By ELSA BRENNER
Published: May 15, 2009
SEVERAL months ago, Munyaradzi and Jacquie Chenje fell in love on the Web — not with each other, but with a house.
The place lived up to the photos, they say.
When Mr. Chenje, a senior United Nations staff member in Nairobi, Kenya, learned last winter that he was being transferred to New York City, he and his wife powered up their computer and began the search for a new home in the suburbs of Manhattan.
Their list of must-haves included a commute no longer than 30 minutes for Mr. Chenje; a school within walking distance for their son, Nicholas, 17; and a backyard with enough space and sunshine so that Mrs. Chenje could grow a vegetable garden.
Months of e-mail messages flew back and forth between the Chenjes and the global relocation department of Houlihan Lawrence, as the couple sifted through myriad online listings, checked out comparable values on Web sites like Zillow.com and surveyed neighborhoods on Google’s map site.
Last fall, they found exactly what they were looking for: a four-bedroom Dutch colonial in New Rochelle. It was less than two blocks from the public high school, seven minutes from the train station and about a half hour from Grand Central Terminal.
They were particularly taken with an online photograph of the trees and bushes on the front lawn in full spring bloom. “It reminded us so much of Nairobi, which is very verdant, that we just fell in love with the place,” Mrs. Chenje said.
Before they signed a contract, Mr. and Mrs. Chenje traveled to New Rochelle to inspect the house.
“In the end, the final decision was an in-person one,” she said. “But it was what we expected it would be. We were not disappointed.”
Increasingly, virtual shopping, especially during the early stages of looking for a home, is a major component in the real estate business. Buyers, sellers and agents are using social networking sites like YouTube and Facebook, online classifieds like Craigslist and enhanced real estate sites like Listingbook.
A Web tool that enables agents to include up to 30 photos along with each listing, Listingbook offers virtual tours and 360-degree views. Agents issue the client a password allowing access to the site; they can then provide him or her with an update via e-mail on price reductions and new listings, explained Caryn Balamaci, a broker with Coldwell Banker Residential Brokerage in Scarsdale.
In general, she added, the younger the clients, the more Web-savvy they are.
As an example of typical clients, she cited John Hayes, an investment banker, and his wife, Michelle, a special education teacher, who live in a one-bedroom rental apartment in the Riverdale section of the Bronx with their 8-month-old daughter, Madison. Crowded in their current quarters, they are looking for a three- or four-bedroom house in either Westchester or Connecticut.
Each morning at 6, Mr. Hayes tends to the baby and searches the Web for a house, reading Ms. Balamaci’s morning e-mail alerts on Listingbook. He also checks out sites like PropertyShark.com for the most recent sales price and ownership information on specific listings. He continues online shopping throughout the day and stays in constant touch with his agent by e-mail and by phone.
“My BlackBerry,” Mr. Hayes said, “is never far from my side.”
The Web’s ease of access to international clients has only enhanced its use as a marketing tool. Houlihan Lawrence, for example, advertises online with telegraph.co.uk in Britain and the global edition of nytimes.com, among others.
In the words of P. Gilbert Mercurio, the chief executive of the 900-member Westchester County Board of Realtors in White Plains, “we’ve seen several big changes in this business in recent years.”
Less than a decade ago, for instance, real estate firms were still advertising only their own listings online. “Today, it’s the rare Web site where a consumer can’t see all the M.L.S. listings,” Mr. Mercurio said.
The Westchester-Putnam Multiple Listing Service has also entered into a syndication agreement with ListHub, a Web site that reposts local listings on Trulia, aol.com and other sites. And as of last month, individual agents have been able to communicate with their customers through Listingbook.
As a further example of how the Web has oiled the wheels of communication, Houlihan Lawrence is now in partnership with Westchester magazine, a monthly, to share content online, said Chris Meyers, the brokerage’s chief operating officer. Houlihan is providing the magazine’s Web site with a real estate search engine; the magazine is providing Houlihan with restaurant reviews and other community information.
In addition, agents and agencies are increasingly using blogs to answer questions and opine on various subjects.
“For the real estate business, blogs have become an online version of Ann Landers,” said Claire Civetta, an agent for Coldwell Banker.
As for Facebook and Twitter, which help agents make new contacts, Mr. Meyers at Houlihan Lawrence likened those tools to “attending an online cocktail party.”
At the Sotheby’s office in Larchmont, Jim Whittemore, the manager, who became an agent in the 1970s, says he is now forever tethered to his BlackBerry. But, he said: “Technology can only go so far. You still have to get the customers in the car and take them there. Some people think you can even kick the tires online, but you can’t.”
Originally published at nytimes.com
Monday, May 18, 2009
Thursday, April 30, 2009
Showing once, showing twice, priced right … Sold!
Selling in a down market is difficult, but not impossible
By Christa Buchanan
C &G Staff Writer
"There’s a lot of competition on the market for those who need to sell their homes right now, and the age-old mantra of clean, de-clutter and update, while still essential, doesn’t quite cut it in today’s oversaturated housing market.
“Pricing is the biggest concern right now. The home must be priced competitively, and the condition of the home would have to be darn near perfect to get the house sold. It has to have all the major mechanical updates: a new roof, furnace, electric, windows — all those sorts of things,” said Eric Goosen, a Realtor with Real Estate One and owner of Goosen Realty in St. Clair Shores.
With houses seemingly for sale at nearly every corner in metro Detroit, and an abundance of foreclosures and short sales listed at rock-bottom prices, the experts agree that in order for a home to sell, it must be priced right.
“There’s no question about it, and that’s that in the end, it really comes down to price — it has to be priced aggressively, and when I say aggressively, I mean aggressive because they are competing against foreclosures,” said Realtor Robert Dundon of Weir Manuel Realtors in Birmingham.
“Definitely, price is everything,” agreed Gary Patrosso, a Realtor with Keller Williams Realty in St. Clair Shores. “The competition they’re facing is quite steep; they’re competing with the bank-owned homes and the HUD (U.S. Department of Housing and Urban Development) homes — that’s what first-time buyers are looking at.
“HUD has some great incentives. No. 1, HUD offers the FHA (Federal Housing Administration) $100 down payment program, and then gives extra incentives: If the home is more than $25,000, HUD gives the buyer $2,500 toward closing costs. They can also get a 3 percent concession of the sale’s price; HUD offers concession money for the first year’s homeowners insurance, private home inspections, tax prorations,” Patrosso said. “On top of all this, first-time homebuyers are eligible for up to $8,000 in federal tax credits.”
With such stiff competition, the average homeowner may feel that he just can’t compete.
Goosen noted that while “banks keep dropping prices on foreclosures, oftentimes those foreclosures are going to need a lot of work. Buyers need to balance the costs of buying a foreclosure that needs $10,000, $15,000, $20,000 worth of work, rather than a home that needs nothing. Many buyers don’t have the money after closing costs to make those repairs.”
To that end, what many sellers may not know, said Dundon, is that there’s something to be said for a “warm home,” or a house that’s currently occupied and well maintained, and buyers know that.
“That’s why the condition of the house has to be in very, very good shape. Not so much cosmetic things, but the things that are going to be expensive for the buyer: Any concrete, foundation or roof problems need to be fixed to get the house sold; the windows need to be clean; clean up the landscaping, the gutters and edge the lawn; the smell of the house and the cleanliness are very important — things like that can help tremendously,” Goosen said.
Offering concessions upfront can also help, said Patrosso.
“The fastest way to sell is to lower the price, but offering concessions toward closing costs right upfront is a good way to attract buyers. … These concessions are huge because most first-timers have the credit score and the income, but they don’t have closing cost money,” he said.
It may seem like doom and gloom for the average homeowner looking to sell, but that’s not entirely the case, said Dundon. “There is a positive side to taking a hit on your home: When you’re moving up to a bigger home, you’re also getting a tremendous deal on the other end,” he said.
“Don’t look at it like you’re giving your home away. Look at it like you’re going to move into a better home, like you’re going to recoup the money you lost when you buy that bigger house in a better school district,” Patrosso said.
On a more positive note, Dundon said, the market is beginning to stabilize.
“I honestly think that it’s the worst I’ve ever seen, but it’s getting better — things are very slowly starting to turn around. In 2010-11, people are going to say, ‘I should have bought in ’09.’
“Right now, it really is a tremendous time to buy. I’ve been in it for 35 years and I’ve never seen the deals I see now — ever. … Houses are selling — every single day houses are selling, and prices are already hitting bottom.”
Five years from now, the Realtors agree, today’s buyers are really going to reap the benefits of homeownership, especially considering the rock-bottoms prices, low interest rates and government incentives currently being offered.
“This market is changing people’s lives. Not only are buyers getting a great deal, but FHA interest rates are phenomenal right now. Five or six years from now, the value of that house could very well double, and that could change lives forever,” Patrosso said.
For more information, contact Dundon at (248) 644-6300, Goosen at (586) 771-1100 or Patrosso at (586) 541-4058.
You can reach Staff Writer Christa Buchanan at cbuchanan@candgnews.com or at (586) 498-1061."
Originally published at candgnews.
By Christa Buchanan
C &G Staff Writer
"There’s a lot of competition on the market for those who need to sell their homes right now, and the age-old mantra of clean, de-clutter and update, while still essential, doesn’t quite cut it in today’s oversaturated housing market.
“Pricing is the biggest concern right now. The home must be priced competitively, and the condition of the home would have to be darn near perfect to get the house sold. It has to have all the major mechanical updates: a new roof, furnace, electric, windows — all those sorts of things,” said Eric Goosen, a Realtor with Real Estate One and owner of Goosen Realty in St. Clair Shores.
With houses seemingly for sale at nearly every corner in metro Detroit, and an abundance of foreclosures and short sales listed at rock-bottom prices, the experts agree that in order for a home to sell, it must be priced right.
“There’s no question about it, and that’s that in the end, it really comes down to price — it has to be priced aggressively, and when I say aggressively, I mean aggressive because they are competing against foreclosures,” said Realtor Robert Dundon of Weir Manuel Realtors in Birmingham.
“Definitely, price is everything,” agreed Gary Patrosso, a Realtor with Keller Williams Realty in St. Clair Shores. “The competition they’re facing is quite steep; they’re competing with the bank-owned homes and the HUD (U.S. Department of Housing and Urban Development) homes — that’s what first-time buyers are looking at.
“HUD has some great incentives. No. 1, HUD offers the FHA (Federal Housing Administration) $100 down payment program, and then gives extra incentives: If the home is more than $25,000, HUD gives the buyer $2,500 toward closing costs. They can also get a 3 percent concession of the sale’s price; HUD offers concession money for the first year’s homeowners insurance, private home inspections, tax prorations,” Patrosso said. “On top of all this, first-time homebuyers are eligible for up to $8,000 in federal tax credits.”
With such stiff competition, the average homeowner may feel that he just can’t compete.
Goosen noted that while “banks keep dropping prices on foreclosures, oftentimes those foreclosures are going to need a lot of work. Buyers need to balance the costs of buying a foreclosure that needs $10,000, $15,000, $20,000 worth of work, rather than a home that needs nothing. Many buyers don’t have the money after closing costs to make those repairs.”
To that end, what many sellers may not know, said Dundon, is that there’s something to be said for a “warm home,” or a house that’s currently occupied and well maintained, and buyers know that.
“That’s why the condition of the house has to be in very, very good shape. Not so much cosmetic things, but the things that are going to be expensive for the buyer: Any concrete, foundation or roof problems need to be fixed to get the house sold; the windows need to be clean; clean up the landscaping, the gutters and edge the lawn; the smell of the house and the cleanliness are very important — things like that can help tremendously,” Goosen said.
Offering concessions upfront can also help, said Patrosso.
“The fastest way to sell is to lower the price, but offering concessions toward closing costs right upfront is a good way to attract buyers. … These concessions are huge because most first-timers have the credit score and the income, but they don’t have closing cost money,” he said.
It may seem like doom and gloom for the average homeowner looking to sell, but that’s not entirely the case, said Dundon. “There is a positive side to taking a hit on your home: When you’re moving up to a bigger home, you’re also getting a tremendous deal on the other end,” he said.
“Don’t look at it like you’re giving your home away. Look at it like you’re going to move into a better home, like you’re going to recoup the money you lost when you buy that bigger house in a better school district,” Patrosso said.
On a more positive note, Dundon said, the market is beginning to stabilize.
“I honestly think that it’s the worst I’ve ever seen, but it’s getting better — things are very slowly starting to turn around. In 2010-11, people are going to say, ‘I should have bought in ’09.’
“Right now, it really is a tremendous time to buy. I’ve been in it for 35 years and I’ve never seen the deals I see now — ever. … Houses are selling — every single day houses are selling, and prices are already hitting bottom.”
Five years from now, the Realtors agree, today’s buyers are really going to reap the benefits of homeownership, especially considering the rock-bottoms prices, low interest rates and government incentives currently being offered.
“This market is changing people’s lives. Not only are buyers getting a great deal, but FHA interest rates are phenomenal right now. Five or six years from now, the value of that house could very well double, and that could change lives forever,” Patrosso said.
For more information, contact Dundon at (248) 644-6300, Goosen at (586) 771-1100 or Patrosso at (586) 541-4058.
You can reach Staff Writer Christa Buchanan at cbuchanan@candgnews.com or at (586) 498-1061."
Originally published at candgnews.
Conference examines real estate trends
Most Americans partially blame some form of the media for the current financial crisis, according to statistics provided by Paul Bishop, the keynote speaker at the 2009 Real Estate Trends Conference on Wednesday in Shreveport.
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Bishop, the managing director of real estate research for the National Association of Realtors, gave an overview of the national economy and highlighted certain facets of the local economy.
The conference, presented by the commercial investment division of the Northwest Louisiana Association of Realtors, lasted all morning and included presentations on trends in residential, retail, industrial and office real estate from local professionals.
A luncheon featured guest speaker Marie Boucher, field office manager for the Shreveport district office of the Louisiana Office of Financial Institutions.
"Who do Americans blame for this level of pessimism?" Bishop said. "Basically it's one form of the media or the next. They don't say the media caused the financial collapse."
About 66 percent of people blame advertisers, 59 percent blame the print media, and 56 percent blame other forms of media, including the Internet, Bishop added.
He said people feel like the media helped perpetuate an attitude of overspending.
"Where did we go wrong? Why did we go wrong?" Bishop said. "Well, you'll notice no one blames themselves here "» I'd be very concerned if I was in the newspaper business."
Bishop then turned his focus to the local economy and real estate industry.
He said northwest Louisiana should expect slower net absorption in office and industrial retail.
The financial markets must loosen up before new construction takes place, he added.
"As we've seen earlier, the securities markets are at a standstill," Bishop said. "Lower rent growth is probably likely."
He said potential areas for strength in the local economy include the energy sector, health, government and education industries and expansion at Barksdale Air Force Base. The area's weaknesses lie in the automobile sector and related industries and exports.
Originally published at www.shreveporttimes.com.
Advertisement
Bishop, the managing director of real estate research for the National Association of Realtors, gave an overview of the national economy and highlighted certain facets of the local economy.
The conference, presented by the commercial investment division of the Northwest Louisiana Association of Realtors, lasted all morning and included presentations on trends in residential, retail, industrial and office real estate from local professionals.
A luncheon featured guest speaker Marie Boucher, field office manager for the Shreveport district office of the Louisiana Office of Financial Institutions.
"Who do Americans blame for this level of pessimism?" Bishop said. "Basically it's one form of the media or the next. They don't say the media caused the financial collapse."
About 66 percent of people blame advertisers, 59 percent blame the print media, and 56 percent blame other forms of media, including the Internet, Bishop added.
He said people feel like the media helped perpetuate an attitude of overspending.
"Where did we go wrong? Why did we go wrong?" Bishop said. "Well, you'll notice no one blames themselves here "» I'd be very concerned if I was in the newspaper business."
Bishop then turned his focus to the local economy and real estate industry.
He said northwest Louisiana should expect slower net absorption in office and industrial retail.
The financial markets must loosen up before new construction takes place, he added.
"As we've seen earlier, the securities markets are at a standstill," Bishop said. "Lower rent growth is probably likely."
He said potential areas for strength in the local economy include the energy sector, health, government and education industries and expansion at Barksdale Air Force Base. The area's weaknesses lie in the automobile sector and related industries and exports.
Originally published at www.shreveporttimes.com.
Tuesday, April 28, 2009
State’s home sales show some life
DYLAN WAUGH
Capital News Service
April 27, 2009
Parts of Maryland's real estate market might be showing preliminary signs of turning around, with the state's Washington suburbs leading the way, according to the most recent available statistics.
Maryland's D.C. suburbs showed a year-to-year increase in home sales but the Baltimore-metro area and other parts of the state are still lagging behind, leaving analysts unsure if the market is really on the upswing.
"It's starting to stabilize," said Kenneth Wenhold, mid-Atlantic regional director for the Houston-based Metrostudy real estate consulting firm. "It definitely hasn't bottomed ... but this is the first step toward that process."
The most recent statistics from the Maryland Association of Realtors show the state as a whole saw a 43 percent increase in homes sold from February to March. And from March 2008 to March 2009, Montgomery, Prince George's and Frederick counties all saw increases of more than 10 percent in the number of homes sold.
But the Baltimore metro area experienced an 18.5 percent decrease over the same 12 months, according to the Metropolitan Regional Information Systems Inc. And the state as a whole saw nearly a 10 percent drop in homes sold during that time period, according to the Maryland Association of Realtors.
Washington, Howard and Dorchester counties were the only other counties besides the D.C. suburbs to see gains in homes sold over the last year.
Analysts say it's too early to tell if the positive news is the beginning of a turnaround, particularly in places like Harford and Carroll counties, which saw 28 and 23 percent decreases in home sales over the last year.
Wenhold said he sees at least a bit of positive news in the recent monthly improvements. He pointed to decreasing the number of houses on the market as a critical factor in determining when Maryland's real estate market will truly rebound.
Fewer houses for sale would increase competition among buyers, which could drive prices up.
"Once we see that supply start to decrease we'll see some more stability," Wenhold said.
The number of houses under contract but not officially sold in the state this March surpasses last March's total, signaling buyers could start cutting into that housing supply.
Real estate agents seem more upbeat about a potential turnaround.
"Things are picking up in general," said David McIlvaine, president of the Greater Baltimore Board of Realtors and an associate broker with Keller Williams Realty in Ellicott City. McIlvaine said he has noticed increases in his showings and phone calls from potential buyers.
Low interest rates, sellers being more willing to negotiate and an $8,000 federal tax credit for first-time home buyers have helped boost buyers' confidence and interest.
"All those things just add up to, 'Why wouldn't you buy?'" McIlvaine said.
Antoinette Guy-Wharton, a consultant who lives in Randallstown, is one of those first-time home buyers whom McIlvaine called a "driving force" in the market.
"I needed a bigger house, and this was just a prime opportunity to go out and do it," Guy-Wharton said.
She called the tax credit "an additional incentive" and is looking to take advantage of lower prices for area homes. Foreclosure properties are often particularly good bargains now, she said.
"For first-time buyers, the market is great," Guy-Wharton said.
The National Association of Realtors estimated the tax credit could fuel up to 300,000 additional home sales nationwide.
Lawrence Yun, chief economist at the National Association of Realtors, said first-time buyers are driving the national market, which he believes is stabilizing and could receive a bump in the near future.
“Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit,” Yun said in a recent statement. “By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”
While the tax credit and low interest rates are helping to spur sales, unemployment remains critical to the market's long-term prospects.
"Rates don’t mean anything if you don't have a job," McIlvaine said.
Maryland's unemployment rate hit 6.9 percent in March — nearly a 17-year high — but is still far below the national average of 8.5 percent, according to U.S. Department of Labor statistics.
Experts point to the Washington area's insulation from job losses as a reason for its real estate market performing better than Baltimore's.
"Baltimore now has significant job losses on a year-over-year basis, while Washington, D.C., is at least stable," said Wenhold.
"We're seeing a little bit more strengthening in Frederick, Montgomery, Prince George's counties because we're not seeing as significant job losses," Wenhold said.
Maryland's D.C. suburbs might also be leading the way in reversing slides in home sale prices.
The median prices for homes in Montgomery, Prince George's and Frederick counties rose between 5 and 7.5 percent each from February to March. Baltimore-area sale prices remained stable from February to March, falling just 1 percent.
However, D.C. suburb prices are still down at least 15 percent from last March, while Baltimore-area home prices have only dipped 8 percent over that period.
The area real estate market is expected to get a boost from the up-to-48,000 people the state expects to move into Maryland by 2011 through the federal Base Realignment and Closure, or BRAC, initiative.
And judging from the response to an upcoming free bus tour of Baltimore County for people potentially moving to Maryland as a result of BRAC, the impact could be significant.
A 100-person, two-bus tour taking families from Fort Monmouth, N.J., to Baltimore County organized by the Greater Baltimore Board of Realtors and Baltimore County filled up in a few days, said Amy Baird, director of communications for the GBBR. The tour will highlight available housing options within a reasonable drive of Aberdeen Proving Ground in Harford County and provide information on local educational opportunities.
But even if BRAC produces the 60,000 direct and indirect jobs some estimate, it can't turn around the market without help from the broader economy. Maryland lost 58,200 jobs since March 2008, according to seasonally-adjusted preliminary statistics from the U.S. Department of Labor.
Still, adding any number of jobs will have a positive effect.
"Every job helps," Wenhold said.
Published in The Daily Record
Capital News Service
April 27, 2009
Parts of Maryland's real estate market might be showing preliminary signs of turning around, with the state's Washington suburbs leading the way, according to the most recent available statistics.
Maryland's D.C. suburbs showed a year-to-year increase in home sales but the Baltimore-metro area and other parts of the state are still lagging behind, leaving analysts unsure if the market is really on the upswing.
"It's starting to stabilize," said Kenneth Wenhold, mid-Atlantic regional director for the Houston-based Metrostudy real estate consulting firm. "It definitely hasn't bottomed ... but this is the first step toward that process."
The most recent statistics from the Maryland Association of Realtors show the state as a whole saw a 43 percent increase in homes sold from February to March. And from March 2008 to March 2009, Montgomery, Prince George's and Frederick counties all saw increases of more than 10 percent in the number of homes sold.
But the Baltimore metro area experienced an 18.5 percent decrease over the same 12 months, according to the Metropolitan Regional Information Systems Inc. And the state as a whole saw nearly a 10 percent drop in homes sold during that time period, according to the Maryland Association of Realtors.
Washington, Howard and Dorchester counties were the only other counties besides the D.C. suburbs to see gains in homes sold over the last year.
Analysts say it's too early to tell if the positive news is the beginning of a turnaround, particularly in places like Harford and Carroll counties, which saw 28 and 23 percent decreases in home sales over the last year.
Wenhold said he sees at least a bit of positive news in the recent monthly improvements. He pointed to decreasing the number of houses on the market as a critical factor in determining when Maryland's real estate market will truly rebound.
Fewer houses for sale would increase competition among buyers, which could drive prices up.
"Once we see that supply start to decrease we'll see some more stability," Wenhold said.
The number of houses under contract but not officially sold in the state this March surpasses last March's total, signaling buyers could start cutting into that housing supply.
Real estate agents seem more upbeat about a potential turnaround.
"Things are picking up in general," said David McIlvaine, president of the Greater Baltimore Board of Realtors and an associate broker with Keller Williams Realty in Ellicott City. McIlvaine said he has noticed increases in his showings and phone calls from potential buyers.
Low interest rates, sellers being more willing to negotiate and an $8,000 federal tax credit for first-time home buyers have helped boost buyers' confidence and interest.
"All those things just add up to, 'Why wouldn't you buy?'" McIlvaine said.
Antoinette Guy-Wharton, a consultant who lives in Randallstown, is one of those first-time home buyers whom McIlvaine called a "driving force" in the market.
"I needed a bigger house, and this was just a prime opportunity to go out and do it," Guy-Wharton said.
She called the tax credit "an additional incentive" and is looking to take advantage of lower prices for area homes. Foreclosure properties are often particularly good bargains now, she said.
"For first-time buyers, the market is great," Guy-Wharton said.
The National Association of Realtors estimated the tax credit could fuel up to 300,000 additional home sales nationwide.
Lawrence Yun, chief economist at the National Association of Realtors, said first-time buyers are driving the national market, which he believes is stabilizing and could receive a bump in the near future.
“Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit,” Yun said in a recent statement. “By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”
While the tax credit and low interest rates are helping to spur sales, unemployment remains critical to the market's long-term prospects.
"Rates don’t mean anything if you don't have a job," McIlvaine said.
Maryland's unemployment rate hit 6.9 percent in March — nearly a 17-year high — but is still far below the national average of 8.5 percent, according to U.S. Department of Labor statistics.
Experts point to the Washington area's insulation from job losses as a reason for its real estate market performing better than Baltimore's.
"Baltimore now has significant job losses on a year-over-year basis, while Washington, D.C., is at least stable," said Wenhold.
"We're seeing a little bit more strengthening in Frederick, Montgomery, Prince George's counties because we're not seeing as significant job losses," Wenhold said.
Maryland's D.C. suburbs might also be leading the way in reversing slides in home sale prices.
The median prices for homes in Montgomery, Prince George's and Frederick counties rose between 5 and 7.5 percent each from February to March. Baltimore-area sale prices remained stable from February to March, falling just 1 percent.
However, D.C. suburb prices are still down at least 15 percent from last March, while Baltimore-area home prices have only dipped 8 percent over that period.
The area real estate market is expected to get a boost from the up-to-48,000 people the state expects to move into Maryland by 2011 through the federal Base Realignment and Closure, or BRAC, initiative.
And judging from the response to an upcoming free bus tour of Baltimore County for people potentially moving to Maryland as a result of BRAC, the impact could be significant.
A 100-person, two-bus tour taking families from Fort Monmouth, N.J., to Baltimore County organized by the Greater Baltimore Board of Realtors and Baltimore County filled up in a few days, said Amy Baird, director of communications for the GBBR. The tour will highlight available housing options within a reasonable drive of Aberdeen Proving Ground in Harford County and provide information on local educational opportunities.
But even if BRAC produces the 60,000 direct and indirect jobs some estimate, it can't turn around the market without help from the broader economy. Maryland lost 58,200 jobs since March 2008, according to seasonally-adjusted preliminary statistics from the U.S. Department of Labor.
Still, adding any number of jobs will have a positive effect.
"Every job helps," Wenhold said.
Published in The Daily Record
Monday, April 27, 2009
Real estate industry looks to 'green' homes
The two houses that sit off Illinois 19 in Wood River are a glimpse of the real estate industry's future.
The two homes will soon open to the public as models of upcoming development to be known as Rock Hill Trails. Trumpet Builders, of Festus, Mo., is building the 49-lot neighborhood with the environment and energy efficiency in mind.
Anthony Schroeder, president of the project's development company, Well Spring Development Co., said this approach is a holistic design for a sustainable community by building what it calls "high-performance homes."
The land that has sat untouched and has been in Schroeder's family for 150 years. The homes to be built there are advertised as having less impact on the land than traditional houses. Air temperature, for instance, will be regulated by way of a geothermal system that captures the earth's natural core temperatures from a well 200 to 300 feet underground that pumps liquid beneath the ground and returns back to the surface. Builders also will use spray foam insulation that expands and helps seals spaces that traditional roll-out insulation cannot cover.
The developer also will incorporate building styles that should reduce long-term environmental impact and natural landscaping to provide a good habitat for wildlife and native plant species, and filter toxins from rainwater runoff and reduce erosion. A natural storm management system dictated by the land will also provide basins among walking trails and landscaping.
"It is kind of common sense approach to reduction in resources during the building process and construction process," Schroeder said. " It's a prudent use of materials, and materials are coming from renewable resources."
As this new development comes on line, local real estate professionals are realizing the growing demand that new homes that have less impact on the environment and conserve energy. More people want to buy a "green" house.
The National Association of Home Builders launched the Green Building Initiative a few years ago to provide a new designation to help certify homes as environmentally friendly and energy efficient. Dan Tatum, president of the Realtor Association of Southwestern Illinois in Belleville, said that in November the National Realtors Association unveiled a Green designation for its members, who must complete an 18 hours of training to becertified.
"With this increased awareness of what we might call 'green,' which seems to be an all-encompassing term, we need and want to be in a position to provide smart advice to direct (homebuyers) to resources if they're interested in getting and building a home that is environmental friendly, provides cost savings and is energy efficient," Tatum said.
Tim Dain, who is the real estate broker for Rock Hill Trails, said that all of the homes in the development are high-performance and will be rated and recognized by entities like Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to help consumers save money and protect the environment through energy-efficient products and practices.
"From a real estate perspective, I think anyone would agree with me that I really believe the consumer really wants energy efficiency," Dain said.
Al Suguitan, who oversees real estate activity in Madison County and surrounding counties as executive director of the Greater Gateway Association of Realtors in Glen Carbon, said he also sees what is going on at Rock Hill Trails as a model of how future home construction will evolve.
"I'm encouraged that there are some builders who are willing to step forward and put together energy-efficient homes, or 'green' houses, by using new construction techniques that are very cost effective and to market them as low-energy homes," Suguitan said. "And I think that the public will embrace this type of construction."
Tatum also said that this year's federal economic stimulus plan provides further incentives to think green. The American Recovery and Reinvestment Act of 2009 tripled the tax credit for homeowners who make energy efficiency upgrades to their homes. Homeowners can install energy-efficient windows and doors, metal or asphalt roofs, insulation, furnaces, air conditioners and water heaters that qualify under the Energy Star program and could also be eligible for tax credits equaling 30 percent of the cost, up to a maximum of $1,500 for improvements made between Jan. 1, 2009, through Dec. 31, 2010.
"There are some really good financial incentives that are out there for buyers right now to encourage use of some Energy Star savings and some other energy efficient ideas," he said. "I think that is really terrific."
Home Builders Association of Greater Southwest Illinois has formed a green building committee and some of its members have pursued green designation. Association executive officer Jerry Rombach said that energy conservation will become more common in home construction.
"I think in five years there won't be such a thing as green building," Rombach said. "There will just be buildings. There will no longer be energy-efficient or Energy Star appliances. Pretty much every one is built to Energy Star requirements to that degree with that specialized redesign."
Contact reporter Will Buss at wbuss@bnd.com or 239-2526.
The two homes will soon open to the public as models of upcoming development to be known as Rock Hill Trails. Trumpet Builders, of Festus, Mo., is building the 49-lot neighborhood with the environment and energy efficiency in mind.
Anthony Schroeder, president of the project's development company, Well Spring Development Co., said this approach is a holistic design for a sustainable community by building what it calls "high-performance homes."
The land that has sat untouched and has been in Schroeder's family for 150 years. The homes to be built there are advertised as having less impact on the land than traditional houses. Air temperature, for instance, will be regulated by way of a geothermal system that captures the earth's natural core temperatures from a well 200 to 300 feet underground that pumps liquid beneath the ground and returns back to the surface. Builders also will use spray foam insulation that expands and helps seals spaces that traditional roll-out insulation cannot cover.
The developer also will incorporate building styles that should reduce long-term environmental impact and natural landscaping to provide a good habitat for wildlife and native plant species, and filter toxins from rainwater runoff and reduce erosion. A natural storm management system dictated by the land will also provide basins among walking trails and landscaping.
"It is kind of common sense approach to reduction in resources during the building process and construction process," Schroeder said. " It's a prudent use of materials, and materials are coming from renewable resources."
As this new development comes on line, local real estate professionals are realizing the growing demand that new homes that have less impact on the environment and conserve energy. More people want to buy a "green" house.
The National Association of Home Builders launched the Green Building Initiative a few years ago to provide a new designation to help certify homes as environmentally friendly and energy efficient. Dan Tatum, president of the Realtor Association of Southwestern Illinois in Belleville, said that in November the National Realtors Association unveiled a Green designation for its members, who must complete an 18 hours of training to becertified.
"With this increased awareness of what we might call 'green,' which seems to be an all-encompassing term, we need and want to be in a position to provide smart advice to direct (homebuyers) to resources if they're interested in getting and building a home that is environmental friendly, provides cost savings and is energy efficient," Tatum said.
Tim Dain, who is the real estate broker for Rock Hill Trails, said that all of the homes in the development are high-performance and will be rated and recognized by entities like Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to help consumers save money and protect the environment through energy-efficient products and practices.
"From a real estate perspective, I think anyone would agree with me that I really believe the consumer really wants energy efficiency," Dain said.
Al Suguitan, who oversees real estate activity in Madison County and surrounding counties as executive director of the Greater Gateway Association of Realtors in Glen Carbon, said he also sees what is going on at Rock Hill Trails as a model of how future home construction will evolve.
"I'm encouraged that there are some builders who are willing to step forward and put together energy-efficient homes, or 'green' houses, by using new construction techniques that are very cost effective and to market them as low-energy homes," Suguitan said. "And I think that the public will embrace this type of construction."
Tatum also said that this year's federal economic stimulus plan provides further incentives to think green. The American Recovery and Reinvestment Act of 2009 tripled the tax credit for homeowners who make energy efficiency upgrades to their homes. Homeowners can install energy-efficient windows and doors, metal or asphalt roofs, insulation, furnaces, air conditioners and water heaters that qualify under the Energy Star program and could also be eligible for tax credits equaling 30 percent of the cost, up to a maximum of $1,500 for improvements made between Jan. 1, 2009, through Dec. 31, 2010.
"There are some really good financial incentives that are out there for buyers right now to encourage use of some Energy Star savings and some other energy efficient ideas," he said. "I think that is really terrific."
Home Builders Association of Greater Southwest Illinois has formed a green building committee and some of its members have pursued green designation. Association executive officer Jerry Rombach said that energy conservation will become more common in home construction.
"I think in five years there won't be such a thing as green building," Rombach said. "There will just be buildings. There will no longer be energy-efficient or Energy Star appliances. Pretty much every one is built to Energy Star requirements to that degree with that specialized redesign."
Contact reporter Will Buss at wbuss@bnd.com or 239-2526.
Mortgage Update from M-Point
Mortgage bond prices remained near unchanged holding mortgage interest rates relatively steady for the week. There was very little data the first portion of the week and rates improved slightly as the DOW was down 183 points at one point Monday morning. Unfortunately the durable goods orders and new home sales data were not as weak as expected which helped stocks rally at the expense of bonds the latter portion of the week. For the week, interest rates on government and conventional loans were unchanged.
The Treasury auctions will factor heavily in trading this week. It will be interesting to see how the additional debt supply is absorbed. The gross domestic product and employment cost index data will be the most important releases. No surprises are expected from the Fed but the meeting may still result in some mortgage interest rate volatility.
The Treasury auctions will factor heavily in trading this week. It will be interesting to see how the additional debt supply is absorbed. The gross domestic product and employment cost index data will be the most important releases. No surprises are expected from the Fed but the meeting may still result in some mortgage interest rate volatility.
Wednesday, April 22, 2009
Mortgage Update from M-Point
Mortgage bond prices remain near unchanged to weaker this morning failing to erase the losses from yesterday afternoon. Once again stocks will take center stage with a lack of any economic data today. So far stocks are slightly lower with the DOW down 16 points but as we saw yesterday, that can always whip around the other way in an instant.
Yesterday we saw a general flight into stocks and out of Treasury bonds and mortgage backed securities as stocks surged higher. While not always the case, stocks and bonds often trade inversely.
Expect trading to be choppy with stocks continuing to be the focus.
Yesterday we saw a general flight into stocks and out of Treasury bonds and mortgage backed securities as stocks surged higher. While not always the case, stocks and bonds often trade inversely.
Expect trading to be choppy with stocks continuing to be the focus.
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