Energy Prices and Sustainability

While the prices of homes have made purchasing harder, and rent prices are also on the rise, the housing market seems to be a lose-lose situation for many consumers. 

To help ease the burden for renters, and improve their credit long-term, Fannie Mae has created a new program – the Multifamily Positive Rent Payment Reporting program. Under the program, owners of multifamily homes have the opportunity to record on-time rent payments through third-party vendors, which can in turn help bolster their renters’ credit scores. 

The program was designed to help renters who may be trying to buy their own homes or who are just trying to build up their credit. Previously, paying rent on time was never calculated in consumers’ credit scores. Now, keeping up with their rent payments will help them build a stronger financial standing for themselves. 

“Around 20% of the U.S. population has little to no established credit history, a group in which Black and Latino/Hispanic people are disproportionately represented,” said Michele Evans, executive vice president and head of Multifamily at Fannie Mae. “Of the consumers who do have a credit score, a disproportionate number of Black consumers have a subprime credit score.

“These imbalances reinforce racial disparities in access to credit and quality affordable housing among renters and homeowners. The absence of sufficient credit history reduces a renter’s ability to access housing in higher-opportunity neighborhoods, obtain a mortgage, and attain lower-cost credit, such as auto loans and education financing. By enabling easier and more expansive adoption of positive rent payment reporting, we can knock down this longstanding barrier to building credit and help more consumers begin to establish a strong financial and credit foundation.”   

Benefits for renters and landlords

Participating in Fannie Mae’s new rent payment reporting program provides benefits for both landlords and renters. For starters, by knowing that rent payments can positively impact credit, many renters may be more motivated to be timely with their monthly payments; it’s a win-win for renters and landlords. 

Other benefits for renters are:

• Improving the likelihood of getting qualified for a mortgage
• Access to better credit for car loans, mall business loans, or education loans
• The ability to create credit profiles
• The ability to secure housing in better areas
• Land a lower security deposit in the future. 

Additionally, should renters be late with their payments, they won’t have to worry about their credit scores taking a hit – the program will automatically cancel enrollment if renters are late with their payment. The program will also be optional – renters won’t be required to be involved in it. 

For landlords, being involved in the program comes at no cost. It can help attract more serious renters and ultimately help improve their renters’ credit long-term. 

“Launching this pilot program is the latest step on Fannie Mae’s journey to make the housing system work better for everyone,” said Evans. “By accelerating the adoption of positive rent reporting across the multifamily industry, we will help ensure renter households get the credit they deserve for paying on time each month.” 

Natural gas prices are surging and with winter approaching, consumers who heat with the fuel can expect rising bills. Even electric bills could rise since many utilities generate electricity with natural gas.

For years, natural gas has been plentiful and relatively cheap, but no more. Like many things in the economy, GasBuddy’s Patrick DeHaan says the move in natural gas prices is tied to Russia, which has interrupted its supplies going to Western Europe. 

“Russia is one of the top suppliers of natural gas, and with them shutting down exports to Europe and limiting flows, natural gas prices have exploded,” DeHaan told ConsumerAffairs. “In addition, with economies reopening after COVID and power demand very high, demand for natural gas has been significant.”

Within days, Russia plans to close off one of Europe’s most vital fuel pipelines for an indefinite period of unplanned maintenance. Many industry sources see it as a retaliatory move in response to NATO’s support for Ukraine.

But the move will affect U.S. consumers. U.S. producers are stepping in to fill some of the void created by the Russian shutdown. At the same time, demand for natural gas in the U.S. rose over the summer in response to hot, dry weather in much of the Western U.S. The fuel wasn’t needed to heat homes but to meet additional electricity demand.

Consumers are using more electricity

The U.S. Energy Information Administration (EIA) reported Tuesday that electric power generated by natural gas-fired power plants in the lower 48 states reached 6.37 million megawatt-hours in mid-July. The agency reported demand remained strong despite rising prices. Making matters even more precarious for U.S. consumers, EIA reported that producers have cut back on their natural gas storage for the winter months.

“We are beginning to see a lag in storage builds that could lead to a precarious situation during the draw season in the event of a harsher-than-expected winter,” Neal Dingmann, an energy equities analyst at Truist Securities,” told the Wall Street Journal. “There is potential for a winter U.S. super spike.”

Natural gas is a widely-used fuel in American homes. In addition to operating furnaces, some households use the fuel to cook, heat water, and dry clothes.

According to the American Gas Association, the average U.S. household using natural gas paid a total of $670 a year for the fuel, an average of more than $55 a month. Industry experts say those bills are bound to rise this winter.

With inflation, gas prices, and rising home costs on Americans' minds already, the White House says it is trying to get ahead of a possible increase to home energy costs.

On Thursday, President Biden announced that the U.S. Department of Health and Human Services (HHS) will release more than $385 million to states to help Americans with their home energy costs – both summer and winter – through the Low Income Home Energy Assistance Program (LIHEAP). 

The new cash infusion is in addition to the billions that the American Rescue Plan provided to LIHEAP last year. It also represents the first $100 million installment of a five-year, $500 million investment in LIHEAP from President Biden’s Bipartisan Infrastructure Law. Added together, that makes $8.3 billion in LIHEAP assistance that the Biden administration has invested in reducing heating and cooling costs for low-income Americans.

What’s included in the plan

All told, there are four components to Biden’s action plan. They include:

Record LIHEAP Funding for States: The allocation of the LIHEAP funding will be handled state-by-state. As an example, the White House gave Oregon an additional $3.8 million in funding. The state of Washington received a little more, with a $6.5 million infusion.

The American Rescue Plan’s Resources and Relief for Homeowners: While the American Rescue Plan already provides critical resources that states and localities can use to address home energy costs, White House officials say the new addition is "historic" in scope. Now included in relief efforts is the Emergency Rental Assistance (ERA) program – which the Biden administration used to provide relief to consumers who struggle to pay rent during the pandemic.

Under the program, consumers will receive an additional $21.5 billion in funding to help with past-due utility bills or threats of having their utilities turned off. The White House said the ERA is already proving its value and that jurisdictions across the country are already helping households eliminate threats and reduce their energy bills.

The Bipartisan Infrastructure Law’s Investments to Reduce Home Energy Costs: The White House said the Department of Energy’s Weatherization Assistance Program will further reduce energy costs for hundreds of thousands of low-income households by increasing their homes’ energy efficiency.

Saving Families Money with Energy Efficiency Standards: If everything goes according to plan, a series of 100 energy-related actions that the Biden administration put into effect could save families $100 every year with more efficient home appliances and equipment. The Department of Energy recently proposed new standards for appliances, like air conditioners, to help consumers save on their electric bills. The White House considers this assistance “critical as communities cope with increasingly common and extreme heat events.”

Biden administration officials say they won't just stop at making homes more energy-efficient. They also want to do the same for the nation's offices and schools. 

Households that are in need of help with their energy bills can identify resources in their area at EnergyHelp.us or by calling the National Energy Assistance Referral hotline at 1-866-674-6327.

The U.S. government has warned consumers that they are in for a winter of sky-high heating bills. The Energy Information Administration’s (EIA) winter forecast predicts that most household heating bills will be as much as 54% higher than last winter.

“As we have moved beyond what we expect to be the deepest part of the pandemic-related economic downturn, growth in energy demand has generally outpaced growth in supply,” said EIA Acting Administrator Steve Nalley. “These dynamics are raising energy prices around the world.”

Natural gas prices have risen the most, doubling in the first six months of 2021 and rising 17% in September. According to the EIA, nearly half of U.S. homes use natural gas, but the rest won’t escape higher heating bills. The cost of propane is expected to be 54% higher this winter, and heating oil costs may be 43% more than last winter.

The cost of electric heat is expected to rise only 6%. However, most electric utilities are powered by natural gas and may be affected by higher costs for that fuel.

Colder than normal winter

Making matters worse, the U.S. could be in for a harsh winter. The National Oceanic and Atmospheric Administration (NOAA) expects a slightly colder winter this year when compared to last year. The EIA expects those colder temperatures to increase U.S. energy consumption for heating this winter.

While the U.S. will have to contend with higher prices, China and parts of Europe are dealing with an energy shortage that is affecting prices on world markets. Much of the problem can be traced to the COVID-19 pandemic and changes in consumer behavior.

“The higher global and domestic energy prices that are resulting from economies beginning to grow again are going to translate into larger household bills for energy this winter,” Nalley said.

How to prepare

Consumers should probably prepare now for higher wintertime utility bills. Replacement windows are a big investment, but they could result in more reasonable heating bills. In January, Rod, of Easton, Pa., told us he had just installed new windows from Renewal, by Andersen.

“In short, experience this winter, house feels warmer,” Rod wrote in a ConsumerAffairs review. “No actual data yet based on heating bills but am confident that the data will support the perception.”

A less expensive measure is improving a house’s weatherproofing. Sealing window and door frames with caulk and adding weatherstripping may be the most affordable remedy, but it only goes so far.

It may be time to unpack those gloves and sweaters.

Fall has just begun, but it’s not too early to think about winter and preparing for what are almost certainly to be sharply higher heating bills.

Over the last couple of months, natural gas prices have skyrocketed. According to the Wall Street Journal, natural gas prices have doubled in the last six months. Prices are up 17% so far this month.

Demand for gas is up, and supplies are down around the world. Demand is likely to increase even more when cold weather arrives and gas furnaces are back in operation. 

Consumers who heat their homes with gas may see their monthly bill move sharply higher, but the American Gas Association, an industry trade group, says gas is still cheaper than other heating fuels. It cites Department of Energy data showing the average costs of five residential energy resources for 2021, finding natural gas to be approximately one-third the cost of electricity.

Electricity costs also likely to rise

In fact, those heating their homes with electricity will also feel the effects of more expensive natural gas this winter. Most electricity generation plants are powered by gas. Industry analysts say the blisteringly hot summer increased natural gas demand to keep homes and businesses air-conditioned.

Currently, utilities pay $5 per 1 million British thermal units, or mmBtus. For consumers heating their homes with gas, that roughly translates into twice the cost of last winter’s heating bills. There’s no guarantee prices won’t go even higher.

“You could easily see it reach $6 and you could see it get to $8 to $10,” John Kilduff, partner with Again Capital, told CNBC earlier this month. “Any early-season cold weather outbreak will juice this thing.”

How to prepare

Consumers can prepare now for higher wintertime utility bills. A first line of defense is improving a house’s weatherproofing. Sealing window and door frames with caulk and adding weatherstripping may be the most affordable remedy, but it only goes so far.

A lot of energy is lost through glass, so replacing older, single-pane windows with new, double-pane windows will reduce the flow of expensive heat to the great outdoors. Replacement windows are expensive, but the cost could easily be offset by keeping utility bills in check.

Todd, of Valrico, Florida, tells us he replaced all of his home’s windows with NewSouth replacement windows and noticed the difference.

“I have cut my utility bill by 25% to 30%,” Todd wrote in a ConsumerAffairs review. “My biggest savings happen during the warmest months of the year! That's big in Florida!”

ConsumerAffairs has collected thousands of verified reviews of window replacement companies.

The average home price has risen sharply during the pandemic and is now at an all-time high. But a new report from real estate marketplace Zillow makes clear that not all home buyers are paying those soaring prices.

The Zillow survey focused on people who moved out of their area during 2020. It found, on average, that these consumers sold a home in an expensive area and purchased a home for less money -- or gained more space in a larger house -- when they moved to a more affordable market.

There was a significant increase in the number of people who were able to do that since nearly all employers closed offices and allowed employees to work remotely. The report found that people moving from one market to another gained an average of about 33 square feet of living space. That’s about the size of a bathroom or walk-in closet.

"The ability to sell in a relatively expensive market and relocate somewhere more affordable -- either to save money or get more bang for their buck with a larger property -- was extremely attractive to movers," said Jeff Tucker, senior economist at Zillow. 

The great reshuffling

Realtors call it the “great reshuffling.” Large cities like New York, Chicago, and Los Angeles saw more people moving out last year. Sunny and more affordable markets like Phoenix, Charlotte, and Austin saw more people moving in. 

As far as the real estate market goes, Tucker says the trend could contribute to a convergence in home prices that will cause prices to rise in their new home destinations.

What it will mean for the job market has not yet been determined. As employers begin to require employees to return to the office, someone now living in Austin probably won’t go back to a job in Chicago.

Job openings are surging

It may not be a coincidence that the number of posted job listings hit a record high of 9.3 million in April, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS). 

Analysts said the surge in job postings is the result of an economic upturn set in motion by the nation’s recovery from the pandemic recession of last year. April’s job postings beat a record set in March of 8.3 million and topped analysts’ expectations of around 8.18 million. 

Companies may already be dealing with employees who have decided not to return to the office. And that trend may be just beginning. When Apple announced plans to require its workers to return to the office three days a week starting in September, it resulted in a complaint letter from employees. 

So the “great reshuffling” in real estate could lead to a similar reshuffling in employment. The San Francisco Chronicle reports that companies’ return to work edicts could lead to a job exodus as people seek other jobs that can continue to be performed remotely.

Texas officials say the massive electric bills consumers were hit with in the wake of unprecedented frigid temperatures will be forgiven. 

On Tuesday, Texas Attorney General Ken Paxton said residents in the state will collectively see $29 million in unpaid electric bills forgiven now that electricity provider Griddy has filed for bankruptcy. 

“My office sued Griddy Energy, under the Texas Deceptive Trade Practices Act, to hold them accountable for their escalation of last month’s winter storm disaster by debiting enormous amounts from customer accounts as Texans struggled to survive the storm,” Paxton said in a statement. “I ensured that Griddy’s proposed bankruptcy plan takes an important step forward by offering releases to approximately 24,000 former customers who owe $29.1 million in unpaid electric bills. 

Paxton added that consumers who already paid high bills connected to the winter storm could see additional relief. 

“Griddy and my office are engaged in ongoing good faith negotiations to attempt to address additional relief for those Griddy customers who have already paid their storm-related energy bills,” he said. 

Griddy powering down

According to Griddy Energy’s bankruptcy filing, the company will “release all outstanding payment obligations for those Texas consumers who were unable to pay their energy bills due to the high prices charged during the storm.” 

After a major winter storm swept through Texas, many customers received sky-high electric bills. One customer who received a bill of nearly $10,000 sued Griddy and argued that the company "failed to shield consumers from excessive electrical bills.” 

In the wake of the storm, Texas Gov. Greg Abbott took steps to address the outrageous utility bills. “We have a responsibility to protect Texans from spikes in their energy bills that are a result of the severe winter weather and power outages,” he said at the time. 

Abbott celebrated Griddy’s recent action and said he “will continue working with the legislature to resolve remaining claims.”

Texas consumers are feeling the back end of a one-two punch. Last week, they went days without electricity as frigid temperatures pushed the electric utility grid to the breaking point. Now they are receiving sky-high electric bills, some for thousands of dollars. Texas officials say they want some answers.

Over the weekend, Texas Gov. Greg Abbott held talks with some members of the state legislature to discuss the spike in energy bills affecting Texans, many of whom received the bills after enduring days of shivering inside their homes with no electricity.

“We have a responsibility to protect Texans from spikes in their energy bills that are a result of the severe winter weather and power outages," Abbott said following the meeting, which he called productive. “We are moving quickly to alleviate this problem and will continue to work collaboratively throughout this week on solutions to help Texas families and ensure they do not get stuck with skyrocketing energy bills.”

Variable-rate power plans

The consumers getting hit with huge electric bills are those who enrolled in their utility company’s variable-rate power plan. Under these plans, utility customers pay for electricity based on the wholesale cost the utility pays.

Usually, it saves them money. But during last week’s deep freeze that gripped the entire state, the wholesale costs of electricity surged. Many of the residents are getting bills for thousands of dollars. According to the New York Times, one customer got a bill for nearly $17,000.

State regulators may have also played a role. A week ago, as temperatures were plunging across the state, the Texas Public Utility Commission ordered the Electric Reliability Council of Texas (ERCOT) to alter its pricing structure, which it said was not working in these extreme conditions.

“The Commission directed the Electric Reliability Council of Texas to modify pricing models to more accurately reflect the scarcity conditions in the market,” the commission said in a statement. “Specifically, the Commission directed ERCOT to ensure that firm load being shed in ERCOT’s Energy Emergency Alert Level 3 operating condition is accounted for in ERCOT’s scarcity pricing." 

Huge increase in the cost per kilowatt-hour

As a result of that order, the standard price of electricity in Texas jumped from an average of 12 cents per kilowatt-hour to $9.

Abbott said the state leaders attending the weekend teleconference agreed that the state must take steps to alleviate at least some of the burden facing Texas utility customers. Some consumer advocates, meanwhile, are targeting utility companies that marketed variable-rate plans, calling them “predatory.”

A Dallas County Judge, Clay Jenkins, took to Twitter to ask Texans affected by high energy bills to provide details, including the name of their electricity provider.

A bi-annual ritual takes place this weekend as Daylight Savings Time comes to an end. On Sunday, Nov. 1 at 2 a.m., clocks will “fall” back an hour as the nation -- most of it at least -- returns to Standard Time.

The switch, which can play havoc with circadian rhythms, seems to take place later each year. That’s because Congress, more than a decade ago, passed the Energy Policy Act. It added four weeks to Daylight Savings Time under the theory that it would save energy.

It also works on the other end, when Daylight Savings Time will return in early March rather than early April, as it did in the past.

No matter when the time changes, both seasonal changes have the potential to disrupt your sleep patterns circadian rhythm. The result can be a significant disconnect between your body’s internal clock and your daily life.

The fall change might be slightly less disruptive since we get an extra hour of sleep, but it can be disorienting nonetheless. The springtime change, when we’ve just grown accustomed to Standard Time, can be really rough since we lose an hour of sleep.

Battery change reminder

The Consumer Product Safety Commission (CPSC) says consumers can put the annoying time change to productive use by making it a reminder to change the batteries in smoke and carbon monoxide alarms throughout the home.

CPSC estimates there was an annual average of about 361,800 residential fires, resulting in about 2,290 deaths, and 10,410 injuries from 2015 through 2017.

Carbon monoxide (CO) poisoning can come from portable generators, home heating systems, and other CO-producing appliances. CPSC estimates there were 179 unintentional, non-fire CO poisoning deaths associated with consumer products under CPSC's jurisdiction in 2016, the most recent year for which there is death data. 

Portable generators were associated with the most deaths followed by heating systems.

Home prices have surged over the last four years and are still rising, cooling what has been a red hot housing market. But as buying a home has become more pricey, research by TD suggests more homeowners plan to spend money to improve the houses they already have.

The survey found 48 percent of homeowners expect to renovate their homes in the next two years, with a third of those consumers budgeting more than $50,000 for the work. About half  plan to pay for the renovations using existing assets, with the other half borrowing the money.

Of those borrowing the money, about half will tap into their home’s equity with a home equity line of credit (HELOC); the other half plans to use a credit card or personal loan.

"While there are many viable options for funding a renovation, a home equity line of credit is one of the most affordable ways to borrow," said Jon Giles, Head of Home Equity Lending at TD Bank. 

HELOC benefits

There are several advantages to taking out a home equity line of credit. For starters, the interest rate on a HELOC is significantly lower than the interest rates charged on credit cards and personal loans. That’s because the loan is secured by the equity in the property.

While the average interest rate charged on credit cards is around 17 percent, a HELOC’s rate is often tied to the bank’s prime rate and currently hovers around 5.5 percent.

"This also provides flexibility, as most homeowners won't want to draw on cash reserves or savings when unexpected expenses arise," Giles said.

The rise in home values over the last few years has helped homeowners gain equity. Those who purchased their homes several years ago have also been paying down their mortgage, reducing the amount of money they owe.

Rising equity

According to TD Ameritrade, the average homeowner with a mortgage had about $113,000 in equity in their home by the end of last year. Just 36 percent of survey respondents said they’ve made use of that equity through a HELOC.

"We've found that many homeowners simply aren't aware of how they can leverage the equity in their homes," said Giles. "Home equity financing is ideal for projects that will add value to one's home, such as a renovation. It's also frequently tapped to consolidate higher interest rate debt, or to help with education expenses.”

Until the most recent tax law, the interest on a HELOC was tax deductible, making it an even better deal. However, that tax advantage went away at the end of 2017.

When it comes to actually doing the work, 64 percent of those age 18 to 34 said they would complete at least some of the renovations themselves. Sixty percent of baby boomers said they would leave all of the work to professionals.

The holiday season is an especially wasteful time of year for most households, but you can do your part to avoid this by keeping the planet in mind while decorating, shopping, and entertaining this holiday season.

From curbing gift wrap waste to employing a few eco-friendly decorating strategies, here are a few ways you can help cut down on holiday-related trash and excess energy consumption.

Focus on sustainability

Regardless of whether you’ll be buying a live or artificial Christmas tree, you can take steps to minimize its impact on the planet. 

If you will be taking home a freshly cut tree, consider buying one that you can plant outside or keep as a houseplant after the holidays. After the holidays, dispose of your tree at a chipping facility or return it to the environment in other eco-friendly ways, such as mulching or compost.

While live Christmas trees are nice, they tend to produce a lot of waste after the holidays are over. To that end, you can consider alternative means of decorating with nature. 

“Why not go out in your yard or in the woods and gather fallen branches and decorate those with LED tree lights,” says Juliette Haas, sustainability coordinator for the Green Committee of Egremont, Massachusetts.

Artificial trees can be a boon to the health of the planet since they can be used for years to come. If you choose to purchase an artificial tree, be sure to keep safety and energy-efficiency at the forefront of your mind when decorating it.

Use energy-efficient lighting 

Festive string lights are a central element of holiday decorating, but some can be a big energy drain. To keep your lights from adversely affecting the planet (and your energy bill), consider using minimal lights in your holiday decorations. 

If you do choose to decorate with lights, opt for more energy efficient LED strings. Additionally, use a timer for indoor and outdoor lights to save electricity.  

Avoid extra packaging 

‘Tis the season for gift wrap, shopping bags, and packaging -- but paper used to wrap gifts creates a staggering amount of waste each year. Americans throw out about 25 percent more trash between Thanksgiving and New Year’s Eve than any other time of year. 

To cut down on the amount of trash your family creates this holiday season, consider wrapping presents in reusable materials or using gift wrap saved from previous years. A few creative ideas for wrapping include: 

• Scarves, fabric, handkerchiefs
• Old maps, sheet music, advertisements or newsprint
• Reusable tins, baking pans, or other home or garden items.
• What about all those Amazon boxes that may be showing up on your doorstep? Instead of throwing them out, consider flattening them until next spring and using them as the first layer of sheet mulching. 

Use ‘real’ plates 

Another way to help avoid extra packaging is to skip disposable containers. Use your actual  utensils, plates, and glasses when possible, and avoid sending guests home with take-away containers. 

Buy snacks and beverages in bulk to reduce the amount of packaging you bring into your life this holiday season, and consider steering clear of using coffee makers with one-time use filter bins. 

Finally, remember to recycle. 

“Things get hectic and recycling can seem like an additional chore,” Haas told ConsumerAffairs. “Have bins close by to separate your clean papers, glass bottles and aluminum cans for recycling.”

“Also, if you are doing a lot of cooking, composting kitchen scraps like onion skins, carrot and potato peels and coffee grounds greatly reduces the amount of waste you produce,” she added.

Spring is typically perceived as peak homebuying season, but a new report from real estate marketplace Trulia suggests now is a better time to look if you are a millennial in the market for your first home.

Contrary to popular wisdom, the inventory of “starter homes” peaks in October and rises seven percent during the Autumn months. In 70 of the top 100 housing markets, the survey finds the strongest season for starter homes is between October and December.

Prices are lower as well. With more homes on the market, listing prices tend to be around 4.8% less in the winter than in the summer.

The Trulia Inventory and Price Watch report also finds the fall season is especially good for first-time buyers who are looking in the western states. It recorded the largest increase in fall inventory levels and steepest drop in list prices in California, Colorado, Oregon and Arizona.

San Jose, which tends to be one of the most expensive housing markets in the country, leads with a 42 percent seasonal difference in number of starter homes on the market in the fall and spring.

Homebuyers in Wichita, Kansas stand to enjoy the best affordability and seasonal price drop. Trulia predicts starter homes will list for 18.6 percent less in the fall than they will in the spring.

Inventory levels continue to fall

House-hunting during the Autumn months does not guarantee you'll find what you're looking for, however. The housing market continues to deal with a shortage of homes for sale, especially in the categories of starter and trade-up homes.

The number of starter homes has dropped 8.7 percent during the past year while the number of trade-up homes – the homes people buy when they sell their starter homes – has declined by 7.9 percent. The decline has emboldened sellers to increase asking prices, making affordability a pain point in many markets.

“Realtors this fall continue to say the primary impediments stifling sales growth are the same as they have been all year: not enough listings – especially at the lower end of the market – and fast-rising prices that are straining the budgets of prospective buyers,” said Lawrence Yun, the National Association of Realtors' chief economist.

First-time buyers who wait until spring and summer to shop for a home are going to find fewer homes to consider and will likely have to pay more for it if they find the one they want.

This past summer, the Trulia report found the volume of starter home listings plunged 20.4 percent from the sale period in 2016. Trade-up shoppers found 12.5 percent fewer homes on the market

Home prices have surged in Silicon Valley, Denver, and Dallas in recent years, but they aren't the "hottest" real estate markets in America.

According to real estate marketplace realtor.com, home sales occur at the fastest pace in suburbs where millennials find a combination of affordable prices and desirable amenities. The site has just released its list of "2017's Hottest ZIP Codes in America."

Watauga, Texas, (76148) tops the list for the second year in a row. The neighborhood is in Tarrant County, in suburban Ft. Worth. Its residents are mostly young, it has a strong economy and schools that have been rated among the best in the state.

Part of the Dallas Metroplex, it is surrounded by great restaurants and cultural attractions such as the Kimbell Art Museum and Fort Worth Zoo.

Easy proximity to a resurgent major city

Livonia, Mich. (48154) is second. It's a suburb just west of Detroit that offers suburban living with easy proximity to a resurgent major city. Another attractive feature is its location near the headquarters of Ford Motor Company in Dearborn, Mich. and Beaumont Health in Royal Oak, Mich.

Third on the list, Kentwood, Mich. (49548), is a suburb of Grand Rapids. It offers a booming economy, a major public art competition and a vibrant food and microbrewery scene.

Boston may be prohibitively expensive for a millennial first-time buyer but nearby Medford, Mass. (02155) definitely is not. It shows up as the fourth hottest ZIP Code because buyers value its recreation and dining options, as well as its easy access to Boston.

Located just outside Denver, Littleton, Colo. (80123) is realtor.com's fifth-hottest Zip Code. Its attractions include great shopping options, a historic downtown area and plenty of affordable housing options, including condos and single-family homes.

The list also includes Castro Valley, Calif. (94546), Colorado Springs, Colo. (80922), Overland Park, Kan. (66210), Mira Mesa, Calif. (92126), and Hilliard, Ohio (43026).

Homes sell in an average of 21 days

Realtor.com compiled its list after analyzing 32,000 ZIP codes, based on average time properties spent on the market and frequently viewed properties or areas on their site. It said homes in the 10 hottest markets spend an average of 21 days on the market before going under contract, 50 days faster than the country as a whole.

Danielle Hale, chief economist for realtor.com, says the list is proof that millennials are becoming a major force in the housing market.

"Increasingly, the hottest housing markets are the ones that appeal to millennial preferences, and right now the standouts are relatively affordable suburbs with local 'it' factors such as hiking trails, great restaurants, and nightlife," she said.

And that's not about to change anytime soon. With the biggest group of millennials just now entering their prime home-buying years, Hale expects these often overlooked suburbs to remain in demand over the next several years.

Summertime is outdoor time in much of the U.S. If you're contemplating outdoor home improvement projects that will add to summer entertaining and enjoyment, adding a swimming pool has to be pretty high on the list.

While it isn't guaranteed to add value to your home, it certainly has the potential to make outdoor time more pleasant. Costs for adding a pool in your backyard run a wide range, starting at about $30,000 for a 600-square-foot in-ground concrete pool. Prices for smaller pools, however, can be half that, depending on building materials.

According to Houselogic, a pool is something you add when it's something you desire, not something that you think the next person who owns your home will want. And there are other considerations to think about.

First, what is your climate like? A pool might make more sense if you live in a warm climate like Florida, Texas, or California than if you live in Maine or Michigan. You'll get less use out of an unheated, outdoor pool in colder climates.

Consider the neighborhood

You should also consider the neighborhood. If your home is in an upscale neighborhood where many of your neighbors also have pools, it can make economic sense to build one. On the other hand, having the most expensive home in the neighborhood is not an advantage when it comes time to sell.

You also need to consider how a pool will fit on your lot. If you have an irregularly shaped lot, or a small backyard, putting in a pool might not leave much room for other purposes, such as play or gardening.

A pool can certainly add beauty to your backyard, as well as enjoyment. Most are surrounded by attractive paving materials, adding usable space for lounging or entertaining poolside. These costs also need to be added to pool construction costs estimates.

Fireplace/grill

A nice complement to a backyard pool, or even as a standalone addition, is an outdoor fireplace and/or grill. You have the choice of purchasing a ready-made unit from a home center store or having one designed and built by a contractor.

These fireplaces are generally constructed out of brick or stone, and consist of a wood-burning fireplace and free-standing chimney. You can also add a grill over the firebox for outdoor cooking. HGTV offers these 20 interesting fire pit/fireplace designs.

If outdoor cooking is purely your goal, it is much more cost effective to purchase a high-end barbecue grill and keep it adjacent to your entertaining area. The video below provides some helpful tips on how to choose the right grill for your needs.

Lawn care

If you've gone to the trouble and expense of adding a backyard pool and/or outdoor fire pit, you want to make sure the surrounding lawn is lush, green, and nicely landscaped. According to the experts at Lowe's, you want to start with the right grass -- a grass that will work best in your climate.

There are warm season and cool season grasses, but very often a mixture of the two will work best. Popular cool season grasses include bluegrass and perennial rye grass. Warm season grasses include Bahia and common Bermuda.

A properly fertilized lawn has a better chance of staying healthy. It's also important to mow the grass correctly. Proper mowing will increase a lawn's density, which in turn cuts down on weeds. Each type of grass has a recommended mowing height. Find out which type of grass is in your lawn and mow at the proper height.

Awnings are fairly simple. Their purpose is to keep solar energy out of your home or away from outdoor living areas like desks and patios.

But a new breed of awning is not only providing shade, but harnessing that solar energy and turning it into electricity.

SunModo is introducing the SunShield awning system, which replaces traditional metal and fabric awnings with solar panels that generate electricity. 

At its base, the system features a triangular aluminum frame, which serves as a structural truss. It expands to a 35-degree angle once it is installed on a building. The triangle frame then is covered with either 60 or 72 cell solar panels.

Qualifies for tax credits

The awnings do the job of traditional awnings -- block the sun. But they also harness the sun's energy, and in so doing open up the awning industry to 30% tax credits for solar energy installations.

"We believe awnings are the next big frontier that will further accelerate the adoption of solar, which will reduce our society's carbon footprint while providing an elegant yet functional shield from sun, wind and weather," said Rick Campfield, CEO of SunModo.

Other manufacturers have also combined the awning with solar power generation. Florian offers a wide range of solar products, using solar panels to create attractive canopies, carports, and solar powered rooms.

Integrated Solar Design offers systems it says provide up to 30% more power than conventional solar system.

And of course, awnings can reduce current energy costs, whether they generate electricity or not. By keeping direct sunlight from entering a buildings, the interior temperature stays more comfortable without requiring the increased use of electricity.

The tickets are booked, your bags are packed, and vacation awaits. But is your home as ready for your departure as you are?

Preparing your home to be vacant can help you save on energy costs and provide peace of mind while you’re away. While most homeowners know to lock their doors before leaving, some additional forethought and preparation can help prevent disaster and keep valuable energy dollars from being wasted.

"This is a traditional time of the year for families to pack up and leave their homes empty for a week or more," said Mike Nicholson, owner of Nicholson Plumbing, Heating and Air Conditioning. "We want to do our part in preparing homeowners so they can enjoy this particular time and not return home to a disaster."

What to do before leaving

From tweaking the thermostat to employing a few simple tricks to keep odors at bay, there are a number of actions homeowners can take to ensure their home is ready to be empty. Here are a few of Nicholson’s top tips:

• Clean your garbage disposal. To avoid returning home to an unpleasant odor emanating from your garbage disposal, Nicholson and his colleagues suggest placing half a cup of white vinegar with hot water into the garbage disposal while it’s running.
• Adjust the AC. Your couch doesn’t need to be kept cool while you’re away. To save energy, set the temperature on your thermostat 10 degrees higher than normal.
• Unplug electronics. Unplug televisions, phone chargers, and computers in order to conserve energy and prevent damage to your electronics from power surges or lightning strikes.
• Treat your toilet bowl. Stagnant water in a toilet bowl can smell and create a ring inside the bowl. To prevent these problems, pour half a cup of bleach inside the toilet bowl before embarking on your travels.
• Turn off the water main valve. Small leaks can cause a mighty amount of costly damage to a home, but homeowners can prevent water leaks by turning off the main water valve that leads into the home.
• Adjust water heater. Your water heater will continue to warm water unless instructed not to. When going out of town for a week or more, set the dial to vacation mode (or simply set the temperature lower than normal) to help save energy.

If your winter heating bills were higher than expected, there may be areas for improvement in your home's energy envelope.

And if it cost more to heat your home this winter, it might cost more to keep it cool when summer arrives. The U.S. Department of Energy (DOE) has outlined a number of steps every homeowner can take to improve energy efficiency by conducting a home energy audit.

The first step is to locate and seal air leaks. In the winter, drafts are not just costly but reduce the comfort level. The most likely places to find air leaks are along the baseboard or edge of the flooring and where the walls meet the ceiling.

Cracks around doors and windows are another source of energy loss. You may also find leaks around light and plumbing fixtures and electrical outlets. DOE estimates plugging these leaks can not only make a home more comfortable, but trim up to 20% off annual energy bills.

Is insulation adequate?

The next step is to check your home's insulation. Houses built over the last 20 years are generally pretty energy efficient, but homes built before the 1980s may have skimped on insulation.

If you have an attic hatch or pull-down steps, this could be one area where energy is escaping. Check to make sure the opening has as much insulation as the rest of the attic and that there are no gaps around the opening. Installing thick weatherstripping can close most gaps, but hinges and springs may need adjustment to ensure a tighter fit when the attic access is closed.

Furnaces and air conditions are big energy users, since both are appliances that are on many hours of the day to control the interior temperature of your home. Besides plugging leaks, you can save money by making sure that when they do run, they are operating at peak efficiency.

Replace filters

Filters need to be checked and replaced on a regular basis. The burners on gas and oil furnaces need regular cleaning so they aren't wasting fuel. If a furnace, air conditioner or heat pump is old and prone to periodic breakdowns, consider replacing it instead of repairing it. New units will be much more efficient.

After conducting an energy audit, DOE suggests making a whole house energy plan. Total up your annual spending on home energy and pinpoint areas where you think costs can be reduced.

The plan should also made a judgment on the cost effectiveness of remedies. Determine the payback on installing triple-pane windows as opposed to plugging holes with caulk.

DOE has more energy-saving ideas here.

There's always someone who thinks cranky old stuff is cute -- you know, wood stoves, iron skillets, even the plain old light bulb, the incandescent kind that Thomas Edison developed back in 1879. Then, as now, this rather crude instrument was basically a glowing wire encased in glass.

There are many rotten things you can say about incandescents but the two most damning are that they don't last very long and they use an awful lot of energy to generate light. In both cases, heat is a big factor -- lots of energy is lost to heat instead of lumens and the high operating temperature contributes to early burn-out. There are some analogies we could make to certain humans here, but let's leave that for another time.

There are those who think the incandescents give off a warm and soft light. These are the same people who long for the days when cars had cranks. 

But regardless of whether anyone likes it or not, the incandescent bulb is going the way of unsliced bread. It's being phased out and will start to disappear after January 1, 2014, when most production will stop. 

We won't be left in the dark, though. There are three major replacements: halogen, fluorescent and LEDs (yes, basically the same technology that powers many TVs and automotive lights).

Halogen lights share some of the drawbacks of incandescents: they burn very hot and are a fire hazard if not installed and handled properly. They do make a lot of light though. And flourescents? Nobody likes them, not least because they contain mercury and are a contamination hazard if broken. They must also be disposed of properly. Good luck with that.

But fortunately, there's the LED, a technology that creates a lot of light with a fraction of the energy required for other bulbs and does so with a minimum of heat, contributing to its extremely long lifespan.

That's the good news. The bad news is that LED bulbs are expensive although the prices are coming down, and the pain of the upfront purchase price is relieved by their operating cost -- a typical 60-watt bulb costs more than three times as much per year to run as a similar LED blub. And yes, they really do last a lot longer. We have installed about 40 LED bulbs in our home and office over the last five years or so and all are still working perfectly. 

Pick the right bulb

Fortunately, Consumer Reports magazine has conducted a more rigorous study and provides a homeowners' guide to picking the best bulbs for a given situation.

Consumer Reports advises shoppers to pay attention, as there are still expensive bulbs being offered. Here are some less expensive, LED options that impressed the experts:

1. For lamps and ceiling fixtures. For 60-watt replacements, Walmart’s Great Value Soft White LED, $10 – the least expensive of the new bulbs in Consumer Reports’ preliminary tests – gives off a warm yellow light similar to an incandescent bulb. So did Cree’s 9.5-Watt (60W) Warm White, $13 and the $14 Philips 11W 60W Soft White 424382. The fully-tested, top-rated Samsung 60-Watt Warm White LED, $30, provides a bright, warm yellow light. For light that’s warm but brighter, and is meant to replace 75-watt bulbs, the EcoSmart 14-Watt (75W) Soft White 726558, $35, is an alternate choice.

2. For recessed and track lights. In preliminary tests, Walmart’s Great Value Soft White BR30 is bright and dimmable, and is the least expensive costing $16. The fully-tested Feit Electric BR30 Dimmable LED, $18, replaces a 65-watt bulb and casts a warm yellow light.

3. For outdoor lights. The MaxLite 20Watt PAR38 100W, $40, offers bright white light in Consumer Reports’ preliminary tests and can be used with some electronic timers, photocells, and motion sensors. The fully-tested TCP 17W PAR38 Flood LED, $40, is claimed to last about 46 years when used 3 hours a day.

The full report on LED lightbulbs, which includes additional lightbulb recommendations is featured in the January 2014 issue of Consumer Reports and at www.ConsumerReports.org.

There's still such a thing as prices that are just too low, as Samsung, LG Electronics and Electrolux are being reminded. The U.S. Commerce Department says the companies have been selling their imported products at unfairly low prices in the United States.

The products in question are large residential washing machines made in Mexico and South Korea. The ruling came after Whirlpool Corp. complained that the low-priced units were being "dumped" in the U.S., The Wall Street Journal reported.

"This decision is an important victory for our 22,000 dedicated U.S. employees, the consumers we serve and the U.S. appliance industry," said Marc Bitzer, President, Whirlpool North America Region. "Whirlpool has made substantial investments to increase production here in the United States and to fuel innovation that creates superior products for consumers.

"On a level playing field, we are confident that Whirlpool will continue to produce leading innovative products demonstrating the vitality of American manufacturing," Bitzer said.

Could face import duties

A similar finding by the U.S. International Trade Commission could lead to duties being slapped on the washers.  If the ITC finds that abnormally low pricing has hurt the U.S. washing machine industry, it could result in duties on the washers ranging from 9% to 82%.

Whirlpool, the world's largest maker of home appliances, makes products under its own brand as well as under the Maytag, KitchenAid and Jenn-Air brands. The Benton Harbor, Mich., company has also complained about the prices of bottom-mount refrigerators made by Samsung and LG in South Korea and Mexico.

Whirlpool Corp. says it has made "significant investments" at its Clyde, Ohio, plant where it manufactures all of its large residential washers for the U.S. market.

No doubt most consumers would be happy to get the gift of a lower electric bill this holiday season. Fortunately, it's a gift you can easily give yourself.

In most cases, it just requires a little thought and planning.

"Getting ready for the holidays can require a lot of energy, but most people probably aren't thinking about the energy costs when it comes to entertaining, gift buying and decorating," said Tim Fitzpatrick, vice president of Marketing & Communication for Florida Power & Light (FPL). "The holidays are all about traditions, so by adding these energy-efficient changes FPL customers can be energy fit for years to come."

Here are 10 steps to lower holiday electric bills:

1. Deck the halls with LEDs

When it comes to holiday lighting, LED lights are the bright choice to get you more for your money. The amount of power it takes to operate just one 7-watt incandescent holiday bulb could power two 24-foot LED strings - enough to light a six-foot tree. Additionally, LED light strings last about 10 times longer.

2. Make time work in your favor

Set timers for your holiday displays to turn off before bedtime so there is no need to burn the lights all night long.

3. Switch your non-holiday lights

Before overnight guests arrive, switch out guest room and common area lighting to compact fluorescent light (CFL) bulbs. Each CFL bulb you install will save you about $50 in energy costs over the life of the bulb.

4. Turn it off

Remind guests to turn off lights and fans when they leave the room. Stopping one ceiling fan from running all the time and turning at least one light off when you leave the room can save you more than $7 a month on your electric bill.

5. Stop peeking

Ovens lose a lot of heat when opened and require significant energy to heat back up to the appropriate temperature. Instead, when you have to sneak-a-peek, turn the oven light on and look through the interior window.

6.Choose glass or ceramic pans for the oven

These pans heat faster than metal ones and allow you to set the temperature 25 degrees lower than a recipe suggests for the same cooking time.

7. Don't forget your crock-pot

Use smaller appliances such as crock-pots, microwaves and toaster ovens when possible. These can be much more energy-efficient for side dishes or small meals.

8. Select energy-efficient electronics

When it comes to buying gifts for your loved ones, opt for a laptop computer over a desktop computer. Laptop computers require 50 to 80 percent less power than a desktop computer.

9. Let the star be your guide

Look for the ENERGY STAR logo when purchasing larger electronics or appliances. Newer ENERGY STAR models meet stricter requirements and can save up to 40 percent on energy over standard models.

10. Give the gift of light.

Use solar-powered pathway or security lights for your home or as a gift to the person who loves being outside in the evening.

Safety steps

And while you are making your energy use more efficient, don't forget to make it safe as well. An estimated 400 home fires involving Christmas trees or holiday lights occur each year in the U.S., resulting in 21 deaths and $25.2 million in direct property damage, according to the National Fire Protection Association and the U.S. Fire Administration.

LED lights are not only cheaper to operate, they're also safer. They produce almost no heat, making them safe to touch and greatly reducing the risk of fire.

Before stringing lights on outdoor trees, make sure tree limbs haven't grown into or near power lines. Branches, entire trees and even the ground adjacent to a tree can become energized when trees contact power lines.

Make sure lights outside the house are approved for outdoor use. Never use indoor lights outdoors. Follow the manufacturer's limits for the number of light strings that can be connected together safely.

Always turn off decorative lights -- indoors and outdoors -- when leaving the house and before going to bed.

Do not place your tree near a heat source such as a fireplace or heat vent. The heat will dry out the tree, making it more susceptible to fires caused by heat, flame or sparks.

In case you weren't aware, there has been a guy running around bragging to people that he's figured out a way to cut your monthly energy costs by 75 percent.

He also says that by following his instruction, your home will no longer suffer from power outages, blackouts, storms or domestic emergencies.

Who is this mystery man?

His name is John Russel and he's created a product called Power4Home, which is a solar energy help kit that he claims can be followed by anyone.

He says anyone who has completed the third grade and can handle a basic screw driver can build their own solar power mechanism within a day or two in their backyard. Now, building home solar panels on your own isn't a new thing, but it's not something your average Harry Homeowner thinks of.

Nevertheless, most of us have been looking for ways to lower those monthly electricity bills for quite some time. Besides cost savings, there's the little matter of cutting carbon pollution and saving the planet (or, at least, saving ourselves).

Let's just get one thing clear upfront: Power4Home is not a solar power "kit." It's an information package consisting of books, manuals, DVDs, etc. It is protected by the First Amendment.  This is a tactic certain rather notorious infomercial kings have adopted to steer clear of legal problems.

It's illegal to sell, let's say, phony cancer cures and the feds will come after you. But if you write a book that claims to reveal "secret cures" instead of selling the pills or potions yourself, you're protected by the free speech provisions of the Constitution.

Just saying ... 

Not cheap

One could easily hop over to a do-it-yourself store and purchase all of the solar paneling fixings themselves, but costs can be quite steep.

On the Home Depot website for example, prices for solar panel equipment range from around $97.00 to the high thousands, and that's not even including  the wind turbine that's needed in most areas to supplement what comes from the sun.

Russel says that not only is his solar paneling kit a no-brainer to install, but it's cheaper than hiring an expert to do it, or buying a commercial system. Power4Home is now $49.97 on the company's website. 

Does all of this sound too good to be true? Well, sort of — but more on that in a bit.

Russel says he's been a working electrician for most of his adult life and he believes the big power companies have been lying about how much it really costs to light, heat and power your home.

He also says he first got the idea to start the Power4Home company during a vicious blizzard that left him and his family without power.

Shortly after, Russel says he first thought of buying a bigger generator, but didn't want to incur the gas bill prices on top of what he was already paying for electricity.

Then he went shopping for commercial solar power systems, but found prices to be way too steep. Finally he built what he needed from scratch and put up his solar panel and wind turbine in just a few days.

In the first month he claims his energy bill was reduced by 74 percent.

Salesmanship

In Russel's Power4Home sales video he talks about his product with both passion and salesmanship. After listening to this guy for a few minutes it’s hard to ascertain whether he's really figured out a way around paying high energy bills, or if he's just figured out a clever way to make a nice piece of change.

But that can be hard to determine with any product or salesperson.

The informational kit can be purchased on the website, and for the cost one gets three informational guides that walk you through installation, three instructional DVDs, a list of where to get all the materials you'll need for the lowest price, over 80 tips on how to save money on your monthly bill, and other items that Russel says will help with the process of building the system and saving money.

While there's no current feedback from ConsumerAffair readers about Power4Home, general Internet opinions show both good and bad things about this product.

The good

First the good:

Many have said the instructional manual is easy to follow and is extremely helpful for non-experts wanting to build a home solar power system.

The kit also provides some unique insights on big power companies in terms of how they work and how they make their profits. Keep in mind, though, that power companies are heavily regulated by state agencies and must justify the rates they charge. 

Power4Home offers a 60-day guarantee if you’re not satisfied, or if you don't see a substantial amount of savings within two months. Of course, nearly everybody offers a guarantee but that doesn't always mean much.

A good portion of consumers have said the solar panel kit was fairly priced, and low enough that they didn't mind taking a risk and investing their money on it.

The bad 

The bad things about Power4Home?

Apparently, most of the information that Russel has gathered and placed in the manuals can be gathered online for free. Although Russel says he is an  electrician, some critics say he seemingly just pulled instructions from the Internet and combined them into a series of manuals and instructional videos.

Secondly, many people have complained that trying to get their money back was a difficult task, and they only received a refund after numerous attempts and legal threats.

But even after all of that, many people have still found Power4Home a good buy, and here's why:

Although one can spend the time to gather this information on the Internet, some would rather have all of the needed instructions accumulated for them, especially if it's done by an expert.

It's similar to consumers paying more at the supermarket for produce that's pre-sliced and packaged -- or buying a newspaper instead of traveling around the world yourself to find out what's going on.

Sure anyone can Google the info and jot it down or print it, but if you can have someone willing to slice, dice and package the info for you, it can be helpful.

The overall Internet dialogue about Power4Home is centered around refunds issues and being able to access the instructions for free. But for the most part, there weren't too many stories about the product not working properly if followed correctly.

Good investment?

So should one really invest their dollars in Power4Home?

Well, it's only $50 or so. But before getting too excited, consumers should do a bit of research to determine what laws are in place for building a solar power system and what permits will be required.

For example, in Montgomery County, Md., a homeowner will need to fill out a series of forms and include documents that show the details of your planned work.

One will need a building permit, they'll need to submit information about the materials they’re using, and also hand in copies of the site plan. The state will also need to know other things, like details of the field space where you intend to put the paneling and wind turbine.

After phoning the Department of Permitting Services at the Montgomery County Government, a representative sent ConsumerAffairs two different applications that would need to be filled out by homeowners wishing to construct a solar powering unit. The application also came with a pretty extensive instructional sheet.

One application was for an electrical permit that would be needed; the other was an application for a residential building permit.

There's a $90 processing fee for the application as well as extra costs for wind turbine generators, which cost anywhere from $90 to $230, depending on the amount of amperages the solar powering system will use.

Electrician required

In addition, installing the power inverter will require the use of a professional electrician, and once it's installed you'll have to send in details about the inverter along with your application.

According to the application, the inverter will have to comply with the requirements of certain regulations that are established by a nationally recognized testing laboratory.

It's not a bad idea to ease into it -- maybe build or purchase a smaller system to help reduce the cost of your energy bill, instead of trying to go entirely off the grid.

But for those who have the patience and desire to power their home by wind and sun, they should definitely look forward to not only lower electricity bills, but maybe even a check made out to them by the power company.

In most states, if you are able to generate more power than you need, you can sell it back to the power company and get paid for it, or at least get a discount from your base monthly charges. 

So do a little additional research on John Russel and Power4Home, and also read up on the concept of home solar powering, especially for those who are not familiar with its benefits and hassles.

That way you can truly decide if you rather pull the instructions yourself, purchase Russel's kit, or just properly budget and be mindful of the electricity you're currently using.

Home prices have plunged in 2008, as air continues to escape from the housing bubble. Foreclosures in many cities have created a buyer's market, dropping prices 30 percent or more from their highs.

Now the Federal Reserve has moved in to buy up mortgages in an effort to reduce interest rates to historic lows. The move is aimed at encouraging people to buy houses and help restore equilibrium to the housing market.

So, is it the time to buy?

The National Association of Realtors (NAR), quite naturally, believes that it is. NAR, which lobbied hard for the Fed action on mortgage rates, estimates that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes, causing prices to stop their slide.

"Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership," said NAR President Charles McMillan.

That may be true, but it will take some time for these ingredients to work together and create a floor under the market. While that process is taking place, prices could go lower in some areas if enough buyers sit on the sidelines. Buying before that process is completed can lead to trouble.

The S&P;/Case-Shiller U.S. National Home Price Index — which covers all nine U.S. census divisions — posted a record 16.6 percent drop in the third quarter of 2008 versus the third quarter of 2007. That downward trend has accelerated this year, from a 15.1 percent decline in the second quarter and a 14 percent decline in the first quarter.

A recent real estate analysis by Forbes Magazine found that a significant number of consumers who purchased homes in 2008 in some hard-hit areas, such as Bakersfield, California, Yuma, Arizona, or Port Saint Lucie, Florida, are already "underwater," meaning they paid more than their homes are now worth, just a few months later.

The way to avoid that, says economist Joel Naroff, is to do your homework.

"The real issue is where prices are now versus the beginning of the bubble," Naroff told ConsumerAffairs.com. "In many areas prices have come back to 2003 levels. That tells me that the bubble has been wiped out of the price. In other areas, they are just getting back to 2004 levels and those are areas where I would be worried about buying."

If you scan the real estate ads, you'll see that, with the exception of foreclosures and distress sales, very few homes are being offered at 2003 values. Most sellers find it hard to accept that their homes' dramatic appreciation in the last couple of years has been wiped out.

Those who are trying to sell after owning the property for only two or three years can't sell for 2003 prices, which is one reason so many properties are now in foreclosure. But if you want to buy now, Naroff says you need to make sure you're getting the house at, or near, the 2003 value.

Using the Web site Zillow.com, consumers considering a home purchase can look up the house in question and see when the owner bought it, and what they paid for it. If they purchased it recently, they probably have little or no wiggle room.

The site will also show you a graph of the home's estimated value over a number of years. In that way you can determine the property's approximate value in 2003, and make your offer based on that.

"Doing the homework on where prices are versus 2003 is important but finding a place that is affordable and desirable is even more important," Naroff said. "In large parts of the country, with mortgage rates coming down, this is probably a good time to buy."