Archives for 2012

Shadow Inventory Threat Lessens

83312674The shadow inventory of troubled mortgages and foreclosed homes saw a 1.2 million decrease in the first half of the year, according to research conducted by JPMorgan Chase.

Chase researchers expect that progress to double before the year’s end, too. That would then bring the shadow inventory to more than 4 million, which is down from the 6 million peak reached in 2010.

A rising number of short sales has allowed more banks to clear the shadow inventory that has threatened the housing market’s recovery, according to the research. Banks also have been increasing loan modifications.

Shadow inventory is known for creating uncertainty in the housing market. In calculating the shadow inventory, Chase researchers include trouble mortgages that haven’t been paid in at least 60 days.

"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," according to Chase analysts. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."

Chase analysts say that if home prices rise 10 percent, the current number of 10.8 underwater borrowers could then decrease to 9 million.

Source: “Shadow Inventory Declines by 1.2 Million in 2012,” HousingWire

Sizing Up The American Dream

The-American-DreamIn a nation as diverse as the United States, the idea of "the American dream" means different things to different people. Many associate the dream with intangible ideals like freedom of expression, freedom of religion, optimism and family ties. But the American dream has also long been associated with attaining a higher standard of living, particularly one that surpasses that of the previous generation.

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Click image for larger view.

 

source: NPR

5 Reasons to Sell Now

1-2-3-4-5-fingers-on-handMany sellers feel that the Spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the Fall and Winter have their own advantages. Here are five reasons to to sell now.

Only Serious Buyers Are Out

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers’. The lookers are at the mall or online doing their holiday shopping.

There Is Far Less Competition

Housing supply always shrinks dramatically at this time of year. This year will be a little different as some of the distressed properties being liquidated by the banks (in the form of foreclosures & short sales) will enter the market. However, for those buyers looking for a non-distressed property, the choices will be limited. Don’t wait until the spring when all the other potential sellers in your market will put their homes up for sale.

The Process Will Be Quicker

One of the biggest challenges of the 2012 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.

There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 15% from now to 2016. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.

It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

by THE KCM CREW on SEPTEMBER 24, 2012

Two Thirds Of All New Homes Are Being Built With Front Porches

tributary_porchFront porches are making a big comeback.

It’s not quite a return to Norman Rockwell’s Americana, but the rise in the number of new homes with porches hints at a shift in the way more Americans want to live: in smaller houses and dense neighborhoods that promote walking and social interaction.

Two-thirds of new homes built in 2011 had a porch, a trend that has been on a steady rise for almost 10 years, according to a Census survey of construction. The pace of new homes with decks and patios — more expensive construction that takes up more space, usually behind homes — has flattened.

The share of new homes with front or rear porches has grown from 42 percent in 1992 to 65 percent in 2011, Census data show.

The data also show that the percentage of homes built without a garage or carport remains at its highest since the late 1990s. At the peak of the housing boom in 2004, 8 percent of new homes had no car shelter. It hit 13 percent in 2010 and 2011.

"It says something about density and something very positive about public transportation," says Stephen Melman, director of economic services for the National Association of Homebuilders, "if new construction is starting to be built closer to employment centers or transit."

"That’s what the market wants," says Christopher Leinberger, a developer and a George Washington University professor.

A partner in Arcadia Land Co. outside Philadelphia, Leinberger says the firm is building mostly townhouses with porches in Sadsbury, Pa., because that’s what buyers want.

"The front porch acts as a social mechanism," says Leinberger, also president of Smart Growth America’s LOCUS, a national coalition of developers and investors who promote walking over driving. "You sit on the porch and talk to people walking by without having to invite them in. It’s outdoor space without taking up too much space."

The desire for a more urban lifestyle is mounting as Baby Boomers become empty-nesters and Millennials, entering their late teens to early 30s, are sensitive to saving the environment and money.

The Olson Co. in Seal Beach, Calif., builds affordable homes in urban communities across Orange and Los Angeles counties.

Olson puts up homes on sites that were parking lots, warehouses or office buildings. The homes are smaller (three bedrooms in 1,300-square-foot homes or five bedrooms in 2,000 square feet) than traditional homes and usually have a front porch.

"It’s all about trade-offs," says Scott Laurie, Olson’s president. "Private open space is very important to buyers. We try to incorporate a porch on the front and a small backyard."

Source: BusinessInsider

STORY POOL HOUSE | BY LAKE FLATO ARCHITECTS

story-pool-house-lake-flato-architectsThe Story Pool House is exactly what its name suggests, a beautiful hang out by the pool. Designed by Lake Flato Architects, the open air pavilion serves as a "sunrise to sunset” living room. Located in sunny Texas, the shelter is made from Texas limestone, steel, and wood, providing a shade from the scorching sun. The hideaway includes a kitchen, dining area, bath, and storage area. Also, a private deck under the vine covered arbor for the trailer and an inviting pool. The beautiful design and flawless execution have awarded this oasis with innumerous architecture awards.

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3 Simple Tips for Choosing the Right Size TV for Your Room

Tv in roomWe all want a big TV. The bigger, the better if you ask me. But sometimes the room we are going to put the TV in just doesn’t accommodate the enormous screen size we dream about. How can you determine what size TV will work best in the room where you want to put it.

There are actually a number of factors involved to figure this out. Here are some tips for you to consider before buying that new HDTV:

Wall Mount or No Wall Mount?

First things is first. Will this TV be hung on the wall or not? You need to figure this out before even heading to the store because this decision will affect everything else after it. TV’s that are hung on the wall actually allow for larger screen size because rarely are there TVs that are bigger than the walls of a room. Also a larger sized TV that is hanging on a wall can work better in smaller rooms because it allows for maximum viewing distance from where you are seated instead of having it place inside or on top of a TV cabinet. Plus, if budget is a concern there are peripherals and installation costs to consider when wall mounting a new set.

How many walls surround the TV?

This seems like an odd question, but the number of walls surrounding the TV can impact the perception viewers have on whether the room feels crowded with a large TV. If your TV is surrounded by 4 full walls (front, left, right & behind) it can make the room feel smaller and a TV over 50″ can feel overwhelming unless the square footage of the room is large. If your TV is surrounded by 3 walls (left, right, behind) and connects to another room so that the back wall is farther away, a TV over 50″ will work as the room has enough depth to warrant the extra large screen size.

What’s the Viewing Distance?

Everyone likes sitting close to the TV. We did as kids and got yelled at, but now that it’s our home we can sit as close as we want! That is unless you want a super sized HDTV. Sitting closer to the TV can actually diminish the quality of the viewing experience not to mention the acoustics if you have a surround sound system. Let’s say you have your eye on a 52″ HDTV. You’re going to want to make sure your viewing area is at least 6 feet away from the TV to be able to enjoy the optimal cinematic experience.

Amazon.com has come up with a simple formula for determining the best size TV based on your viewing distance from the screen. To determine the maximum size TV screen you would divide the length of your viewing distance by 1.5. Instead of messing with the math I love this quick reference chart that Amazon developed to show you the TV sizes you should consider based on where you’ll be seated to watch TV:

screen size. V192561996  3 Simple Tips for Choosing the Right Size TV for Your Room

So there you have it. You now have enough information to figure out just how big a TV you should get based on the room  you’re putting it in. Now you just have to pick which TV you’re going to get. 3D? LED or LCD? Vizio or Sony? Decisions, decisions, decisions…

Here We Go Again: NHL Lockout [Infographic]

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source: Visual.ly

Study: Housing Shortage Looms for Low-Income Families

housing-shortageLow-income households face a potential housing shortage that could lead to a large rise in homelessness, warns a new report by the Institute for Children, Poverty, and Homelessness.

The study shows that there are 5.4 million housing units available for rent to a family of three at the federal poverty line of $18,310. However, there are more than double the number of households below the poverty line (10.9 million).

The shortage in housing has led to a 20 percent rise in family homelessness from 2007 to 2010, according to the ICPH report, “A Home by Any Other Name: Enhancing Shelters Addresses the Gap in Low-Income Housing.” 

The ICPH blames the rising cost of rental units and a decline in the number of public housing projects for the shortage in affordable residences.

"It is clear that the number of affordable rental units has not changed in three decades as the number of people who need affordable housing has skyrocketed," says Matthew Adams, ICPH’s principal policy analyst. "This gap is unsustainable.”

Americans who earn the minimum wage cannot afford fair market value of rent for at two-bedroom apartment, according to the report. What’s more, the amount of federal dollars that is spent on housing programs for low-income households has dropped 20 percent since 1995 and is at a record low. 

Source: “Homeless Face Unprecedented, Overwhelming Housing Shortage,” Realty Times (Sept. 20, 2012)

3 Common Contractor Scams [Infographic]

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From Angie’s List via Visual.ly.