If you do plan to update your home or garden, here are some trends to keep in mind.
Home decor.
The sleek, sophisticated but comfortable style known as “soft contemporary” will be a key look for the New Year, said Kris Kolar, vice president of interior design at Robb & Stucky Interiors. Instead of the eclectic clutter that has been popular for a while, there will be a move toward using just one or two eye-catching accents. These “punctuation-mark pieces,” featuring hand-worked techniques that give a custom look, may include special materials such as mother-of-pearl, flame mahogany and stainless steel.
Furniture.
The environmental movement is getting stronger, said Jackie Hirschhaut, spokeswoman for the American Home Furnishings Alliance. Increasingly, furniture is being built using natural-fiber fabrics, recycled metals and sustainable woods. Red will be the trendiest accent color for furniture, she predicted. And home offices will continue to boom as growing numbers of Americans work from their residences.
Color.
Classic neutrals and pops of exotic brights are the key shades at Pittsburgh Paints, which recently announced four color palettes for 2010.
The “Canvas” palette includes deep gray-browns and gray-blues, muted beige and chalky white. “Pink City” offers vibrant pinks, spicy oranges, grays and chocolate-brown. “Grace” includes elegant hues such as pale butter, bronze-gold and sea foam. And “Zest” reinvents the style of Palm Springs circa 1950, mixing high-energy yellows with gray, white and black.
Landscaping.
Organic vegetable gardens, like the one installed at the White House are likely to be a huge trend in 2010, said Orlando, Fla., horticulture expert Tom MacCubbin. Community gardens are a growing trend, especially those that involve children. Of all vegetables, he predicts tomatoes will be especially popular. In the landscape, perennial plants that last longer than annuals and need less care are a strong trend, he added. Trendy plants include gold mound duranta, a shrub with acid-green foliage, and perennial bulbine, which sports spikes of yellow blooms.
New-home construction.
The era of the extravagant McMansion is over, said Nathan Cross of NWC Construction in Orlando. When building new homes, people are increasingly budget-conscious. “It’s back to basics. Even the pool is a no-frills deal,” he said. About the only area where homeowners may be prepared to splurge a little is the master suite. Energy-efficiency will be important. So will going green: “So long as it’s a green trend that doesn’t cost too much.” Outdoors, some homeowners will be installing fireplaces, fire pits and summer kitchens.
Remodeling.
The trend toward making minor improvements to home exteriors is likely to extend into next year—for good reason. It gives homeowners the biggest bang for their bucks when it comes to selling their homes. In terms of costs recouped, eight out of the top 10 home-improvement projects this year were exterior upgrades that cost less than $14,000, according to Realtors Report’s annual Remodeling Cost vs. Value Report. A steel entry-door replacement topped the list, recouping 128.9% of costs, followed by upscale fiber-cement siding replacements (83.6%), wood deck additions (80.6%), and several types of window replacements (more than 70%). The two interior projects that landed on the top-10 list were attic-bedroom additions (83.1% recouped) and minor kitchen remodels (78.3%). The least profitable remodeling projects in terms of resale, and therefore not likely to be popular in 2010, were home-office remodels and sunroom additions.
Thursday, December 31, 2009
Tuesday, December 22, 2009
Senate Health Care Bill Threatens Home Building Industry
December 21, 2009 - In a rush to pass a massive health care overhaul before Christmas, Senate Democrats have included a last-minute provision targeting the construction industry that is certain to derail the fragile housing recovery and threaten the solvency of countless small home building firms.
In order to find the 60 votes needed to pass health care reform, a provision was slipped into the health care bill that unfairly targets small construction industry firms by mandating that they provide health insurance if they employ more than five workers. That is the same mandate required for big businesses. Meanwhile, all other small businesses – with the exception of the construction industry -- would be exempt from providing mandatory health coverage if they employ 50 workers or less.
“This narrow provision is an unprecedented assault on the construction industry and unjustly targets an industry trying to keep its doors open during the worst housing downturn since the Great Depression,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “If this provision were to be enacted into law, it would prove to be catastrophic for the home building industry. In short, this is a true jobs killer. Thousands of small builder firms struggling to stay afloat could go under. We strongly urge the Senate to reconsider and pull this onerous provision that threatens the viability of small home builders across the nation.”
In order to find the 60 votes needed to pass health care reform, a provision was slipped into the health care bill that unfairly targets small construction industry firms by mandating that they provide health insurance if they employ more than five workers. That is the same mandate required for big businesses. Meanwhile, all other small businesses – with the exception of the construction industry -- would be exempt from providing mandatory health coverage if they employ 50 workers or less.
“This narrow provision is an unprecedented assault on the construction industry and unjustly targets an industry trying to keep its doors open during the worst housing downturn since the Great Depression,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “If this provision were to be enacted into law, it would prove to be catastrophic for the home building industry. In short, this is a true jobs killer. Thousands of small builder firms struggling to stay afloat could go under. We strongly urge the Senate to reconsider and pull this onerous provision that threatens the viability of small home builders across the nation.”
Existing Home Sales Jump To Highest Level in Three Years
Sales of previously owned homes in the United States surged last month as prices continued to fall and buyers rushed to take advantage of a popular tax credit, the National Association of Realtors (NAR) said on Tuesday.
The National Association of Realtors said that sales rose 7.4 percent to an annual rate of 6.54 million units, the fastest pace since February 2007, and higher than the 6.25 million unit pace expected.
October sales were revised lower to a 6.09 million pace from 6.10 million units.
Compared to November last year, sales of existing homes were up 44.1 percent, the largest yearly gain on records dating to 1999.
The median sales price was $172,600, down 4.3 percent from a year earlier, and up 0.2 percent from October.
The National Association of Realtors said that sales rose 7.4 percent to an annual rate of 6.54 million units, the fastest pace since February 2007, and higher than the 6.25 million unit pace expected.
October sales were revised lower to a 6.09 million pace from 6.10 million units.
Compared to November last year, sales of existing homes were up 44.1 percent, the largest yearly gain on records dating to 1999.
The median sales price was $172,600, down 4.3 percent from a year earlier, and up 0.2 percent from October.
Monday, December 21, 2009
New Home Energy-Efficiency Incentives Could Boost Recovery
The National Association of Home Builders (NAHB) recently commended President Barack Obama as he proposed a new initiative to create jobs and make today’s homes more energy efficient.
In a recent speech that took place at a Home Depot in the suburban Washington, D.C. area, the president called on Congress to extend energy-efficiency tax credits for home owners as part of an $8 billion effort to reduce energy use.
“This is the kind of thinking that is going to get America back to work–and make a big difference in many home owners’ monthly utility bills,” said NAHB Chairman Joe Robson, a builder and developer in Tulsa, Okla.
NAHB estimates that 11,000 jobs, $527 million in wages and salaries, and $300 million in business income are generated by every $1 billion in new remodeling and home improvement activity. “That’s a huge impact just in the short run. And in the long run, the energy savings for participating home owners can be quite significant,” Robson said. “This also bolsters a very important message and something we have been saying for years: If we really want to make an impact on the nation’s energy use, we need to take significant steps to make the existing housing stock more efficient,” Robson said.
He pointed out that state and local home builder associations affiliated with NAHB can be instrumental in the effort to weatherize older homes and make them more energy efficient.
For example, the Builders Association of Minnesota served as the conduit for federal stimulus program funds provided to the state for its energy-efficiency programs. The association trained nearly 1,000 remodelers and other residential contractors and funneled the money to 1,300 Minnesota home owners to help them make needed improvements. Minnesota home owners got extra incentives for choosing projects like attic insulation, which some consumers don’t do because it’s something that’s not immediately visible, but when combined with incentives can bring a payback on utility bills within a year or two, depending on the climate.
“President Obama is right that saving money is very attractive, and so is providing jobs,” Robson said. “These are efforts that the Administration should consider on a much larger scale,” he continued. “They provide employment, stimulate the economy and help us reduce our dependence on fossil fuels–that’s three great outcomes. NAHB can help make this happen all over the country.”
Last month, the White House Council on Environmental Quality invited NAHB to explain how home builders, product manufacturers and remodelers can be part of the Administration’s “Recovery Through Retrofit” solution with programs like Minnesota’s. “We’re anxious to help with these efforts,” Robson said. “It’s what our members do, and do well–and they all want to get back to work
In a recent speech that took place at a Home Depot in the suburban Washington, D.C. area, the president called on Congress to extend energy-efficiency tax credits for home owners as part of an $8 billion effort to reduce energy use.
“This is the kind of thinking that is going to get America back to work–and make a big difference in many home owners’ monthly utility bills,” said NAHB Chairman Joe Robson, a builder and developer in Tulsa, Okla.
NAHB estimates that 11,000 jobs, $527 million in wages and salaries, and $300 million in business income are generated by every $1 billion in new remodeling and home improvement activity. “That’s a huge impact just in the short run. And in the long run, the energy savings for participating home owners can be quite significant,” Robson said. “This also bolsters a very important message and something we have been saying for years: If we really want to make an impact on the nation’s energy use, we need to take significant steps to make the existing housing stock more efficient,” Robson said.
He pointed out that state and local home builder associations affiliated with NAHB can be instrumental in the effort to weatherize older homes and make them more energy efficient.
For example, the Builders Association of Minnesota served as the conduit for federal stimulus program funds provided to the state for its energy-efficiency programs. The association trained nearly 1,000 remodelers and other residential contractors and funneled the money to 1,300 Minnesota home owners to help them make needed improvements. Minnesota home owners got extra incentives for choosing projects like attic insulation, which some consumers don’t do because it’s something that’s not immediately visible, but when combined with incentives can bring a payback on utility bills within a year or two, depending on the climate.
“President Obama is right that saving money is very attractive, and so is providing jobs,” Robson said. “These are efforts that the Administration should consider on a much larger scale,” he continued. “They provide employment, stimulate the economy and help us reduce our dependence on fossil fuels–that’s three great outcomes. NAHB can help make this happen all over the country.”
Last month, the White House Council on Environmental Quality invited NAHB to explain how home builders, product manufacturers and remodelers can be part of the Administration’s “Recovery Through Retrofit” solution with programs like Minnesota’s. “We’re anxious to help with these efforts,” Robson said. “It’s what our members do, and do well–and they all want to get back to work
Wednesday, December 16, 2009
Housing Starts Rise Less Than Expected
New U.S. housing starts rose but were lower than expected in November as construction activity for single family dwellings increased only marginally, a government report showed on Wednesday.
AP
The Commerce Department said housing starts increased 8.9 percent to a seasonally adjusted annual rate of 574,000 units.
Analysts polled by Reuters had expected housing starts to rise to 580,000 units. However, the percentage increase last month was the largest since May, indicating housing remained on a steady recovery path
October's housing starts were revised downwards to 527,000
units from the previously reported 529,000 units. Compared to the same period a year-ago, housing starts were down 12.4 percent, but way off the 54.9 percent decline seen in January.
Groundbreaking for single-family homes rose 2.1 percent last month to an annual rate of 482,000 units, after falling sharply in October. Starts for the volatile multifamily segment surged 67.3 percent to a 92,000 annual pace, reversing the previous month's plunge.
The housing sector, the main catalyst of the most painful U.S. recession since the 1930s, has been slowly improving after three straight years of decline. New home construction contributed to economic growth in the third quarter for the first time since 2005.
New building permits, which give a sense of future home construction, rose 6 percent to 584,000 units last month, the highest since November 2008. That compared to analysts' forecasts for 570,000 units. Compared to the same period a year-ago, building permits fell 7.3 percent.
AP
The Commerce Department said housing starts increased 8.9 percent to a seasonally adjusted annual rate of 574,000 units.
Analysts polled by Reuters had expected housing starts to rise to 580,000 units. However, the percentage increase last month was the largest since May, indicating housing remained on a steady recovery path
October's housing starts were revised downwards to 527,000
units from the previously reported 529,000 units. Compared to the same period a year-ago, housing starts were down 12.4 percent, but way off the 54.9 percent decline seen in January.
Groundbreaking for single-family homes rose 2.1 percent last month to an annual rate of 482,000 units, after falling sharply in October. Starts for the volatile multifamily segment surged 67.3 percent to a 92,000 annual pace, reversing the previous month's plunge.
The housing sector, the main catalyst of the most painful U.S. recession since the 1930s, has been slowly improving after three straight years of decline. New home construction contributed to economic growth in the third quarter for the first time since 2005.
New building permits, which give a sense of future home construction, rose 6 percent to 584,000 units last month, the highest since November 2008. That compared to analysts' forecasts for 570,000 units. Compared to the same period a year-ago, building permits fell 7.3 percent.
Thursday, December 10, 2009
30-Year Mortgage Rate Climbs From Record Lows
U.S. fixed home loan rates edged above record lows in the past week, tracking bond yields higher following surprise improvement in November employment, home funding company Freddie Mac said on Thursday.
Thirty-year mortgages averaged 4.81 percent, up 0.10 percentage point from the the previous week, when it hit the lowest level since Freddie Mac started tracking it in 1971.
Historically low mortgage rates, largely a response to government interventions such as the purchase of more than $1.4 trillion in mortgage-related debt, are helping restore stability in hard-hit U.S. housing after a three-year dive.
High unemployment and fear of job loss has curbed homebuyer appetite despite enticing borrowing costs and discounted house prices, The Labor Department reported last Friday that the unemployment rate dropped to 10 percent in November from a 26-1/2-year high of 10.2 percent in October.
"Following an upbeat employment report, long-term bond yields rose slightly and fixed mortgage rates followed" in the week ended Dec. 10, Freddie Mac chief economist Frank Nothaft said in a statement.
Despite the rise, "rates on 30-year fixed mortgages are almost 0.7 percentage points below those at the same time last year, (which) translates into an $81 lower monthly payment on a $200,000 conventional mortgage," Nothaft said.
The average 15-year mortgage rate climbed to 4.32 percent in the past week from 4.27 percent, which was a record low dating back to when Freddie started tracking this rate weekly in 1991.
A year ago, 15-year home loans averaged 5.20 percent.
Lenders charged an average of 0.7 points in fees on the 30-year loan and 0.6 points on the 15-year mortgage, unchanged in the week.
Thirty-year mortgages averaged 4.81 percent, up 0.10 percentage point from the the previous week, when it hit the lowest level since Freddie Mac started tracking it in 1971.
Historically low mortgage rates, largely a response to government interventions such as the purchase of more than $1.4 trillion in mortgage-related debt, are helping restore stability in hard-hit U.S. housing after a three-year dive.
High unemployment and fear of job loss has curbed homebuyer appetite despite enticing borrowing costs and discounted house prices, The Labor Department reported last Friday that the unemployment rate dropped to 10 percent in November from a 26-1/2-year high of 10.2 percent in October.
"Following an upbeat employment report, long-term bond yields rose slightly and fixed mortgage rates followed" in the week ended Dec. 10, Freddie Mac chief economist Frank Nothaft said in a statement.
Despite the rise, "rates on 30-year fixed mortgages are almost 0.7 percentage points below those at the same time last year, (which) translates into an $81 lower monthly payment on a $200,000 conventional mortgage," Nothaft said.
The average 15-year mortgage rate climbed to 4.32 percent in the past week from 4.27 percent, which was a record low dating back to when Freddie started tracking this rate weekly in 1991.
A year ago, 15-year home loans averaged 5.20 percent.
Lenders charged an average of 0.7 points in fees on the 30-year loan and 0.6 points on the 15-year mortgage, unchanged in the week.
Tuesday, December 1, 2009
Nine Consecutive Gains for Pending Home Sales
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®.
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 home buyer 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.
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 home buyer 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.
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