2018 Real Estate Trends to Watch: ‘Surban’—That Sweet Spot Between City and Suburb

No—”surban” is not a typo. Think of it as the melding of two words to form a new one in the same manner as celebrity name fusion—think Brangelina, Bennifer or Kimye. Surban refers to a suburban area that has the feel of an urban area, with walkability to great retail and restaurants from a house or apartment, and it’s what all the real estate trend predictors are talking about.

What Is Surban?
Surban is defined as a suburban area that has the feel of urban; it is a blend of the best of urban and suburban life. Urban planners would previously have described these as “mixed-use” areas, but surban is a relatively new term that fits a bit better.

Characteristics of surban areas include:

• Located in suburban, not urban areas
• Anchored in areas with highly-rated schools and low crime rates
• Dominated by a number of housing options, from single-family residences to condos to townhomes
• Surrounded by great retail and shopping areas in walkable distance
• Highlighted with social venues such as restaurants, bars and entertainment

There is much being written about the current trend of surban living. The Urban Land Instituteestimates that these areas will draw at least 80 percent of the coming wave of households and will attract the most families in the next 10 years. Noted real estate consultants John Burns and Chris Porter recently authored a book, “Big Shifts Ahead,” and devoted an entire chapter to the surban way of life.

The Suburban and Urban Past
From 1950-1980, the real estate profession witnessed the trend of suburbia. Homeowners were moving out of the inner city and relocating in suburban areas. They were willing to sacrifice some incredible commute times to cities and suffer other inconveniences to experience an upscale lifestyle. This was because crime rates in urban areas were high and school performances were low.

The 1990s and 2000s brought with it an age of urbanization centered around the renewal of inner cities, development of mixed-use properties in urban areas, increased attention to mass transit, and a renewed focus on downtown condos. However, the economic downturn of the last decade left little job growth in the urban areas. In addition, crime rates are still relatively high, and school rankings and commitments to education remain low.

Paving the Way for Surban Areas
In order to truly understand what is meant by a surban area, let’s examine some specific examples. Think grown-up college campus. A walkable place to dine, work, live and play. Strip mall retail. Less emphasis on giant suburban malls. Let’s start with one of the original town centers.

In 1964, an internationally known planned community known as Reston, Va., was founded. When Reston founder Robert E. Simon, Jr., bought the Northern Virginia farmland 20 miles outside of Washington, D.C., he had the vision of developing a community that would embrace walkability, density, access to green space and a diversity of races and income levels.

In 1990, Reston Town Center opened. This iconic town center is described by CityLab as “a dense cluster of offices, restaurants and shops, centered on a wide-open plaza with a fountain…a community gathering spot.” Nearly 24 years later, the Silver Line Metro station opened in Reston, which ultimately perfected the interconnectedness of the community and city center by decreasing the need for cars.

When Reston Town Center was nearing completion in 1990, Kenneth P. Wong, senior development manager for the project, told the Washington Post: “The idea of a downtown in the suburbs was something that no one really had a grip on; it’s a very complicated proposition that needed a long [research and development] gestation period.”

The Surban Future
Today, suburban downtown areas are popping up throughout the country. Though Reston wasn’t the only place developing the blueprint for “surban” developments, it is often referred to as one of the most successful influencers.

Here are some of the other notable surban developments:

• Downtown Naperville, Ill., in the suburbs of Chicago
• Old Town Pasadena, Calif., in the suburbs of Los Angeles
• A-Town in Anaheim, Calif., in a neighborhood around the Angels Major League Baseball park
• Legacy Town Center in Plano, Texas, in the suburbs of Dallas
• Santana Row in San Jose, Calif., on a former rundown mall site
• City Centre in Houston, Texas, on a former rundown mall site
• Downtown Tempe, Ariz., in the suburbs of Phoenix
• Larkspur, Calif., north of San Francisco, with new housing sandwiched between a top-notch high school and a rejuvenated old downtown
• Geneva, Ill., in the suburbs of Chicago

These types of livable areas are projected to have a profound impact on many areas of real estate in the next several years.

Experts predict that surban developments will replace shopping centers. More retail stores will become places that sell experiences rather than goods, and more development will combine housing and retail to satisfy consumer demand for sites that offer convenient car-free shopping. Suburban office demand will also return. As Gen X and millennials move into more senior management roles and start families, many will move from urban cores to the suburbs to live in areas with good schools, but which are also near employment hubs and entertainment and recreational amenities. They will be willing to share space and work remotely.

What the Surban Trend Means for Housing
The focus is on rental properties, as rates are expected to surge over the long term. The de-emphasis on ownership will be reflected in soaring demand for rental units.

Well over half of the 12.5 million net new households created over the next decade will rent, including those who have never owned, and those making the switch from owning to renting as they age. Some experts believe homeownership will decline, with the national rate anticipated to be 60.8 percent by 2025—the lowest point since the 1950s.

As more people join the already large number of retirees, competition for workers will push up wages, contributing to a favorable environment for rent increases.

There may also be broader choices in housing options. For the most part, housing areas have historically been categorized based on single-family residences, townhomes, condominiums or multi-family buildings. The development and advancement of surban living have already begun blending housing options in a selected area. It will not be uncommon to find townhomes and condos mixed in with single-family residences. Ownership and rentals will exist in closer proximity to widen the retail base of the homes and provide an array of options for millennials.

By Len Elder, Instructor, McKissock Learning and Superior School of Real Estate

For more information, please visit www.mckissock.com or www.superiorschoolnc.com.

For the latest real estate news and trends, bookmark RISMedia.com.

10 Air Quality Control Tips for Home and Health

Air quality has a direct impact on our health, both in and outside of our homes. While much is being done to improve the air outdoors, maintaining a healthy level of air quality inside is evenly important.

A range of triggers can lower indoor air quality, including carpets, chemical cleaners, heat sources and humidity. Build-up of these pollutants may result in “Sick House Syndrome,” which poses health risks to residents if not addressed. Airborne lead particles and radon are especially harmful.

Opening windows can significantly improve the quality of the air in the home, but in many households, doing so is just one of several necessary steps. A checklist:

1. Clean your home frequently, preferably with natural or non-toxic cleaners, a HEPA-filter vacuum and a mop. Regular cleaning eliminates dust, which could be contaminated with lead if the home was built prior to 1978.
2.  Aim for less than 50 percent humidity inside the home; a higher percentage can lead to mold. A hygrometer can help determine the humidity level. Use an exhaust fan while bathing, cooking or using the dishwasher. Invest in a dehumidifier, if necessary.
3. Take care not to disturb lead-painted surfaces, especially if remodeling the home. If the paint is peeling, consult a lead removal specialist as soon as possible.
4. Test for radon. Most hardware stores carry do-it-yourself testing kits, and some utility companies offer the service free of charge. A qualified professional can conduct a longer-term test to determine radon levels at varying times throughout the year. He or she may recommend installing a radon mitigation system.
5. Dispose of paint, gasoline or any other chemicals at a certified hazardous waste disposal center. Visit search.earth911.com to locate a local facility. For future paint projects, purchase products labeled “low VOC.”
6. Replace the furnace filter every three months to reduce the amount of airborne dust circulating through the home.
7. Remove wall-to-wall carpeting, if possible—it traps particles that can exacerbate allergy and asthma symptoms, and may even contain formaldehyde, depending on the manufacturer. (Pressed wood materials, such as cabinets and furniture, may also release formaldehyde.)
8. Place plants where possible. House plants filter out airborne toxins, including ammonia and benzene, that can be detrimental to health. To reap the most benefits, use these NASA-approved species.
9. Remove shoes when entering the home, and place a floor mat at each entrance to deter any pollutants tracked in by guests. Dirt and pesticides brought in from outside can become airborne inside the home.
10. Insist the home remain smoke-free, if possible. Secondhand cigarette smoke, which lingers long after the smoker leaves, can have devastating effects on members of the household, including children and pets.

For more tips on indoor air quality and other home maintenance ideas, contact me today!

3 Ways to Get More From Your Carbon Monoxide Detector

Hopefully, you have a carbon monoxide detector in your home. But do you know if it’s working? According to the Centers for Disease Control and Prevention, more than 20,000 Americans visit the emergency room yearly for carbon monoxide (CO) poisoning.  

"Carbon monoxide can be produced from any system or appliance that burns fuel. While all home appliances are designed to vent properly to the exterior, cracks or blockages can cause leaks into the home," says Steve Truett, president of Aire Serv, who stresses the importance of scheduling annual maintenance for all equipment including furnaces, water heaters and space heaters. “Routine upkeep and other preventative measures, such as installing carbon monoxide detectors throughout the home, can help ensure the health and safety of the entire household."

Below are three tips to get more from your detector.

- If a vehicle is left running in the garage, the dangerous gas can build up inside the home. Place the detector within a few feet of the internal door to the garage.

- Avoid placing detectors in places that receive direct sunlight, or near open windows or other areas where there is a strong draft.

- Though detectors are meant to alert homeowners when there is a leak in a fuel-burning appliance, it's important to place them at least 15 feet away to prevent a false alarm.Source: Aire Serv 

Cyber Week Special

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Thinking about selling your home during the holidays?

We are here for all of your real estate needs. Inventory is at an all time low. It is very much a sellers market right now. We have many buyers looking and there are not enough properties to show them. Don't let the fact that we are in the holiday season discourage you if you are thinking about selling now. Please do not hesitate to contact us to find out how we can get your home sold today. It is an honor and privilege to serve you.

Moving? 5 Tips to Relocate the Garden

Moving itself is strenuous—moving fragile belongings, like plants, can be even more challenging.

Relocate the garden with these tips, courtesy of Ferguson Moving & Storage:

• Prepare plants for the move with a liberal dose of water. Damp roots and moist soil will help keep them thriving while being transported, and watered stems will hold up better during the move.

• Plant smaller flowers and shrubs in lightweight, temporary pots—this will make them easier to re-plant at the new home.

• Reduce the weight of heavy planters during the move by partially filling them with packing peanuts.

• Pack plants in the primary vehicle, if possible—not a moving truck or van.  If they must be packed in the truck, load them last so that they can be removed and tended to upon arrival.

• Make the moving company aware of the plants (to mitigate erratic driving) and request that they be unloaded as soon as possible at the new home.

Source: Ferguson Moving & Storage

4 Things to Know about Purchasing a Second Home

Often, those looking to purchase an additional home get confused between a second home and an investment property. However, the two are not interchangeable – especially when it comes to their financing.

Second-Home, Defined
A second home is real property that the homeowner intends to occupy in addition to their primary residence for part of the year. Usually, second homes are used as vacation homes. Second homes may also be properties that the homeowner visits on a regular basis.

Examples of second homes may include:

• A condo in a city where you frequently conduct business
• A beach house that you and your family occupy during the summer months
• A house in a different state where you have seasonal work

Getting a Mortgage
If you can’t purchase a second home out-right, you’re going to go the traditional route and look into obtaining a mortgage. In order to qualify for a second-home loan, the property is usually required to be located in a resort or vacation area (like the beach or mountains), or be a certain distance from the borrower’s primary residence.

Understanding Interest Rates
Most lenders consider second homes to be more of a risk than primary residences, but not as big a risk as investment properties. Typically, interest rates will show this; second-home mortgages may have lower interest rates than investment property loans, but not necessarily. It can all depend on the borrower’s entire financial picture.

Understanding Rules
Second-home loans often include a second-home rider along with the mortgage. This rider states certain rules the borrower must abide by in order to qualify for the loan.

These rules often include the following:

• The borrower will occupy and use the property as his/her second home
• The property will be kept available for the borrower’s exclusive use and enjoyment at all times
• The property cannot be used as a timeshare or be subject to any rental pool arrangement

The property cannot be subject to any agreements that require the borrower to rent the property or give a management firm (or anyone else) control over the use and/or occupancy of the property.

Ghostly Listings: What It Costs to Own a Famous Haunted House

After purchasing a house, learning that your new home has a grisly past would be a real-life nightmare for most people. For horror movie fans and those interested in the macabre, these homes are sought out for photos and bragging rights that you actually saw the haunted house.

However, despite drawing the public's interest, residences that have inspired Stephen King novels or classic scary movies often sit on the market for a long time and fetch far less than the asking price. Below are examples of iconic haunted houses and what they sold for (if they were sold at all).

Source: Newsday

Amityville Horror House (Long Island, N.Y.) – Sold in 2017 for $605,000

The basis of the book and subsequent film series went on the market last summer for $850,000 and sold earlier this year for more than $200,000 less than the asking price. With other homes in the Amityville neighborhood of Long Island regularly fetching upwards of $1 million, the home's past is likely to blame for the price drop.

Source: Jezebel

The Old Arnold Estate (Harrisville, R.I.) – Listed in 2015 for $400,000

The owners of this 14-room farmhouse in Rhode Island threatened to sue Warner Bros. following the release of The Conjuring (2013). Their property, which is the basis for the film, was constantly trespassed upon after the film became a hit. It eventually became too much and they listed the house themselves. It has since been taken off the market.

Source: Associated Press

Pet Sematary House (Orrington, Maine) – Listed in 2017 for $255,000

This is the home that Stephen King and his family rented in the late 1970s where he thought of the idea for his novel Pet Sematary. Not only was his daughter's cat hit by a truck in front of the home, but children in the neighborhood constructed an actual pet cemetery behind the four-bedroom Maine home that is still there today.

Source: StreetEasy

The Dakota (New York, N.Y.) – Sold in 2017 for $21,000,000

Probably most well-known for being the Manhattan co-op in front of which John Lennon was killed, The Dakota has a storied supernatural history. The most famous ghost in the building is the Crying Lady who is said to walk the co-op's halls. Also, the film Rosemary's Baby (1968) was set in "The Bramford," which was actually The Dakota, where most of the movie was filmed. This year, a three-bedroom went for the stunning price of $21 million.

Source: realtor.com

The Sowden House (Los Angeles, Calif.) – Listed in 2015 for $4.79 million

In 1947, this house was made famous because of the Black Dahlia murder. The home, built in 1927 and designed by Frank Lloyd Wright, was allegedly where local physician Dr. George Hill Hodel dissected the body of Elizabeth Short. Years later, in the early 2000s, Hodel's son Steve brought a cadaver dog into the home's basement and claims it detected the scent of decomposed human remains. There have also been reports of people hearing voices and chains being dragged.

Posted on Oct 19 2017 - 11:10am by Housecall

By Jameson Doris

Are Environmental Hazards Lowering Your Home’s Value?

You may be well versed in the factors that can improve your home’s value, like adding on a bathroom, installing energy-efficient appliances or putting on a new roof. But are you aware that certain environmental hazards, such as poor air quality can actually detract from your home’s value?

Research from ATTOM Data Solutions Environmental Hazards Housing Risk Index shows that 17.3 million single-family homes and condominiums are at high risk of an environmental hazard, such as brownfields, or property potentially contaminated by a hazardous substance, polluters, poor air quality and superfunds.

"Home values are higher and long-term home price appreciation is stronger in zip codes without a high risk for any of the four environmental hazards analyzed," says Daren Blomquist, senior vice president at ATTOM Data Solutions.

ATTOM details how home values have been affected by each of these environmental hazards:

- In areas with a "very high" brownfield risk - areas previously used for commercial development which may now have environmental contamination - 17.2 percent of properties are "seriously underwater," according to the Index; in areas with a "very low" brownfield risk, 8.9 percent of properties are seriously underwater. Median home prices in very high brownfield risk areas are 2.8 percent below 10 years prior, while median home prices in very low brownfield risk areas are 2.8 percent above 10 years prior. Home sellers in very high brownfield risk areas gained 25.3 percent on average at sale, while sellers in very low brownfield risk areas gained 18.9 percent.

- In areas with a very high polluter risk, 12.7 percent of properties are seriously underwater, compared to 9.2 percent of properties seriously underwater in very low polluter risk areas. Home sellers in very high polluter risk areas gained 16.6 percent on average at sale, while sellers in very low polluter risk areas gained 27.7 percent.

- For areas with a "low" or "moderate" risk of poor air quality, home sales volume has increased 26 percent in the past five years, according to the report; for areas with a "high" risk of poor air quality, home sales volume has increased 16.5 percent in the past five years, while in areas with a very high risk of poor air quality, home sales volume has increased 3.3 percent over the past five years.

- Median home prices in very high superfund risk areas - a U.S. federal program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants - are 1.5 percent below 10 years prior. Home sellers in high superfund risk areas gained 19.6 percent on average at sale, while sellers in very low superfund risk areas gained 24.4 percent.

Source: ATTOM Data Solutions

Four Strategies for a Faster Sale

Most sellers hope for a quick sale so they can begin moving into a new home. Unfortunately, things don’t always move that fast in the real estate world.

You may not have the luxury of waiting for an offer that meets your price. A seller may need to sell quickly because of a new job, a change in relationship or even a death in the family.

If you fall into the category of someone who needs to sell quickly, these strategies will get you the speedy resolution you desire.

Tell your agent. Make sure you explain to your agent how valuable time is to you. They will have experience in knowing what to do to get a home sold faster, and can better guide the direction of the sale.

Price it right. There’s nothing that leads to a quick sale faster than pricing your home at market value. While this might not be something you want to do, overpricing a home is a sure way to sit on the market. Remember, a property can’t be under priced. If the home is below market value, you will likely get multiple offers that bump the price back up.

Negotiate fairly. Keep an open mind in negotiations. If a bid comes in close to your asking price, you may need to give in or risk losing that buyer altogether. You can also be flexible in your contract terms, such as including your curtains or the pool table in your sale, to make the buyer happy. You may lose some negotiating power, but you’ll be happier in the long run when it leads to a sale.

Incentivize. Remember, money talks. One popular incentive for a fast closing is offering to help with closing costs. You can also offer a higher buyer agent commission to increase the number of showings.

Go Figure: Hipsters Are in Mainstream Markets

Culturally unsheltered and experience-happy, hipsters have massed in markets that meet their preference for “unconventional.” These hubs typically have an array of eateries, a hole-in-the-wall on every corner, and a lively music scene. (You probably never heard of it.)

Hipsters also live, however, in some of the hottest housing markets in the nation, according to recent research by realtor.com® and Yelp—markets with mainstream appeal, and demand to match.

“Although their opinions about their music and fashion may be out of the norm, when it comes to real estate, hipsters have a knack for getting it right,” says Javier Vivas, director of Economic Research for realtor.com. “Based on our research, there’s clear evidence that hipster popularity in markets like Austin, Texas, has led to mainstream interest and higher home prices over time. Whether it’s the farm-to-table restaurants or urban renewal projects that were already underway, a concentration of hipsters seems to be an indicator of a hot housing market.”

The No. 1 hipster housing market, the research reveals, is Columbus, Ohio—43202, or the Clintonville community, specifically. The neighborhood in the capital of The Buckeye State has brick and mortars that cater to hipsters in excess, with many businesses outside the norm or “underground.”

“Yelpers are great at identifying up-and-coming areas and businesses, which allows us to predict trends as well as uncover detailed data on what’s happening in local economies right now,” says Carl Bialik, data editor at Yelp. “While ‘hipster’ is something of a cliché, it turns out to be a useful term to uncover the types of businesses and attributes we often associate with ‘cool’ hunters, such as visually appealing interiors and less touristy parts of town.”

Hipsters, still, are mostly out West: in California, as well as Seattle (the original hipster hub), the research shows. The Haight in San Francisco (94117), Long Beach (90814) and North Park in San Diego (92104) all rank highly for hipsters, as well as Capitol Hill in Seattle (98122) and Colorado Springs in Colorado (80903).

Across the top 10 hipster markets, millennials comprise an average 22 percent of the population, and millennial realtor.com searches for homes are 1.2 times more than the existing millennial population, suggesting demand in the segment. Homes sell in an average 30 days, and unemployment is between 2.7 and 4.6 percent.

The complete top 10:

1. Columbus, Ohio (43202)

2. Seattle, Wash. (98122)

3. San Diego, Calif. (92104)

4. Fort Wayne, Ind. (46802)

5. Rochester, N.Y. (14620)

6. San Francisco, Calif. (94117)

7. Long Beach, Calif. (90814)

8. Louisville, Ky. (40217)

9. Grand Rapids, Mich. (49506)

10. Colorado Springs, Colo. (80903)
    

For more information, please visit www.realtor.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com.