The U.S. Census Bureau calculates that the nation’s population will be 303.15 million on New Year’s Day, up 0.9 percent from 2,842,103 registered on Jan. 1, 2007.
In 2008, the population will increase by one person every 13 seconds. That increase will be the result of one birth every 8 seconds and one death every 11 seconds and one immigrant arriving every 30 seconds.
And all these new residents have to live somewhere – a good sign for the housing market, experts predict.
Source: Reuters News (12/27/07)
Monday, December 31, 2007
Green Remodeling Can Pay Off
Green remodeling can pay off — not only in lowered utility bills, but also in buyer appeal when the property is sold.
Here are some green things to consider.
Site selection. Prefer infill development instead of a new subdivision in a far-flung new suburb that gobbles wetlands and displaces animals.
Energy-efficient products. Choose Energy Star appliances, double-paned windows, low-flush toilets, and compact fluorescent light bulbs.
Spray foam insulation. Seal the home with insulation that doesn’t let the heat or cooled air leak out.
Sustainable wood flooring. Select flooring certified by Forest Stewardship Council, which protects forests by managing the amount of wood harvested annually.
Locally made products. Buy products made less than 250 miles away to reduce transportation costs. Granite, for instance, is generally imported from afar.
Nontoxic paint. Use paint that is low in volatile organic compounds (VOCs) — chemicals that evaporate into the atmosphere. Look for Green Seal certified brands.
Source: St. Petersburg Times, Susan Thurston (12/28/07)
Here are some green things to consider.
Site selection. Prefer infill development instead of a new subdivision in a far-flung new suburb that gobbles wetlands and displaces animals.
Energy-efficient products. Choose Energy Star appliances, double-paned windows, low-flush toilets, and compact fluorescent light bulbs.
Spray foam insulation. Seal the home with insulation that doesn’t let the heat or cooled air leak out.
Sustainable wood flooring. Select flooring certified by Forest Stewardship Council, which protects forests by managing the amount of wood harvested annually.
Locally made products. Buy products made less than 250 miles away to reduce transportation costs. Granite, for instance, is generally imported from afar.
Nontoxic paint. Use paint that is low in volatile organic compounds (VOCs) — chemicals that evaporate into the atmosphere. Look for Green Seal certified brands.
Source: St. Petersburg Times, Susan Thurston (12/28/07)
Friday, December 28, 2007
National Home Prices Face Modest Decline
While some housing markets in Florida, Nevada, and California have had sharp declines, nationally home prices have been far less dramatic.
Home prices fell 0.4 percent nationally in the third quarter, according to the Office of Federal Housing Enterprise Oversight. That's the first decline after 50 straight quarters of appreciation averaging 1.62 percent per quarter.
The decrease in housing prices has only begun to eat into the nearly 13 years of quarterly price gains. The National Association of Home Builders said in November that only 42 percent of all homes sold in the third quarter were priced low enough to be affordable for families earning the national median income of $59,000.
Moody's Economy.com and Banc of America Securities predict the worst is yet to come with housing prices tumbling 15 percent from peak to trough, which they forecast won't occur until early 2009.
Source: The Associated Press, J.W. Elphinstone (12/27/07)
Home prices fell 0.4 percent nationally in the third quarter, according to the Office of Federal Housing Enterprise Oversight. That's the first decline after 50 straight quarters of appreciation averaging 1.62 percent per quarter.
The decrease in housing prices has only begun to eat into the nearly 13 years of quarterly price gains. The National Association of Home Builders said in November that only 42 percent of all homes sold in the third quarter were priced low enough to be affordable for families earning the national median income of $59,000.
Moody's Economy.com and Banc of America Securities predict the worst is yet to come with housing prices tumbling 15 percent from peak to trough, which they forecast won't occur until early 2009.
Source: The Associated Press, J.W. Elphinstone (12/27/07)
Tuesday, December 11, 2007
Housing Markets That are Still Thriving
The best-performing housing market in the country during the third quarter was picturesque Wenatchee, a city of more than 35,000 that is the seat of Chelan County, Wash. Prices in the Wenatchee metro area increased by 15.7 percent year over year, according to RealtyTrac.
Home prices also jumped more than 10 percent in second home markets in Utah, Idaho, and Colorado. "They're doing so well because they're getting the run-off from California, Nevada, and Arizona," says Jeannine Cataldi, senior economist for Global Insight. "When prices got so high [in those states], people said, 'there must be places that are more affordable.’”
Here are the top 10 best performing markets in the country:
-Wenatchee, Wash.: 15.7 percent
-Provo-Orem, Utah: 14.35 percent
-Grand Junction, Colo.: 14.05 percent
-Ogden-Clearfield, Utah: 13.95 percent
-Salt Lake City: 13.37 percent
-Idaho Fall, Idaho: 11.69 percent
-Austin-Round Rock, Texas: 9.67 percent
-Beaumont-Port Arthur, Texas: 9.44 percent
-Asheville, N.C.: 9.44 percent
-Billings, Mont.: 9.07 percent
Source: BusinessWeek, Prashant Gopal (12/10/07)
Home prices also jumped more than 10 percent in second home markets in Utah, Idaho, and Colorado. "They're doing so well because they're getting the run-off from California, Nevada, and Arizona," says Jeannine Cataldi, senior economist for Global Insight. "When prices got so high [in those states], people said, 'there must be places that are more affordable.’”
Here are the top 10 best performing markets in the country:
-Wenatchee, Wash.: 15.7 percent
-Provo-Orem, Utah: 14.35 percent
-Grand Junction, Colo.: 14.05 percent
-Ogden-Clearfield, Utah: 13.95 percent
-Salt Lake City: 13.37 percent
-Idaho Fall, Idaho: 11.69 percent
-Austin-Round Rock, Texas: 9.67 percent
-Beaumont-Port Arthur, Texas: 9.44 percent
-Asheville, N.C.: 9.44 percent
-Billings, Mont.: 9.07 percent
Source: BusinessWeek, Prashant Gopal (12/10/07)
Monday, December 10, 2007
Fed Expected to Cut Key Rates on Tuesday
The Federal Reserve is poised to cut its key rates again when it meets Tuesday.
The predicted reduction by as much as a half point in the wake of a credit crisis caused by investments in subprime mortgages has left some analysts skeptical about the Fed’s role in financial markets.
Some critics say lowering rates means the Fed is bailing out investors and encouraging more sloppy decision-making.Janet Yellen, president of the Federal Reserve Bank of San Francisco, said: "We face a risk that the problems in the housing market could spill over" and sap consumer spending "in a bigger way" than anticipated.
William Poole, president of the Federal Reserve Bank of St. Louis, puts the situation more bluntly. "
It makes no sense to let the economy suffer from continuing declines in stock prices for the purpose of `teaching stock market speculators a lesson,'" he says.
Source: The Associated Press, Jeannine Aversa (12/09/2007)
The predicted reduction by as much as a half point in the wake of a credit crisis caused by investments in subprime mortgages has left some analysts skeptical about the Fed’s role in financial markets.
Some critics say lowering rates means the Fed is bailing out investors and encouraging more sloppy decision-making.Janet Yellen, president of the Federal Reserve Bank of San Francisco, said: "We face a risk that the problems in the housing market could spill over" and sap consumer spending "in a bigger way" than anticipated.
William Poole, president of the Federal Reserve Bank of St. Louis, puts the situation more bluntly. "
It makes no sense to let the economy suffer from continuing declines in stock prices for the purpose of `teaching stock market speculators a lesson,'" he says.
Source: The Associated Press, Jeannine Aversa (12/09/2007)
Rising Mortgage Fees Push up Closing Costs
Borrowers who can’t come up with a sizable down payment and whose credit scores are below 680 are being squeezed in the mortgage market.
Fannie Mae and Freddie Mac are charging fees that are significantly higher than before to borrowers with the lower scores and with down payments of less than 30 percent. Many of these borrowers formerly were considered “prime” credit applicants.
Simultaneously, mortgage insurers MGIC and PMI Group are raising premiums on consumers who have low down payments and scores in the mid- to upper 600s.
Together these penalties total thousands of dollars, payable either at settlement or in higher interest rates."
This is outrageous," says Steven Moore, a mortgage broker with 1st Solution Mortgage in Falls Church. "
On a loan of $300,000 and with a credit score of 675 – which is not a bad score – and a 75 percent loan-to-value ratio (25 percent down payment), the cost is an additional $2,250 per loan."
Source: The Washington Post, Kenneth R. Harney (12/08/2007)
Fannie Mae and Freddie Mac are charging fees that are significantly higher than before to borrowers with the lower scores and with down payments of less than 30 percent. Many of these borrowers formerly were considered “prime” credit applicants.
Simultaneously, mortgage insurers MGIC and PMI Group are raising premiums on consumers who have low down payments and scores in the mid- to upper 600s.
Together these penalties total thousands of dollars, payable either at settlement or in higher interest rates."
This is outrageous," says Steven Moore, a mortgage broker with 1st Solution Mortgage in Falls Church. "
On a loan of $300,000 and with a credit score of 675 – which is not a bad score – and a 75 percent loan-to-value ratio (25 percent down payment), the cost is an additional $2,250 per loan."
Source: The Washington Post, Kenneth R. Harney (12/08/2007)
3 Places to Find Money for a Down Payment
Buyers who don’t have a 20 percent down payment are finding it harder and harder to buy a home. Here are some sources of money that are still available and the pluses and minuses of using them.
- Borrowing from a 401(k). Only some companies allow this. The maximum available is $50,000 ($100,00 if both spouses have 401(k)s) and the loan must be repaid within five years. Failure to do so and the loan will be considered a withdrawal, leaving the borrower liable for penalties and federal income tax.
- Withdrawing up to $10,000 from an IRA for a purchase of a first home. Spouses who both have IRAs can withdrawal a total of $20,000. A potential borrower who hasn’t owned a home in the past three years is considered a "first-time buyer" for this specific purpose and can make a withdrawal. Federal taxes must be paid on the withdrawal at the borrower’s current marginal tax rate.
- A gift. If buyers are comfortable asking for money, their parents, friends, and relatives can give a gift toward the down payment. But for the lender to approve it, the giver must sign a gift letter stating that the money doesn’t need to be repaid.
Source: ThinkGlink.com, Ilyce Glink (12/07/2007)
- Borrowing from a 401(k). Only some companies allow this. The maximum available is $50,000 ($100,00 if both spouses have 401(k)s) and the loan must be repaid within five years. Failure to do so and the loan will be considered a withdrawal, leaving the borrower liable for penalties and federal income tax.
- Withdrawing up to $10,000 from an IRA for a purchase of a first home. Spouses who both have IRAs can withdrawal a total of $20,000. A potential borrower who hasn’t owned a home in the past three years is considered a "first-time buyer" for this specific purpose and can make a withdrawal. Federal taxes must be paid on the withdrawal at the borrower’s current marginal tax rate.
- A gift. If buyers are comfortable asking for money, their parents, friends, and relatives can give a gift toward the down payment. But for the lender to approve it, the giver must sign a gift letter stating that the money doesn’t need to be repaid.
Source: ThinkGlink.com, Ilyce Glink (12/07/2007)
Daily Real Estate News | December 10, 2007
NAR: Another Monthly Gain for Pending Home Sales
The Pending Home Sales Index, a forward-looking indicator based on contracts signed, increased 0.6 percent in October, marking the second consecutive monthly gain, according to the NATIONAL ASSOCIATION OF REALTORS®. The index rose to 87.2 from an upwardly revised reading of 86.7 in September. However, the October index still was 18.4 percent below year-earlier reading of 106.8. “The broad trend over the coming year will be a gradual rise in existing-home sales,” says Lawrence Yun, NAR’s chief economist. “But because sales are exceptionally low in the final months of 2007, total sales for 2008 will be only modestly higher than 2007.” A recovery for new-home sales is unlikely before 2009, he adds. Yun says the worst part of the credit crunch has already worked its way through the data: “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.”
Existing-home sales in 2007 are likely to total 5.67 million this year, the fifth highest on record, and then rise to 5.70 million in 2008. By comparison, home sales in 2006 totaled 6.48 million. Regional Pending Home Sales Data Pending home sales in the Northeast jumped 16.0 percent in October to 80.6 but is 11.1 percent below a year ago. In the West, the index rose 8.4 percent to 87.3 but is 16.9 percent lower than October 2006. The index in the Midwest slipped 1.4 percent in October to 85.5 and is 11.7 percent below a year ago. In the South, the index dropped 7.8 percent in October to 91.6 and is 25.3 percent below October 2006.
“The improvement in the Northeast reaffirms a trend apparent for some months now that shows signs of recovery, noteworthy because that was the first region to slump, and the gain in the West indicates some easing of interest rates for jumbo loans,” Yun says. He says that raising the loan limits on FHA and GSE-backed conventional loans will markedly improve mortgage availability.
A Look at Prices: Slight Growth Expected
Prices for existing homes should be down 1.9 percent to a median of $217,600 for all of 2007, and then rise 0.3 percent to $218,300 in 2008. “Home price growth in the vast affordable midsection of America will help raise the national median existing-home price slightly in 2008. I then expect price appreciation to return to more normal patterns in 2009, perhaps rising one or two percentage points above the rate of inflation,” Yun said.Even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the U.S. are showing price increases, Yun says. “The apparent disparity results from fewer sales in high-cost markets, so a change in the mix of sales is dragging down the national median home price.”
Areas showing healthy price gains include disparate markets such as Gary-Hammond, Ind.; Binghamton, N.Y.; Corpus Christi, Texas; and Spokane, Wash. “We can’t emphasis enough how much local conditions vary, even within a given area, so it’s important for consumers to make decisions based on local market conditions.”
Forecast for New Home SalesNew-home sales are forecast at 788,000 this year and 693,000 in 2008, down from 1.05 million 2006; no sustained improvement is seen for new homes until 2009. Because builders have correctly adjusted production, housing starts, including multifamily units, will probably total 1.36 million this year and 1.16 million in 2008, down from 1.80 million last year. The median new-home price is projected to drop 3.0 percent to $239,100 for 2007, and then decline another 0.2 percent to $236,600 in 2008.
Economic Outlook: Mortgage, GDP, Employment
The 30-year fixed-rate mortgage is estimated to rise slowly to the 6.4 percent range by the end of 2008, with additional cuts in the Fed funds rate lowering short-term interest rates.
Growth in the U.S. gross domestic product (GDP) should be 2.1 percent in 2007, down from a 2.9 percent growth rate last year; GDP growth is forecast to improve to 2.4 percent in 2008.
The unemployment rate is likely to average 4.6 percent for 2007, unchanged from last year, but rise to 5.0 percent in 2008. Inflation, as measured by the Consumer Price Index, will probably be 2.8 percent this year and 2.7 percent in 2008, down from 3.2 percent in 2006. Inflation-adjusted disposable personal income is estimated to grow 3.1 percent this year, the same as in 2006, and then grow 2.2 percent next year.
— REALTOR® Magazine Online
The Pending Home Sales Index, a forward-looking indicator based on contracts signed, increased 0.6 percent in October, marking the second consecutive monthly gain, according to the NATIONAL ASSOCIATION OF REALTORS®. The index rose to 87.2 from an upwardly revised reading of 86.7 in September. However, the October index still was 18.4 percent below year-earlier reading of 106.8. “The broad trend over the coming year will be a gradual rise in existing-home sales,” says Lawrence Yun, NAR’s chief economist. “But because sales are exceptionally low in the final months of 2007, total sales for 2008 will be only modestly higher than 2007.” A recovery for new-home sales is unlikely before 2009, he adds. Yun says the worst part of the credit crunch has already worked its way through the data: “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.”
Existing-home sales in 2007 are likely to total 5.67 million this year, the fifth highest on record, and then rise to 5.70 million in 2008. By comparison, home sales in 2006 totaled 6.48 million. Regional Pending Home Sales Data Pending home sales in the Northeast jumped 16.0 percent in October to 80.6 but is 11.1 percent below a year ago. In the West, the index rose 8.4 percent to 87.3 but is 16.9 percent lower than October 2006. The index in the Midwest slipped 1.4 percent in October to 85.5 and is 11.7 percent below a year ago. In the South, the index dropped 7.8 percent in October to 91.6 and is 25.3 percent below October 2006.
“The improvement in the Northeast reaffirms a trend apparent for some months now that shows signs of recovery, noteworthy because that was the first region to slump, and the gain in the West indicates some easing of interest rates for jumbo loans,” Yun says. He says that raising the loan limits on FHA and GSE-backed conventional loans will markedly improve mortgage availability.
A Look at Prices: Slight Growth Expected
Prices for existing homes should be down 1.9 percent to a median of $217,600 for all of 2007, and then rise 0.3 percent to $218,300 in 2008. “Home price growth in the vast affordable midsection of America will help raise the national median existing-home price slightly in 2008. I then expect price appreciation to return to more normal patterns in 2009, perhaps rising one or two percentage points above the rate of inflation,” Yun said.Even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the U.S. are showing price increases, Yun says. “The apparent disparity results from fewer sales in high-cost markets, so a change in the mix of sales is dragging down the national median home price.”
Areas showing healthy price gains include disparate markets such as Gary-Hammond, Ind.; Binghamton, N.Y.; Corpus Christi, Texas; and Spokane, Wash. “We can’t emphasis enough how much local conditions vary, even within a given area, so it’s important for consumers to make decisions based on local market conditions.”
Forecast for New Home SalesNew-home sales are forecast at 788,000 this year and 693,000 in 2008, down from 1.05 million 2006; no sustained improvement is seen for new homes until 2009. Because builders have correctly adjusted production, housing starts, including multifamily units, will probably total 1.36 million this year and 1.16 million in 2008, down from 1.80 million last year. The median new-home price is projected to drop 3.0 percent to $239,100 for 2007, and then decline another 0.2 percent to $236,600 in 2008.
Economic Outlook: Mortgage, GDP, Employment
The 30-year fixed-rate mortgage is estimated to rise slowly to the 6.4 percent range by the end of 2008, with additional cuts in the Fed funds rate lowering short-term interest rates.
Growth in the U.S. gross domestic product (GDP) should be 2.1 percent in 2007, down from a 2.9 percent growth rate last year; GDP growth is forecast to improve to 2.4 percent in 2008.
The unemployment rate is likely to average 4.6 percent for 2007, unchanged from last year, but rise to 5.0 percent in 2008. Inflation, as measured by the Consumer Price Index, will probably be 2.8 percent this year and 2.7 percent in 2008, down from 3.2 percent in 2006. Inflation-adjusted disposable personal income is estimated to grow 3.1 percent this year, the same as in 2006, and then grow 2.2 percent next year.
— REALTOR® Magazine Online
Thursday, December 6, 2007
Daily Real Estate News | December 6, 2007
Bush Wins Agreement to Freeze Mortgages
Major mortgage lenders have agreed to lock in interest rates for five years on adjustable-rate loans made to financially troubled homeowners who obtained adjustable-rate subprime mortgages between Jan. 1, 2005, and July 31, 2007.
The deal with the Bush administration represents a compromise between mortgage firms and banks that wanted to freeze rates for one or two years and banking regulators who wanted seven years.
Mortgage lenders such as Countrywide Financial, big banks such as Citigroup, and nonprofit groups as well as Republicans and Democrats all support the agreement. The deal has the potential to head off a major foreclosure crisis, advocates say, considering the millions of borrowers facing a sharp increase in rates before July 31, 2010.
Source: Washington Post, David Cho, Neil Irwin (12/06/07)
Major mortgage lenders have agreed to lock in interest rates for five years on adjustable-rate loans made to financially troubled homeowners who obtained adjustable-rate subprime mortgages between Jan. 1, 2005, and July 31, 2007.
The deal with the Bush administration represents a compromise between mortgage firms and banks that wanted to freeze rates for one or two years and banking regulators who wanted seven years.
Mortgage lenders such as Countrywide Financial, big banks such as Citigroup, and nonprofit groups as well as Republicans and Democrats all support the agreement. The deal has the potential to head off a major foreclosure crisis, advocates say, considering the millions of borrowers facing a sharp increase in rates before July 31, 2010.
Source: Washington Post, David Cho, Neil Irwin (12/06/07)
Daily Real Estate News | December 6, 2007
Last Chance to Save on Home Energy Improvements
Time has almost run out for homeowners to take advantage of valuable tax credits for energy-efficient home improvements that expire at the end of 2007.
All the details on the tax credits can be found on the U.S. Department of Energy Web site.
• Insulation and exterior doors, including storm doors: 10 percent of the cost of the product (but not the installation), up to $500. Includes materials to seal air leaks such as caulk, weather stripping, and foam sealants.
• Central air conditioner, heat pump, or water heater: Up to $300 towards the full purchase price, including installation costs.
• Exterior windows, skylights, and storm windows: 10 percent of the total cost, up to $200. All windows with the ENERGY STAR label, the government's symbol for energy efficiency, qualify.
• Pigmented metal roofs: 10 percent of the cost of the product (but not the installation), up to $500 for metal roofs with pigmented coatings that meet ENERGY STAR requirements.
• Furnace or boiler: Up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.
Source: Alliance to Save Energy, Ronnie Kweller (12/04/2007)
Time has almost run out for homeowners to take advantage of valuable tax credits for energy-efficient home improvements that expire at the end of 2007.
All the details on the tax credits can be found on the U.S. Department of Energy Web site.
• Insulation and exterior doors, including storm doors: 10 percent of the cost of the product (but not the installation), up to $500. Includes materials to seal air leaks such as caulk, weather stripping, and foam sealants.
• Central air conditioner, heat pump, or water heater: Up to $300 towards the full purchase price, including installation costs.
• Exterior windows, skylights, and storm windows: 10 percent of the total cost, up to $200. All windows with the ENERGY STAR label, the government's symbol for energy efficiency, qualify.
• Pigmented metal roofs: 10 percent of the cost of the product (but not the installation), up to $500 for metal roofs with pigmented coatings that meet ENERGY STAR requirements.
• Furnace or boiler: Up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.
Source: Alliance to Save Energy, Ronnie Kweller (12/04/2007)
Wednesday, December 5, 2007
Daily Real Estate News | December 5, 2007
Daily Real Estate News December 5, 2007
Mortgage Volume Soars After Thanksgiving
During the week after Thanksgiving, mortgage application volume rose 22.5 percent on a seasonally adjusted basis to 791.8, recovering significantly from a holiday slowdown.
On an unadjusted basis, applications rose 51.5 percent and were up 24.2 percent from the same week in 2006.
The Refinance Index increased 31.9 percent to 2761.3 from 2093.0 the previous week. The refinance share of mortgage activity increased to 56.0 percent of total applications from 51.4 percent the previous week.
These numbers reflect a correction made to the Thanksgiving Week numbers released by the association. The previously reported numbers were too high, making the Thanksgiving week fall off more dramatic than was reported last week.
This week’s rising numbers appear to be at least partially in response to falling interest rates.
- 30-year fixed-rate mortgages decreased to 5.82 percent from 6.09 percent
- 15-year fixed-rate mortgages decreased to 5.38 percent from 5.69 percent
- 1-year ARMs increased to 6.28 percent from 6.24 percent
Source: Mortgage Bankers Association (12/05/2007)
Mortgage Volume Soars After Thanksgiving
During the week after Thanksgiving, mortgage application volume rose 22.5 percent on a seasonally adjusted basis to 791.8, recovering significantly from a holiday slowdown.
On an unadjusted basis, applications rose 51.5 percent and were up 24.2 percent from the same week in 2006.
The Refinance Index increased 31.9 percent to 2761.3 from 2093.0 the previous week. The refinance share of mortgage activity increased to 56.0 percent of total applications from 51.4 percent the previous week.
These numbers reflect a correction made to the Thanksgiving Week numbers released by the association. The previously reported numbers were too high, making the Thanksgiving week fall off more dramatic than was reported last week.
This week’s rising numbers appear to be at least partially in response to falling interest rates.
- 30-year fixed-rate mortgages decreased to 5.82 percent from 6.09 percent
- 15-year fixed-rate mortgages decreased to 5.38 percent from 5.69 percent
- 1-year ARMs increased to 6.28 percent from 6.24 percent
Source: Mortgage Bankers Association (12/05/2007)
Tuesday, December 4, 2007
Daily Real Estate News | December 4, 2007
Daily Real Estate News December 4, 2007
Homes Features that are Big Buyer Turnoffs
Old homes can be quaint, but there’s a difference between old and outdated. Unless home owners periodically invest in upgrades, their homes will fall so far below the standards of current buyers that they become obsolete and hard to sell.What’s obsolete? Here’s a list of relics, many of them courtesy of Nick Kuhn, an associate with McEnearney Associates in Washington DC.
-A house with only one bathroom. Even a house with one full bath and a toilet/sink powder room is going to turn buyers off.
-A house without air conditioning.
-Electrical systems protected by a fuse box instead of a circuit breaker.
-Spiral staircases. They’re relatively rare, and for good reason — they are unsafe.
-Basements with only an outside entrance. Homeowners expect convenient access to that valuable space.
-Ceilings that look like they’ve been stuccoed, dropped ceilings with fluorescent lights, and dark beams cutting across the ceiling.
-The split-level floor plan. Want to go from kitchen to family room? Go down half a flight of stairs. From living room to bedroom? Up half a flight. Most folks would rather not.
Source: The Washington Post, Elizabeth Razzi (12/02/07)
Homes Features that are Big Buyer Turnoffs
Old homes can be quaint, but there’s a difference between old and outdated. Unless home owners periodically invest in upgrades, their homes will fall so far below the standards of current buyers that they become obsolete and hard to sell.What’s obsolete? Here’s a list of relics, many of them courtesy of Nick Kuhn, an associate with McEnearney Associates in Washington DC.
-A house with only one bathroom. Even a house with one full bath and a toilet/sink powder room is going to turn buyers off.
-A house without air conditioning.
-Electrical systems protected by a fuse box instead of a circuit breaker.
-Spiral staircases. They’re relatively rare, and for good reason — they are unsafe.
-Basements with only an outside entrance. Homeowners expect convenient access to that valuable space.
-Ceilings that look like they’ve been stuccoed, dropped ceilings with fluorescent lights, and dark beams cutting across the ceiling.
-The split-level floor plan. Want to go from kitchen to family room? Go down half a flight of stairs. From living room to bedroom? Up half a flight. Most folks would rather not.
Source: The Washington Post, Elizabeth Razzi (12/02/07)
McMansions???
Daily Real Estate News December 4, 2007
How does the Supersizing of McMansions Change Cities?
An increasing number of cities are getting bigger homes within their boundaries — a development that some view as a mixed blessing.About two-thirds of the U.S.'s largest cities report having “McMansions” – new, much larger houses built on lots that once contained smaller homes, a new study finds. What's more, about one in five of the largest cities report 30 or more McMansions within their boundaries.
“The phenomena of McMansions may represent a sea change in which residents with money are moving back into cities and older suburbs, rather than building new homes far from the central city,” says Jack Nasar, co-author of a study on McMansions in U.S. cities and professor of city and regional planning at Ohio State University.
While a large home may change the character of a neighborhood, it also can increase all home values in the area. “You may not like it if someone builds a McMansion next door, but if you live a few houses away, you may think it is a pretty good deal if property values increase,” Nasar says.
Cities Naser studied reported a variety of regulations. The most common — adopted by about 14 percent of all surveyed cities — was to limit building height as a way to control oversized houses, Nasar says. The next most common regulations were to create design review boards to approve plans for new homes (about 8 percent of cities) and to set limits on floor-area ratios (about 7 percent of cities). The best plan, Nasar says, may be for cities to be proactive and identify likely areas for McMansions, then work with builders to compromise on regulations, while encouraging development of large homes.
Source: Ohio State University, Jeff Grabmeier (11/30/07)
How does the Supersizing of McMansions Change Cities?
An increasing number of cities are getting bigger homes within their boundaries — a development that some view as a mixed blessing.About two-thirds of the U.S.'s largest cities report having “McMansions” – new, much larger houses built on lots that once contained smaller homes, a new study finds. What's more, about one in five of the largest cities report 30 or more McMansions within their boundaries.
“The phenomena of McMansions may represent a sea change in which residents with money are moving back into cities and older suburbs, rather than building new homes far from the central city,” says Jack Nasar, co-author of a study on McMansions in U.S. cities and professor of city and regional planning at Ohio State University.
While a large home may change the character of a neighborhood, it also can increase all home values in the area. “You may not like it if someone builds a McMansion next door, but if you live a few houses away, you may think it is a pretty good deal if property values increase,” Nasar says.
Cities Naser studied reported a variety of regulations. The most common — adopted by about 14 percent of all surveyed cities — was to limit building height as a way to control oversized houses, Nasar says. The next most common regulations were to create design review boards to approve plans for new homes (about 8 percent of cities) and to set limits on floor-area ratios (about 7 percent of cities). The best plan, Nasar says, may be for cities to be proactive and identify likely areas for McMansions, then work with builders to compromise on regulations, while encouraging development of large homes.
Source: Ohio State University, Jeff Grabmeier (11/30/07)
Saturday, December 1, 2007
Rate Cut - December 11th
Fed Chief Hints at Another Rate Cut
Federal Reserve Chair Ben Bernanke suggested Thursday that another rate cut might be in the works. The economic outlook has been "importantly affected over the past month by renewed turbulence in financial markets, which has partially reversed the improvement that occurred in September and October," Bernanke told a group of business people in North Carolina. A copy of the speech was widely distributed."
These developments have resulted in a further tightening in financial conditions, which has the potential to impose additional restraint on activity in housing markets and in other credit-sensitive sectors," he said.
Analysts interpreted this to mean that "Bernanke is leaning in the direction of a rate cut," at the Fed’s next meeting Dec. 11, says Brian Bethune, economist at Global Insight.
Source: The Associated Press, Jeannine Aversa (11/30/07)
Federal Reserve Chair Ben Bernanke suggested Thursday that another rate cut might be in the works. The economic outlook has been "importantly affected over the past month by renewed turbulence in financial markets, which has partially reversed the improvement that occurred in September and October," Bernanke told a group of business people in North Carolina. A copy of the speech was widely distributed."
These developments have resulted in a further tightening in financial conditions, which has the potential to impose additional restraint on activity in housing markets and in other credit-sensitive sectors," he said.
Analysts interpreted this to mean that "Bernanke is leaning in the direction of a rate cut," at the Fed’s next meeting Dec. 11, says Brian Bethune, economist at Global Insight.
Source: The Associated Press, Jeannine Aversa (11/30/07)
Mortgage Rates
Mortgage Rates Drop to Two-Year Lows
The 30-year fixed mortgage rate fell to a more than two-year low in the week ended Nov. 29, slipping to 6.1 percent from 6.2 percent the prior week. Freddie Mac also reported that the 15-year fixed loan rate fell to 5.73 percent from 5.83 percent over that same time span, and that interest on five-year adjustable-rate mortgages dipped to 5.86 percent from 5.88 percent. Meanwhile, the one-year ARM bumped up to 5.43 percent from 5.42 percent. Freddie Mac chief economist Frank Nothaft attributed the decline in mortgage rates to worries about an economic downturn tied to the weak housing and credit markets, which has pushed down interest rates on U.S. Treasuries.
Source: Baltimore Sun (11/30/07)
The 30-year fixed mortgage rate fell to a more than two-year low in the week ended Nov. 29, slipping to 6.1 percent from 6.2 percent the prior week. Freddie Mac also reported that the 15-year fixed loan rate fell to 5.73 percent from 5.83 percent over that same time span, and that interest on five-year adjustable-rate mortgages dipped to 5.86 percent from 5.88 percent. Meanwhile, the one-year ARM bumped up to 5.43 percent from 5.42 percent. Freddie Mac chief economist Frank Nothaft attributed the decline in mortgage rates to worries about an economic downturn tied to the weak housing and credit markets, which has pushed down interest rates on U.S. Treasuries.
Source: Baltimore Sun (11/30/07)
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