Florida’s existing home, condo sales up in October 2009
ORLANDO, Fla. – Nov. 23, 2009 – Florida’s existing home sales rose in October, marking 14 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®. October’s statewide sales also increased over sales activity in September in both the existing home and existing condominium markets.
Existing home sales rose 45 percent last month with a total of 15,160 homes sold statewide compared to 10,444 homes sold in October 2008, according to Florida Realtors. Statewide existing home sales last month increased 5.1 percent over statewide sales activity in September.
Florida Realtors also reported an 82 percent increase in statewide sales of existing condos in October compared to the previous year’s sales figure; statewide existing condo sales last month rose 6.1 percent over the total units sold in September.
All of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in October. A majority of the state’s MSAs have reported increased sales for 16 consecutive months.
Florida’s median sales price for existing homes last month was $140,300; a year ago, it was $169,700 for a 17 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less. The national median sales price for existing single-family homes in September 2009 was $174,900, down 8.1 percent from a year earlier, according to NAR. In California, the statewide median resales price was $296,090 in September; in Massachusetts, it was $290,000; in Maryland, it was $261,718; and in New York, it was $213,900.
According to NAR’s latest industry outlook, the housing market is continuing its positive momentum. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth,” said NAR Chief Economist Lawrence Yun. “That, in turn, would help fully remove consumer fears, which would then revive the broader economy.”In Florida’s year-to-year comparison for condos, 5,398 units sold statewide last month compared to 2,958 units in October 2008 for an 82 percent increase. The statewide existing condo median sales price last month was $105,200; in October 2008 it was $147,900 for a 29 percent decrease. The national median existing condo price was $175,100 in September 2009, according to NAR.Interest rates for a 30-year fixed-rate mortgage averaged 4.95 percent last month, a significant drop from the average rate of 6.20 percent in October 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among the state’s smaller markets, the Gainesville MSA reported a total of 172 homes sold in October compared to 130 homes a year earlier for a 32 percent increase. The market’s existing home median sales price last month was $156,700; a year ago it was $173,300 for a 10 percent decrease. A total of 22 condos sold in the MSA in October, up 22 percent over the 18 units sold in October 2008. The existing condo median price last month was $116,700; a year earlier, it was $133,300 for a 12 percent decrease.
Monday, November 23, 2009
Monday, September 21, 2009
Households’ Net Worth Rises for First Time in Two Years
By Rex Nutting
RISMEDIA, September 21, 2009—(MCT)—American households were $2 trillion richer on June 30, 2009 than they were three months earlier, the first time in two years that household net worth has increased, the Federal Reserve recently reported.
Household wealth rose in the second quarter at a 17% annual rate, or $2 trillion, to $53.1 trillion after falling at a 13% rate in the first quarter, the Fed said. It was the first time since the second quarter of 2007 that wealth had increased. Net worth is down $12.2 trillion from the peak in 2007, an indication of how much the collapse in stock prices and home prices have hurt. The figures are not adjusted for inflation.
Net worth is defined as assets minus liabilities. Assets rose by $2 trillion to $67.2 trillion. Liabilities fell by $34 billion to $14.1 trillion. The rally on Wall Street was the main reason for the increase in household wealth, but rising home prices contributed as well. Wealth in corporate equities rose by $1.04 trillion, while real estate wealth rose by $139 billion. Assets held in mutual funds, life insurance and pension funds rose by $1.06 trillion. Households had lost real-estate wealth for nine consecutive quarters before the second quarter’s gain.
Consumers continued to pay down debts or have their debts written off at a record pace. In the second quarter, household debt fell at a 1.7% annual rate to $13.7 trillion, matching the record percentage decline in the fourth quarter. Household debt has fallen four quarters in a row and is down 5% from the peak. Before this recession, household debt had never declined in any quarter dating back to 1952.
Stimulus payments boosted disposable incomes by 5.2% annualized to $10.9 trillion annually. It was the first increase since the stimulus payments in the second quarter of 2008. Over the past four quarters, disposable incomes fell 0.6%, the first year-over-year decline on record dating back to 1952.
Household debt dropped to 126% of disposable income from 128% in the first quarter and a record 131% in the first quarter of 2008. In 2000, it was 91%.
Household mortgage debt fell 1.4% annualized to $10.4 trillion, the fifth consecutive decline in mortgage debt. Consumer credit fell at a 6.1% annual rate to $2.5 trillion. It was the largest percentage decline in consumer debt since 1980. In a separate report, the Fed has said consumer credit declined even faster in July, dropping at a 10.4%.
Total debt in the economy grew at a 4.9% annual rate, boosted by massive debts taken on by the federal, state and local governments. Federal government debt rose at a 28.2% annual rate, the fourth straight increase of more than 20%. In the past year, federal debt rose by $1.9 trillion to $7.2 trillion. State and local borrowing rose at an 8.3% annual rate in the quarter to $2.3 trillion. Nonfinancial business debt fell at a 1.8% annual rate, despite a 1% increase in corporate debt.
The net worth of nonfarm nonfinancial companies fell at a 175 annual rate, the seventh consecutive decline.
Debt of domestic financial firms fell at a 12.2% annual rate to $16.5 trillion, the largest percentage decline since 1961.
(c) 2009, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services. Read more: http://rismedia.com/2009-09-20/households-net-worth-rises-for-first-time-in-two-years/#ixzz0RkfGPQSy
By Rex Nutting
RISMEDIA, September 21, 2009—(MCT)—American households were $2 trillion richer on June 30, 2009 than they were three months earlier, the first time in two years that household net worth has increased, the Federal Reserve recently reported.
Household wealth rose in the second quarter at a 17% annual rate, or $2 trillion, to $53.1 trillion after falling at a 13% rate in the first quarter, the Fed said. It was the first time since the second quarter of 2007 that wealth had increased. Net worth is down $12.2 trillion from the peak in 2007, an indication of how much the collapse in stock prices and home prices have hurt. The figures are not adjusted for inflation.
Net worth is defined as assets minus liabilities. Assets rose by $2 trillion to $67.2 trillion. Liabilities fell by $34 billion to $14.1 trillion. The rally on Wall Street was the main reason for the increase in household wealth, but rising home prices contributed as well. Wealth in corporate equities rose by $1.04 trillion, while real estate wealth rose by $139 billion. Assets held in mutual funds, life insurance and pension funds rose by $1.06 trillion. Households had lost real-estate wealth for nine consecutive quarters before the second quarter’s gain.
Consumers continued to pay down debts or have their debts written off at a record pace. In the second quarter, household debt fell at a 1.7% annual rate to $13.7 trillion, matching the record percentage decline in the fourth quarter. Household debt has fallen four quarters in a row and is down 5% from the peak. Before this recession, household debt had never declined in any quarter dating back to 1952.
Stimulus payments boosted disposable incomes by 5.2% annualized to $10.9 trillion annually. It was the first increase since the stimulus payments in the second quarter of 2008. Over the past four quarters, disposable incomes fell 0.6%, the first year-over-year decline on record dating back to 1952.
Household debt dropped to 126% of disposable income from 128% in the first quarter and a record 131% in the first quarter of 2008. In 2000, it was 91%.
Household mortgage debt fell 1.4% annualized to $10.4 trillion, the fifth consecutive decline in mortgage debt. Consumer credit fell at a 6.1% annual rate to $2.5 trillion. It was the largest percentage decline in consumer debt since 1980. In a separate report, the Fed has said consumer credit declined even faster in July, dropping at a 10.4%.
Total debt in the economy grew at a 4.9% annual rate, boosted by massive debts taken on by the federal, state and local governments. Federal government debt rose at a 28.2% annual rate, the fourth straight increase of more than 20%. In the past year, federal debt rose by $1.9 trillion to $7.2 trillion. State and local borrowing rose at an 8.3% annual rate in the quarter to $2.3 trillion. Nonfinancial business debt fell at a 1.8% annual rate, despite a 1% increase in corporate debt.
The net worth of nonfarm nonfinancial companies fell at a 175 annual rate, the seventh consecutive decline.
Debt of domestic financial firms fell at a 12.2% annual rate to $16.5 trillion, the largest percentage decline since 1961.
(c) 2009, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services. Read more: http://rismedia.com/2009-09-20/households-net-worth-rises-for-first-time-in-two-years/#ixzz0RkfGPQSy
Wednesday, August 5, 2009
What gloom?
I thought I would pass on this tidbit from RisMedia. Interesting if you're tirred of gloom and doom.
RISMEDIA, August 5, 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% to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7% 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% to 81.2 in June and is 5.8% above a year ago. In the Midwest the index increased 0.8% to 89.9 and is 11.6% above June 2008. The index in the South jumped 7.1% to 100.7 in June and is 8.9% higher than a year ago. In the West the index rose 2.9% to 100.4 but is 0.2% 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.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said.
NAR’s Housing Affordability Index (HAI) remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7% of gross income to mortgage principal and interest, well below the standard allowance of 25%. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”
A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600. Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”
Read more: http://rismedia.com/2009-08-04/pending-home-sales-up-for-fifth-consecutive-month/#ixzz0NJfNWWIR
RISMEDIA, August 5, 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% to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7% 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% to 81.2 in June and is 5.8% above a year ago. In the Midwest the index increased 0.8% to 89.9 and is 11.6% above June 2008. The index in the South jumped 7.1% to 100.7 in June and is 8.9% higher than a year ago. In the West the index rose 2.9% to 100.4 but is 0.2% 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.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said.
NAR’s Housing Affordability Index (HAI) remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7% of gross income to mortgage principal and interest, well below the standard allowance of 25%. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”
A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600. Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”
Read more: http://rismedia.com/2009-08-04/pending-home-sales-up-for-fifth-consecutive-month/#ixzz0NJfNWWIR
Tuesday, June 9, 2009
Because You Wondered.
The following is an article from RisMedia that I'd like to pass along.
$27.4 Billion Slashed Off Homes Currently for Sale Across America
RISMEDIA, June 9, 2009-Trulia, Inc., known for being one of the best places to start your real estate search, announced that 23.6% of current homes on the market in the United States have experienced at least one price cut, totaling $27.4 billion in reductions. The average price-reduced home has seen a listing price reduction of 10.6%.
Major metropolitan areas continue to be hit hard by price reductions. Of the top 50 cities in the U.S. based on population, 33 have seen 25% or more of home listings reduced in price, higher than the national average of 23.6%. U.S. cities that have seen at least 30% of homes reduced in price include:
• Jacksonville, Florida - 36%
•Tucson, Arizona - 32%
•Boston, Massachusetts - 32%
•Los Angeles, California - 32%
•Columbus, Ohio - 31%
•Dallas, Texas - 31%
•Honolulu, Hawaii - 31%
• Minneapolis, Minnesota - 31%
• Austin, Texas - 30%
• Washington, DC - 30%
• Baltimore, Maryland - 30%
• Las Vegas, Nevada - 30%
“Summer time is the peak season for buying and selling, and with some of the lowest prices in the last decade, we expect to it be a busy season,” said Pete Flint, Trulia co-founder and CEO. “Everyone wants to think they are getting the best deal available and price reductions are helping to spark a renewed interest in the U.S. real estate market.”
The Foreclosure Effect
The national average for price reductions on current home listings is 10.6%, but sellers in the areas hardest hit by foreclosures are slashing prices the most. Detroit home owners on average reduce their homes by 23%, while Las Vegas sellers reduce their homes by 16% and Miami sellers reduce their homes by 15%. Phoenix and Mesa are also experiencing deep price reductions with 13% slashed off the original listing price.
Luxury Market Getting Hit Hard
24% of homes with a selling price greater than $2 million are seeing price reductions compared to 23.6% of homes on the market for the less than $2 million. While the percentage of homes seeing discounts are almost identical, discounts on luxury homes are significantly more with 14.3% being slashed off the original listing price compared to only 9.7% of homes under the $2 million dollar price tag.
Trulia Price Reductions
According to the company, Trulia is one of the first national real estate sites to provide consumers with the ability to use price reductions as a search filter in their quest to find a deal in today’s market. Trulia’s Price Reduction feature can be accessed from the Trulia homepage and is deeply integrated into the existing search experience on the search results page and via the advanced search tab. Detailed information regarding multiple price reductions and prior sold data is now available on each property listing page.
Providing home buyers with access to price reduction data will help them be better informed as they decide which home to purchase and will help ensure consumers get the most home for their dollar. It will also help home sellers price their homes competitively as more homes come onto the market.
Charts are available for download at: http://www.trulia.com/info/june09pricereductions.
Methodology: All price change data is from live listings on Trulia.com, as of June 1, 2009 and tracks all price reductions from June 1, 2008 to June 1, 2009. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and MLSs. The percentage of listings with price reductions includes any non-foreclosure property on Trulia.com that has experienced at least one price reduction since it was first posted on the site. The city level data is for listings within the city boundary, and not for metro areas.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
$27.4 Billion Slashed Off Homes Currently for Sale Across America
RISMEDIA, June 9, 2009-Trulia, Inc., known for being one of the best places to start your real estate search, announced that 23.6% of current homes on the market in the United States have experienced at least one price cut, totaling $27.4 billion in reductions. The average price-reduced home has seen a listing price reduction of 10.6%.
Major metropolitan areas continue to be hit hard by price reductions. Of the top 50 cities in the U.S. based on population, 33 have seen 25% or more of home listings reduced in price, higher than the national average of 23.6%. U.S. cities that have seen at least 30% of homes reduced in price include:
• Jacksonville, Florida - 36%
•Tucson, Arizona - 32%
•Boston, Massachusetts - 32%
•Los Angeles, California - 32%
•Columbus, Ohio - 31%
•Dallas, Texas - 31%
•Honolulu, Hawaii - 31%
• Minneapolis, Minnesota - 31%
• Austin, Texas - 30%
• Washington, DC - 30%
• Baltimore, Maryland - 30%
• Las Vegas, Nevada - 30%
“Summer time is the peak season for buying and selling, and with some of the lowest prices in the last decade, we expect to it be a busy season,” said Pete Flint, Trulia co-founder and CEO. “Everyone wants to think they are getting the best deal available and price reductions are helping to spark a renewed interest in the U.S. real estate market.”
The Foreclosure Effect
The national average for price reductions on current home listings is 10.6%, but sellers in the areas hardest hit by foreclosures are slashing prices the most. Detroit home owners on average reduce their homes by 23%, while Las Vegas sellers reduce their homes by 16% and Miami sellers reduce their homes by 15%. Phoenix and Mesa are also experiencing deep price reductions with 13% slashed off the original listing price.
Luxury Market Getting Hit Hard
24% of homes with a selling price greater than $2 million are seeing price reductions compared to 23.6% of homes on the market for the less than $2 million. While the percentage of homes seeing discounts are almost identical, discounts on luxury homes are significantly more with 14.3% being slashed off the original listing price compared to only 9.7% of homes under the $2 million dollar price tag.
Trulia Price Reductions
According to the company, Trulia is one of the first national real estate sites to provide consumers with the ability to use price reductions as a search filter in their quest to find a deal in today’s market. Trulia’s Price Reduction feature can be accessed from the Trulia homepage and is deeply integrated into the existing search experience on the search results page and via the advanced search tab. Detailed information regarding multiple price reductions and prior sold data is now available on each property listing page.
Providing home buyers with access to price reduction data will help them be better informed as they decide which home to purchase and will help ensure consumers get the most home for their dollar. It will also help home sellers price their homes competitively as more homes come onto the market.
Charts are available for download at: http://www.trulia.com/info/june09pricereductions.
Methodology: All price change data is from live listings on Trulia.com, as of June 1, 2009 and tracks all price reductions from June 1, 2008 to June 1, 2009. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and MLSs. The percentage of listings with price reductions includes any non-foreclosure property on Trulia.com that has experienced at least one price reduction since it was first posted on the site. The city level data is for listings within the city boundary, and not for metro areas.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Tuesday, May 26, 2009
Central Park Friends
The following is a reprint from RisMedia Which I thought mightbe of value to many of you. It seems as if I get asked these questions very often.
RISMEDIA, May 25, 2009-(MCT)-Fewer homeowners may be starting complete kitchen remodels, but they’re still replacing countertops and re-facing cabinets. They’re also investing in improvements to make their homes more energy-efficient, according to a recent home remodeling and repair report by ServiceMagic.com. Others are splurging on hot tubs and home theaters after realizing that they may be in their homes for some years to come-and want to make them as comfortable as possible.
“People are not going bigger and better, but improving what they have more cost effectively,” said Craig Smith, CEO of ServiceMagic, a website that connects homeowners to prescreened contractors. For instance, instead of buying new furniture, they’re repairing what they have. Or they’re deep cleaning the carpet in lieu of replacing it.
All for good reason: Money is tight, lending standards strict and in a sluggish housing market you might not recoup as much of your remodeling investment at resale.
Home improvement spending is expected to decline 12% in 2009, according to Harvard University’s Joint Center for Housing Studies. Lower financing costs may be starting to stabilize the downturn in existing home sales, but “they have not been enough to offset rising unemployment and falling consumer confidence and encourage homeowners to undertake major home improvement projects,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center.
It’s much different than the days when home-equity lending was plentiful. Before doing anything, homeowners are carefully considering how they should spend their money.
In the days of easy credit, “there was a feeling of ‘we can’t go wrong, let’s just get started,’” said Bill Judson, an architect with HartmanBaldwin Design/Build, based in Claremont, Calif. “Now, it’s harder to get money, in terms of credit, and homeowners are taking it a little slower and educating themselves a little more.”
Meanwhile, those who do upgrade may be in for a bargain: Costs of materials, including lumber and copper, have dropped somewhat, Judson said. The biggest price cut has been related to lower labor costs as surviving contractors struggle to compete, he added.
The kitchen and bathroom are traditionally rooms where remodeling pays off. Some homeowners are still going through with full remodels these days, said Kimberly Sweet, editor of Kitchens.com. But they aren’t the norm. “A lot of people are making do with what they have, or maybe choosing to spruce up a few things and not do a full remodel,” Sweet said.
Nationally, the volume of countertop project requests rose 39% in the first quarter of 2009, compared with the first quarter of 2008, while major kitchen remodels are down 19%, according to ServiceMagic’s most recent Home Remodeling and Repair Index/Survey. The data comes from the company’s service requests; the site received 4.2 million requests from homeowners in 2008. Service requests for bathroom remodels were down 10% in the first quarter of this year, according to the report.
At the recent Kitchen/Bath Industry Show, affordable remodeling products included liquid stainless steel to refinish appliances and do-it-yourself backsplashes, Sweet said. Re-facing or painting cabinets and updating cabinet hardware have always been an option to remodel on a budget. For replacements, there are improved cabinet options in thermofoil, she said.
Consumers still gravitate toward granite countertops, but other less expensive-yet still attractive-countertop materials are available, Sweet added. For those considering resale values, it might be best to go for minor fix-ups. “Doing all the high end may not get you the return you were looking for before,” Sweet continued. “You don’t want to be the most expensive house on the block in this market.”
According to Remodeling Magazine’s 2008-2009 Cost vs. Value report, replacement projects that improve curb appeal-including siding, windows and decks-are some of your best bets for recouping money at resale.
Upgrading windows can make a home more energy-efficient. ServiceMagic has seen more interest in projects including insulation and solar-panel installation, which cut energy bills and are likely eligible for government tax credits, according to the company’s report.
And some homeowners are investing in home energy audits, for a comprehensive view of what can be done to increase efficiency, said Smith. The cost: Between $300 and $500. “But people will pay that because the insight provided can save them a lot of money down the road.” An audit can help homeowners prioritize projects.
Most home improvement projects may be practical these days, but some splurges are also becoming popular as market conditions force people to stay in a home longer than previously planned and as the economy has them spending more time entertaining at home. As a result, some homeowners are buying hot tubs, spas and saunas, as well as TVs and other home theater components, Smith said.
Compared to large-scale remodeling projects, “hot tubs are not a massive out-of-pocket expense,” Smith said. And “with the prices of flat-screen TVs coming down and the whole ’staycation’ phenomenon,” updated media rooms also have appeal, he added.
(c) 2009, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services.Read more: "Rethinking Remodeling: Homeowners Want More Bang for Their Home-Improvement Buck RISMedia" - http://rismedia.com/2009-05-24/rethinking-remodeling-homeowners-want-more-bang-for-their-home-improvement-buck/#ixzz0GdDgpcQV&A
RISMEDIA, May 25, 2009-(MCT)-Fewer homeowners may be starting complete kitchen remodels, but they’re still replacing countertops and re-facing cabinets. They’re also investing in improvements to make their homes more energy-efficient, according to a recent home remodeling and repair report by ServiceMagic.com. Others are splurging on hot tubs and home theaters after realizing that they may be in their homes for some years to come-and want to make them as comfortable as possible.
“People are not going bigger and better, but improving what they have more cost effectively,” said Craig Smith, CEO of ServiceMagic, a website that connects homeowners to prescreened contractors. For instance, instead of buying new furniture, they’re repairing what they have. Or they’re deep cleaning the carpet in lieu of replacing it.
All for good reason: Money is tight, lending standards strict and in a sluggish housing market you might not recoup as much of your remodeling investment at resale.
Home improvement spending is expected to decline 12% in 2009, according to Harvard University’s Joint Center for Housing Studies. Lower financing costs may be starting to stabilize the downturn in existing home sales, but “they have not been enough to offset rising unemployment and falling consumer confidence and encourage homeowners to undertake major home improvement projects,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center.
It’s much different than the days when home-equity lending was plentiful. Before doing anything, homeowners are carefully considering how they should spend their money.
In the days of easy credit, “there was a feeling of ‘we can’t go wrong, let’s just get started,’” said Bill Judson, an architect with HartmanBaldwin Design/Build, based in Claremont, Calif. “Now, it’s harder to get money, in terms of credit, and homeowners are taking it a little slower and educating themselves a little more.”
Meanwhile, those who do upgrade may be in for a bargain: Costs of materials, including lumber and copper, have dropped somewhat, Judson said. The biggest price cut has been related to lower labor costs as surviving contractors struggle to compete, he added.
The kitchen and bathroom are traditionally rooms where remodeling pays off. Some homeowners are still going through with full remodels these days, said Kimberly Sweet, editor of Kitchens.com. But they aren’t the norm. “A lot of people are making do with what they have, or maybe choosing to spruce up a few things and not do a full remodel,” Sweet said.
Nationally, the volume of countertop project requests rose 39% in the first quarter of 2009, compared with the first quarter of 2008, while major kitchen remodels are down 19%, according to ServiceMagic’s most recent Home Remodeling and Repair Index/Survey. The data comes from the company’s service requests; the site received 4.2 million requests from homeowners in 2008. Service requests for bathroom remodels were down 10% in the first quarter of this year, according to the report.
At the recent Kitchen/Bath Industry Show, affordable remodeling products included liquid stainless steel to refinish appliances and do-it-yourself backsplashes, Sweet said. Re-facing or painting cabinets and updating cabinet hardware have always been an option to remodel on a budget. For replacements, there are improved cabinet options in thermofoil, she said.
Consumers still gravitate toward granite countertops, but other less expensive-yet still attractive-countertop materials are available, Sweet added. For those considering resale values, it might be best to go for minor fix-ups. “Doing all the high end may not get you the return you were looking for before,” Sweet continued. “You don’t want to be the most expensive house on the block in this market.”
According to Remodeling Magazine’s 2008-2009 Cost vs. Value report, replacement projects that improve curb appeal-including siding, windows and decks-are some of your best bets for recouping money at resale.
Upgrading windows can make a home more energy-efficient. ServiceMagic has seen more interest in projects including insulation and solar-panel installation, which cut energy bills and are likely eligible for government tax credits, according to the company’s report.
And some homeowners are investing in home energy audits, for a comprehensive view of what can be done to increase efficiency, said Smith. The cost: Between $300 and $500. “But people will pay that because the insight provided can save them a lot of money down the road.” An audit can help homeowners prioritize projects.
Most home improvement projects may be practical these days, but some splurges are also becoming popular as market conditions force people to stay in a home longer than previously planned and as the economy has them spending more time entertaining at home. As a result, some homeowners are buying hot tubs, spas and saunas, as well as TVs and other home theater components, Smith said.
Compared to large-scale remodeling projects, “hot tubs are not a massive out-of-pocket expense,” Smith said. And “with the prices of flat-screen TVs coming down and the whole ’staycation’ phenomenon,” updated media rooms also have appeal, he added.
(c) 2009, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services.Read more: "Rethinking Remodeling: Homeowners Want More Bang for Their Home-Improvement Buck RISMedia" - http://rismedia.com/2009-05-24/rethinking-remodeling-homeowners-want-more-bang-for-their-home-improvement-buck/#ixzz0GdDgpcQV&A
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