lot of investment is relatively safe, and the results are not only able to make ends meet on the level of Financial Security, but also can meet the following requirements without having to work, unless we choose to work.

Requirements are:

1. child education
2. amusement or entertainment needs (at least 50% of which we enjoy today)
3. buying new clothes or one of two luxury goods that make sense.

4) Financial Independence

a financial condition where we achieved quite a lot of investment is relatively safe, and the results are sufficient for us to live exactly the lifestyle that now, without having to work again for the rest of our lives. In other words we are free not to work.

5) Financial Freedom
is a financial condition where we achieved quite a lot of investment is relatively safe, and the results are sufficient for us to live the lifestyle we want

6) Absolute Financial Freedom
a financial condition where we achieved quite a lot of investment is relatively safe, and therefore we are confident that we can make real whatever we want, wherever we want, with whomever we want, as much and as long as we want.

Planning a Family Ski Vacation

It’s time to plan the family vacation – and everyone wants to go skiing. Don’t worry, skiing isn’t as expensive as you might think, and there are numerous resorts that cater to families, offering a
variety of packages designed to save you money. The problem will be choosing the destination.

Most ski resorts have websites. Start the planning process by accessing these websites to determine where you and your family might want to go for your family ski vacation. There are many different things to look for when choosing a resort. The absolute most important thing to look for is a ski school if someone in your family will need instruction.

While most resorts do have ski schools, some don’t. Don’t make the mistake of choosing a destination where one or more of your family members won’t have fun, simply because they don’t know how to ski.

Next, take a look at the slopes, lifts, and trails. You want to make sure that the resort has something to offer everyone in your family. If the resort only caters to beginners, an expert skier will become quickly bored. If you have a snowboarder in your group, and there is no snowboarding park or terrain, that snowboarder will not be happy. There are resorts that serve all winter sports – so make sure that your families interests are covered.

Lodging is the next thing to look at. You want to be comfortable, so where you will sleep at night matters a great deal. In most cases, there is a hotel right at the base of the slopes – but this isn’t necessarily the best or most affordable place to stay. Find out what your lodging options are for the area, and choose the one that is right for your family and your budget.

If you will be staying farther away from the slopes, make sure that there is transportation to and from the slopes each day!

Your family will have many more interests that you will need to search for before deciding on a particular destination and resort. Some of those interests may be dog sledding, sleigh rides, snowmobiling, snowshoeing, or horseback riding. Resorts do offer these activities, but some don’t – so be sure to ask about the winter activities, as well as the planned events during the time that you will be at the resort. This will help you plan a ski vacation that your family will enjoy and remember for the rest of their lives. hopefully useful!