Interest down, applications up

The average 30-year mortgage rate last week according to Freddie Mac was 3.63 percent. With the prior week's adjustment from 3.73 to 3.66 mortgage applications surged. For the week ending Jan. 9, mortgage loan applications showed a 49 percent increase over the previous week. That illustrates the largest jump in applications since 2008 when the lowest rate was 5.29 percent for a fixed rate loan. The current rates are expected to fuel further recovery in the housing market and more new home construction this year.

We are not the only part of the country that saw an increase in new home construction last year. The Commerce Department reported on Wednesday that single-family housing starts, the largest portion of the home building market, rose 7.2 percent to a seasonally adjusted annual pace of 728,000 units in December. That is the highest level since March 2008, just six months before the reversal and dramatic decline in housing sales activity here. Housing starts for single-family homes nationally surged to the highest level in more than six-and-a-half years, a promising sign at the end of 2014.

The Coeur d'Alene Multiple Listing Service reported at the end of 2014 that our inventory was nearly 4 percent below the end of 2013. That should not only spur new construction, but provide an incentive for those of you who have been considering selling your home. If you are one of those, you may want to start by taking some important steps to get your home ready for market.

Start by eliminating clutter. Since you will be selling your home, you will be moving. Moving means packing, so why not start now? Your keepsakes, collectibles and memorabilia may overwhelm prospective buyers as they try to visualize where they will display their own. It is better for you to pack and store the things you do not use daily to show a truer picture of the home's roominess.

Deep clean your home. Get all the dust and grime from your nooks and crannies. Wipe down light switches and door knobs, sliding door tracks and hinges where normal wear creates dust. Touch up your paint. We live in our homes and consequently we sometimes scuff walls - maybe while packing away keepsakes. If those scuffs cannot be eliminated by scrubbing or if your paint clearly defines a different decorating era, you may need to repaint. The cost of this, especially if you can do it yourself, will be worth the investment when you sell your "move in ready" home.

Having your carpets professionally cleaned will help remove stains and odors caused by normal wear and tear. Ask a carpet cleaning professional before they start if the areas of concern can be cured by a simple cleaning. If your carpet cleaner cannot remove certain persistent stains or tells you there is excessive wear, you will often be money ahead to replace the carpets in those areas. Check with the Better Business Bureau or ask someone you know to help you select a good, reputable cleaner.

Just as with the paint you select, make sure the carpet color you choose is a neutral one. Paint should be light while carpets should be of a color that will not easily show dirt from daily traffic. In either case, do not get overly creative because of something you saw at Crate and Barrel or on HGTV.

2015 so far appears to be an excellent time for buyers and sellers alike to enter the housing market. Low interest rates create demand from buyers and lower inventory means less competition from sellers. Contact a Realtor to determine if your home's current value warrants putting it on the market. If you do not have a Realtor, visit the Couer d'Alene Association of Realtors website to find a few to interview.

Trust an expert...call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.