here is a recent article that seems to say the same things other media sources are indicating about the upswing in the economy.
From: Residential Design and Building Magazine
Washington, August 04, 2009 – Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.
Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”
The Pending Home Sales Index in the Northeast rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago. In the Midwest the index increased 0.8 percent to 89.9 and is 11.6 percent above June 2008. The index in the South jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago. In the West the index rose 2.9 percent to 100.4 but is 0.2 percent below June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.”
A recent article in the Palm Beach Post featured Michael Thomas, the President of the Design Collective and explored the ideas and concepts of aging in place. Written by Mary Thurwatcher, a feature writer for the Post highlighted the many tricks and techniques that home owners can do to keep their home accessible despite the challenges of growing older. To read the entire article, CLICK HERE.
A lot of fuss has been made about the DTV transition from analog television to an all-digital system. Transition dates have been postponed amidst political debate. Coupons for converter boxes famously ran out to screams by some of foul play. Even the most enthusiast supporters of the conversion admit the logistics of the program have been difficult and in many ways could leave older Americans without their window to the world, even if that window is a standard definition one brought to them via a rabbit ear antenna attached to a 30 year old television.
There are a lot of reasons for consumers from the Greatest Generation to Generation Y to invest in a new TV assuming they are using an old, standard definition television. The volume of channels offered to consumers on even basic “digital” cable is many times greater than what you can get over the air. The government is going to sell the terrestrial airways and raise much needed money for the bandwidth. Digital cable or satellite television offers HDTV which looks many times better than standard definition. Even if you have cataracts and wear Coke-bottle glasses, you will be able to see the difference between 480i SD and 1080i/720p high definition.
One of the best reasons to buy a new television today is the fact that old CRT televisions are not very “green.” Before some of you go Rush Limbaugh on me with some liberal conspiracy to sell everyone a new television, please note that older televisions have up to eight pounds of lead in them not to mention other nasty compounds and toxins. While most old TVs go on the trash heap and ultimately into landfills - the effect of these hazardous materials down the road are not very good for the planet that we all share. New LCD and plasma HDTVs use up to 30 percent less power than even first and second generation flat HDTVs. They use even less power than traditional CTR sets.
While not every American can pop for a beaming new HDTV with nearly 10 percent unemployment and housing values down in many parts of the country upwards of 40 percent, it is safe to say that we all someday will have to buy a new HDTV. My question to you is: will you take the extra time to find a recycling program near you that might take a little more work on your part but helps put millions upon millions of these old, poisonous televisions where they belong and their toxins out of our environment and into storage?
Best Buy has aggressive trade-in programs for old televisions at locations all over the country. Local municipalities have also offered trade-in or drop-off programs for phones, computer monitors, TVs and other consumer electronic devices - but they aren’t everyday events. The best national program we have found is from Waste Management. They have regional drop-offs where you can dispose of your television in a responsible way. While you might have to do some heavy lifting to get your old 42 inch Sony XBR into the back of the old hybrid SUV - its worth the effort. Your new LCD, the latest plasmas and especially the ultra-thin LED HDTVs are way less power-hungry and are made from better materials.
Source: HomeTheatreReview.com
The number of newly built single-family homes on the market shrank 4.2% to 297,000 units in April, thinning supplies to their lowest level since May 2001, according to figures released by the Commerce Department on May 28. The report noted that April’s pace of new-home sales held virtually even with the previous month, at a seasonally adjusted annual rate of 352,000 units.
“The fact that the new-homes inventory is now below the 300,000 mark shows that builders have made substantial progress in winnowing down their backlogs to a much more comfortable level,” noted NAHB Chairman Joe Robson.
April was the 24th consecutive month in which the number of unsold new homes declined.
“This continued reduction in the new-homes inventory helps bring supply in line with demand, which is an important step toward the market’s recovery. We can expect the pace of new home sales to bounce along the bottom a bit before picking back up towards the end of this quarter,” said NAHB Chief Economist David Crowe.
Sales of newly built, single-family homes climbed a marginal 0.3% to 352,000 units in April from a downwardly revised pace in March.
The inventory of new homes for sale in April represented a 10.1-month supply at the current sales pace.
Regionally, the pace of new home sales was mixed in April. No change was recorded in the Northeast or Midwest, while the South posted a nearly 2% increase and the West declined 3.8%.
In an article in the USA Today, there was a lot of talk about living in smaller but “smarter” homes, making the best from an interior that is functional, manageable and economical. Now that’s something to think about as the years for forward and we find ourselves in better economic times. Check out the article by clicking HERE.
During the last six weeks, there has been some surprising news despite the challenges of the current economy. The Good News? Home sales are on the rise in such places as Palm Beach County, Florida. Perhaps it is because of the “bargain” prices on many homes. Is this a sign that the economy has bottomed out and is turning around? Perhaps. But when viewed in the light of the interest rates, now nationally below 5%, this could be one of the best times to consider real estate as an investment strategy for the long haul.
Recently we have seen some interest from people looking to fix up their existing home in order to get the highest interest possible from potential buyers - though it may not get the highest price of just a year ago. But the trends continue to indicate that there are some real buys to be had. As one example, a bight, light three bedroom, four bath townhome built in 2005 was sold by the developer for $489,000. The current owners recently had to give the property back to the lender and they have listed it for $309,000.
In a gated residential community in Jupiter, FL., we discovered a 4,270 square foot courtyard-style residence with a dock that needed some cosmetics,… you know…paint, flooring, new landscape, cabinets in the master bathroom. We watched the property drop in price from $1.35M to $995,000, and we knew it just wouldn’t take very long for the residence to be sold. Sure, it needed some work but when you consider that it finally sold for $864,000, it will certainly make a great investment for that new home buyer.
And by the way: the new owners are adding a guest cottage and cabana bath to the property plus a new kitchen design that will integrate with a summer kitchen on the patio deck. These people knew the market and new this was the right time to make a commitment. They intend to make it their seasonal home for some time to come.
Good news that maybe we have turned the corner. And isn’t it about time??
For the last two months, the media has reported that certain key indicators would identify when the economic challenges have bottomed out and the tide has turned to brighter days. One key would be when construction of new homes has started up once again. After reaching a record low in January, construction of new homes in the U.S. surged in February according to the U.S. Commerce Department.
In their report issued this week the Commerce Department indicated that, after falling for eight months, housing starts rose to a seasonally adjusted annual rate of 583,000 in February, up 22 percent from a revised January total of 477,000. It was the first time housing starts had increased since June, when they rose 11 percent.
New-home construction surged in the Northeast, jumping nearly 89 percent last month. Starts also increased in the Midwest and the South.
February’s increase was driven by a nearly 80 percent increase in construction of multifamily homes. New construction of buildings with five or more units increased surged 80 percent, from 118,000 in January to 212,000.
More positive news came in the form of building permits — considered a reliable sign of future construction activity. Residential building permits rose 3 percent in February, to a seasonally adjusted annual rate of 547,000.
(source: Phoenix Business Journal)
So this might be the time to consider moving forward with plans for building your new home or even just a remodel or renovation when the best of the best qualified and experienced labors are still available. We have already seen a movement with a couple of projects, once on hold, now getting the green light. That’s good news for everyone.
Design trends come and go and many are interesting to read about. But so much about “design trends” is centered around manufacturers who are introducing new product designs for work and home environemnts. Trends in design for those of us in the interiors profession often find bits of inspiration come from industries such as fashion, the design of vacation retreats such as hotels and spas, even emerging technology - especially with flat panel TVs hanging on every wall in the house. Certainly the trend of “green design” has made an impact with new trendy products being introduced all the time that either reduce the carbon footprint or are made from recycled materials, materials such as plastics, paper and fibers.
But trends do come and do go. So the question is: “How can an interior be created that avoids the trends and yet stays current over a time period?” There are two easy answers.
–> Keep it simple.
–> Keep in functional.
Design trends of the last five years have showcased interiors that are overdone, overbuilt and feature faux-this and faux-that. But after three decades in the profession to call upon, I can tell you that the best interiors are those that are understated, created carefully over time, assembled with materials that are true to both their function and aesthetic appeal. In addition, design needs to combine and complement all the elements of the built environment.
Frank Lloyd Wright never created a project without considering the design and functional aspects of the structure, the interior and the exterior. Perhaps that is why it is always fascinating to see projects 50 and 70 years old that still seem au courant by today’s standards. He never followed a trend-du jour. He kept to a model that integrated both form and function into a single design statement.
Our design trends for 2009 are simple: Get back to basics of design. Choose natural fibers for fabric, wall, window and floor coverings like wool, cotton and linen that are not only practical but are ‘green’ by their very nature. Spend the time to define all the design criteria up front. Make a list of the things that are required of the spaces like storage and what activities are planned for the various rooms. Re-use and adapt pieces in new ways. Edit down the number of accessories to only those that have special meaning or have some special value and donate all the rest. And finally, stop with the faux-painting and the faux-finishing. Don’t try to make something look like something that its not.
Ann Huff, ASID, senior designer at DCG had the opportunity to pull off yet another remodeling project with an eye to the functional necessities and the aesthetics qualities. In this recent bathroom remodel for a returning client, she had the opportunity to work thru challenges like leaky windows, outdated plumbing fixtures and poorly designed cabinetry in this Palm Beach Gardens, FL residence. ”The clients were great and despite the challenges, we worked as a team to solve the problems,… which included having to replace windows just to keep the weather and the elements at bay.” Here is a “before” picture that shows the formica cabinets, cultured marble tops and your builder basic shower and shower door enclosure.
“The bathrooms and kitchen are often one of most important things that buyers consider when contemplating the purchase of an existing home,” Ann Huff reported. ”And since remodeling a bathroom returns about 80% of its value at the time of resale, it is money well spent to renovate these areas as they return a greater value in your real estate than most anything else you can do to the interior.”
As you can see from the photograph below, the foot print didn’t change much but the functional qualities and the eye-catching appeal were greatly enhanced. With new cabinetry, counters, plumbing fixtures and an accessible entry to the shower, this bathroom is ready for another decade of use.
For a couple of the members of the DCG staff, there is little to go for Las Vegas for in the winter time where the weather is 35 a night but guess its better than in the summer with temperatures in the 100s. Not being a gambler, there is still much to see with interesting restaurant design, the live stage shows and the outrageous architecture that dwarfs the human existence in its size. But this year the International Builders Show has landed at the LV convention center, just a few hundred feet off the Vegas strip. Our staff makes an effort every year to go and see what’s new, what’s upcoming that will make enhance the residential built environment.
There is ALWAYS something to see and this year, standing two stories high in the back of the central hall of the convention center is one unique statement about the state of the economy. A model home with a vision to the future of the home.
LivingHome, the 11th in a legacy of innovative show homes produced by Builder Magazine, provides a single source for the housing industry’s current ills and its future. The contemporary 2,000-square-foot home consists of two pairs of stacked, steel-wood modules that will emerge near-complete from a Southern California factory next month after a 10-week production process (followed by a half week of on-site assembly) that not only produces a high-performance home faster but also with far less waste than traditional site building practices.
Its size, meanwhile, supports green building efforts: an efficient footprint that still stands up to modern lifestyle needs while enabling higher densities in compact development models that lessen environmental impact.
It’s also flexible. In addition to a bonus room on the main level, the model residence will demonstrate panelized walls that can augment the footprint as family and lifestyle needs change—and perhaps once a buyer places the home on an actual lot after the show is over. “We describe this house in terms of what it delivers,” says Jason Smith, a senior associate with KieranTimberlake, a Philadelphia-based design architect who has collaborated on several modular prototypes including the LivingHome with Santa Monica, Calif., builder LivingHomes. “It’s [financially] accessible housing with high-quality design and a high level of sustainability.”
The often-conflicting set of goals, says Smith, requires a delicate balance and hard-nosed dedication. “We didn’t want to dumb it down or tart it up,” he says, to push any one of those goals ahead of the others. Rather, the goal is to deliver a viable, comprehensive concept to the housing industry. “The ambition of these projects is to create a repeatable system with variances that make them intriguing and interesting.”
In addition, this is a trade show that is chock full of products from the world over that can stimulate the design experience and step it into high gear. We’ve seen innovative products first introduced at the IBS shows that do finally trickle down into the marketplace. So while we are anticipating the cold, looking forward to seeing Bette Midler on stage, enjoying super cheap hotel rates ( think: 75. a nite for a premium room at the Hilton ) we love to take a peak into the future of residential construction. Keep tuned for updates on what we discover next week.
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