Ada County Total Market Overview October 2009
Canyon County Total Market Overview October 2009
When it comes to dollars and cents, energy-efficient, low-E windows and high-performance insulation are a better bang for the home buyer’s buck than shiny hardwood floors. Fortunately, the real estate market is beginning to recognize this: a non-profit green building organization in the Pacific Northwest, found homes in the eco-conscious Portland area sold for 4.8 percent more and stayed on the market 24 percent fewer days than comparable homes without earth-friendly improvements.
If you’ve made green renovations to your home and are getting ready to sell — or if you’re thinking of making eco-friendly home improvements and have an eye on return on investment — check out these tips for making sure your earth-sensitive changes get you all the “green” you deserve.
Buyers are more likely to pay a premium for green improvements they can see, touch or feel in their wallet, says Andrew Jay Gross, chairman of The Green Committee in the Beverly Hills/Greater Los Angeles Association of Realtors. “Buyers clearly look for visible green features, like lighting, floors, appliances and garden features that use indigenous plants to conserve water,” he says.
Energy-saving lighting systems that use watt-sipping compact fluorescent or LED lights can really turn buyers on to a property, he explains, because they can see the system and know they’ll feel the difference in their wallet. And if you think these lights are all big classroom-style tubes or huge twisted coils, think again. More and more energy-saving bulbs are coming on the market in a variety of shapes and sizes to fit into even the most sophisticated décor.
And while they appreciate the good karma of saving and sustaining the earth, most buyers are likely to flock to the improvements that will save them money in the long run. Energy savings are really one of the driving forces pushing green into the mainstream of home buyers’ consciousness, says Jeff Ammons, president of Live Green Inc., a company that specializes in helping homeowners make marketable green improvements to their homes. “Most homeowners care about sustainability, but when it comes to money, energy savings is the big seller,” he says. “Sustainability requires more effort and longer payback periods than energy savings."
Ammons says many buyers he’s seen are looking up and down for improvements … literally. They seem to care most about the insulation and sealing in the attic and crawl spaces, and love upgraded, energy-efficient HVAC systems, he says.
A lot of buyers who aren’t searching specifically for an eco-friendly home can still be drawn to one if it’s marketed properly. “Each marketing effort is an education to most buyers,” says Jan Green, a Realtor and certified EcoBroker in Scottsdale, Ariz.
Green says she can’t just say, “Low-VOC paint” and expect it to sell a home, because most buyers don't understand the term. “But even when I explain that it means there are no volatile organic compounds in the paint, I have to explain what that means.” So if your real estate agent doesn’t completely understand what the green features in your home do or why they add value, neither will potential buyers.
But as green homes become more common, professional certifications are emerging to meet the needs of sellers. The best-known green real estate agent certification is probably the EcoBroker designation, which is administered and awarded by the Association of Energy and Environmental Real Estate Professionals (AEEREP).
John Beldock, Executive Director of AEEREP, says that as consumers become savvier about what makes a home green, it’s even more important to have someone representing your home who really understands eco-friendly features. “The best marketing is credible, honest marketing, based on accurate representations and without ‘greenwashing,’” or making something appear greener than it actually is.
While almost any buyer will be interested in a home that’s more energy-efficient, there’s still a certain group of home shoppers who don’t want anything except a green home. To target this group, you and your real estate agent may want to go beyond the run-of-the-mill Multiple Listing Service (MLS) listing.
Many local Realtors groups are working to modify their area MLS listings to cater to green homes, as well, since many buyers who aren’t necessarily super environmentally aware are still interested in reaping the energy-saving benefits these homes offer. Now, instead of only being able to search by metrics like home size, school district or price, in some cases buyers can also search on some websites for LEED-certified residential properties (which meet strict green-home criteria set by the U.S. Green Building Council or EnergyStar-rated homes.
Remember that no matter what, there is value in green. “These energy and environmental features make for better properties, and consumers and investors favor properties with better walls, better windows, better mechanical systems and better indoor air quality,” Beldock says. “The key principal is accurately describing these features in a property.”
By Alyson McNutt English, Cyberhomes Contributor
Published: September 23, 2009
Ada County Total Market Overview October 2009
Canyon County Total Market Overview October 2009
Yes – But Only in Certain Circumstances
The U.S. Senate is considering extending and expanding the home buyers' tax credit to help prop up the still-reeling housing market.
Under the proposal, the $8,000 credit for first-time buyers would be extended to cover purchases into next spring – buyers must sign contracts by April 30 and close within 60 days. Currently the credit is due to expire at the end of November.
The Senate plan would also expand the program by offering a tax credit of up to $6,500 to current homeowners willing to buy a new home, provided they have lived in their current home for five consecutive years out of the last eight.
It would also raise the income limits on those qualifying for the credit, from $75,000 to $125,000 for individuals, and from $150,000 to $225,000 for couples.
What does this mean for home buyers?
First, many more people will now qualify. After all, two-thirds of American families own their own home, and most earn less than the income limits. If you fall into that category, and fit the residency requirements, you may be eligible.
But forget about using the credit to sweeten deals for a vacation home. While you do not have to sell your current home to qualify for the new credit, you cannot use the money to buy a vacation home. "It's only for a primary residence," said Regan Lachapelle, a spokeswoman for Sen. Harry Reid (D-Nev.), who helped engineer the deal.
If you're thinking of moving soon, the credit is a helpful gift. Anyone else should think twice before letting the tax credit drive their decision. For one, the credits are not large in relation to other costs typically associated with buying real estate.
These range from brokers' commissions to legal fees, title insurance and so on. (Brokers' commissions alone typically come to around 6% of the purchase price—while they are paid by the seller, they factor into home prices).
And moving is expensive beyond that—you should factor everything from moving costs to new décor, not to mention all the time and effort.
The credit will be most useful in markets where real estate is really cheap.
For example, it may provide a helpful shot in the arm for the stricken real estate market in Nevada (where Sen. Reid faces a tough re-election battle next year) more than in high-priced coastal markets like Silicon Valley and New York City.
Nevada's market needs all the help it can get. Prices in Las Vegas have fallen 30% in the last year, according to the latest Case-Shiller price index.
According to Zillow.com, the median home price in Las Vegas right now is just $139,000. That compares to $562,000 in San Jose, California and $795,000 in Manhattan.
So the maximum $8,000 credit will cover about 6% of the median price in Vegas, but barely 1% in the most-expensive areas.
Prospective home buyers may reap bigger benefits from two other developments: The collapse in prices, and the slump in mortgage rates. As I've written here more than once, 30-year fixed-rate mortgages can be found below 5%, a steal by historic standards.
By Brett Arends, The Wall Street Journal -Investing
Published: October 30, 2009
Ada County Current Market Trends October 2009
Canyon County Current Market Trends October 2009
Ada County New Construction October 2009
Canyon County New Construction October 2009
Ada County Current Market Trends September 2009
Canyon County Current Market Trends September 2009
By Vincent Del Giudice and Thomas R. Keene
Oct. 6 -- The U.S. economy is on the mend and housing is poised for a rebound, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York.
“The momentum in the economy is moving forward,” LaVorgna said today in an interview on Bloomberg Radio.
Housing is close to a turnaround because “we have had a tremendous improvement on inventories,” he said. “We are much closer to a housing bottom than many believe.”
Combined sales of new and existing homes were up 15 percent in August from January, when they reached the lowest level since comparable records began in 1999, according to figures from the Commerce Department and the National Association of Realtors.
The increase in purchases trimmed the number of houses on the market to 3.88 million, the fewest since March 2006.
At the current sales pace it would take 8.5 months to sell all the previously owned homes on the market, compared with 11.3 months in April 2008, the highest level since at least 1999. For new houses, supply dropped to 7.3 months in August, the shortest period since January 2007.
Rising demand is giving homebuilding a boost. Private residential construction climbed 4.7 percent in August from the prior month, the biggest gain since November 1993, according to data from the Commerce Department. Declines in residential construction have trimmed gross domestic product by one percentage point on average since 2006.
Growth Outlook
Economic growth will reach 3 percent next year, “maybe a little more,” LaVorgna said. Economists surveyed by Bloomberg News last month projected the world’s largest economy will expand 2.4 percent in 2010, according to the median estimate.
Core inflation, which excludes food and energy costs, will fall below 1 percent in 2010, and that will open the way for the Federal Reserve to refrain from raising its benchmark interest rate next year, LaVorgna said.
Bloomberg.com
Last Updated: October 6, 2009 09:33 EDT