Saturday, April 11, 2015

The Contemporary Kitchen: 10 Top Trends for 2015


NKBA_kitchen
Photo Credit: National Kitchen & Bath Association
Contemporary is the buzzword when it comes to kitchen designs this year, according to the National Kitchen & Bath Association. Streamlined designs, eclectic touches, and multiples of appliances lead the trends, according to NKBA’s 2015 forecast.
Here are the top 10 overall kitchen design trends expected to be hot this year, according to NKBA’s report:
1. Clean with an overall contemporary feeling: A fusion of styles and multiple colors in one kitchen
2. European-styled cabinets
3. Multiples of appliances in one kitchen (most notably two dishwashers, like a dishwasher and a dishwasher drawer, or the addition of a refrigerator/freezer)
4. The rise of steam ovens
5. Furniture-like pieces (such as furniture-styled dry bars)
6. Outdoor kitchens
7. Fewer standard kitchen tables, replaced by counters or tall gathering tables
8. TVs and docking stations (many kitchens have desks or home office areas as well as flat-screen televisions and docking/charging stations)
9. Wine refrigerators
10. A focus on the user experience, from easy maintenance to accessible design

Most Popular Colors: The most common color scheme for kitchens: White, followed by gray, according to NKBA. About a third of NKBA remodelers also said they did black or blue kitchens in 2014. Kitchens in green tones were also gaining in popularity. Designers are increasingly reporting an appetite for kitchens with multiple color schemes.
“I am seeing lots of white painted kitchen perimeters with espresso stained islands and dark stained kitchen perimeters with light colored painted islands,” says Christine Shorr with Morris Black Designs in Allentown, Pa. “Lots of painted white kitchens with light countertops and espresso islands and painted gray cabinets.”
Out of style: Country/rustic, Tuscan and Provincial looks with distressed finishes, as well as color schemes in reds, bronzes, and terra cottas are on their way “out” in the kitchen.
By Melissa Dittmann Tracey, REALTOR® Magazine 

Friday, April 10, 2015

Asian Investors Lead International Commercial Investment in U.S. and Canada, says NAR Survey

WASHINGTON (March 12, 2015) – International investment in commercial real estate is dominated by Asian interests in both Canada and the U.S., according to a new surveyfrom the Richard J. Rosenthal Center for Real Estate Studies at REALTOR® University and the National Association of Realtors®.
The survey found that 47 percent of Canadian respondents and 41 percent of those in the U.S. indicated that their international clients were from Asian countries.
“Commercial real estate has become a global industry, and Realtors® from across the U.S. and Canada now regularly serve clients from all over the world,” said NAR PresidentChris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark. “This survey proves the fact that while all real estate is local, not all investors are local.”
The survey was done in collaboration with the Canadian Real Estate Association and with assistance from the CCIM Institute and Institute of Real Estate Managers. Nearly 3,000 Realtors® answered questions about their international commercial clients and the perceived changes they see in the demand for and utilization of office space.
According to the survey, 45 percent of Realtors® who practice commercial real estate in Canada noted an increase in international clients. Similarly in the U.S., more than a third of responders, 36 percent, observed an increase in international investment.
The survey found that in the U.S., 22.5 percent of international clients came from Europe, 21 percent from Latin America and 20 percent from the Middle East. In Canada, Realtors® said 18 percent of international commercial real estate investment came from the Middle East, 17 percent from Europe and 5 percent from Latin America. It is important to note that the heaviest cross-border investment in commercial real estate continues to be between the U.S. and Canada.
International investors brought significant capital into North America, nearly $13 billion in the latter half of 2014. Investors from Asia invested $5.7 billion in real estate, $4.8 billion came from Europe, $1 billion came from Oceania and $390 million came from Latin American investors. 
The survey also found a changing demand for office space in both the U.S, and Canada. Commercial clients are seeking more flexible office spaces, reducing the amount of personal space for workers and increasing the amount of communal space; 40 percent of Canadian respondents and 45 percent in the U.S. said their clients are looking for more open space in their offices.
The location of offices spaces is also seeing a shift. In Canada, a majority of investors is looking at property in metropolitan areas with populations of more than 1 million. In the U.S., however, investors have begun moving away from larger markets into secondary and tertiary markets; more than one-third of U.S. respondents reported investors are interested in markets with populations less than 750,000.   
Highlights from the report are available at www.realtoru.com/real-estate-studies/current-research-programs/international-commercial-real-estate-investment. A full copy of the report is available to news media upon request.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
The Richard J. Rosenthal Center for Real Estate Studies is a think tank/real estate research laboratory designed to provide timely hands-on and results oriented real estate data and analysis relevant to industry trends and policy issues from a practical standpoint and provides high quality practical research that raises the credibility and profile of Realtors®. 
The Canadian Real Estate Association is one of Canada’s largest single-industry trade associations, representing more than 109,000 Realtors® working through some 90 real estate Boards and Associations.

Real Estate Likely to Ride a 3-Year Wave

The real estate industry is expected to strengthen this year and continue to get stronger through 2017, according to a new report released from the Urban Land Institute Center for Capital Markets and Real Estate, which is based on a survey of the industry’s top economists and analysts.
Survey respondents said that the residential, single-family housing sector remains in recovery mode and economists predict that housing starts will rise from 647,000 in 2014 to 700,000 in 2015; to 815,000 in 2016; and 900,000 by the end of 2017.
Economists predict that existing home prices will rise through 2017 -- rising 5 percent this year; another 4 percent in 2016; and by 4 percent in 2017.
"In summary, almost all U.S. real estate participants would be very pleased if the future unfolded as predicted by the ULI consensus forecast," says ULI leader William Maher, director of North American strategy for LaSalle Investment Management in Baltimore. "The forecast represents almost the perfect combination of strong economic and property market fundamentals, combined with an orderly wind-down of monetary stimulus."
Although an economic downturn could throw off these predictions, as well as interest rate spikes or oversupplies, "real estate pros predict three more years of smooth sailing for U.S. real estate," Maher adds.
Survey respondents were also upbeat with their forecasts for the commercial market, including: 
  • Office sector: Respondents expect rental rates in office space to rise 4 percent this year, 4.1 percent in 2016, and 3.5 percent in 2017.
  • Apartments: Respondents expect rental rates continue to push upward, rising by 3.5 percent in 2015, 3 percent in 2016, and 2.7 percent in 2017.
  • Retail: Analysts expect that rental rates in the retail sector to rise by 2 percent in 2015, 3 percent in 2016, and 2.9 percent in 2017.
  • Industrial/warehouse: Analysts expect rental rates in the warehouse sector to rise by 4 percent this year, 3.8 percent in 2016, and 3.1 percent in 2017.

Saturday, April 4, 2015

What's Trending Now in Real Estate

Home prices are surging

Price growth is only increasing, due to a lack of inventory in some markets. According to Lawrence Yun, NAR chief economist "Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels." Buyers in many areas need to be prepared for an increased amount of competition due to low housing inventory this spring.

Mortgage rates hold steady

30-year fixed rate mortgages remain at 3.7 percent, but that is likely to change. "Low mortgage rates are a welcome sign for those in the market to buy a home this spring season and will help to support homebuyer affordability," says Len Kiefer, deputy chief economist at Freddie Mac. 

Sellers are needed

It continues to be a seller's market, as total housing inventory at the end of February increased just 1.6 percent to 1.89 million existing homes available for sale. For the second month in a row, unsold inventory is at a 4.6-month supply, below what is considered normal for a healthy market.

Buyers want move-in-ready properties

Despite the low housing inventory, buyers are picky about the condition of properties for sale and expect homes to be move-in-ready. "Buyers don’t want to assume any risk with properties that need work, particularly first-time buyers with limited cash resources," says Budge Huskey, chief executive officer at Coldwell Banker Real Estate.

Foreclosures keep slipping

After peaking in 2006, foreclosures are returning to significantly low levels across the country. "Given that August 2006 was the peak of the housing bubble, this eight-and-a-half year low in foreclosure activity is a significant milestone and a sign that nationwide foreclosure activity is on track to return to historic norms this year," says Daren Blomquist, vice president at RealtyTrac.
Trending in 2015

Investor slowdown

Competition between regular buyers and investors is decreasing. Home prices are getting so high that the share of home sales to investor clients recently reached a four year low.

Buying: it's cheaper than renting

A recent study from NAR found that rents are on the rise in many parts of the country. "In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent," says Yun. A recent study also showed that renters are spending around 30 percent of their wages on rent, compared to homebuyers who spend below 15 percent of their wages on mortgage payments.

A focus on first-time buyers

New programs from Fannie Mae and Freddie Mac seek to make it easier for first-time borrowers to buy a home. They recently introduced 3 percent down payment mortgages-- the first time down payments have been this low on Freddie Mac loans in nearly five years. Besides this, Freddie Mac launched the "Our Home Possible Advantage Program", which is aimed at supporting first-time buyers by allowing no minimum from borrowers in contributions, which means that parents or relatives now can cover 100 percent of the down payment through gifts.

Going green

Millennial clients are providing the push for home builders to downsize. According to the National Association of Home Builders, the average size of a new home is 10 percent less than the typical home five years ago. Younger clients are leading the push for green and energy efficient homes, according to a recent study by NAR.
Source: "9 Real Estate Trends to Watch in 2015," The Fiscal Times (March 27, 2015)

Tuesday, March 31, 2015

California housing market bounces back in February after slow start to year

Slowing home price appreciation and improving inventory combined to boost California’s housing market in February as existing home sales and median home prices increased from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 368,160 units in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in February were up 4.7 percent from a revised 351,480 in January and up 2.4 percent from a revised 359,600 in February 2014.  The year-over-year increase was the largest observed since December 2012. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the February pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

“While February’s statewide improvement in the housing market was moderate, it’s an encouraging sign, nevertheless, as we head into the spring home-buying season,” said C.A.R. President Chris Kutzkey.  “On the supply side, housing inventory improved overall with active listings growing at a faster pace of 5.3 percent when compared to last February.  Regionally, both active listings in Southern California and Central Valley increased moderately from last year, while housing supply declined 10 percent in the Bay Area.”

The median price of an existing, single-family detached California home was essentially flat from January’s median price, inching up from $426,660 in January to $428,970 in February. February’s median price was 5.5 percent higher than the revised $406,460 recorded in February 2014.  While the statewide median home price is higher than a year ago, the rate of increase has narrowed significantly since early 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“The California housing market regained some traction in February as sales activity improved on a year-over-year basis for the second time in three months,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “At the state level, the market is moving in the right direction as the growth of sales continues its upward trend and home prices start stabilizing.  At the regional level, however, the San Francisco Bay Area continued to be hampered by constrained inventory and low housing affordability.”

Other key facts from C.A.R.’s February 2015 resale housing report include:

• The available supply of existing, single-family detached homes for sale statewide in February was unchanged from the 5 months reported in January. The index was 4.7 months in February 2014.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home shortened in February, down from a 52.4 days in January to 47 days in February but up from 40.1 days in February 2014.

• According to C.A.R.’s newest housing market indicator measuring sales-to-list price ratio*, properties are again generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is keeping sales prices in line with original asking prices.  The statewide measure suggests that homes are selling at a median of 97.7 percent of the list price, down slightly from a ratio of 98.2 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 104.2 percent.

• The average California price per square foot** for an existing single-family home was $210 in February 2015, an increase of 2.5 percent from the previous month and a 4.1 percent increase from February 2014.  Price per square foot at the state level has been showing an upward trend since early 2012, and has been rising on a year-over-year basis for 37 consecutive months.  In recent months, however, the growth rate in price per square foot has slowed down significantly as home prices leveled off.  San Francisco County had the highest price per square foot in February at $754/sq. ft., followed by San Mateo ($689/sq. ft.), and Santa Clara ($552/sq. ft.).  The three counties with the lowest price per square foot in February were Siskiyou ($102/sq. ft.), Tehama ($107/sq. ft.), and Madera ($110/sq. ft.).

• Mortgage rates edged up in February, with the 30-year, fixed-mortgage interest rate averaging 3.71 
percent, up from 3.67 percent in January but down from 4.3 percent in February 2014, according to Freddie Mac.  Adjustable-mortgage interest rates also rose in February, averaging 2.43 percent, up from 2.38 percent in January but down from 2.54 percent in February 2014.

Graphics (click links to open):


Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only.  County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  Due to the low sales volume in some areas, median price changes in February exhibit unusual fluctuation. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions.  The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage.  A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.   

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property.  It is calculated as the sale price of the home divided by the number of finished square feet.  C.A.R. currently tracks price-per-square foot statistics for 33 counties.  

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

February 2015 County Sales and Price Activity (Regional and condo sales data not seasonally adjusted)

February-15Median Sold Price of Existing Single-Family HomesSales
State/Region/CountyFeb-15Jan-15 Feb-14 MTM% ChgYTY% ChgMTM% ChgYTY% Chg
CA SFH (SAAR)$428,970$426,660r$406,460r0.5%5.5%4.7%2.4%
CA Condo/Townhomes$367,180$352,590r$345,250r4.1%6.4%3.7%-7.4%
Los Angeles Metropolitan Area$409,810$395,200 $383,080 3.7%7.0%1.3%-1.9%
Inland Empire$282,400$267,070 $260,360r5.7%8.5%-0.6%-5.2%
S.F. Bay Area$740,270$668,520r$673,410r10.7%9.9%11.6%-4.5%
          
S.F. Bay Area         
Alameda$697,160$640,330 $627,550 8.9%11.1%2.1%-8.6%
Contra-Costa (Central County)$738,090$723,960 $629,570 2.0%17.2%7.4%-13.4%
Marin$1,023,440$982,140 $983,690r4.2%4.0%25.9%-8.5%
Napa$544,120$400,000 $466,670 36.0%16.6%6.1%6.1%
San Francisco$1,154,760$986,610r$1,062,500r17.0%8.7%28.4%-22.3%
San Mateo$1,200,000$1,012,500 $970,000r18.5%23.7%23.3%-3.2%
Santa Clara$915,130$815,000 $805,000r12.3%13.7%13.0%0.9%
Solano$337,500$326,510 $288,300 3.4%17.1%8.3%17.7%
Sonoma$489,330$468,180 $467,860 4.5%4.6%8.9%-10.1%
Southern California         
Los Angeles$419,260$441,610 $389,080 -5.1%7.8%-0.3%-3.2%
Orange County$680,290$674,340 $677,700 0.9%0.4%10.9%6.3%
Riverside County$323,220$306,060 $302,370 5.6%6.9%4.3%-7.7%
San Bernardino$213,930$206,660 $186,440r3.5%14.7%-7.8%-0.6%
San Diego$499,000$496,380 $476,780 0.5%4.7%14.8%5.7%
Ventura$568,840$582,630 $558,490 -2.4%1.9%-1.7%6.4%
Central Coast         
Monterey$500,000$420,000 $500,000 19.0%0.0%-7.7%6.2%
San Luis Obispo$491,670$478,720 $480,680 2.7%2.3%-5.2%6.4%
Santa Barbara$556,820$690,220 $661,760 -19.3%-15.9%5.7%12.1%
Santa Cruz$675,000$665,000 $600,000 1.5%12.5%15.8%0.9%
Central Valley         
Fresno$210,320$211,470 $182,270 -0.5%15.4%10.0%5.8%
Glenn$220,000$162,500 $200,000 35.4%10.0%-33.3%75.0%
Kern (Bakersfield)$215,000$195,000r$195,000 10.3%10.3%-6.9%-10.2%
Kings County$196,000$172,500 $182,500 13.6%7.4%4.5%-19.3%
Madera$217,500$245,000 $172,860r-11.2%25.8%-21.6%-43.1%
Merced$168,750$168,750 $181,670 0.0%-7.1%31.7%10.7%
Placer County$375,380$375,980 $370,090 -0.2%1.4%16.6%9.1%
Sacramento$283,960$256,670 $260,330 10.6%9.1%19.6%11.5%
San Benito$450,000$435,000 $399,000 3.4%12.8%22.9%10.3%
San Joaquin$270,750$263,360 $234,930 2.8%15.2%7.4%-1.8%
Stanislaus$237,680$230,790 $215,380 3.0%10.4%-4.0%-2.5%
Tulare$172,140$173,330 $163,330 -0.7%5.4%23.4%15.9%
Other Counties in California         
Amador$271,430$210,710 $206,250 28.8%31.6%30.4%-18.9%
Butte County$247,320$231,730 $217,650r6.7%13.6%10.8%33.7%
Calaveras$232,500$223,000 $225,500 4.3%3.1%1.8%-5.1%
Del Norte$189,000$152,260 $220,000 24.1%-14.1%-33.3%71.4%
El Dorado County$384,880$375,000 $332,050 2.6%15.9%19.1%16.1%
Humboldt$250,000$263,890 $218,750 -5.3%14.3%31.3%55.6%
Lake County$184,290$163,330 $170,000 12.8%8.4%-6.3%-18.2%
Mariposa$250,000$268,750 $225,000 -7.0%11.1%-11.1%-33.3%
Mendocino$309,090$258,330 $272,220 19.6%13.5%17.2%6.3%
Nevada$334,000$340,000 $305,000 -1.8%9.5%-13.7%16.7%
Plumas$192,500$276,000 $118,000 -30.3%63.1%100.0%81.8%
Shasta$225,860$216,130 $186,000 4.5%21.4%-2.9%-3.6%
Siskiyou County$148,330$195,000 $130,000 -23.9%14.1%-16.0%16.7%
Sutter$213,330$227,080 $188,000 -6.1%13.5%9.4%7.4%
Tehama$150,000$162,860 $237,500 -7.9%-36.8%-36.7%26.7%
Tuolumne$195,000$236,360 $222,730 -17.5%-12.5%0.0%0.0%
Yolo$372,860$307,500 $333,330 21.3%11.9%39.4%17.9%
Yuba$215,220$204,170 $200,000r5.4%7.6%27.3%55.6%
r = revised

February 2015 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)
February-15Unsold Inventory IndexMedian Time on Market
State/Region/CountyFeb-15Jan-15 Feb-14 Feb-15Jan-15 Feb-14 
CA SFH (SAAR)5.05.0 4.7 47.052.4 40.1 
CA Condo/Townhomes4.34.3 3.9 43.252.4r40.0r
Los Angeles Metropolitan Area5.85.5 5.0 58.763.0 48.0 
Inland Empire6.76.4 5.4r67.667.5 48.0 
S.F. Bay Area3.23.1 3.3r37.748.6 36.4r
           
S.F. Bay Area          
Alameda2.82.6 3.1 48.856.1 48.7 
Contra-Costa (Central County)3.32.8 3.0 53.368.1 49.2 
Marin3.94.0 4.1 39.451.9 29.8 
Napa5.65.4 5.9 87.973.1 51.5 
San Francisco2.52.6r4.2r20.729.1r25.5r
San Mateo2.82.5 2.9 19.122.5 20.8 
Santa Clara2.62.3 2.5 21.325.4 19.8 
Solano4.24.2 3.5 47.850.5 37.7 
Sonoma4.13.9 3.8 52.163.8 50.6 
Southern California          
Los Angeles5.24.9 4.6 51.154.8 43.6 
Orange County5.15.1 5.1 65.171.9 56.6 
Riverside County7.07.1 5.6 72.370.0 49.0 
San Bernardino6.25.4 5.0 58.163.5 45.8r
San Diego4.65.0 5.0 28.635.0 29.9 
Ventura5.85.2 5.2 66.572.6 58.3 
Central Coast          
Monterey5.34.7 5.5 34.242.0 40.2 
San Luis Obispo5.65.0 5.9 39.937.9 47.2 
Santa Barbara5.85.4 6.3 46.654.9 28.1r
Santa Cruz3.53.9 3.7 28.546.0 49.9 
Central Valley          
Fresno5.76.1 5.8 34.542.4 31.8 
Glenn4.02.7 9.5 70.782.8 98.3 
Kern (Bakersfield)5.04.5r3.7r33.037.0 30.0r
Kings County6.86.6 4.3 51.350.3 54.4 
Madera12.99.5 2.5 94.658.2 58.6r
Merced4.96.6 4.6 58.748.6 29.6 
Placer County4.54.7 4.2 39.542.7 26.5 
Sacramento3.43.9 3.8 27.834.2 25.7 
San Benito2.93.8 3.3 41.052.2 41.9 
San Joaquin4.44.6 3.8 35.539.3 25.4 
Stanislaus4.54.1 3.9 29.832.9 26.1 
Tulare5.46.3 5.9 49.549.7 40.4 
Other Counties in California          
Amador6.47.4 4.7 110.3115.2 36.8 
Butte County4.44.7 6.4r55.250.5 49.6r
Calaveras8.68.4 7.2 93.047.0 75.0r
Del Norte12.28.4 20.9 127.0160.0 159.0r
El Dorado County5.56.0 6.1 62.779.9 46.4 
Humboldt5.97.5 9.3 77.156.8 52.8 
Lake County8.26.9 6.5 109.6103.4 84.0r
Mariposa13.512.0 3.7 135.568.3 105.5 
Mendocino8.910.2 9.0 100.7123.7 70.7 
Nevada7.36.0 7.7 52.060.0 46.5 
Plumas14.025.3 24.1 192.5155.0 106.0 
Shasta7.97.4 7.1 64.271.2 55.2 
Siskiyou County15.212.8 16.7 56.4122.1 110.3 
Sutter4.34.4 3.6r49.578.7 25.5r
Tehama10.05.7 12.9 45.553.8 70.7 
Tuolumne6.77.2 7.8 57.150.3 86.4 
Yolo3.44.3 4.2 29.145.5 28.1 
Yuba3.74.9 6.0r29.037.2 38.3r
r = revised

Realtor in Thousand Oaks, Conejo Valley

I help people selling their homes get them sold quickly and almost always at 100% asking, even over in some markets. I save my real estate b...