open house - best air purifier for smoke
This is a buyer's market. Sellers should be careful;
The price of natural gas has not yet peaked;
Take stock of the real estate market with high and low prices in May 19, 2007
ETTHIS is a hurried transcript.
This copy may not be in final form and may be updated.
Gerri willis, CNN personal finance editor: Good morning.
I'm Gerri Willis, this is an open house that saves you money on the show.
Did your home make you sick?
Hidden health risks in the family and how to protect the safety of the family.
We will also take you to the coast to enjoy the best prices and the most expensive properties.
But first, there was a serious problem with the real estate market, and a new report showed that the foreclosure rate rose by 62% in April compared to a year ago, and we began to see a trickle of trickle --down effect.
Construction permits fell by 8. 9 percent to 1.
4 million, the slowest increase in ten years.
In the first quarter, the outlook was not much better.
Sales of existing homes have dropped sharply. 6 percent.
House prices, well, they are still falling.
The median value of existing housing prices hovered around $212,000, down nearly 2% from a year ago.
The climate in this real estate market may change the way you get along with a real estate agent.
Brad Inman is with Inman.
Com in Berkeley, California
Nice to meet you, Brad.
Brad inman, inman news: Nice to meet you, Gerri.
I want to show you some numbers first.
You know, we never look at the past. I want to look at the previous cycle today. Check it out.
You can see how much we have fallen in this typical cycle, with peak prices down 13% from falling prices.
You can see 18% and amazing 48%.
Brad, let's talk about buyers when you see this market.
They must have an advantage now.
What should they do?
First of all, buyers should be very patient.
You know, more and more stocks and housing are coming into the market.
We have a foreclosure market and houses that we can't sell.
The average time on the market is longer.
As a result, more and more real estate is entering the market, and fewer buyers are due to the credit crunch because of subprime mortgagesprime fiasco.
Willis: Yes, I want to say a little.
We are talking about tightening lending standards.
Getting loans is getting harder and harder.
You know, people outside are really worried.
You say it's back to basics for those who want to borrow money.
Yingman: Yes, you know, there are fewer buyers and more supplies, however, buyers outside will find it difficult to get a loan due to the chaos of sub-subprime.
As a result, lenders are tightening credit to make it more difficult to get a loan.
In addition, they need to drop more.
The days of 100% financing and zero decline have passed.
So you have to accumulate the down payment.
This is the old day of getting housing loans.
As a result, eligible buyers have access to loans, where there is a lot of inventory and a lot of opportunities.
Willis: There's a lot of stock there, a lot of opportunities there, but it's back to the basics.
You really want to make sure your Ps and Qs are in order, right?
You have to make sure, you know, your credit score is good and you have everything you need for a down payment, right?
You have to go through, you know, your credit report, you have to get these results from your credit report, errors, anything that could go wrong.
You know, pay it off on time.
It's really back to basics.
It was a very conservative time again.
Yingman: You know, it's been a long time since the money was easy. . .
No kidding. INMAN: . . .
I think this is a good thing for the market.
Willis: good for the market, bad for sellers.
They're really struggling.
You said they really had to work hard here.
You said the first offer was probably the best.
In this market, there are fewer and fewer buyers and fewer qualified buyers.
So if someone comes in and bids for your house, get your expectations from the stars. It's not 2004.
If there are serious buyers, act quickly.
Take advantage of that buyer because there may be no buyer behind them.
Willis: Brad, let's talk about what's going on in the real estate industry and the impact this has on sellers.
You know, we have so many discount stores coming into the market and when you sell your house, there is a real opportunity not to pay 6%.
What's wrong now?
Can I still do it?
Is this a good time to use a discount store?
INMAN: Well, it's time for sales to be difficult.
You know, there's a lot less inventory.
So you have a lot of competition as a seller.
So you need to make sure your property is well marketed.
You need to make sure you have a good negotiator and someone can represent you well.
In the seller market where anything will be sold, the discount shop works better.
Many sellers see why full commissions are paid.
But it's harder to sell now.
Therefore, it may be very important to have an experienced agent or broker.
You may pay a higher commission for this.
Obviously, you want to go around, right?
I mean, at the end of the day, you have to be able to negotiate on commission.
Good advice, Brad.
You must use your power in the market.
Thank you very much for joining us today.
Mr. Yingman: Thank you.
Having a house is considered an important part of the American dream. The Asian-
While American communities are among the fastest-growing groups, their home ownership lags behind the national average. (Start Video)WILLIS (voice over)
: 60% in Asia
Americans in this country own a house in 2004.
Jim Parker of the Asian Real Estate Association
S. : This is still relatively lower than the total population, especially 75% of white Americans.
But we think there is still a lot of room for growth.
Willis: But there are still many obstacles to overcome in Asian society.
One of them, language barriers, it can make a complex family
The purchase process is more difficult. At Asian-
Teachers teach American equality at home
Buy workshops in Chinese and Korean to help overcome language barriers.
It also helps to overcome the lack of understanding of the American system.
Wu Ping recently bought a house in Flushing, New York.
In her hometown, in China, people buy houses in cash, she said.
Mortgage loans are unheard.
When Charles Cai decided to buy a house, he had the same problem.
Owner Charles Cai: I don't have experience buying a house so I don't know how to apply for a loan.
What steps should I take to buy a house.
Flora ferng, Asia-
Americans pursue equality: many times, when Americans buy a house, they can learn from their parents and, you know, they have a relative, an uncle, an aunt. As the first-Home of generation
Buyers, no one can follow them.
Willis: even the credit system is going to go wrong.
Asians are usually very careful about their finances, but since they are used to paying most of the stuff in cash, many people find that they do not have a credit score.
Some companies have begun to solve the problem with alternative credit ratings.
Park: these people have been here for a few years now, they have been paying bills and they have been paying utilities and rent.
Maybe they 've been paying phone bills or phone bills all the time, and these things build a model of payment history.
Willis: for many Asians, overcoming these obstacles is part of the American dream.
Christopher Kui, ya
Americans pursue equality: when they buy a house, they do participate in their own communities and start contributing to the city and then to the country. (END VIDEOTAPE)
Willis: please visit Asia for more information-
American Fund for EQUAL Community Development;
Their website is aafecdf. org.
Next is the open day, which is an important tip to help you get through the gas price increases and get rid of bacteria.
We will teach you how to detoxify your home.
Take a closer look at the real estate costs from the coast to the coast.
But first, financial checks.
In this week's "Tips for the day. (Start Video)WILLIS (voice over)
It is essential to maintain a good credit score.
This means that the mortgage, loan rates are higher, and some employers will double check your credit score even before providing you with a job.
Of the many things you can do, you can challenge any and all errors to the credit reporting agency.
Because 79% of credit reports contain some type of error.
Write a letter to the credit reporting agency, if you can, questioning their information and providing evidence.
They must resolve your dispute within 30 days or remove the item.
This is the "tip" of your day ". " (
Willis: Gas prices continue to squeeze your wallet.
The national average price of a gallon of regular gasoline hit a record level, at least $3. 11 this week.
How did we get here?
What do we expect from the future?
Robert Sinclair works at AAA.
Robert Sinclair of the American Automobile Association: Thank you.
Willis: Let's talk about some numbers first.
You know, the average household now pays $1,000 more for gas than it did five years ago. Check it out.
It's really hard for families.
We see, you know, the cost of a mortgage is very high, a lot of credit card debt.
This is a real burden for consumers.
Sinclair: that's true.
We recently made some consumer cost estimates for the price of a car, averaging about 52 cents per mile.
That is to say, if you drive 100 miles, it will cost 52 dollars.
About 40% of the American public, or 40% of AAA members, live on salary.
So their budget is not as resilient as we can see to cope with the volatility of gasoline prices, which is becoming a very big burden.
Willis: People have to retreat when they are bored;
As we look forward to the future, I know you have a lot of ideas about where gas prices are going.
What's on your crystal ball now?
Sinclair: We believe that the current factors that affect the price of gasoline are still there and may peak at around $3.
Nationwide, regular gasoline with no lead per gallon.
Sinclair: Yes, it will break the record.
It is disturbing that these records came when we had no infrastructure problems, such as what happened after Hurricane Katrina and Rita in 2005, when we set up previous records. So --
Willis: So you're saying it could get worse if we had a big hurricane?
We are very, very vulnerable.
If a refinery has a hurricane, a major weather event or something because of our meager profits, we can see that prices are really soaring in terms of refinery supply.
Willis: What do you need to build more refinery capacity or use our existing refinery?
Sinclair: It's really hard, you know.
The refinery is undoubtedly an expensive proposition;
They could cost $2 to $3 billion and need to be built near the market.
So this kind of thing will arouse the opposition of the community.
In addition, there are many government regulations that hinder this process.
So what we're actually seeing is that the possibility of this situation is that there are more efficient vehicles on the road and that people really reduce unnecessary driving ---
Based on what we heard from the members, they may already be doing it.
Willis: We have been talking about this all the time.
I don't know how many people found a friend and commute to work.
But let's talk about how all this has changed Americans.
You see, we take a lot of time to drive to work, and we drive more expensive cars.
It's not just the price of gasoline, but the price of commuting.
Sinclair: That's right.
You will see that the city is spreading and real estate prices are rising in the city center, so people can't afford to live closer to work.
So they are getting farther and farther.
And commuting is getting more expensive.
Each of our families has more cars these days.
Willis: What do you say, 2.
3 cars per household?
3. it's about the average number of children in the United States. we drive a lot more miles.
Willis: so the price of natural gas goes up, right?
Prices will rise as demand increases. You know, we're getting bigger and bigger now.
I mean, there's more fuel.
At present, half of the vehicles on the road are light trucks, sport utility vehicles and pickup trucks.
Things like trucks.
So in fact, in terms of the average fuel economy of all vehicles on the road, we are now in a worse situation than in 1984.
According to Robert Sinclair, get rid of the SUV, right? (LAUGHTER)
Willis: Can I quote you?
Thank you so much for being with us today and we appreciate it.
Sinclair: You're welcome.
Let's see what you can do to reduce your cost on the pump.
First of all, make your car as aerodynamic as possible.
Remove the top rack and the real spoiler.
You don't want to press your car heavier than you need, so clean up the golf clubs or winter skis from the trunk.
If you drive more than 35 miles an hour, reduce wind resistance by rolling up the windows and opening the air conditioner.
Park your car in the shade if you can.
It helps to keep the temperature of the car so you don't have to start the air conditioner when you are ready to leave.
Walk straight through the open house and stay healthy this spring.
We will teach you how to detoxify your home.
Is the price of your home right?
We'll check it out, but first of all your mortgage number. (
Willis: You're not the only one stuck at home this winter, bacteria, pollution, annoying stuff, and several recent studies have shown that indoor air pollution is associated with large industrialized cities
It's a terrible fact, but it's true, especially where you sleep and eat.
I went to the Good Housekeeping Institute and wanted to know how to get out of your house. (Start Video)
Willis: It's one of the terrible parts of the whole house.
I always worry about my gas stove.
I read somewhere that even the EPA says indoor air pollution is two to five times higher than outdoor air pollution.
This must be one of the culprits.
Deere John kupsh
Good Room Service Research
Well, that's probably the case.
More than 200 people die from carbon monoxide poisoning each year.
Carbon monoxide, such as natural gas, is produced whenever you burn fuel.
So a good way to see if the device is working properly is to open the burner and look for a yellow tip flame.
This one burns very well. It's all blue.
Do you want a blue one?
You want all the blue flames.
If you have a yellow tip in your flame, it's better to have a professional come in and adjust the burner.
John, cleaning products, everyone is worried about volatile organic compounds.
I mean, come on, is this something I really should care about when I clean the house?
KUPSCH: Well, there are a lot of chemicals in the House, for example, cleaning agents for cleaning, paint thinners that have volatile organic chemicals that cause lung damage when released, or dizziness or fatigue.
Willis: You know, mom's right. open the window occasionally, right?
When you clean up?
I mean, it makes sense to have some ventilation and some air flow.
KUPSCH: Yes, when you use these types of cleaning chemicals, it is better not to mix the chemicals and keep the area well ventilated to discharge all harmful smoke that can be dangerous
Willis: In the spring, everyone is preparing air conditioning.
Those things are dirty if you have wall air conditioning.
They are not good for children, pets and everyone at home.
Kupsh: Well, the window units are perfect for providing cool air, but sometimes they get all over the body full of fire from pet dandruff, pollen and dust outside.
So before you use it every spring or summer to clean the grille, clean the blades, clean the mold on the drip tray and what happened the previous year, it's a good idea.
Before you start using this device for the first time this year, put a wet towel in front of the fan-blown air conditioner.
Then open it, which will capture all the pollen, pet dandruff and dust from last year, so you don't put the dust from last year in this year's house.
Keep it clean and tidy and then you can go.
Willis: how about central air conditioning?
What do you need to do to those?
KUPSCH: Well, central air conditioning usually has what they call a filter that filters it out before the air enters your space.
So what you want to do is change the filter every three months or so and make sure you have an efficient filter that filters out more than 99% of the smoke, dust or pollen.
We all want air purifiers.
I don't believe it's worth buying an air purifier for $200 to $1,000.
What is worth paying?
Some indoor air purifiers are definitely better than others on the market.
You are looking for a product that meets AHAM standards.
S. home appliance manufacturer AHAM's standard, which means it will have a clean air delivery rate, a CADR rating, which tells you how many cubic feet of clean air is delivered to a space per minute.
Be sure to find one with a mechanical fan and one with a HEPA filter.
Willis: As always, please send an email if you have ideas for the weekend project
Email to openhouse @ cnncom.
If you would like to see this "weekend project" again, please check out our website cnn. com/openhouse.
Next, look at the city with the highest and lowest prices in the country.
But first of all, in this week's "local insider", the city is very good and expensive. " (Start Video)
Willis: New York, the most expensive city in North America, is now the 10 most expensive cities in the world. In the U. S.
About 42% of typical consumer income goes to housing.
56% in Manhattan.
Across the country, taxes are exhausted at around 9.
5% of income
But 15 years old in Manhattan. 1 percent.
The basic cost is 9.
It's 9% higher than the rest of the country, but paying $30,000 elsewhere will pay nearly $37,000 at Big Apple.
This is your local insider. " (
Willis: more than 39 million people move each year, and you may move 11 times in your life.
I just think it makes me nervous.
But no matter where you move, you want to make sure you get the most out of your money.
Matt Woolsey of Forbes magazine.
He came to tell bus the highest price and low price market in the country.
Matt Woolsey of Forbes
COM: It's nice to be here.
Willis: Okay, so you have an interesting way to look at this p/e ratio. -
Not a stock, but a house.
How did you calculate it?
Woolsey: the way we started is it's important to see your home as an investment.
This is the most important investment most of us will make.
So you start with the price of a house on the market.
Then you calculate how much it will cost to rent out.
You calculate insurance, calculate taxes, and subtract these from what you can do as a return on annual rent.
Willis: We started in San Diego.
Now, this is a market that has been rising and rising.
You said it was too expensive.
Woolsey: it's overpriced and has actually started to fall in the past year.
House prices have been depreciating from 2005 to 2006.
One of the key factors is the affordability of a particular market.
Willis: Well, we'll talk about San Francisco as long as we're on the west coast.
San Francisco, land-
The price has been high there.
But even now, you say the price is too high.
Woolsey: Yes, one of the problems is that in that particular market, less than 7% of people can afford the existing house.
So this leads to a market where the median house price is more stagnant and the room for growth is getting smaller and smaller, because the talent for the median house price is the one who really affects the market.
In cities like San Francisco, luxury prices will always be strong, but it's hard to see growth when people who want to buy don't necessarily get in.
Let's talk about the low-priced markets because there are some surprises.
Charlotte, the local economy is strong.
I thought the price would be strong, but that's not the case.
Woolsey: that's not the case.
There is still a lot of room for development.
One of Charlotte's strengths is that in the real estate boom of the past five or six years, it has grown at a rate that is not as fast as many other cities.
The game was won slowly and steadily.
So they continue to appreciate.
They already have a good element-migration.
People moved there, created jobs, and the local economy was still strong, so prices rose.
What about Austin?
I have always liked the market.
Gorgeous area, very popular and low price now.
One of the things Austin is doing now is that it is rapidly becoming one of the new technology and new music capitals, the new Silicon Valley, and competing for music with Nashville and Los Angeles.
So there are a lot of young people moving and the whole downtown area is getting very, very crowded and is improving at a fast pace.
It's fun, Orlando.
I think Orlando is overpriced because it's in Florida, where there are a lot of overpriced markets, but that's not the case.
You know, even with Disney, the House there is still cheap.
Yes, Mickey did a lot in that market.
But if you compare Orlando to Miami, people in both cities make about the same amount of money.
But in Miami, for example, prices are much more expensive.
That actually means more people will be on the submarine.
Cities like Miami are better off than cities like Orlando.
So when you see the aftermath of the submarine
The main loan problem has little impact on markets like Orlando.
Therefore, the growth rate of the economy can continue to be good.
Willis: Matt, thank you so much for being with us today.
We appreciate it.
Thank you for inviting me.
Willis: As always, we thank you for being with us during part of Saturday.
Open house will be back here at CNN next week.
You can see us on the "Headline News" at 5: 30 every Saturday and Sundaym. Eastern Time.
Don't go anywhere.
Next, in the CNN newsroom, your headline.
Have a good weekend.
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