Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts

Tuesday, January 21, 2014

Why Winter Is a Great Time to Buy Real Estate

This Story was originally posted on LearnVest  by Pauline Millard on Dec 23, 2013
December is usually when people are looking to deck their own halls—not buy new ones. But buying a home in December and January can be a smart move.

Michael Corbett, Trulia’s real estate expert and a bestselling author, is a big fan of the holiday season, what he likes to call “the lull.” He says that savvy home buyers should take advantage of this time if they’re serious about buying.

Why?

“Mortgage rates are low now, although they are higher than they were six months ago, and higher than they were last March,” Corbett says. “The price increases that were common in metro markets such as Las Vegas, Fort Lauderdale and Orlando are slowing. Even Atlanta, which had an average 19% price increase last year, is showing signs of cooling.”  Corbett explains why the holidays are no time to take a long winter’s nap if you want to buy a home.

LearnVest: What do you like about what you call The Lull, which is in December and January?
Corbett: There isn’t a lot of competition. People know they’re going to be busy or traveling during the holidays, so most deals have been wrapped up or people have put off looking until after the New Year. There are still homes on the market, but not as many people gunning for them. This is an advantage to both buyers.

LearnVest: If it’s a slow season, doesn’t that mean inventory will be lower?
Corbett: Yes, but the sellers are motivated. These are likely the homes that for whatever reason didn’t go during the peak season. The sellers will want to get the deal closed, especially for tax purposes. For a lot of people, it’s mental. It’s the end of the year and they want to tie up loose ends. This is an advantage for buyers, especially if there are points to negotiate.

LearnVest: Would other key people in the equation, such as realtors and mortgage brokers, also be scarce?
Corbett: I know a lot of realtors who love this time of year. They say they get a lot of business done because the people who are out looking are serious. As a buyer, your broker will have more time to focus on you, as opposed to other times of the year when they might be juggling more clients. You may not be able to close before the end of the year, but it’s a good time to get something under contract.
“Buying in winter may be the ultimate litmus test for a home, since all the big systems such as heating, plumbing, and the roof and gutters are put to the test in the cold.”
LearnVest Could a homebuyer miss or overlook something while buying in the dead of winter?
Corbett: Buying in winter may be the ultimate litmus test for a home, since all the big systems such as heating, plumbing and the roof and gutters are put to the test in the cold. Some of the curb appeal may be gone, but fixing landscaping is a lot less expensive than finding out months later that your boiler doesn’t work.

LearnVest Would a slow winter market be prime time for investors?

Corbett: Investors are looking for fresh properties, often things that aren’t even on the market yet. The chances of getting outbid by an investor during a winter house hunt is unlikely. Few brand-new properties come on the market this time of year, so the investors won’t be circling.

Thursday, December 12, 2013

Solid Housing Recovery Taking Hold

Properties starting the foreclosure process in November dips down to its lowest level since December 2005, according to RealtyTrac's U.S. Foreclosure Market Report for November. Foreclosures are down 10% from the previous month and down 32% from a year ago. Bank repossessions in November were down 19% from the previous month and down 48 percent from a year ago, the lowest level since July 2007.

 "While some of the decrease in November can be attributed to seasonality, the depth and breadth of the decrease provides strong evidence that we are entering the ninth inning of this foreclosure crisis with the outcome all but guaranteed," said Daren Blomquist, vice president at RealtyTrac.  "While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with, it is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold."

Savannah Housing Market

How is Savannah fairing in the foreclosure market?  Keller Williams Real Estate Broker Don Callahan said; "As the amount of distressed home sales decline and the overall inventory decreases we are beginning to see an increase in home values. It is refreshing to see the stabilization of our local market." Good news for the Savannah housing market.

Source: Realty Trac US Foreclosure Market Report 
http://www.realtytrac.com/Content/foreclosure-market-report/november-2013-us-foreclosure-market-report-7946

Monday, November 4, 2013

Is It Possible Home Sales Are About To Climb?

Things are looking up for our economy according to today’s news. With mortgage rates hovering in the 4.25% range, unemployment down, and less foreclosures and bankruptcies, consumers are more likely to borrow. Below are some of the news sources that I tapped into.

The Fed’s uncertainty with bond buying and reducing asset purchases makes for a tough interest rate environment. The rates were flat most of last week until Friday when the rate rose slightly from 4.13 to 4.25 for a 30yr fixed loan. Read more at the Mortgage News Daily site: http://www.mortgagenewsdaily.com/consumer_rates/330213.aspx


Bloomberg reports today that Americans will cure their debt troubles by taking out loans because of a 5yr low in the unemployment rate. In addition the banks will be more inclined to loan due to a cleaning of their own balance sheets. Read more at Bloomberg news: http://www.bloomberg.com/news/2013-11-04/americans-debt-hangover-seen-ending-in-boost-to-growth-economy.html

Wednesday, October 16, 2013

Quaint Bungalow For Sale in Savannah, GA


Listing Details
302 East 55th Street, Savannah, GA
Bedrooms: 3
Baths: 2.5
Year Built: 1950
Living Area 2,162 Sq. Ft.
Offered at: $330,000
MLS Number: 114959

Quaint and Cozy Bungalow
This fabulous Ardsley Park home is located on a quiet block within easy walking distance of Hull Park. The front porch has handsome iron railing, and there is a large, welcoming entrance foyer. All rooms are well-sized throughout the house. The living room is generously sized with a fireplace and tons of natural light. The separate dining room sits immediately adjacent to the living room for easy dinner parties. The sharp, galley style kitchen with built-in desk, has updated all stainless steel appliances including double ovens and gas cooktop. There is a large den/family room or an office with built-ins, a wet bar and beautiful French doors that led to the rear garden. On the same floor are three good-sized bedrooms and two baths. There is also a utility/mud room with access to the garage and yard. The home has been extremely well maintained and is in move-in ready condition.

Location Location Location

From the house it is an easy jaunt to red-hot Habersham Village with its bars, restaurants and shops including Barberito's burrito bar, TailsSpin pet store, Bikram yoga studio and Bella’s restaurant, and Deli Coffee cafe to name a few. In addition the property is close to two hospitals and convenient to the Truman Parkway and Abercorn St with all of its shopping plazas. Less than two miles to the new Whole Foods and the bustling Victory/Skidaway corridor. Ten minutes to the heart of Historic Savannah, this is a great location, an awesome house with the right price.

See more about this listing.

Wednesday, October 9, 2013

Mansion For Sale: Swim In Your Living Room

A solar powered home with a grand foyer, hall with 24 ft walls that frame the pool in the living room. If this mansion in New Jersey is a bit much then look for historic homes in downtown Savannah GA, or quaint bungalows in the popular Ardsley park neighborhood, here.

Thursday, October 3, 2013

Are You Stealing Time From Yourself?

"When you gamble with your time, you may be placing a bet you can't cover." ~Gary Keller




Monday, August 12, 2013

Short Sale – a Good Deal?

Thinking of purchasing a short sale because you think you can get a good deal? It can be a very complicated process filled with many possible pitfalls.  A short sale means the seller is about to go into foreclosure, they owe more than the home’s current worth.  The seller’s lender must agree to accept less than the amount owed to pay off the loan now, rather than taking the property back by foreclosure and trying to sell it later. Lenders agree to a short sale because they believe it will net them more money than going forward with a lengthy and costly foreclosure process. This means when purchasing a short sale property you are actually negotiating with a bank – not the seller. Given this it is important when making an offer you consider things from the banks point of view. It is also helpful to be aware of what is going on in the market at the time. Banks are not settling with prices as low as they were a few years ago.

Should My Offer Be Low?

Among the key issues you must consider before making a bid on a short sale property is how any repair or upgrade work will be handled. Not all properties that are put up for sale as short sales’ will have any work done. Many properties are sold as is, which of course means you will be doing the repairs. So using needed repairs as a negotiating tool for a lower price may not be an option. If however after seeing what obvious repair work is needed you are still willing to proceed with a bid there are few things that would be helpful to know. Before writing a short sale offer, a buyer should ask his or her agent for a list of comparable sales. Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to the current market value. The short sale price may be much lower than comparable sales, or what the lender may accept. If the comparable sales don't support the sales price, it's unlikely the bank will accept your offer. So your offer may have to be equal to or higher than the short sale price, especially if there are other offers on the table.  If there are certain closing costs that the seller typically pays, the bank will most likely pay those fees. However, if you agree to pay part of those fees, even if the bank receives an offer identical to yours, your offer will net the bank more money. A big question on the short sale seller's mind is whether the buyer is financially capable of closing the transaction.
So make sure to include a pre-qualification letter from your lender. Here is a list of the paperwork your agent/broker should be sending:
  • Listing agreement
  • Executed purchase offer
  • Buyer's pre-approval letter and copy of earnest money check
  • Seller's short sale package – make sure your agent/broker assures this is complete
If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package. So make sure your agent/broker has some experience with short sales. As a buyer you may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. The key to a successful sort sale is careful documentation of every piece of paper, every record, and every lender interaction. Some short sales get approval in 2 to 8 weeks. Others can take 90 to 120 days, on average. If you're running past 120 days, it's possible that the listing agent or a third-party negotiator is not on the ball and is lax about calling the bank. Calling the bank means waiting on hold anywhere from 10 minutes to an hour or longer. Or, a lengthy short sale period can also mean the bank has internal problems, not enough staff or has lost the file a few times, prompting the listing agent to resend the package over and over. It can also mean that the appraisal is substantially higher than your offer, and the listing agent is building a case for a new appraiser.

Patience is key. You'll most likely eventually get short sale approval. 

Monday, July 15, 2013

Seven New Listings, Ardsley Park, Parkside & Southside Savannah

We have 7 new listings! All fabulous homes.

1425 E 52nd Street

This well-maintained Parkside home stands on a spacious corner lot. Generously sized rooms throughout include massive living/dining room and a family room with custom shell fireplace. Fully equipped kitchen with granite counters. Open breakfast room with French doors to rear patio. Three bedrooms and two baths. Newer windows throughout as well as a newer roof.  There is a fenced, gated yard and carport. Super-convenient location in the much sought after Parkside community. Just a few blocks away from Savannah's famous Daffin Park which boasts ball fields of all sorts, tennis courts, a pool, a mirror lake, fountains and even a minor league stadium. Also close to red-hot Habersham Village and its shops and restaurants including Barberito's, the Five Spot, Bikram yoga studio, TailSpin pet store, a Red and White grocer and much more. This house is also around the corner from the soon-to-open Whole Foods market, Chipotle Grill and PetSmart. Sharp house, great location and awesome price. See more photos of this property.

1533 E 53rd Street

Recently renovated ranch on quiet block of a dead end street in area of active renovations. Oak wood flooring throughout, with separate living room and dining room. Fully equipped kitchen with nicer cabinets and counters. Four spacious bedrooms and two full baths including master suite. Rear patio, gated and fenced yard and carport. Great location for all that Midtown has to offer. Very close to Daffin Park as well as Medical Arts Shopping Centre and two hospitals.  The soon-to-open Whole Foods market, Chiptole Grill and PetSmart are within a mile. Popular Habersham Village and its restaurants and shops is also close by and there is quick, easy access to the Waters Avenue corridor and the Truman Parkway. See more photos of this property.

438 E 53rd Street

Impressive Colonial Revival home on deep corner lot in Ardsley Park-one of Savannah's most desirable neighborhoods.  Remarkable, broad central staircase.  Huge living room with welcoming fireplace and adjacent screened porch.  Handsome, paneled library. Large, separate dining room. Newly renovated kitchen boasts granite countertops and full stainless steel appliances. Three bedrooms-including master with fireplace and bath with separate shower. Another full bath in total and one half bath as well. Over 2100 square feet of living area. Two car carport and fenced back yard. An easy walk or ride to Habersham Village, Medical Arts, both hospitals, Twelve Oaks and more. Solid, handsome brick house on a prominent corner on one of the best blocks in Ardsley Park-an amazing place to come home to and a dream come true. See more photos of this property.

45 Cockle Shell Rd

This outstanding Georgetown home is located on a cul-de-sac on a lot that abuts protected wetlands for a secluded, quiet and serene location. Separate living room and separate dining room.  Open kitchen with quality cabinetry and stainless steel appliances. Breakfast bar overlooking family room with fireplace. French doors from family room to large screened porch overlooking protect wetlands area. Four bedrooms (one currently used as a music room/office) and two and a half baths including a master suite. Two car garage. Georgetown is a perfect setting for up and coming families who desire close proximity to the City but want more of a removed, suburban setting. Also close to Richmond Hill, 516 and I-95. See more photos of this property.

73 Knollwood Lane

This end unit town-home is located in a super-convenient Southside location close to the mall, shops, restaurants, bars and more. Bright, open space. Well-maintained unit with new floors on ground level.  Large living room. Fully equipped kitchen with laundry room. Kitchen includes dining area with sliders to rear courtyard and rear deck. Three bedrooms, two baths and one half bath.  Great location and a great price for quick show and sale. See more photos of this property.

539 E Henry Street

Convenient location for all that Midtown and Downtown Savannah has to offer. Forsyth Park-Savannah's famous emerald gem of a park-is just a few blocks away as is the Sentient Bean coffee shop, local 1110 restaurant, Brighter Day health food store and the newly hipster-tinged American Legion post.  Blowing Smoke, Bobby's Diner, and form restaurant are all just around the corner. River Street is just a mile or so away, the bridge to South Carolina is under two miles and this building stands within very close proximity to seventy percent of SCAD's buildings. Remarkable building, awesome location and a terrific price. See more photos of this property.

302 Station Trail

This well maintained townhouse is located in a gated community directly across from Hunter AAF and very close to Oglethorpe Mall. Large living room with fireplace. Fully-equipped kitchen boasts quality cabinetry and countertops as well as a pantry, breakfast bar, and a dining area overlooking private rear terrace. With almost 1700 square feet, there is also three bedrooms, each with an en-suite bathroom and an additional half bath.  Covered rear patio and courtyard with fenced and gated yard. One car garage.  Super convenient location to all that the Southside has to offer. Savannah Mall, Lowe's and Home Depot are all less than five miles away along with a plethora of restaurants including Outback, Tangerine, Carrabba's and much more. Easy access to Abercorn St. and I-95. See more photos of this property.

Thursday, May 23, 2013

Craftsman Style Home in Desirable Ardsley Park Savannah


Ardsley Park The Most Desirable Community

This Craftsman Style home is on a corner lot and a great block in Ardsley Park-one of Savannah's most desirable communities. Handsome and stately, the home's Craftsman-era details reflect a subtle yet refined sense of style and substance. Big, separate living room with fireplace, built-in bookshelves and French doors opening to a bright, cozy sun-room.

Sizeable & Comfortable Living Area

Comfortable dining room immediately adjacent to a well appointed and fully equipped kitchen. Quality
counter tops and cabinetry and stainless appliances throughout kitchen. Breakfast bar and space for table overlooking the rear deck and garden. All three bedrooms are upstairs and are good size with closets in each. One full bath and one half bath rounds out almost 1800 square feet of living area. Wraparound rear deck and fully fenced, gated back yard with some mature plantings.

Centrally Located

This home is located  within walking/biking distance of red-hot Habesham Village. This tiny, upscale enclave of businesses features no less than a burrito bar and pizza joint, a Bikram yoga studio and florist, Japanese and Italian restaurants, a pet store and coffee shop...and yes, more. A Rite Aid and Red and White supermarket wrap the whole package up and make this cute strip of shops a perfect, Savannah-inspired 'village'. Also close by are locals favorites like Al Salaam deli, Green Truck burger joint, the Starlander Cafe and Habersham Antiques. Two hospitals are around the corner and Twelve Oaks shopping center and Abercorn Walk are less than 10 minutes drive away.

Hot Listing In Hot Neighborhood

This location also offers quick access to Downtown Savannah (10 minutes) as well as the Truman Parkway Southside, Downtown and even the Islands. Ardsley Park is one of the creme de la creme neighborhoods of Savannah.  Repeatedly featured on "Best Of..." lists, it boasts a tight community, very active neighborhood association, park-oriented, Beaux-Arts inspired landscapes and more. This is a hot listing in a hot neighborhood. Jump on it!

Monday, April 29, 2013

Community Profile: Parkside, Savannah, GA

Parkside, Savannah, GA - Great Location

The nationally registered historic Parkside neighborhood, literally named because the community borders Daffin Park along Washington Avenue, is one of the more sought after districts in Savannah to live in. The Parkside neighborhood is bounded by Victory Dr., Waters Ave., Bee St. and 51st Street. From Parkside there is esay access to downtown Savannah, the Truman Parkway and Rt 80 out to Tybee Island. Parkside is also just a mile or so from Victory Square Shopping Center (Victory and Skidaway) which hosts Home Depot, Target, Stapels a movieplex, and numerous places to eat. Parkside is lined with majestic oak trees draped with Spanish moss and large sidewalks offering a short walk to Daffin Park.

Historic Daffin Park a Draw for Parkside Residents

Daffin Park was built as a formal Beaux Arts-style park with two circular nodes joined to the four corners by tree-lined diagonal roads. This beautiful Park has handicapped accessible facilities, baseball and soccer fields, basketball and tennis courts, playgrounds, swimming pool, picnic area, lake pavilion, a dog park and Grayson Stadium, home of the Sand Gnats minor-league baseball team. A large park that rarely seems crowded at a size of 80 acres.

Parkside Friendly Community

Parkside is a great neighborhood community to live in for instance; one year on Thanksgiving weekend “The Kids Block”, i.e. the 1200 block of 49th Street, held a street party/sit down dinner. A single table straddled the middle of the block, set for over 40 people. It’s the kind of neighborhood that take in each other’s FedEx packages, lend and borrow coffee and half–and–half. They even have their own Facebook page Parkside Neighborhood Association, Savannah, GA. In May they have their annual neighborhood Treasure Days Yard Sale. (This year on Friday May 17)


Charming Affordable Parkside Homes

The houses in Parkside are mostly one-and two-story brick-and-frame dwellings built between 1914 and 1947 and feature a variety of architectural styles that include Craftsman, Colonial Revival, Cape Cod, and English Vernacular Revival. Prices range from $140,000 to $225,000 depending on square footage and location. A sound real estate investment and great value for a family home. Search for homes in the Daffin Park/Parkside neighborhood here.

Wednesday, April 3, 2013

Timing The Market - Fact or Fiction

Buyer Tip

There is never a wrong time to buy the right home.  Trying to time the market at the right moment to purchase a home rarely works to your advantage. Real estate is a solid investment because of long term factors; equity buildup, value appreciation, and tax benefits. Finding a home that meets your criteria is a smart purchase in any market climate. Make a list of your criteria and make contact with a real estate agent even if you feel ‘now’ is not the right time. Stay in touch with your agent and keep an eye on the real estate listings in your area of interest, thus assuring that you will find the right investment at the right moment.

Selling Tip
Are you trying to figure out if ‘now’ is the right time to sell your home? Well the first step to that answer is; one recognize that the real estate market is different in every region; two never rely solely on one person’s advice or opinion. Here are a few decision points to consider:
  • Research your market, what are homes selling for? (Home prices nationally climbed 8.3% in  December from the same period a year earlier)
  • Acting sooner than later could be an advantage, buyer search activity generally peaks in March and April.
  • Currently according to the Wall Street Journal prices are rising – good news for sellers.
  • Interest rates on mortgages are still very low.

Supply of homes for sale is likely to increase over the next few months, creating more competition, say real-estate agents. Again, make sure to see what is occurring in your regional real estate market.
Finally The Wall Street Journal is upbeat for selling your home now: “Still, in many markets, sellers have more of an edge than they have had in years. One big reason: The number of existing homes on the market dropped to 1.74 million in January, down 25% from a year earlier and the lowest level since December 1999, according to the National Association of Realtors.”

Thursday, March 28, 2013

KW Agents Share $1 Million Powerball Winnings With New Associate

 
A Keller Williams Real Estate team won $1 million from a shared lottery ticket, and then shared those winnings with a new co-worker that had opted out of the ticket purchase. Administrative assistant Jennifer Maldonado had only been working two weeks, and had yet to receive a paycheck. Based on not having received her paycheck yet, Jennifer opted out of the lottery ticket purchase. The group had purchased $120.00 worth of tickets, and even though a co-worker offered to loan Jennifer the money she turned it down.

Jennifer arrived to work Sunday night and was greeted with screaming and jumping by her co-workers. She thought they were pulling a prank on her until her boss sat her down and told her this was real, and that they were going to share their winnings with her. Each person kicked in a bit of their winnings (undisclosed amounts) to give to her.

“As a team we put together a fat pile of money,” said mega agent Laurie Finkelstein Reader “If we do the right thing and always care about other people, the right thing will happen to us.” “I’m blessed,” she added. “My share of money won’t change my life but so far this has touched many lives — it’s about sharing the happiness.”

What a great example of the Keller Williams culture in action!
Read the full story at the Miami Herald Website.

Monday, November 15, 2010

The Shrinking House: Downsizing the American Dream

By: Cindy Perman
CNBC.com Staff Writer


Home ownership has long been a symbol of the American Dream and for a while there, we SUPERSIZED it. But since the recession, we’ve been downsizing it.

The median home size in America was near 2,300 square feet at the peak of the market in 2007, with many McMansions topping 10,000 square feet.

Today, the median home size has dropped to about 2,100 square feet and more than one-third of Americans say their ideal home size is actually under 2,000 square feet, according to a survey by real-estate site Trulia.

“The whole glow of bigness kind of wore off all of a sudden,” said Sarah Susanka, an architect and the author of “The Not So Big House” book series.

Builders are responding by chopping out rooms that people just don’t use anymore, particularly formal living rooms and sitting rooms.

“You’re not having the king and queen of England to dinner but Joe and Kathy from next door — and they’d prefer to be in your informal space!” Susanka said.

Even media rooms, game rooms and libraries are on the way out, added Boyce Thompson, the editorial director for Builder magazine.

Every year, Builder does a concept home that represents where the market’s at. This year, it was called “A Home for the New Economy,” which weighed in at around 1,700 square feet – and, interestingly, was only designed virtually. (Take a virtual tour.)

Instead of having a formal living room and a family room, the Home for the New Economy has one big “great room” and instead of a home office, an extra bedroom on the main floor doubles as a guest room/home office—or even an in-law suite. They were even careful to chop out unnecessary hall space.

“The key today is to provide flexible space,” Thompson said.

So, instead of a game room, you may have a gaming area in part of your great room. Instead of a library, you may have a reading nook.

The “proliferation of bathrooms” is also on the way out, Susanka adds. For a while there, it seemed, every room had its own bathroom and people just didn’t use them. It’s time “to bring some sanity back to the equation,” she said.

But just because a house is small, doesn’t mean it has to feel small. Architects are finding all kinds of design tricks to make a home feel bigger, from varying the ceiling height — seeing that a ceiling is higher in the next room makes it feel even bigger — or putting a direct line of sight to an outdoor space like a porch or deck. As your eye sees past the room to the outside, the space feels bigger.

The Front Porch Makes a Comeback

It’s not just the inside of the house that’s changing, it’s the outside, too. The yards are smaller, with many developments favoring shared green spaces over big private yards.

And, the front porch is back. Builders are increasingly moving the garage to the back of the house and adding a big porch on the front.

Seeing a big porch through the dining room, and a shared green space beyond that adds to the illusion that you are getting more — and it makes you want to get out there and reconnect with your neighbors.

At the height of the market it was all about “suburban sprawl,” with everyone in their back yards, with their own deck, their own swingset, their own pool — and barely knowing their neighbors. Today, the buzz word is “smart growth” — smaller more sustainable communities that really have a sense of community.

That’s partly because it’s better for the environment and community building, but there’s a more practical reason.

“Most households now have two people working,” said John McIlwain, a senior resident fellow at the Urban Land Institute. “Who wants to spend their time cleaning their house … or taking care of big yards … when they have kids to take care of?”

He said a magnet on his daughter-in-law’s fridge sums it up: “A clean home is a sign of a wasted life!”
It’s not just young people, either — empty nesters don’t want to spend their weekend mowing the lawn either!

This shift is evident in Denver’s Stapleton neighborhood, a new urbanist community built on the site of the old airport, which is meant to bring that suburban, small-town feel into a neighborhood within the city limits.

Here, their yards are tiny by design and no one has a pool — not even the million-dollar homes. Instead, they have an 80-acre shared park, aptly named Central Park, smaller “pocket parks” that become shared yards and three — soon to be four — public pools.

The Friday Afternoon Club

The concept may seem offputting to some, who may not think they want to know their neighbors. But there’s a sense of community there that you scarcely find elsewhere, with passersby saying hello to families on the porch and making plans to head out to a pocket park to play, or attend a free concert or movie in the park.

“People have just accepted the tradeoff,” said Denise Gammon, a vice president at Stapleton’s developer, Forest City Enterprises. “They think, ‘I don’t have a big, private yard, but boy do I have this amazing range of open space that’s completely accessible to me,’” she explained.

“It creates a really cohesive community,” added Heidi Majerik, the director of development at Forest City, who lives and works in Stapleton. “We get 1,000 to 2,000 people at weekend events and there are tons of informal events like the Friday Afternoon Club, where people bring out chairs, wine and appetizers and the kids play,” she explained.

“There’s a lot of movement toward neighborhoods like this,” Susanka said.

Susanka is currently designing a home in a similar neighborhood, Libertyville, Ill., just north of Chicago.

Neighborhoods like Stapleton and Libertyville are more densely populated but more vibrant, highly walkable and have charming downtown areas — something the next crop of homebuyers is demanding.

“Gen Y is looking for that kind of vibrant downtown flavor with smaller homes,” Susanka said. “They realize that there’s a value to being connected to one another but still maintain their privacy. There’s a balance between privacy and community.”

This new love affair with the front porch reflects that desire for community, and extends into the downtown area.

“They’ll go from their house down to the local restaurants, which then becomes like a part of their house,” she explained.

It's 'Back to the Future': Green Edition

It feels a lot like “Back to the Future,” with this return to small-town life. But there’s one major difference: Energy efficiency.

If it’s one thing the recession taught us, it’s to stretch our dollars further and no where is that more evident than in energy consumption.

Energy consumption has moved from an option when building a new home to the standard when it comes to appliances, windows, furnaces and climate control.

“People are really concerned after the energy scare of 2008 — they’re worried about what it’s going to cost to run their house,” Thompson said. “No one wants a gas guzzler — especially because it impairs resale down the road.”

Among the energy-smart options you may see down the road, that are just being experimented with now, are master controls for a home’s energy efficiency (much like the master control for the lights, heat and stereo) as well as private wind turbines in the backyard that may be connected to the grid — or take the home completely energy independent.

Of course, there will always be some people who want that big backyard and the fact that land prices are so cheap right now will make that more accessible for those who want it, McIlwain said.

One thing’s for sure: The memory of the recession will continue to impact the decisions people make when it comes to the home for years to come.

People are asking themselves, “How are we going to make this house in proportion to the next economic downturn, so that we’re not out on a limb?” Susanka said.

Thursday, September 10, 2009

Pending Home Sales on a Record Roll

Washington, September 01, 2009
Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said. “Other buyers are taking advantage of low home values before prices turn higher.

Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he said.

“To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,” McMillan said.

NAR’s Housing Affordability Index2 stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery’.”


The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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1The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

2The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers.

The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income.
Monthly publication of the index began in 1981 with annual data calculated back to 1970.

Existing-home sales for August will be released September 24; the next Pending Home Sales Index will be on October 1.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.

(From Realtor.org)