RISMEDIA, December 31, 2009?With a $569,000 Tampa home sitting on the market for a year and a half and no signs of a sale, Tracy Truitt was a disheartened Realtor looking for a new approach that would help her sell her listing.
Truitt, a Realtor with Century 21 Elite in Tampa, discovered Showhomes, a home staging company, with what it calls a unique spin on traditional home staging: the nationally franchised company finds people to live in and help stage vacant homes so that they show better and sell faster. Given the declining real estate market, mansions and just about every other type of home are difficult to sell, the company reports.
Showhomes says it staged Truitt?s home and it sold in eight days. ?I had an almost full price offer within a week of Showhomes? staging, and a 25% higher offer than the two offers that had come in previously to the home being staged,? Truitt says.
Showhomes Tampa owner Linda Saavedra says Truitt?s experience isn?t a fluke.
She says the company?s staged homes are selling in a fraction of the time most homes are taking to sell. So are homes all over the country staged with Showhomes? system, she adds. According to the company, a typical $850,000 home in Florida is taking well over a year to sell in today?s market and the average time it has taken Showhomes to sell these homes is 132 days.
?Recently we?ve had six major success stories with homes that have lingered on the market for over a year,? she says. ?Three homes sold within 35 days and two others were contracted within seven days of staging. The home that sold in 8 days has been on the market for over two years and the sale price was 20% more than the offers they received when the home was vacant.?
?Our approach is working,? says Thomas Scott, VP of operations at the Nashville-based corporate headquarters of Showhomes. ?We are experiencing similar home sales results in southern California, the Midwest and Northeast. Despite the glut of inventory, there are buyers in the market and they are choosing to purchase homes we have staged.?
For more information, visit www.showhomes.com
Thursday, December 31, 2009
Monday, December 28, 2009
4 out of 10 Recent Buyers Used FHA Loans
According to the most recent REALTORS? Confidence Index, 39 percent of recent buyers purchased a home with a Federal Housing Administration-insured loan. REALTORS? who took part in the November survey also reported that the number of first-time home buyers continued to climb to 51 percent.
?FHA helps provide affordable mortgage financing to home owners, particularly first-time home buyers who are so important in drawing down inventory to help stabilize the current housing market,? said NAR President Vicki Cox Golder. ?These recent survey results reaffirm that, despite its current challenges, FHA is a critical part of the American housing fabric.?
Distressed Sales, HVCC Concerns
The RCI results also indicated that distressed sales increased to 33 percent of all home sales last month, and that both investors and first-time home buyers are competing for these properties. The preponderance of distressed properties on the market has also influenced buyers? perceptions of other homes for sale. REALTORS? report that many buyers have pricing expectations that treat every property as if it were in foreclosure.
In addition, REALTORS? expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. According to some survey respondents, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.
?As the first, best source for real estate information, REALTORS? have their finger on the pulse of current housing trends, and their knowledge and experience offer valuable insights into today?s real estate market,? Golder said. ?We know that an economic recovery is not possible without a housing recovery, and we will continue to work with policymakers at all levels to ensure that this happens.?
?NAR
?FHA helps provide affordable mortgage financing to home owners, particularly first-time home buyers who are so important in drawing down inventory to help stabilize the current housing market,? said NAR President Vicki Cox Golder. ?These recent survey results reaffirm that, despite its current challenges, FHA is a critical part of the American housing fabric.?
Distressed Sales, HVCC Concerns
The RCI results also indicated that distressed sales increased to 33 percent of all home sales last month, and that both investors and first-time home buyers are competing for these properties. The preponderance of distressed properties on the market has also influenced buyers? perceptions of other homes for sale. REALTORS? report that many buyers have pricing expectations that treat every property as if it were in foreclosure.
In addition, REALTORS? expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. According to some survey respondents, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.
?As the first, best source for real estate information, REALTORS? have their finger on the pulse of current housing trends, and their knowledge and experience offer valuable insights into today?s real estate market,? Golder said. ?We know that an economic recovery is not possible without a housing recovery, and we will continue to work with policymakers at all levels to ensure that this happens.?
?NAR
Friday, December 18, 2009
Home buyers are downsizing
WASHINGTON ? Dec. 17, 2009 ? Out of the depths of housing?s worst downturn, smaller new homes are turning into a bright spot for some home builders.
The trend toward more compact new homes is being driven partly by the fact that more customers are first-time buyers who have less to spend.
Home builders are responding by offering smaller designs with features such as high ceilings and large windows that create a spacious feel and options that let buyers personalize the model they choose.
KB Home?s smaller model helped it achieve a 62 percent increase in year-over-year net orders in the third quarter.
The trend cuts across the industry. The median square footage of new homes has dropped 9 percent from a peak of 2,300 square feet in the third quarter of 2006 to 2,100 square feet in the July-September period this year, according to data from the National Association of Home Builders (NAHB).
Housing size drops with each recession, but economists expect the current movement toward smaller homes to continue for some time in part because of the severity of the current housing market slump.
First-time buyers are driving the trend toward smaller homes because that is what they can afford, says David Crowe, chief economist at the NAHB.
As the economy improves, move-up buyers generally enter the market and begin buying larger homes. But this time, so many homeowners owe more on their homes than their properties are worth that many potential move-up buyers will be stuck even as the economy strengthens.
That means first-time homebuyers will still be buying smaller homes while larger homes will find fewer buyers.
?This downsizing is more sustainable,? Crowe says. ?The first-time buyer will continue to be a large part of the market because the move-up buyer will not have as much equity. It?s going to take them awhile to climb out.?
The NAHB doesn?t keep data on the percentage of new home sales that are made by first-time home buyers, but about half of all home purchasers were first-time buyers in October, according to the National Association of Realtors.
For builders, smaller, less-expensive homes mean less profit. But the industry is already facing strong competition from a high supply of foreclosed homes selling at comparatively low prices.
A welcome change
Some analysts say the downsizing trend could be good news for builders.
?The appetite for smaller homes may be a welcome change for home builders as new home sales have been challenged in the past few years,? says Tom Lydon, editor of ETF Trends, which educates investors on fund choices and market trends.
Major home builders such as KB Home and Pulte Homes are responding to the shift in demand by offering more of the smaller properties.
At Pulte Homes, its most popular designs today are 100 to 200 square feet less than the most-popular plans in 2005-06.
So the lower-priced homes don?t seem bare-bones to buyers, open floor plans and 9-foot ceilings provide a sense of roominess. Fireplaces are an option.
To hold down costs, Corian ? a surfacing material created by DuPont ? is a standard for kitchen counters instead of granite. Appliances are standard models instead of pricier stainless steel.
?It?s not just making it smaller, it?s maximizing the space in the home,? says Caryn Klebba, a spokeswoman at Pulte Homes. ?It?s a 9- or 10-foot ceiling rather than a cathedral ceiling.? Cathedral ceilings are 14 to 18 feet.
Getaway option
Smaller homes also are appealing as vacation homes.
Nancy Coronado, 55, a retired framer in an art gallery, has a large home in Whitehall, Mich., and bought a second Pulte home in Florence, Ariz., in March. The new home is about 1,400 square feet. ?I have a big home in Michigan and didn?t want another big home,? she says. ?I wasn?t looking for that.?
KB Home also has redesigned its homes to reflect the trend, because nearly 80 percent of its customers are first-time homebuyers.
Toll Bros., which builds luxury homes, says demand is down across the board, and not just for larger homes. Company officials say they, too, see an increased interest in smaller homes but believe that homebuyers will someday return to wanting larger properties.
Smaller homes, they say, reflect a down economy and tighter credit rather than an appetite for less space.
?We see the demand for smaller homes, but it?s not as though there?s huge demand for smaller homes but no demand for larger homes,? says Kira McCarron, a spokeswoman for Toll Bros. ?There is still a demand for luxury homes.?
Copyright ? 2009 USA TODAY
The trend toward more compact new homes is being driven partly by the fact that more customers are first-time buyers who have less to spend.
Home builders are responding by offering smaller designs with features such as high ceilings and large windows that create a spacious feel and options that let buyers personalize the model they choose.
KB Home?s smaller model helped it achieve a 62 percent increase in year-over-year net orders in the third quarter.
The trend cuts across the industry. The median square footage of new homes has dropped 9 percent from a peak of 2,300 square feet in the third quarter of 2006 to 2,100 square feet in the July-September period this year, according to data from the National Association of Home Builders (NAHB).
Housing size drops with each recession, but economists expect the current movement toward smaller homes to continue for some time in part because of the severity of the current housing market slump.
First-time buyers are driving the trend toward smaller homes because that is what they can afford, says David Crowe, chief economist at the NAHB.
As the economy improves, move-up buyers generally enter the market and begin buying larger homes. But this time, so many homeowners owe more on their homes than their properties are worth that many potential move-up buyers will be stuck even as the economy strengthens.
That means first-time homebuyers will still be buying smaller homes while larger homes will find fewer buyers.
?This downsizing is more sustainable,? Crowe says. ?The first-time buyer will continue to be a large part of the market because the move-up buyer will not have as much equity. It?s going to take them awhile to climb out.?
The NAHB doesn?t keep data on the percentage of new home sales that are made by first-time home buyers, but about half of all home purchasers were first-time buyers in October, according to the National Association of Realtors.
For builders, smaller, less-expensive homes mean less profit. But the industry is already facing strong competition from a high supply of foreclosed homes selling at comparatively low prices.
A welcome change
Some analysts say the downsizing trend could be good news for builders.
?The appetite for smaller homes may be a welcome change for home builders as new home sales have been challenged in the past few years,? says Tom Lydon, editor of ETF Trends, which educates investors on fund choices and market trends.
Major home builders such as KB Home and Pulte Homes are responding to the shift in demand by offering more of the smaller properties.
At Pulte Homes, its most popular designs today are 100 to 200 square feet less than the most-popular plans in 2005-06.
So the lower-priced homes don?t seem bare-bones to buyers, open floor plans and 9-foot ceilings provide a sense of roominess. Fireplaces are an option.
To hold down costs, Corian ? a surfacing material created by DuPont ? is a standard for kitchen counters instead of granite. Appliances are standard models instead of pricier stainless steel.
?It?s not just making it smaller, it?s maximizing the space in the home,? says Caryn Klebba, a spokeswoman at Pulte Homes. ?It?s a 9- or 10-foot ceiling rather than a cathedral ceiling.? Cathedral ceilings are 14 to 18 feet.
Getaway option
Smaller homes also are appealing as vacation homes.
Nancy Coronado, 55, a retired framer in an art gallery, has a large home in Whitehall, Mich., and bought a second Pulte home in Florence, Ariz., in March. The new home is about 1,400 square feet. ?I have a big home in Michigan and didn?t want another big home,? she says. ?I wasn?t looking for that.?
KB Home also has redesigned its homes to reflect the trend, because nearly 80 percent of its customers are first-time homebuyers.
Toll Bros., which builds luxury homes, says demand is down across the board, and not just for larger homes. Company officials say they, too, see an increased interest in smaller homes but believe that homebuyers will someday return to wanting larger properties.
Smaller homes, they say, reflect a down economy and tighter credit rather than an appetite for less space.
?We see the demand for smaller homes, but it?s not as though there?s huge demand for smaller homes but no demand for larger homes,? says Kira McCarron, a spokeswoman for Toll Bros. ?There is still a demand for luxury homes.?
Copyright ? 2009 USA TODAY
Thursday, December 17, 2009
HUD updates advice to borrowers?
WASHINGTON ? Dec. 17, 2009 ? The U.S. Department of Housing and Urban Development (HUD) has updated and re-released ?Shopping for Your Home Loan: HUD?s Settlement Cost Booklet.?
A large share of content in the 49-page publication, which helps consumers comparison-shop mortgages, addresses the standardized Good Faith Estimate and HUD-1 settlement statement forms that lenders must start using on Jan. 1, 2010.
HUD estimates that consumers could save almost $700 in costs and fees per loan on average as a result of the new requirement, which is one of several changes to the Real Estate Settlement Procedures Act (RESPA).
In addition to the updated literature, the agency has set up a RESPA ?FAQ? section and other information on a dedicated RESPA page so that consumers, settlement service providers and lenders can gain a better understanding of the new rules.
To download the updated booklet, read the FAQs or get more information about RESPA changes effective Jan. 1, 2010, visit HUD?s dedicated RESPA page at: http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm
The National Association of Realtors also maintains an informational webpage to help Realtors understand the upcoming changes at: http://www.realtor.org/government_affairs/respa
Source: Inman News (12/17/09)
? Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688
A large share of content in the 49-page publication, which helps consumers comparison-shop mortgages, addresses the standardized Good Faith Estimate and HUD-1 settlement statement forms that lenders must start using on Jan. 1, 2010.
HUD estimates that consumers could save almost $700 in costs and fees per loan on average as a result of the new requirement, which is one of several changes to the Real Estate Settlement Procedures Act (RESPA).
In addition to the updated literature, the agency has set up a RESPA ?FAQ? section and other information on a dedicated RESPA page so that consumers, settlement service providers and lenders can gain a better understanding of the new rules.
To download the updated booklet, read the FAQs or get more information about RESPA changes effective Jan. 1, 2010, visit HUD?s dedicated RESPA page at: http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm
The National Association of Realtors also maintains an informational webpage to help Realtors understand the upcoming changes at: http://www.realtor.org/government_affairs/respa
Source: Inman News (12/17/09)
? Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688
Friday, December 11, 2009
Construction jobs for Palm Coast?
December 10, 2009 ? Developers are currently in the early stages of planning a 7,000-residence project for Palm Coast, Florida, north of Country Road 205. The developers are hoping to get approval for the Neoga Lakes development mid next year and the first house could be built as soon as 2013. This potential project would supply thousands of Palm Coast construction contractors with employment.
The 6,400-acre Neoga Lakes development will also have 1.8 million square-feet of businesses and 1,300 acres of parks as well as its own school system. Local tradesman, including Palm Coast general contractors as well as Palm Coast electricians, are closely watching the progression of this tremendous employment opportunity.
The 6,400-acre Neoga Lakes development will also have 1.8 million square-feet of businesses and 1,300 acres of parks as well as its own school system. Local tradesman, including Palm Coast general contractors as well as Palm Coast electricians, are closely watching the progression of this tremendous employment opportunity.
Friday, December 4, 2009
As Usual: Florida Recovery Lags
ATLANTA ? Dec. 3, 2009 ? The national economy is perking up, even as Florida and the Southeast continue to struggle with a weak job market, depressed lending and a gloomy commercial real estate sector, the government said Wednesday.
The economic snapshot was provided in the Beige Book ? a compilation of economic anecdotes from the nation?s 12 Federal Reserve districts.
While the report found that in eight out of the 12 districts ?economic conditions have generally improved,? four others ? including the Atlanta District, which serves Florida ? reported mixed economic news.
The bright spots in the Southeast: ?The majority of retailers described activity as exceeding their modest expectations,? and new and used home sales were seen as improving, particularly in the lower-priced category.
Otherwise, the report painted a picture of continued weakness.
Manufacturers said orders were down, car sales have slipped since the days of the ?cash for clunkers? program and ?commercial real estate conditions were widely characterized as weak and, in many cases, deteriorating further,? the report found.
Of particular concern for Florida?s business community, banks said they were maintaining tight lending standards as they focus on repairing their balance sheets.
?Some financial contacts commented that increased lending was not anticipated given the current economic environment,? the report found.
The Beige Book is produced eight times a year, usually a few weeks before the Federal Reserve Open Market Committee meets to set monetary policy. Federal Reserve Chairman Ben Bernanke has suggested the government will keep interest rates low to spur the economic recovery.
Copyright ? 2009 The Miami Herald, Jim Wyss. Distributed by McClatchy-Tribune Information Services
The economic snapshot was provided in the Beige Book ? a compilation of economic anecdotes from the nation?s 12 Federal Reserve districts.
While the report found that in eight out of the 12 districts ?economic conditions have generally improved,? four others ? including the Atlanta District, which serves Florida ? reported mixed economic news.
The bright spots in the Southeast: ?The majority of retailers described activity as exceeding their modest expectations,? and new and used home sales were seen as improving, particularly in the lower-priced category.
Otherwise, the report painted a picture of continued weakness.
Manufacturers said orders were down, car sales have slipped since the days of the ?cash for clunkers? program and ?commercial real estate conditions were widely characterized as weak and, in many cases, deteriorating further,? the report found.
Of particular concern for Florida?s business community, banks said they were maintaining tight lending standards as they focus on repairing their balance sheets.
?Some financial contacts commented that increased lending was not anticipated given the current economic environment,? the report found.
The Beige Book is produced eight times a year, usually a few weeks before the Federal Reserve Open Market Committee meets to set monetary policy. Federal Reserve Chairman Ben Bernanke has suggested the government will keep interest rates low to spur the economic recovery.
Copyright ? 2009 The Miami Herald, Jim Wyss. Distributed by McClatchy-Tribune Information Services
Wednesday, December 2, 2009
Nine consecutive gains for pending home sales
Another Month of good news!
WASHINGTON ? Dec. 1, 2009 ? Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors? (NAR).
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.
Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. ?Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the homebuyer tax credit stimulus,? he said. ?This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.?
The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.
Yun cautioned that home sales could dip in the months ahead.
?The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.
?Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,? Yun said.
? 2009 Florida Realtors?
WASHINGTON ? Dec. 1, 2009 ? Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors? (NAR).
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.
Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. ?Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the homebuyer tax credit stimulus,? he said. ?This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.?
The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.
Yun cautioned that home sales could dip in the months ahead.
?The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.
?Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,? Yun said.
? 2009 Florida Realtors?
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