Archives for 2013
PEOPLE ARE AWESOME 2013 [video]
January 24, 2013 By Leave a Comment
When I watch this, I am inspired. I hope you are too!
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What’s Behind Falling Housing Inventories?
January 24, 2013 By Leave a Comment
Home prices are increasing across the country as the number of homes for-sale continues to fall. But at a time when buyer demand is picking up, why is inventory still so low?
Inventories fell to 1.82 million at the end of last year, a 21.6 percent drop from one year earlier, the National Association of REALTORS® reports.
The Wall Street Journal recently highlighted several reasons behind the dropping inventories, including:
- Sellers hesitant to sell: About 22 percent of home owners with a mortgage are still underwater, owing more than their home is currently worth. Home owners don’t tend to sell unless a life-changing event occurs when they’re underwater because they don’t want to take a loss on the sale of their house. CoreLogic data shows that inventories are the most constrained in areas with the highest number of underwater borrowers.
- Not enough equity to trade up: Often times, home owners rely on the equity from their home to make a down payment on their next home. With fewer home owners seeing equity in their houses, they may not have enough money to move into a pricier home, which is constraining the would-be “trade up” buyer from moving.
- Investors continue to snatch up properties: Investors are snapping up properties, but they’ve changed their strategy from past years, which is also constraining inventories. Now they’re holding onto properties and turning them into rentals instead of rehabbing properties and flipping them for profit. This is keeping fewer homes on the market.
- Banks are slowing down foreclosures: Banks have new rules to meet with the foreclosure process, and it’s causing them to move at a slower pace in foreclosing on homes. Banks also are showing a preference for short sales and loan modifications, which are curbing the number of foreclosed homes on the market.
- Builders are doing less building: Housing starts were at record lows from 2009 through 2011 so there’s less inventory being added to the market. A rebound in the new-home market has only recently started to occur.
Source: “Six Reasons Housing Inventory Keeps Declining,” The Wall Street Journal
Why The Price Of Your Home Will Keep Going Up
January 24, 2013 By Leave a Comment
Today’s existing home sales number was a little weaker than expected.
But have no fear, the housing comeback train continues.
Calculated Risk shows the number of months worth of existing home supply (red line). And that number continues to drop.
Which means: The price of your home is going to go up, as inventory gets tighter.
The Great One’s estate on the market for $14.9 million
January 23, 2013 By Leave a Comment
Being a member of NHL royalty obviously has its perks, and for “The Great One” Wayne Gretzky, it involves being the owner of a sprawling estate located in Thousand Oaks, Calif.
Situated in the gated community surrounding Sherwood Country Club, Gretzky’s mansion and lavish grounds recently were put on the market. Asking price? $14.9 million.
Built in 2002 by Gretzky in partnership with “architect to the stars” Richard Landry, the main home by itself measures a whopping 10,815 square feet, but the many buildings and associated amenities that surround it on the 6.5-acre plot, including two guest houses, is where the high asking price is truly legitimized.
As described in its listing, via Zillow.com:
A timeless estate, offering the utmost in luxury, with a chic Metropolitan vibe. Designed by famed architect Richard Landry, this newly remodeled spectacular home offers privacy and security, set on a 6.5 acre promontory within the prestigious gates of Sherwood Country Club. The residence includes 6BD, 8BA, over 13,000 SF with 2 guest houses. A gated entry leads you to a circular driveway with a scenic backdrop of the majestic mountains and breathtaking panoramic views of Lake Sherwood. Exquisite attention to detail and artisan craftsmanship is found in each and every room. Amenities include a master suite with sitting room and dual baths, screening room, fitness facility, office, championship tennis court, outdoor entertainment area wood burning pizza oven, wood and gas BBQ, promenade terraces and gardens. Located within the 24 hour guard gated Sherwood Country Club Estates, home to the world famous signature golf course and country club often called the ultimate living experience.
Ultimate living experience, indeed, although the descriptive listing does not quite encompass the exquisite and luxurious nature of the home and the lavish environs that comprise the surrounding grounds:
(For more photos of Gretzky’s estate, click here)
The future of home design?! [video]
January 22, 2013 By Leave a Comment
Debbie Glassberg, an industrial designer, takes home design using recycled metal to another level. Her 2,600 square-foot residence in the Brookside neighborhood of Kansas City, Missouri, is comprised of 5 shipping containers. This is unlike any other shipping container home you’ve seen. Glassberg’s is exceptional, demonstrating her inspiration to “create better, more simple, and less expensive ways for people to live their lives and have a little less maintenance.”
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The Weak Link Of The US Housing Market
January 21, 2013 By Leave a Comment
At this point, most people agree that the U.S. housing market is recovering.
However, there continues to be one less-than-stellar metric of the housing market: new home sales.
The explanation for this is pretty intuitive. The economy is still anemic, and steep discounts are driving buyers to older existing homes.
Meanwhile, the homebuilders are increasingly optimistic and housing starts have been on the rise. This has some economists worried that a supply glut is building in the market for new homes.
Next Friday, we’ll get the latest reading of new home sales. Economists expect a healthy jump, which should help with this disconnect in the market.
Here’s TD Securities with some commentary:
The new homes market has been a laggard in the overall housing market recovery, and while new homebuilding and existing home sales activity have risen significantly from their lows, new home sales have yet to enjoy a similar turnaround in fortune. In December, we expect sales activity to improve only modestly, with the pace of sales boasting a respectable 6.1% m/m gain to 400K. The increase in sales will add to the positive momentum in November, when sales rose an equally impressive 4.4% m/m, justifying the surge in optimism among homebuilders (as seen in the NAHB homebuilders’ sentiment report) about sales prospects in recent months. In the coming months, we expect the positive momentum in new home sales activity to be sustained, though it is likely to continue to lag the buoyancy in the existing homes market.
Here’s TD’s chart. Hopefully, the increasing homebuyer traffic will eventually lead to a pick up in sales.
Read more: http://www.businessinsider.com/chart-new-homes-sales-lagging-2013-1#ixzz2INIRuDxQ
