The Real Estate Wire

Fed Takes Pause; Leaves Rate Unchanged

noreply@blogger.com (Vere Sandals USA) — Tue, 08 Aug 2006 20:14:00 +0000

AP
Tuesday August 8, 3:01 pm ET
By Martin Crutsinger, AP Economics Writer
Fed Leaves Key Interest Rate at 5.25 Percent After Long Series of Consecutive Hikes

WASHINGTON (AP) -- The Federal Reserve on Tuesday left a key interest rate unchanged, marking at least a temporary pause in what had been the longest unbroken stretch of Fed rate increases in recent history.

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The most overpriced housing markets

noreply@blogger.com (Vere Sandals USA) — Thu, 27 Jul 2006 13:09:00 +0000

How does your area rank? The quarterly report from Local Market Monitor research group ranks 100 real estate markets on whether they are overvalued or not. The measurement compares the selling price of an area to a "equilibrium" value. The good news is that the number of overpriced markets are on the decline, with 56 of the 100 markets being fairly priced.

California continues to push the envelope hosting nine of the top ten overpriced markets. Santa Barbara leads the charge where the homes are about 80% overpriced. Florida is making a push with Naples posting a strong number two on the list.

Your best bargains are in Texas, with El Paso, McAllen at the bottom of the list and Dallas, Houston and Brownsville not far off.

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Before you buy that home, get your financial ducks in a row: 10 nasty money habits to kick

noreply@blogger.com (Vere Sandals USA) — Thu, 27 Jul 2006 11:53:00 +0000

One offer of advice I always give to those who are looking to buy a home is to start preparing months in advance, and get your "Financial Ducks in a Row".

First, get a free credit report so you can see what is being reported on your behalf, and to clear up any errors in the report in time before the eleventh hour when you need to pull that trigger on a home purchase.

Second ease your debt and start saving your money for closing costs and a down payment. The lower your debt is in relation to your credit limit, the less risky you will appear to a borrower. Also, you should show you have enough money in the bank or investments to cover a downpayment, closing costs and a few months of mortgage payments. The more you have saved, the better you will appear as a borrower, and the less hassle you will get when you finally get to apply for that mortgage.

This article is a great guide in putting you on your way in getting your financial ducks in a row:

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Mortgage Rates Drop For The First Time This Summer

noreply@blogger.com (Vere Sandals USA) — Mon, 17 Jul 2006 10:34:00 +0000

Mortgage rates fell in the week ending Thursday, breaking a string of four straight increases. June's unemployment figures aided the shift, as well as the anticipation that the Federal Reserve only has one more rate hike left.

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New Homes at their lowest point in 20 months

noreply@blogger.com (Vere Sandals USA) — Wed, 12 Jul 2006 13:42:00 +0000

New home contracts were negatively impacted by a combination of factors, including reduced traffic, softening demand, increased cancellation rates and higher unsold inventory levels

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Manufacturers Eye Luxury Bathroom Market

noreply@blogger.com (Vere Sandals USA) — Thu, 06 Jul 2006 10:02:00 +0000

KOHLER, Wis. (AP) - One day soon, Leslie Blakey will relax. She'll soak in her new master bath, fully stretched out in a deep tub with a breeze floating in from the French doors leading to her balcony.

AP Photo WX501, By EMILY FREDRIX

"At the end of a really long week, you just really want to have that place you can go and it's your special nest and you can burrow in it,'' said Blakey, a public affairs consultant.

But not quite yet.

Blakey, 53, and her husband have been living in and renovating a former halfway house in Washington, D.C., for four years and they're just now planning their master bath. They've picked out marble tile and granite countertops and are looking at fixtures for their walk-in shower, where they hope to have three sprays.

They're part of a growing number of people who want to bring luxury into their baths, manufacturers and analysts say. Companies such as Kohler Co. and American Standard Cos. are responding with products such as tubs with therapeutic lighting, shower heads disguised in bath tiles and an electronically controlled shower system that remembers settings for temperature, water pressure and number of sprays.

With the housing market cooling, homeowners are looking to renovations to boost resale value and distinguish their homes from others on the market, said Michael Wandschneider, Kohler's senior product manager for performance showering products. For many of them, renovations start in the bathroom.

"It's something the homeowner immediately recognizes as a value to them as they are shopping from a variety of similarly priced homes,'' he said.

The amount of money Americans have spent on high-end luxury bath remodeling - jobs worth $8,000 or more - has nearly tripled since 2003 while the amount of jobs almost doubled, according to the annual market forecast by the trade publication Kitchen and Bath Business Magazine. This year, Americans are expected to do more than 920,000 luxury remodels and spend more than $21.7 billion, up 18.5 percent from last year, according to this year's forecast.

The trend isn't limited to higher-end homes either, said Wandschneider, based in Kohler, Wis. American homeowners at all levels want luxury - even the smallest bit - and they're willing to pay for it, he said.

Baby boomers, who are now more apt to stay in their homes during retirement, are helping drive this movement, said Mark Delaney, director of home improvement for The NPD Group Inc., a market research firm based in Port Washington, N.Y. Boomers recognize the value that renovating their homes adds, both to their lifestyle and when they decide to sell.

"We're actually seeing them hold on to those homes and start to pour money into them, at a large increasing rate,'' he said.

Sales of home improvement products as tracked by NPD rose 15 percent from 2004 to last year. Typically, sales grow only 2 percent or 3 percent a year, Delaney said.

People in their late 20s to early 40s show similar patterns of home improvement, possibly adding luxury because they are accustomed to it from a younger age, he said. Sales of home improvement products for people in Generation X jumped 10.8 percent from 2004 to last year, with the largest growth coming from people between the ages of 25 and 34, Delaney said.

Kohler is going after the boomer market, designing products that can help them as they age, said Cindy Howley, manager of the Kohler Design Center. One designer suite at the center shows grab bars that blend into bathrooms and countertops that can be raised or lowered. Cabinets on wheels can be moved throughout the tiled room, and the bathtub has an extended entry at wheelchair height, for people with limited mobility.

At the center, dozens of designers have installed their own visions of relaxation in the bathroom. A series of suites ranges from tranquil, bamboo-infused rooms with clean lines and simple flowers to brightly colored ones with large bathtubs separate from showers. If visitors get the urge to sample, they can go to the company's spa next door.

Overflow bathtubs with recirculating water are gaining in popularity, Howley said. And bathtubs are getting deeper, often plunging to 2 feet deep, well past the standard 14-inch-deep tub. But many homeowners are looking exclusively at their showers, enlarging them and adding products like a recirculating, vertical whirlpool for $3,600 or placing tile-like showerheads at a cost of $120 each, she said.

"The consumer is recognizing, 'I want this. This is quality of life. It's graciousness,''' she said.

The company recently introduced a digital device that can be programmed to remember shower settings such as temperature, water pressure and direction from up to eight sprays. Basic components for the product, a digital thermostatic valve known as DTV, retail for about $2,000.

To help simplify the design and ordering process, Kohler created luxury shower packages, including valves, plumbing and fixtures. The company recently set up a hot line staffed by technicians to help contractors install these new parts.

People are being more discriminating when it comes to spending on luxury items in the home, opting to put money into one room but not all, said Lenora Campos, spokeswoman for luxury bath products maker Toto USA Inc., based in Morrow, Ga.

"They're trading up for products in which they find value, in which they want to invest,'' Campos said. "For other products, they're choosing to go to commodities stores.''

She said sales have been strong of a toilet introduced in 2003 that automatically opens the lid when users approach, and closes and flushes when they leave. That retails for up to $5,800, she said.

People are upgrading their bathrooms in the hopes of improving their lives, said Tim Maicher, director of luxury brands for American Standard, based in Piscataway, N.J. The company has lines of tubs, drains and sinks that allow for easy installation and care.

"I really believe that the new cachet of luxury is wellness,'' he said. "Luxury is no longer about how much I have but how healthy I live.''

Blakey, the D.C. homeowner, said luxury to her means being surrounded by comforts that help her start her day without feeling stressed. In her case, that means a vanity with good lighting.

"Trying to get up and get out in the morning and have a certain sense that you're starting your day organized, to some extent, luxury means that,'' she said. "It's a range of things that for some may feel like a luxury but for others a necessity.''

On the Net:

Kohler: http://www.us.kohler.com

Toto USA: http://www.totousa.com

Introduction to the Wire

noreply@blogger.com (Vere Sandals USA) — Fri, 30 Jun 2006 22:10:00 +0000

I'll go out on a limb and claim that the Mortgage and Real Estate industries have the most information about them provided to the public. More and more people have become homeowners and real estate investors than ever before. Countless publications, seminars, even reality TV shows encourage everyone to dive in to Real Estate. Real Estate Information has become a big industry all in itself. With all that is out there, you would think everyone is pulling down deals that would make Donald Trump jealous. Well, not exactly. What I have found, is that although more people are armed with information in Real Estate and Mortgages, much of them seem to be, walking around with bad or incomplete information.

It is understandable that so much information on home buying and financing is out there because there is a lot to know. It can be very intimidating especially considering that things (laws, housing trends, mortgage rates, loan products, etc.) are always changing, and this is a business that requires a great deal of paperwork. And also, to put things in perspective, you are buying something that costs more than you make in about two years, and you are signing up for practically a 30-year commitment. A little knowledge can go a long way to help break down the intimidation.

So my task here is to provide you with clear and concise understanding of the basics and trends of the industry so you can be on your way. I am assembling experts in the fields of Real Estate, Financing, Home Improvement and Property Management to help contribute to the cause. You will also find quick links to resources from major industry sources. I will never claim to be the ultimate authority by any means. Given the nature of the constantly changing information on the subjects at hand, it is impossible for one person to be on top of it all. What I do have to offer is an honest, sincere, and unique perspective to Real Estate. Before I was a Real Estate Agent, I was a Loan Officer for a residential mortgage broker. Before I was a Loan Officer, I left my first home purchase sick to my stomach with a realization that I was completely taken advantage of by my agent and his “real” client, the seller.

Had I have known that I could have walked away from the closing table before signing the deal, I would. Unfortunately for me I didn't, but it compelled me to know more about the business. As a lender and agent, it has helped me to sincerely identify with my client’s needs and concerns when approaching their purchase or sale. I took my example as a mission to never have my clients go through a bad experience like that. The greatest protection I could think of was to empower them with the basic knowledge and break down the industry jargon of the “who’s”, “how’s”, and “why’s” of the business. I have found this to be a distinct advantage that I never loose that perspective for every client I work with, seasoned or unseasoned.

Everyone has a horror story of a bad real estate experience. There are so many ethical people in the business who have to work hard to overshadow these bad apples. We hope you find the information from this site to be useful in building that knowledge and the confidence to make the right real estate decisions and leave the horror stories in the past.

Thank you and enjoy this site. If you have a topic you would like to read more about please let me know at mferreri@mindspring.com