First Residence

Daily Real Estate News  |  March 26, 2007Home Trend: Oversized Mudrooms to Cut Clutter

With more and more home owners embracing second-floor laundry rooms, mudrooms are getting a new look, says Stephen Melman, National Association of Home Builders economic service director. These spaces typically are used to connect the garage to the main house and to store jackets, shoes, and other outdoor items.

They are now being called transition stations, commuter stations, and friends-and-family entrances and are being enlarged to accommodate computers, security systems, and charging areas for electronic devices. Most have cubbies and storage benches, but some wealthier home owners have included dog showers and other customized features.

Upscale touches, such as hardwood floors and crown molding, are also found in the newest mudrooms.

Source: New York Times, Leslie Kaufman (03/22/07)

Posted on March 26th, 2007 by Brent DeRobertis
Filed under: Trends | No Comments »

Ah, statistics. The interpretation is in the eye of the creator. According to the National Association of Realtors(NAR), sales of existing homes were up in February compared to January (Hooray), but, sales were down compared Feb 07 to Feb 06 (Boo). New construction sales were up February to January (Hooray), but, future contracts were down (Boo). According to NAR statistics, existing home prices have fallen for the 7th straight month (Boo). Inventories rose again creating a 6 to 7 month supply of homes. During the hot market it had been a 1 to 2 month supply.

Folks, these are national stats. They are reflective but do not tell the whole story. In my estimation NAR’s single digit home value drop for the 4th quarter of ‘06 is really misleading. I say it was 10% to 15% apples to apples. The biggest 4th Q. slowdown was in condo and townhouse sales mainly because of investors pulling back. They had been nearly a third of all sales. This resulted in a greater portion of sales happening in single family homes thereby keeping the average sales price higher. If one looked at the statistics that compared the value of a 4 bedroom single family house against itself or a 2 bedroom condo versus itself, the prices would show that double digit dip as I suggest. What does all this really mean to you?

As a buyer, this means we have probably seen the major correction and prices are very good.

As a seller, what you really want to focus on is it getting better or not. Take the fact that inventory levels have increased again. On the surface that’s bad. Closer inspection reveals that over the last two months the rate of increase has slowed. That’s very good. This is happening because demand is up. We have seen multiple contract situations again over the last couple of months. Interest rates have remained steady. That’s good. Rate of home value corrections has slowed.

 We are truly in a very level market and is one of the fairest markets to transact Real Estate for both buyer and seller.

Posted on March 25th, 2007 by Brent DeRobertis
Filed under: Real Estate Statistics | No Comments »

According to Real Trends, a societal trend that will create a unique niche and  demand more professional specialization is the growing “simple life” or “frugal chic” movement. At the current time,  more and more real estate entities are chasing the luxury market while at the same time ignoring the growing number  of upper middle class consumers ($150,000 household income) who want to live the best life possible “within their  means.” This group, generally leading “Ys” and trailing “Xers,” is focusing on both simplicity and affordability. Their  store is Target, their magazine is Simple Life and their automobile of choice is the Volkswagen. This very powerful  group will have a far-reaching impact upon both real estate markets and communities as they balance real estate  decisions between various quality of life factors such as security, proximity and livability.

Posted on March 20th, 2007 by Brent DeRobertis
Filed under: Trends | No Comments »

Many first time buyers will not remember the Savings and Loan Crisis of the 80’s. This was a similar situation to the current rash of failure of today’s subprime lenders. Federal government had to step in and right the boat with money and better controls. My take is this is what will happen again. The under utilized government backed loan programs such as FHA will become more attractive and there will probably be some pressure to make them a little more flexible. Fannie Mae is increasing its “My Community” loan programs as well. This should help new buyers with limited assets and or moderate credit scores secure loans. Do expect that under these programs that your loan qualification amount will be more conservative. This is probably a good thing.

Posted on March 16th, 2007 by Brent DeRobertis
Filed under: Uncategorized | 1 Comment »

Some February stats for the housing Inventory. Metro DC much better than average.

 Daily Real Estate News  |  March 7, 2007Normal Rise in Housing Inventories Reported

Inventories of homes for sale rose 3.9 percent in February, but the percentage increase was no higher than it has been in previous years as sellers prepared for the spring selling season, according to ZipRealty Inc.

Nevertheless, inventories are large — up 36 percent compared with a year earlier in 15 metropolitan areas for which comparable data was available, ZipRealty reported.

The biggest increases in February from a month earlier were in the Los Angeles metro area, up 8.1 percent; Minneapolis, 6.6 percent; Las Vegas, 6.2 percent, and Miami, 5.8 percent.

The supply of listed homes fell 0.9 percent in Washington D.C. and 0.5 percent in Baltimore.

Source: The Wall Street Journal, James R. Hagerty (03/07/07)

 

 

Posted on March 7th, 2007 by Brent DeRobertis
Filed under: Real Estate Statistics | No Comments »

The numbers of divorced,widowed, and never married women has grown substantially over the past decade and housing purchases reflect this. It is estimated that 22% of all home purchases are from this demographic. It is even higher in condo sales. New condo projects reflect this trend as designers tend to decorate/accessorize to what they perceive as “feminine friendly”. I won’t say they have gone as far as featuring toilets that automatically put the seats down, but lighter colors, kitchen and flooring upgrades are becoming standard. As a contrast, only 8 to 9% of purchases are made by single men.

Posted on March 4th, 2007 by Brent DeRobertis
Filed under: Real Estate Statistics | 1 Comment »

Since Daylight Saving Time starts 3/11 this year the Spring market should heat up sooner as well. Interested buyers will be able to view properties in the light in the evening. Sellers will have light to get their homes ready to put on the market. The other factor that might move late March activity is, starting in April there are much stricter guidelines for Lenders on subprime loans. If you are a buyer using 100% financing and fall into the subprime arena, make sure you get with your lender and understand the ramifications.

 

Posted on March 2nd, 2007 by Brent DeRobertis
Filed under: Uncategorized | 1 Comment »

You are not alone.

Does anybody remember the old days when home buyers actually made sizable down payments, often 20 percent or more, when they bought their first house? New national research reveals just how dated and quaint that concept has become, because of rocketing home prices that have far eclipsed buyers’ incomes and savings. From mid-2005 to mid-2006, according to a statistical sampling of a representative group of 7,548 purchasers, nearly half of all first-time buyers financed the entire transaction, obtaining mortgages in the full amount of the home price. Another 30 percent put down 10 percent or less, and 20 percent put down 5 percent or less.

Posted on February 14th, 2007 by Brent DeRobertis
Filed under: Real Estate experiences, Uncategorized | No Comments »

Daily Real Estate News  |   February 7, 2007Exurbs Hard Hit by Slowing Market
Suburbs farthest from the urban core, also known as exurbs, are experiencing more dramatic drops in home sales and prices than close-in suburbs.

Ever since the five-year U.S. housing boom ended in the summer of 2005, home construction in these distant exurbs has slowed and prices and sales have fallen more than those of suburban neighbors. Economists and real estate professionals say builders created too much inventory in far-out areas, expecting that buyers would eventually come.

The Northern Virginia Association of REALTORS®, for instance, reports an 11 percent drop in the average home price in Loudoun County last year. On the other hand, the average price in Arlington County — which is closer to Washington, D.C. — registered a more modest decline of 2 percent.

The same trend is seen in California and in Florida.

Brad Hunter, director of Metrostudy’s South Florida division, says construction in the far-flung suburbs came in response to robust price appreciation. But speculative investors — rather than buyers who planned to occupy the dwellings — accounted for a majority of exurban sales in recent years.

Source: Reuters, Patrick Rucker (02/06/07)

Posted on February 7th, 2007 by Brent DeRobertis
Filed under: Uncategorized | No Comments »

Daily Real Estate News  |   February 7, 2007Steady Climb Seen for Existing-Home Sales
Consumers are beginning to respond to more favorable housing market conditions, with existing home sales expected to steadily increase into 2008, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

“After reaching what appears to be the bottom in the fourth quarter of 2006, we expect existing-home sales to gradually rise all this year and well into 2008,” says David Lereah, NAR’s chief economist.

Existing-home sales, which reached the third-highest total on record of 6.48 million in 2006, are forecast at 6.44 million in 2007 and 6.64 million in 2008.

New construction, on the other hand, will take longer to recover. Following a fourth-best 1.06 million in 2006, new-home sales projected to decline to 961,000 this year and then rise to 971,000 in 2008. “We look for that sector to turn around later in the year,” Lereah adds.

Among the other key highlights of NAR’s new forecast:

• Housing starts are likely to total 1.52 million in 2007, down from 1.80 million units in 2006, and then increase to 1.56 million next year. “When new home demand begins to catch up with supply, builders will slowly increase construction – probably in the second half of this year,” Lereah says.

• The 30-year fixed-rate mortgage is forecast to rise to 6.7 percent by the second half of the year. Freddie Mac reported the 30-year fixed rate at 6.14 percent in December, but it has been trending up since. “Mortgage interest rates remain favorable, and a gradual rise means potential buyers have some time to weigh purchase decisions,” Lereah says. “When existing-home supplies become more balanced between buyers and sellers this spring, we’ll see some modest price gains.”

• The national median existing-home price should grow 1.9 percent to $226,200 in 2007, after rising only 1.1 percent in 2006. The median new-home price is expected to increase 1.8 percent to $249,800 in 2007, following a similar gain last year. Stronger gains are forecast for 2008, with existing-home prices rising 3.2 percent and new-home prices increasing 3.4 percent.

• The unemployment rate is seen to average 4.7 percent in 2007, compared with 4.6 percent last year. Inflation, as measured by the Consumer Price Index, is projected at 2.0 percent this year, down from 3.2 percent in 2006, while growth in the U.S. gross domestic product is likely to be 2.8 percent in 2007, down from 3.4 percent last year. Inflation-adjusted disposable personal income will probably rise 3.7 percent in 2007, up from a gain of 2.7 percent in 2006.

— REALTOR® Magazine Online

Posted on February 7th, 2007 by Brent DeRobertis
Filed under: Real Estate Statistics | No Comments »