This article is directly from the EcoBroker website:
Technology Snapshot & Benefits:
You can save a lot of money by installing or improving insulation. Insulation retards the flow of heat and is one of the most cost-effective investments that you can make. The effectiveness of insulation is measured by its tested resistance to heat flow and is known by its ‘R’ value. The greater the ‘R’ value, the greater the effectiveness. One of the easiest and most effective places to install insulation is in the attic, since heat rises from the heated rooms below. Insulation comes in many different forms including the familiar fiberglass, Styrofoam, vermiculite, pouring wool, cellulose materials such as shredded newspaper, and numerous ‘foamed-in-place’ types. Particularly within the fiberglass and rigid foamed board types, there are a variety of choices of heat-reflective coatings. Properly installed insulation always improves comfort and reduces heating and cooling costs.

Estimated Cost Savings:
Heating buildings is one of the largest expenditures of energy in the nation and one of the greatest opportunities for saving. The average U.S. household spent more than $2,350 in 1999 for energy: $1,200 for home energy and $1,150 for motor gasoline to run vehicles. (AEO2001, p.213)  Of the $1,200 spent in the home, nearly half is spent for heating and cooling (AEO2001, p.162) and in aggregate, amounted to more than $50 billion in 1999. (p.159)

For new construction, the maximum recommended amounts of insulation yield huge savings compared to no insulation. For existing buildings, upgrading to the recommended amount of insulation will save money. The amount of savings vary widely depending upon your starting point.. namely, how much insulation you already have. See Energy Star’s Cost-Effective Insulation Values for Existing Homes for recommended insulating values for walls, floors, ceilings, and basements.

In general terms, when you double the R value of your insulation, the heat flow through the insulated surface will halve. Your bill, however, may not halve because of other, less well-insulated surfaces in the building. Typical savings for retrofit insulation are on the order of 20-30% of your heating bill. For a monthly heating bill of $200, this can amount to $40-$60 in savings.

Issues:
A plan will help you with insulating decisions. In general, you should bring the attic insulation up to currents standards because it is easy to do so. Wall insulation can be problematic, as many walls are little more than the width of a 2x4, which limits the depth of insulation that can be easily installed. Sometimes a second interior wall can be built which provides a deeper cavity for insulation as well as providing an easy opportunity to upgrade electrical wiring and new cable and telephone wiring. This is most economical when done as part of a larger room-remodeling effort.

Regional Issues:
The amount of insulation that you need varies upon your climate and exposure to prevailing winds. Northern locations benefit most from insulation during the heating season; southern locations benefit most during the cooling season.

Installation (Getting it Done)
Be sure to get bids from two or three (or more) contractors and explore different methods and types of insulation. Multiple bids will allow you to gain immediate perspective on the true costs and value of insulation in your area

Today I attended a great seminar at the EcoTrust Building in Portland,  sponsored by Ticor Title and featuring a guest speaker, Jerry Johnson.  The seminar was “2008 Market Forecast”.  Mr. Johnson is a highly respected consultant specializing in local and regional real estate development and land use economics. 

We talked about the present market conditions first. There is a surplus of homes for sale right now (about 25 to 30 percent over last year), and the surplus is continuing to grow.  In 2005 and early 2006 many out of state speculators bought up a lot of our inventory with the intention of hopping on the incredible rising tide of appreciation in the Portland area.  However, many of them waited too long and by the time they had purchased property, our market had ‘crested’ and was beginning to cool.  Many of these investors panicked and started dumping their properties on the market in late August, early September 2006.

At the same time many first time buyers who bought homes within the last few years by utilizing a 100% Adjustable Rate Mortgage, were experiencing their first rate increase.  The first two or three years (depending on which type) of an ARM have the lowest interest rate, and therefore a lower monthly mortgage payment.  So lenders were granting loans to buyers whose income qualified them for a loan, based on those first year payments.  However, when the loans began to adjust up many people were not able to afford the increase and the banks began to see more and more loans going into default.  Lenders and buyers were both banking on the rising tide of real estate values to gain appreciation, which would have allowed a buyer to refinance his home for a lower, 30 year fixed rate loan. 

The combination of speculators trying to unload their properties, and homeowners trying to sell because they could no longer afford the payments on their Adjustable Rate Mortgages, caused a glut in the number of homes for sale.  This is where we are today.  Some of these sellers are financially stressed and eager to sell and so we call this a “Buyers Market” because in negotiating a deal, a buyer today certainly has an advantage.  In fact, many buyers are waiting to see if prices will drop as more sellers get ‘motivated’.

There is much speculation about how long this market condition will continue.  Mr. Johnson’s forecast indicates he thinks things may begin to improve by spring, but that it may take a year or two for appreciation to get back to normal.  I was happy to see his stats on market conditions around the country because we really are in much better shape than most other states.  Although Seattle sales are a little bit stronger than ours right now, we are definitely in better shape than California.  Also of interest, is that homes in the low to mid price ranges do have a shorter market time than homes in the higher (over $500,000) price range.  I just sold a home for a seller this week in the $300,000 price range.  Last year it would have sold in three weeks but this year it took four months.  We were fortunate because presently only about 2 out of 20 homes are selling in less than six months.  Proper pricing and condition were never more important than now.

Portland real estate continues to appreciate even in these tough times.  Not at the same rate as last year of course, but it is still appreciating.  We’re still one of the most desirable states to live in and so our property value will always be there! 

Feel free to email me if you have any questions or comments on this blog.