Home prices in Boston hold relatively steady

Though home prices have continued their decline around the country, financial value of homes in the Boston area have remained relatively strong. Boston was one of only two major cities to post gains in home prices in August 2008.

Although the gains were modest, prices went up by just 0.1 percent, the fact that Boston experienced any growth in the midst of the market downturn is a good sign.

Only Cleveland, Ohio posted biggest gains, with growth just over 1% in August. Some of the cities in the hardest-hit areas such as Phoenix and Las Vegas reported declines of about 2.5 percent in August alone. Since last year, home prices in Phoenix and Las Vegas have dropped more than 30 percent. Boston, in comparison, has experienced declines closer to about 5% over the course of the year.

According to an article by Les Christie writing for CNN Money, the steep decline of home values translates into a high rate of vacant homes. About one million homes, or nearly 3 percent of all existing homes, are vacant.

Since the end of the summer, it has become more difficult to fill the empty homes, in part because of September’s banking crisis which restricted access to credit. First-time buyers and other potential buyers must contend with banks that are more unwilling to lend now than in the past.

"I'm optimistic," Richard DeKaser, chief economist for National City Corp remarks to CNN. "More credit will be available and housing inventories will be reduced. The deterioration will give way to a more balanced market."

--Bridget O'Sullivan

MORTGAGE ANALYSIS: Looking to refinance or buy a new home? You're in luck. As a Consumer United member, you are eligible for a discounted 15- and 30-year regular fixed-rate mortgage. Nothing complicated or exotic, just a straight-forward mortgage where the payments don't change. Click here for a free analysis.

Bigger homes aren't necessarily better

For many suburban homeowners, maintaining a large house and lawn after the kids have moved out can be a problem.

Property owners could pay high energy bills for the large house and owe taxes on space they aren't utilizing anymore. At some point, it may make sense to move to a smaller home. The right time to make such a move, however, could be difficult to determine according to a CNN report by Carla Fried.

Although the market is good for buyers, sellers face more of a challenge especially with larger homes. One consideration that tempts many would-be downsizers is the likelihood that as the property shrinks, so will the expenses associated with it.

Chuck Petitti, a Boston-area real estate agent, tells CNN that his clients want to move after coming to understand that"I could be traveling or doing something else with all the money I am paying for utilities and property tax on this big house."

Due to the large number of families with grown children or teens about to leave the house, the competition for smaller properties could eventually drive prices up.

In addition, CNN cites research from Zillow.com which suggests that smaller properties retain their value with more efficiency. Another major issue facing potential downsizers is that in some areas,s ome as popular metropolitan downtown areas, smaller properties cans still be very expensive.

The savings associated with getting rid of a second car, for example, may quickly be overshadowed by high maintenance fees. If you do plan to relocate, be sure to contact Consumer United to find out about all of the great savings opportunities on services thatcould be available at your new home.

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--Bridget O'Sullivan

Savings 101: Tip to fly for less

Are you sick of paying loads of money to travel by air? Here are four new airline fees... and ways to get around them.

*Beverages
Implemented on August 1, '08, airlines are now charging for soft drinks and bottled water. Paying for a soda seems reasonable. However few consumers are OK with having to pay for a glass of water during a flight, especially since the water on tap is rarely potable.

Solution: Bring an empty water bottle with you through security. Once you are past the security clearance, hit up the nearest water fountain. Bottled water is sold at the airport, but it will probably cost more than on the plane itself.

*Checked Luggage
American, United and US Airways are making you pay for the first checked bag. Their excuse? The rising cost for fuel. According to the CNN report, airlines have been waiting for an excuse to add extra charges for a long time. If fuel costs decrease, the price of a checked bag will most probably stick.

Solution: Continental and Delta Airlines have a free first bag allowance. Try to book a flight on an airline that won't charge you to check a bag. If that's not the case, you could ship your bags, or carry on your bags. Do the math, a $15 charge for a bag might be a bargain compared to what The Postal Service charges.

*Award Tickets
Airlines have added "fees" to award tickets and frequent flier miles, and have raised the number of miles required for free tickets. on August 15, '08, Delta is adding a $25 surcharge for award travel.

Solution: Cash in your frequent flier miles, or use them for something else. Your award tickets depreciate over time, so take the cash.

*Unaccompanied Minors
These fees have always been in place, but the fees are now rising. Alaska Airlines raised its fee from $30-$75. Spirit Airlines raised its fee from $50-$75. Many legacy airlines have raised their fees to $100.

Solution: Accompany that minor this summer. It will probably end up costing the same, and you can take a vacation too. You can also choose an airline with lower fees. Jetblue charges $25 less than big airlines.