Thursday, February 6, 2014

Current Home Sellers Concerned About Financing Availability, Inventory

Current Home Sellers Concerned About Financing Availability, Inventory
While homeowners are feeling more confident about the prospect of selling their homes, they do harbor concerns regarding the availability of home financing and the low inventory available for their next purchases, according to the Redfin Real-Time Seller Survey released Tuesday.
About 38 percent of home sellers say now is a good time to sell a home, according to the Redfin surveyconducted in the first quarter of the year.
This is up from 34 percent in the previous quarter and up significantly from 22 percent a year ago.
Denver Redfin agent Paul Stone captures survey-takers’ sentiment, saying, “Most of my home-selling clients worry the most about what will happen after they sell.”
“With so much competition in the market, they fear they will have to move in with their in-laws if they can’t find their next home quickly,” he added.
In fact, the top two concerns for home sellers in the first quarter were the low inventory of homes available for their next home purchases and the financing environment, which might preclude potential buyers from being able to purchase their homes.
Low inventory was also a top concern in the previous quarter, cited among 30 percent of respondents, but concern about buyer financing is up 5 percentage points from the previous quarter.
“These concerns likely reflect higher prices and mortgage rates, which have harmed affordability, and stricter lending regulations that went into effect in January and could impact some buyers’ ability to get a loan,” stated Redfin analyst Ellen Haberle.
Redfin added a new category to its survey, “competition for next home,” which was marked as a concern among 27 percent of survey respondents.
While sellers have increased their concerns regarding financing, they are substantially less concerned with the overall economy.
In the fourth quarter, 39 percent of survey respondents cited “general economic conditions” as a concern. In the first quarter, just 26 percent reflected this concern.
Mortgage rates played at least a partial role in more than half of current home sellers’ decisions to list their homes for sale, according to the Redfin survey. Fifty-two percent of sellers said mortgage rates were a factor in their decision.
More sellers plan to upgrade to a larger or nicer home than to downsize or move to a different location. Forty-four percent of sellers plan to upgrade after selling their current home, whereas 29 percent plan to move to a new location, and 16 percent plan to downsize, according to Redfin.
Redfin surveyed 466 homeowners in 22 metros across the country for its quarterly survey.

ABOUT KRISTA FRANKS-BROCK

Krista Franks-Brock
Krista Franks Brock is a regular contributor to DSNews.com and TheMReport.com. She previously served as managing editor of DS News magazine. Prior to joining DS News, she was managing editor of Southern Distinction, a regional lifestyle magazine based in Athens, Georgia. She is currently a freelance writer and editor for various online and print publications. She holds degrees in journalism and art from the University of Georgia, where she also earned a minor in Spanish.

Wednesday, February 5, 2014

Foreclosure Pipeline Gradually Being Cleaned Out

As the foreclosure crisis continues to recede, some parts of the country remain at elevated levels. Five states now account for nearly half of all the completed foreclosures in the nation —Florida, Michigan, California, Texas, and Georgia, according to CoreLogic’s latest foreclosure report.
Foreclosures made up 10 percent of sales in December, while short sales comprised 4 percent of sales, according to the National Association of REALTORS®’ existing-home sales report for December
On average, foreclosures sold for an average discount of 18 percent below market value in December, while short sales were discounted 13 percent, NAR reports.
CoreLogic reported this week that completed foreclosures fell 14 percent in December year-over-year.
Inventories are also falling. About 837,000 homes in the United States in December were in some state of foreclosure or known as foreclosure inventory, compared with 1.2 million in December 2012 – a 31 percent year-over-year decrease, CoreLogic notes.
The five states with the highest foreclosure inventories as percentage of all homes with a mortgage are Florida (6.7%), New Jersey (6.5%), New York (4.9%), Connecticut (3.6%), and Maine (3.6%).
Meanwhile, the two states with the lowest foreclosure inventories as percentage of all homes with a mortgage were Wyoming (0.4%) and Alaska (0.5%).
“Clearly, 2013 was a transitional year for residential property in the United States,” says Anand Nallathambi, president and CEO of CoreLogic. “Higher home prices and lower shadow inventory levels, together with a slowly improving economy, are hopeful signals that we are turning a long-awaited corner. The housing market should continue to heal in 2014, but we expect progress to remain very slow.”
By REALTOR® Magazine Daily News
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Easy Home Renovations for Romance All Year Long.

2013-Valentines-Day-decor-ArchitectureArtDesigns-4by Courtney Soinski
With Valentine’s Day right around the corner, who says you have to celebrate love just one day out of the year?  Why not every other day, too?  It’s now a perfect time to add some romance to your home with some new decorating techniques.
We’ll show you how to transform your home into a romantic paradise where love never fades.   Here are some easy renovations for romance all year long:
  1. Romantic Furnishings.  Add luxury to a room with a chaise lounge or a four-poster bed.  With a bed with soft and silky sheets as the focal point of the room, it will radiate with elegance and romance.
  2. Soft Lighting.  When you want romance in your home, be sure to stay away from bright lights.  Lighting should be soft to give off the right vibe.  Try installing dimmer switches on lamps and chandeliers so you can easily adjust the brightness to match the room’s mood.
  3. Fireplaces & Candles.  The flickering flames from a fire bring out the romance in a room.  Fireplaces and candles create subtle light to both invigorate and relax the occupants.
  4. Sense of Touch.  Take advantage of your sense of touch through soft fabrics, bath curtains and the use of velvet or similar materials for upholstered chairs.  On lamps, opaque shades will give your skin a beautiful glow and soft, plush towels are a nice touch for a romantic atmosphere.
  5. Sense of Smell.  Enhance the overall mood in the room with the power of scent.  In every room of the house, use scented oils and candles while keeping a subtle smell that is not overpowering.   Add lovely aromas by placing fresh cut flowers around your home.
  6. Sense of Sight.  Captivate the sense of sight with lovely artwork of landscapes, sculptures, or still-life paintings.  Place delicate vases on dressers or a stack a poetry collection on a piece of furniture to enhance the romantic aura.
  7. Sense of Sound.  You can filter sound and keep noise levels down in your home’s romantic space by using curtains and soft, plush rugs.  Keep the television off or in another room to minimize noise.
Using these home decorating tips, you can create a romantic and elegant aura throughout your home this Valentine’s Day and all year long.  As you decorate your home, concentrate on captivating all the senses.  Sight, sound, touch, and smell should be used in soft and subtle ways to provide both luxury and tranquility.
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Think Color in 2014

Gray is the new black; reclaimed wood and porcelain floors are made for walkin’; and wireless is controlling sound, window shades, TV, and more. This is a look at the 10 hottest home design trends anticipated for the new year.
Whether it’s based on fashion, the economy, new technologies, or the overall mood of the country, home design trends come and go — sometimes slowly and sometimes lickety-split. But as with apparel, some trends become classics and remain strong — a Barcelona chair, for instance — while others go out the window (think avocado and harvest gold kitchen appliances).
The best advice you can give recent buyers or soon-to-be sellers is not to copy any trend blindly, especially if it doesn’t work with their budget, decor, personal preference, or lifestyle. It’s smart for your clients to be more cautious with expensive, permanent parts of their home environment, but more daring with easy-to-switch dishes, wall paint, and pillows.
Here are 10 trends that are coming on big in 2014:
1. Wider, reclaimed wood and wood-like porcelain floors. Wood floorboards are getting wider—often up to 5 and 6 inches, stained warm gray, and cut from several tree species, says designer Jennifer Adams, principal of Jennifer Adams Design Group in Portland, Ore. Adams is also seeing less of the hand-scraped look, which was costly to produce. Yet, boards can be personalized in other ways. Bole Floor uses a technique that gives floorboards a natural-looking curve, which also allows for more boards from each tree. Other companies like Maine Heritage Timberrecycle logs from older trees, which adds warm patina. Architect Elissa Morgante of Morgante-Wilson Architects in Chicago, has found that these reclaimed boards can look smashing whether in traditional or contemporary settings. Porcelain flooring has become more popular, too, because it’s indestructible and available in unlimited styles, sizes, and colors, says designer Steven Gurowitz of Interiors by Steven G.
 
2. Simpler cabinets, bigger drawers. A major shift is occurring in kitchen cabinets: Warmer gray tones are replacing oranges and browns for a more authentic look, says Andy Wells, vice president of product design at MasterBrand Cabinets. Styles also have shifted from traditional and detailed to more transitional and mid-century modern, since cleaner designs tend to give a kitchen a more timeless look. To fit these styles, hardware is less visible, more modern, and sometimes integrated into the doors. Instead of lower cabinets, big drawers are favored because they’re easier to access and can be fitted with removable storage receptacles.
 
3. Paint palettes. After years of beiges and whites grabbing all the attention as a way to appeal to potential buyers, many home owners now opting for more varied colors. Color forecasters agree that gray, especially a warmer hue, is the “it” gal in home design for 2014. Mary Lawlor, manager of color marketing for Kelly-Moore Paints, says overall look is lighter, fresher soft corals, shell colors, sea greens, lavenders, and misty blues — sometimes mixed with more potent purples and metallics. She also sees a decrease in Tuscan palettes. Sara McClean, who works with Dunn-Edwards, projects neon brights fading or being mellowed, and expects blues to be everywhere. Jackie Jordan, director of color marketing for Sherwin-Williams, says four color palettes are emerging: black, white, and gray layered with textures and warm woods; soft flesh tones, beiges, grays, and off-whites; deeper romantic hues, like purple, teal, red, and some oxided golds and coppers; and globally inspired, ethnic brights balanced by neutrals.
 
4. Indoor-outdoor living. The trend for indoor and outdoor spaces to blend seamlessly continues with more rooms having multiple sets of French doors that open to the outside, as well as big windows that bring in the outdoors visually. Solariums with screens for fresh air in summer, and screened or covered porches that link a house with patio and pool are also coveted home features, says Jeffrey Colle, whose firm designs and builds homes throughout the Hamptons. Even freestanding outdoor structures are being spiffed up. Pool houses may feature more than changing rooms and bathrooms; some owners are adding cooking equipment, fireplaces, and terraces with living room-style seating, wireless sound systems, and weather-protected TVs. Also expect more pizza ovens, fireplaces, fire pits, and propane heaters to extend use.
 
5. Kitchen color, energy efficiency, and new materials. Several trends are changing up the look of the kitchen, the room where everyone still wants to hang out:
  • After years of playing it safe in color in appliances, some home owners are willing to go boldBertazzoni is manufacturing its professional-style ranges in “vitamin” colors of red, yellow, and an orange it calls Arancio.
  • Bertazzoni, Thermador, and other companies are making their ranges eco-friendly, energy efficient, and more about healthy cooking with new steam oven models.
  • Smaller is in when home owners downsize. Bertazzoni’s range is available in a 30-inch version.
  • Instead of giving up valuable space for a desk, home owners are shifting more toward smaller work areas that allow them to recharge phones, tablets, and other portable devices, as well as a place to leave their mail and keys, says designer Jennifer Gilmer.
  • New materials are replacing standard-bearers. One example: After years of seeing granite top so many counters, metals are coming on strong, such as hot rolled steel, says Gilmer.
  • The mismatched, unfitted look is disappearing, replaced by cabinets that fit together more like a jigsaw puzzle and reflect a cleaner, tidier look, says Morgante.
     
6. Bathroom kudos. Bathrooms continue to become more luxurious, says Deb Dumel, showroom manager of the Frank Webb Bath Center in Boston. She sees several trends coming on stronger in 2014:
  • TVs integrated into medicine cabinets to avoid having a separate TV visible all the time, such as a sleek one from Robern.
  • Bigger steam showers—sometimes 7 feet by 4 feet—equipped with built-in speakers, an iPad docking station, Bluetooth connectivity, and aromatherapy. Gone are the panoply of jets and sprays that made some showers resemble a human car wash, Dumel says. In their place may be dual controls for two to shower at once with different temperatures. Also popular are rain heads that provide a softer, but still drenching, spray rather than the sharp needle effect. Infinity drains that run the length of a shower floor eliminate curb designs.
  • For men who don’t want to worry about fogging up a mirror when shaving, there are more antifogging devices available.
  • Washlets can now introduce greater comfort and cleanliness with an integrated, self-cleaning nozzle that releases a warm, soothing stream of aerated water; many also have a heating device and deodorizer.
  • Though many do without a tub or a whirlpool, others want the option if there’s room and funds in the budget. Freestanding models are favored.

7. Technology wow. As you can see with all aspects of home design, technology systems are being integrated more and more, at all price ranges and complexities. From heat to lighting, security to sound and entertainment, and windows and window treatments to doors, technology is a home owner’s friend whether they are home or away. Spurring this trend is less costly wireless technology, sometimes one-and-a-half times less than hard wiring, says Eric Thies, founder and director of marketing for VIA International. At the high end, he sees home owners adding digital backsplashes with displays to watch TV or cycle through digital files of kids’ artwork or family photos. Many home owners are beefing up their networks to business-grade levels. To be extra safe, Morgante says those who have wireless may want hard wiring to ensure sure they don’t lose connections.
 
8. Global style. The shrinking world means more ethnic fabrics and handcrafted artworks mixed into traditional, transitional, and modern spaces. African and Asian pieces will be particularly popular, along with more embroidered fabrics, says designer Heidi Rawson, based in Scottsdale, Ariz. Kimba Hills, owner of Rumba Style in Santa Monica, Calif., is using Turkish rugs overdyed with bright and subdued tones. “The rugs bring great color and warmth. They’re more contemporary and edgier than their traditional counterparts,” Hills says.
 
9. Personalized quality. After years of tight budgets, there’s a return to quality as consumers spend more on choice pieces. Designer Claudia Juestel of Adeeni Design Group in San Francisco searches for artisans who fashion bespoke pieces to create one-of-a-kind interiors. The designs she and others favor incorporate craftsmanship and time-honored materials while utilizing modern technology, too. Some examples of her favorite artisans: Paul Benson for metal furnishings and accessories; Kyle Bunting for decorative hide rugs; Michael Coffey for sculptural furnishings; and The Alpha Workshops for a wide variety of unique products.
 
10. Accent chairs. While big comfortable sofas are always the go-to seating in most rooms, accent chairs for an extra perch and pop of color are coming on strong, says Kristen Pawlak, with Decorating Den in Louisville, Ky. “They’re small, affordable, and a way to add an accent for little cost. They also can introduce a new style to a room. Just be sure to keep it in the same scale as other furnishings,” Pawlak says.
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2013-14 Cost vs. Value: Remodeling Pays Off Big Time

Home improvement projects across the board are giving home owners a greater return on their investment when it comes time to sell. Find out which projects “open the door” to buyers and where remodeling dollars stretch the furthest.
As existing-home sales and home prices make remarkable strides upward nationwide, remodeling projects are also continuing to make a comeback in a big way.
This is the second year in a row that all 35 projects inRemodelingmagazine’s Cost vs. Value Report saw more home improvement dollars recouped upon resale of a home than the previous year.
Existing-home sales reached 5.02 million in 2013, a 9.1 percent increase from 2012, according to the National Association of REALTORS®. Home prices also rose in 2013: Existing homes commanded a median price of $197,100, up 11.5 percent from the 2012 median price of $176,800. This is the largest price gain since 2005.
Also for 2013, the cost-value ratio of remodeling projects nationwide averaged 66.1 percent, up 5.5 points over the previous year — which is, like median price, the largest increase since 2005.

Remodels That Payoff

The fan favorite in the 16th annual Cost vs. Value Report, which was released this month, was again the steel door entryway. Topping the list last year as well, this project is ideal for clients considering a quick update to the curb appeal of a home. The survey shows that a new steel door, with an average cost of $1,162, will recoup 96.6 percent of the remodeling cost at resale.
Making the biggest gain in percentage of recouped costs was the addition of a backup power generator. This project, averaging $11,742, jumped 28 percent in estimated resale value, recouping 67.5 percent of its cost in 2013. Usually at the bottom of the list, this project now ranks 25th out of the 35 projects. The increase is attributed in the report to 2013’s “unpredictable weather and multiple large storms.”

Regional Trends

The report also shows where remodeling dollars go the furthest.
Topping the list for remodeling costs recouped upon resale were Honolulu and San Francisco, at 110.8 percent and 109.4 percent, respectively. San Jose, Calif., came in third, with just shy of 100 percent of remodeling costs recouped on average. San Diego came in fourth, with 89.8 percent of costs recouped at resale; and fifth was Bridgeport, Conn., bringing in 85.9 percent of remodel costs at resale.
Also signifying distinct improvements over last year, seven of the country’s nine regions outperformed the nationwide cost-value average of 66.1 percent.  
Holding onto their positions as the top two regions for recouping remodeling costs were the Pacific (Alaska, California, Hawaii, Oregon, and Washington), with an 88 percent cost-value ratio, and West South Central (Arkansas, Louisiana, Oklahoma, and Texas), with a 76.4 percent cost-value ratio.
The award for most improved region could go to New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont), which moved from sixth to third this year with an overall cost-value ratio of 74.6 percent.
The two regions that held lower cost-value ratios than the national average were the Middle Atlantic (New Jersey, New York, and Pennsylvania) and West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota), with cost-value ratios of 63.2 percent and 57.3 percent, respectively.

Top Projects

If your clients are considering a home improvement project to boost the quality and appeal of their home, pass on this list of top 10 midrange and upscale projects from the 2013-14 Cost vs. Value Report:

Top 10 Midrange Projects

1. Entry Door Replacement (steel)
Job Cost: $1,162
Resale Value: $1,122
Cost Recouped: 96.6%
2. Deck Addition (wood)
Job Cost: $9,539
Resale Value: $8,334
Cost Recouped: 87.4%
3. Attic Bedroom
Job Cost: $49,438
Resale Value: $41,656
Cost Recouped: 84.3%
4. Garage Door Replacement
Job Cost: $1,534
Resale Value: $1,283
Cost Recouped: 83.7%
5. Minor Kitchen Remodel
Job Cost: $18,856
Resale Value: $15,585
Cost Recouped: 82.7%
6. Window Replacement (wood)
Job Cost: $10,926
Resale Value: $8,662
Cost Recouped: 79.3%
7. Window Replacement (vinyl)
Job Cost: $9,978
Resale Value: $7,857
Cost Recouped: 78.7%
8. Siding Replacement (vinyl)
Job Cost: $11,475
Resale Value: $8,975
Cost Recouped: 78.2%
9. Basement Remodel
Job Cost: $62,834
Resale Value: $48,777
Cost Recouped: 77.6%
10. Deck Addition (composite)
Job Cost: $15,437
Resale Value: $11,476
Cost Recouped: 74.3%

Top 10 Upscale Projects

1. Siding Replacement (fiber-cement)
Job Cost: $13,378
Resale Value: $11,645
Cost Recouped: 87.0%
2. Garage Door Replacement
Job Cost: $2,791
Resale Value: $2,315
Cost Recouped: 82.9%
3. Siding Replacement (foam-backed vinyl)
Job Cost: $14,236
Resale Value: $11,124
Cost Recouped: 78.1%
4. Window Replacement (vinyl)
Job Cost: $13,385
Resale Value: $10,252
Cost Recouped: 76.6%
5. Window Replacement (wood)
Job Cost: $16,798
Resale Value: $12,438
Cost Recouped: 74.0%
6. Grand Entrance (fiberglass)
Job Cost: $7,305
Resale Value: $5,163
Cost Recouped: 70.7%
7. Deck Addition (composite)
Job Cost: $35,158
Resale Value: $22,881
Cost Recouped: 65.1%
8. (tie) Bathroom Remodel
Job Cost: $51,374
Resale Value: $32,660
Cost Recouped: 63.6%
(tie) Major Kitchen Remodel
Job Cost: $109,935
Resale Value: $69,973
Cost Recouped: 63.6%
9. Roofing Replacement
Job Cost: $34,495
Resale Value: $21,731
Cost Recouped: 63.0%
10. Bathroom Addition
Job Cost: $72,538
Resale Value: $43,936
Cost Recouped: 60.6%
The data used in the Cost vs. Value Report was collected with the help of REALTOR® Magazine in an online survey between August and October 2013. More than 4,500 NAR members participated from 101 U.S. cities, up from 81 cities included in last year’s survey.
Visit www.costvsvalue.com to find information from the 101 cities included in the survey and download free PDFs that include specific metro-area market data. (Site registration is required.) Also visitHouseLogic.com for a slide show of the report’s results.
Construction cost estimates were generated by RemodelMAX. Cost vs. Value is a registered trademark of Hanley Wood, LLC.
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