Open House by Jim Woodard

When shopping for a home, be sure to check out the surrounding neighborhood. This can be a major factor in determining if the property will be compatible with your lifestyle. It will also affect your safety and convenience, and it will influence the home's future market value.

A study by the National Association of Realtors recently revealed the importance of neighborhoods.

Some buyers rely on website databases for information about neighborhoods. This is a good place to start, but not a good place to stop your information gathering. You need to check out the neighborhoods personally to gain a realistic view of where you might be moving.

Check the proximity to places you and your family might frequently visit — health clubs, churches, movie theaters and schools. Check the quality of schools where your children might be attending. The education department in the region can probably provide input on the school's test scores, class sizes, percentage of students who attend college and other related data.

Look for signs of economic stability. If you see many vacant and deteriorating commercial properties in the area, this could be a sign of problems. Check with the city's economic development office or your Realtor about property value trends and the percentage of homes to rental apartments.

Check the frequency of crime in the area. Contact the local police department, requesting information about neighborhood crime statistics, and types of crime that are on the increase or decrease in the area.

Most importantly, take a close look at homes in the neighborhood, and if possible visit some owners. If you see properties and hear comments that reflect a prevailing “pride of ownership,” this is a positive indicator.

The best way to gain a comprehensive perspective on a neighborhood is to go there, giving it a personal walk-through and contacting local agencies for information. Some websites say they can provide all the data you need about neighborhoods. Don't believe them; check it out yourself.

Q: Can vacation homes be a viable source of income for owners?

A: Increasingly, owners of vacation properties are renting those units at times when they are not occupying them.

It makes good sense in these times of rising costs of living, including sharply increasing gas prices.

There's a rising demand for vacation rental properties. One study revealed that inquiries about vacation rentals increased nearly 25 percent over the past two years, while the supply of rental vacation properties rose only 12 percent. The study said the most rentable vacation units are those with Internet access, cable TV and where the owner will accept dogs.

Some owners are finding renters themselves, via local ads and personal contacts. Others list their available units with property management firms.

Q: Does anyone apply for an adjustable-rate mortgages these days?

A: Ninety-nine percent of borrowers who originally had a conforming adjustable-rate mortgage chose a conforming fixed-rate loan when they refinanced during the first quarter of 2009, reports Freddie Mac.

Also, nearly all borrowers who originally had a fixed-rate mortgage refinanced into another long-term fixed-rate mortgage, the report said.

“Whether for refinance or for home purchases, borrowers are shying away from ARM loans in the present environment,” said Frank Nothaft, chief economist for Freddie Mac. “Low, fixed mortgage rates are attractive by themselves, and when we look at average ARM interest rates that are nearly the same as the fixed rates being offered, it's easy to see why borrowers are making the choice for fixed-rate mortgages.”

Another report, from the S&P Case-Shiller National Home Price index, showed home prices dropping by 19.1 percent during the first quarter of 2009, compared with the first quarter of 2008.

Q: To what extent are homes becoming more affordable?

A: With home prices lowering and mortgage rates still at historic lows, homes are more affordable today than they have been in the last 18 years, says the National Association of Home Builders.

About 73 percent of all homes sold during the first quarter of this year were considered affordable. That's the highest proportion reported in 18 years.

A home is considered to be affordable if the purchasing family is devoting no more than 28 percent of their income toward their housing costs. Affordability rose from 60 percent of home purchases in the last quarter of 2008 to 72.5 percent in the first quarter of 2009, the study said.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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