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Archives for 2012
5 Projections of Where the Housing Market’s Headed
June 25, 2012 By Leave a Comment
Real estate markets across the country are inching their way to a slow recovery after bottoming out, according to several real estate economists who spoke at a forum hosted by the National Association of Real Estate Editors.
National Association of REALTORS®’ Chief Economist Lawrence Yun, Zillow Chief Economist Stan Humphries, and National Association of Home Builders Chief Economist David Crowe shared their views on the direction of the housing market during the forum.
"Last year was the worst year on record for [new] house sales, for 60 years of housing-sale info," Crowe said.
But things are picking up, the economists note, despite several challenges still threatening that recovery. Yun says that appraisal issues are holding back up to 20 percent of home sales and that lenders’ tightened mortgage underwriting standards are likely holding back another 15 to 20 percent of potential home deals.
Here are some of the economists’ forecasts:
1. New-home market: The NAHB predicts a 19 percent increase in single-family housing starts this year over last (from 434,000 last year to a projected 516,000 this year).
2. Single-family rental market: This could be the next housing market bubble, Humphries warns. He expects this sector to cool as rental rates continue to increase and as home ownership looks more attractive to the public again.
3. Distressed home sales: The percentage of distressed homes sales is projected to drop by 25 percent in 2012 and 15 percent in 2013, Yun says.
4. Home price appreciation: Yun says it’s possible some markets may see a 10 percent rise in home-price appreciation next year due to an increase in demand, or a 60 to 70 percent increase in housing starts. Yun argues it won’t be both, however, but rather one or the other. He notes it greatly depends on whether lawmakers reach an agreement once again on the looming debt-ceiling deadline.
5. Home owners’ negative equity: About a third of home owners are underwater, owing more on their mortgage than their home is currently worth. As such, the housing recovery will likely be “stair stepped,” Humphries says. He says home owners with negative equity will gradually begin to list their homes as they see prices inch up, but when they do, that may temporarily swell the housing supply and cause a brief pause to the recovery.
Source: “Economists: 2012 Marks the End of a Long Bottom,” Inman News
Harvard University: Echo Boomers to Drive Recovery
June 24, 2012 By Leave a Comment
The Joint Center for Housing Studies of Harvard University just released their annual State of the Nation’s Housing 2012. In the report, Harvard explained that, starting this year and continuing over the next twenty years, the echo boomers (born in the late 1970s and early 1980s) will drive the housing market.
“After several false starts, there is reason to believe that 2012 will mark the beginning of a true housing market recovery.”
As we reported in our InfoGraphic on Friday, adults under the age of 35 have decided to stay at home with their parents instead of purchase their own home. As the Harvard report states, it is not because they don’t believe in the value of homeownership:
“Although young households have increasingly opted to rent in recent years, most still aspire to homeownership. The late-2011 Fannie Mae National Housing Survey found that 86 percent of renters aged 18–34 believe they will ultimately own homes. In addition, close to 70 percent of respondents to both the Fannie Mae survey and the University of Michigan Survey of Consumer Attitudes felt that it was a good time to buy. In fact, the monthly mortgage payments for the typical home currently compare more favorably to rents than at any time since the early 1970s.”
The report projected the impact of these echo boomers over the next two decades
Over the next 10 years…
“… the most important drivers of household growth are the size and age structure of the adult population. Assuming the economic recovery is sustained in the next few years, the growth and aging of the current population alone— including the entrance of the echo boomers into adulthood— should support the addition of about 1.0 million new households per year over the next decade.”
Over the next 20 years…
“Over the next 20 years, the echo boomers have the potential to spur new home demand to an even greater extent than their parents did beginning in the 1970s. The good news for housing production is that this new generation already outnumbers that of the baby boomers at the same ages. With even a modest lift from immigration, the echo-boom generation will grow even larger as its members move into the prime household formation years.”
As housing affordability reaches historic lows, we believe more and more of the echo boomers will take the plunge into homeownership
by Steve Harney
Growing Up: Stackable Tree Dressers Go Vertical on Demand
June 24, 2012 By Leave a Comment
Anyone with a cramped urban apartment knows that sometimes the only way to go is up. And as young people get older and taller, perhaps the best dresser does the same.
Each modular piece fits fine as a stand-alone object set up side by side or around the room (or house) – as desired, however, they also work up to three (perhaps four) units tall.
This system from Chigo clocks in at close to a thousand dollars per unit – more than maybe most people want to spend on their little ones, but there is nothing saying they could not work for adults in tight spaces, too.
How to Clean Your House (7 Pics)
June 24, 2012 By Leave a Comment
Do your chores the Pleated-Jeans way! With these handy tips, you’ll have all your housework done in no time flat.
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THE EFFECT OF MUSIC ON LEARNING
June 23, 2012 By Leave a Comment
As a lifelong musician and music teacher for over two decades, I have discovered that music impacts us in powerful ways. It can evoke strong emotions, make us want to tap our fingers and feet, and even help with learning and memory.
Medieval Chateau steeped in history with 500 acres
June 23, 2012 By Leave a Comment
The Chateau is situated in the GREEN HEART of FRANCE, surrounded by oak and chestnut Forests, sweeping pasture and many peaceful lakes, ideally located for Exploring The Limousin, Dordogne, Charente and the Lot.
Perfect for persons wanting total privacy with the maximum of comfort and luxury
The Chateau is steeped in History, Richard the Lionheart – according to Local legends – died and is buried here in the Grounds, and in more recent times Madame Pompadour and General/ President de Gaulle have been House guests.
The Chateau and outbuildings have been decorated in Style and Taste and include a personalized "CHATEAU “ Dinner service for 30 Covers
1 hour – LIMOGES, 4 hour – PARIS, 8 hour CALAIS and TUNNEL
All this can be yours for $31,536,360.00
See the entire listing here.