Will Housing Prices Soar by 2014?

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Will Housing Prices Soar By 2014?

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Real estate economists and analysts are increasingly optimistic that the housing market will have a dramatic recovery in the next two years, according to results of a new semi-annual survey of 38 real estate economists and analysts conducted by the Urban Land Institute’s Center for Capital Markets and Real Estate.

The economists predict that the national average for home prices will stop falling by this year and a subsequent turnaround will occur. By next year, they project that home prices will begin to rise by 2 percent, and then get a larger boost of 3.5 percent by 2014. The economists also predict that housing starts will nearly double by next year.

They also foresee rental prices continuing to increase for all property types, ranging from 0.8 percent to 5 percent.

The economists’ predictions were made on assumptions that the economy would continue to strengthen, including a larger drop in unemployment.

“While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years,” says Patrick L. Phillips, ULI chief executive officer. “These results hold much promise for the real estate industry.”

Source: “Real Estate Will Rock in 2014,” RISMedia (March 31, 2012

Former Home Owners Wait for Second Chance

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DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 23, 2012

More than 4 million homes have been lost to foreclosure in the last six years, and many of those former home owners are now starting to ask: When can we buy again?

Many banks have guidelines that prevent them from issuing loans to people with a foreclosure or short sale in their credit history in some cases for as much as seven years. That also doesn’t factor in the damage foreclosures and short sales can do to a person’s credit score, and the work former home owners’ will need to do to repair it so they’ll have a better chance at qualifying for financing again in the future.

Still, some former home owners, particularly those who foreclosed or did a short sale due to extenuating circumstances like a job loss or illness, are finding the wait may not be as long as they were once told.

“They’re probably going to pay a little higher interest rate, but with rates so low, a higher interest rate of 4 percent is not a big deal,” Rosa Herwick, a broker and owner of Century 21 JR Realty in Henderson, Nev., told the Associated Press.

The wait-time varies among lenders and government entities. For example, the Federal Housing Administration says former home owners with a foreclosure must wait three years before they can qualify, while Fannie Mae and Freddie Mac require a seven-year wait following a foreclosure.

As for short sales, sometimes these waits can be waived or drastically cut, depending on the borrower’s situation. FHA requires a three-year wait following a short sale, but it may waive that wait if the short sale was due to a job loss.

Also, for borrowers who can come up with a higher down payment on their next home purchase, they may also not have as long to wait. For example, Fannie Mae will reduce the wait from seven years to two years for borrowers who come with a down payment of 20 percent or more.

Please call me at 209)610-1500 or e-mail me at sandy@gotracy.com regarding your real estate needs

Unclutter Your Home In Ten Easy Steps

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Clutter, which is defined as things that lie about untidily, is often linked to creativity.  So, just how much imagination will it take to tidy up your space?  To be exact, you can make it happen in ten easy steps.

 Step # 1: Set A Schedule

 You are much more likely to stick to a routine, whatever it may be, if you work on a schedule.  In addition, this allows you to clean when you can minimize interruptions and maximize your time.

Step # 2: Set A Goal For Each Room

If you can visualize what you want, you will be better able to achieve it.  By setting goals for each room, you can note the things that need changing and work toward that goal one day at a time.

 Step # 3: Create A Timeline

When do you hope to have your home completely free of clutter?  One week, two weeks or even a month?  Depending on your schedule and the amount of clutter that you have, it may take anywhere from a few days to a few weeks before you can kick back and relax again.

Step # 4: Start Small

The clutter in your home didn’t appear overnight, and it won’t disappear overnight either.  If you start small, you will be less likely to get frustrated and give up midway through your cleanup.

Step # 5: Categorize Your Clutter

When cleaning, it’s important to categorize your items into groups.  By separating the items that you want to keep, toss and donate, you will be able to move through your clutter quickly and efficiently.

 Step # 6: Letting Go

A good rule of thumb for uncluttering your home is to get rid of anything that you haven’t used within the past year.  If it’s still useful, consider donating it to a good cause.  Otherwise, toss it.

Step # 7: Storing Your Seasonal Apparel

 When storing seasonal clothing, purchase a sturdy plastic storage bin with a lid and roll your clothes instead of folding them in an effort to maximize storage capability.  When full, snap the lid on and slide the unit into your closet.

Step # 8: Closet Organization

Did you know that your choice of clothes hangers can greatly impact the storage capacity of your closet?  Wire hangers take up less space and can save your shirts from getting that annoying shoulder bump that often arises from the use of plastic hangers.

 Step # 9: Shoes Blues

 When it comes to storing shoes, many homeowners are fighting a losing battle with clutter.  How many pairs of shoes do you own?  How neatly are they stored?  If your shoe storage has you down, try purchasing clear lidded shoe boxes.  These handy creations can house each pair of shoes and can be stacked neatly in your closet.  And best of all, you can see your shoe collection without having to sift through a sea of sandals.

Step # 10: Read The Labels

If you have medicine, food or anything else with an expiration date in the home, check to make sure that the items are still good.  If the expiration date has already come and gone, throw them away.

Please call me at (209)610-1500 or e-mail me at sandy@gotracy.com regarding your real estate needs

December Existing-Home Sales Show Uptrend

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Daily Real Estate News | Friday, January 20, 2012
Existing-home sales continued on an uptrend in December, rising for three consecutive months and remaining above where they were a year ago, according to the National Association of REALTORS®.

The latest monthly data shows total existing-home salesrose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010. The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

For all of 2011, existing-home sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.

Affordability Conditions

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to another record low of 3.96 percent in December from 3.99 percent in November; the rate was 4.71 percent in December 2010; recordkeeping began in 1971.

NAR President Moe Veissisaid more buyers are expected to take advantage of market conditions this year. “The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves,” he said. “More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services.”

Total housing inventory at the end of December dropped 9.2 percent to 2.38 million existing homes available for sale, which represents a 6.2-month supply at the current sales pace, down from a 7.2-month supply in November.

Available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market.

“The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future,” Yun said.

Who’s Buying What

Foreclosures sold for an average discount of 22 percent in December, up from 20 percent a year ago, while short sales closed 13 percent below market value compared with a 16 percent discount in December 2010.

The national median existing-home price for all housing types was $164,500 in December, which is 2.5 percent below December 2010. Distressed homes — foreclosures and short sales — accounted for 32 percent of sales in December (19 percent were foreclosures and 13 percent were short sales), up from 29 percent in November; they were 36 percent in December 2010.

All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010. Investors account for the bulk of cash transactions.

Investors purchased 21 percent of homes in December, up from 19 percent in November and 20 percent in December 2010. First-time buyers fell to 31 percent of transactions in December from 35 percent in November; they were 33 percent in December 2010.

Contract failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010. Although closed sales are holding up better than this finding would suggest, contract cancellations are caused largely by declined mortgage applications and failures in loan underwriting from appraised values coming in below the negotiated price.

Single-family home sales increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in December from 3.93 million in November, and are 4.3 percent higher than the 3.94 million-unit pace a year ago. The median existing single-family home price was $165,100 in December, which is 2.5 percent below December 2010.

Existing condominium and co-op sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in December from 460,000 in November but are 2.0 percent below the 510,000-unit level in December 2010. The median existing condo price was $160,000 inDecember, down 3.0 percent from a year ago.

Around the Country

Regionally, existing-home sales in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December and are 3.3 percent above a year ago. The median price in the Northeast was $231,300, which is 2.7 percent below December 2010.

Existing-home sales in the Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5 percent above December 2010. The median price in the Midwest was $129,100, down 7.9 percent from a year ago.

In the South, existing-home sales increased 2.9 percent to an annual level of 1.76 million in Decemberand are 3.5 percent above a year ago. The median price in the South was $146,900, down 1.1 percent from December 2010.

Existing-home sales in the West rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8 percent below December 2010. The median price in the West was $205,200, up 0.3 percent from a year ago.

Please call me at (209)610-1500 or e-mail me at sandy@gotracy.com regarding your real estate needs.  Thnak you

4 Ways to ID Borrower-Assistance Scammers

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Scammers have targeted delinquent borrowers during the past few years, hoping to take advantage of their desperation and financial inexperience. Their approach typically involves posing as a representative of a nonprofit or government agency who can help with a loan modification or some other form of assistance.

Sheri Stuart, education manager at Springboard Nonprofit Consumer Counseling, says she frequently encounters consumers at courses offered by her organization who have been victimized by these scams. Stuart says she recently met a couple from Southern California at one of these events who’d paid $3,000 to a fraudulent company in an attempt to keep their home out of foreclosure.

“It’s disconcerting,” she says. “It has a ripple effect. It not only affects the home owners, it affects the communities as well.”

To keep more consumers from being taken in by these scams, Stuart offers the following four red flags to help determine whether borrowers’ knight in shining armor is actually a swindler on the make:

1. They ask for money up front. “That’s usually an indication that someone has an ulterior motive,” Stuart says.

2. “Phantom help” appears out of nowhere. If a consumer hasn’t proactively contacted anyone about missed mortgage payments, but suddenly gets calls and mail about getting help for missed mortgage payments, it’s probably a scammer.

3. They present phony credentials. Many companies that claim to offer assistance will have official-looking seals from credentialing institutions on paperwork, promotional materials, and Web sites. Research those organizations to make sure they actually exist.

4. They make promises they can’t deliver. If they make ambitious guarantees about being able to modify loans or halt foreclosures, that should set off alarm bells. “Nobody can promise you a loan mod,” Stuart says.

If your clients suspect they have been or are being targeted, point them to Loanscamalert.org to get more information and report the scammers.

By Brian Summerfield, REALTOR® Magazine

Please call me at 209)610-1500 or e-mail me at sandy@gotracy.com regarding your real estate needs.  Thank you

Americans Eager to Buy, Sellers Aren’t Happy?

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Daily Real Estate News | Wednesday, December 21, 2011

Nearly 80 percent of home buyers say now is a great time to buy a home, but sellers say it’s not a great time to sell, according to a new study, “The Great Recession and Attitudes Toward Homebuying,” released this week by the Mortgage Bankers Association. In fact, homeselling sentiment has fallen to record lows.

As for home buyers, they certainly have plenty to be happy about — housing prices have fallen and interest rates are at record lows, pushing affordability to record levels and allowing buyers to snag great deals on housing. 

But sellers, on the other hand, are getting discouraged that they can’t find buyers for their homes at a desirable sales price as well as the large overhang of mortgages past due or in foreclosure, according to the report. 

“In economic terms, as market values have fallen, potential sellers have not adjusted their price expectations downward fast enough to bring buyer and seller sentiment in line with one another,” Gary Engelhardt, a professor at Syracuse University who authored the study, said in a statement.

Sellers still can’t accept that their home values have fallen and they are no longer able to get the prices from the past, according to the study. 

Meanwhile, “despite high unemployment and slow economic growth, the bulk of American households believe that now is a good time to buy a home,” Engelhardt said. The strongest positive sentiments toward buying was found among young, educated, white, and Hispanic households, according to the study. 

“The pattern of home-buying sentiment during the current recession looks very similar to that of past recessions,” Engelhardt notes. “Home buyer sentiment falls as the unemployment rate increases, and improves as job growth returns and housing becomes more affordable. What distinguishes the current recession, though, is the dramatic decline in home-selling sentiment. From 1992 through 2005, positive home-selling sentiment fluctuated between 40 and 60 percent. Since 2005, sentiment has dropped precipitously, to around 7 percent currently, even while home-buying sentiment remains high.”

Stronger Lure for Prospective Home Buyers

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Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.

The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.

As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas. It remains less expensive to rent than to buy in 15 cities. But affordability hasn’t done much to lift the sagging housing sector because many would-be buyers are unwilling to purchase a home or unable to qualify for a mortgage.

“It’s one of the most striking developments of the housing downturn,” said Paul Dales, an economist at Capital Economics. “The initial building blocks for a recovery are in place, but the legacy of the recession is really preventing households from taking advantage.”

In Atlanta, which had the most favorable values for owning versus renting, the monthly payment on the average home was $539 assuming a 20% down payment during the third quarter. By contrast, the average asking rent stood at $840, according to the Marcus & Millichap data.

But real estate agents and economists say the trend hasn’t boosted demand. That is because affordability alone hasn’t been enough to overcome the obstacles in the way of a housing recovery. Some homeowners who would like to move up to larger properties are stuck because they can’t sell their homes.

Owner’s Advantage

WSJHOME

Also, while the monthly carrying costs on a mortgage are lower than average rents in some cities, home ownership carries other costs—including taxes, insurance, homeowner association dues and maintenance—which may dissuade some potential owners.

Other would-be buyers can’t qualify for mortgages because lending conditions are tight or because they don’t have enough equity in their current homes to use as a down payments. “The reality of coming up with the down payment and the loan-qualification standards makes things much different than the raw numbers suggest,” says Hessam Nadji, managing director of Marcus & Millichap. And even those who may qualify remain skittish about buying property in a market where prices could fall amid foreclosures and weak job growth.

Ryan Young illustrates the point. He is under contract to buy a three-bedroom home in Washington Grove, Md., that will have monthly mortgage, tax, and insurance costs for around $150 less than the $1,900 he is paying to rent a slightly smaller house in Bethesda, Md. He qualified for a 30-year mortgage with a 3.95% fixed rate. Still, Mr. Young says he is cautious about owning his first home with the prospect of future price declines. “Buying a house is not a good financial decision, per se, but we needed a bigger place,” said the 35-year-old scientist, “and we don’t want to move every couple of years into a new rental.”

Other cities where owning is now cheaper than renting include Detroit, Minneapolis, Orlando, Las Vegas, Miami, St. Louis, Chicago and Phoenix.

Home ownership is also looking more affordable because after several years of declines, apartment rents will rise by around 4% this year, says Mr. Nadji. He says rents are poised “to pick up even more momentum across the country next year.”

Even cities where it is still cheaper to rent than own have seen big boosts in affordability. In San Diego, the monthly cost of owning a home has averaged around 83% more than renting over the past two decades. During the third quarter, owning was 22% more expensive than renting, according to John Burns Real Estate Consulting.

HOUSING

Associated Press

A new development in Canonsburg, Pa. The inventory of homes on the market has fallen from levels seen a year ago, as prices and mortgage rates continued to decline.

Mortgage rates are a big reason why affordability continues to improve. In 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, it gets that homeowner a $350,000 loan, a 77% increase in borrowing power, says Dan Green, a loan officer with Waterstone Mortgage, in Cincinnati. At the same time, low mortgage rates aren’t spurring sales because few analysts expect rates to rise anytime soon. The Federal Reserve in August said it would keep rates at ultralow levels for two years. In a normal interest rate cycle, “when they go low, they don’t stay for very long, and people jump in,” said Mr. Dales. “This time, there is no urgency.”

Affordability could continue to improve as prices slide even lower in coming months. Price declines are likely because the share of “distressed” sales, including bank-owned foreclosures, tend to rise in the winter, when traditional sales activity cools. Banks are often much quicker to cut prices to unload properties quickly, which means that the greater the share of “distressed” sales, the more prices tend to fall.

One hopeful sign is that inventories have fallen from their bloated levels of one year ago. All 28 cities in The Wall Street Journal’s latest survey saw homes listed for sale fall from one year ago, when markets were reeling with a substantial overhang of properties amid a big drop in demand. Visible inventory was down sharply in several markets, including by almost half in Miami and 40% in Phoenix.

Low inventories have spurred more bidding wars at the low end of the market as investors compete for homes that they can convert into rentals. In Sacramento, it would take just 2.5 months to sell the listed inventory at the current sales pace. Las Vegas has a 4.3 month supply of inventory, according to John Burns Real Estate Consulting. But the potential supply of homes is much bigger because banks have yet to process hundreds of thousands of potential foreclosures.

Selling your home? Some tips for the off-season

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Strong curb appeal can make the difference between deal or no deal in a tough housing market. A seller can add to that by ensuring the yard is tidy and touching up as needed.

Just your luck — you have to sell your home in winter, the slowest and dreariest sales season of all.

But cheer up. You can use staging, the reduced competition and some seasonal opportunities to your advantage.

“You wouldn’t necessarily choose to sell your home in winter,” says Katie Severance, a broker for ReMax in Upper Montclair, N.J. “But there are certain extra steps you can take to really help your chances.”

Many homeowners pull their houses off the market by year’s end if they haven’t sold. That’s understandable. The period from Thanksgiving through New Year’s Day is the slowest time of year for home shopping as people focus on family and holidays.

The weather, too, helps put the chill in sales in most locations between now and spring. January and February see the fewest home sale closings, according to the National Association of Realtors, with the market not fully gearing up until April and May. Another big factor: Homebuyers with children generally time their purchases so moving doesn’t interfere with the school year.

Sometimes a job transfer, lease or personal circumstances require plunging into making a sale in the dead of winter. Although that means fewer buyers in most areas, as a seller you’ll have a chance to stand out in a thinned-out field of competitors.

Here are some tips to improve your chances of a sale:

Remember the basics: Taking care of needed maintenance and repairs is obligatory in any season. A thorough cleaning and getting rid of clutter are equally essential. And tidying up the yard and touching up the exterior appearance to improve the curb appeal also can make the difference between deal or no deal.

In a slow market, nothing counts more than pricing aggressively. Check recent sale prices in your neighborhood on sites such as Zillow.com and Trulia.com and price your home competitively. “If it’s priced properly, it will sell any day of the year,” says Severance.

Warm and cozy: Home staging — techniques used to make your house look bigger, brighter, warmer and more appealing — takes on a new focus in winter. Rearranging the furniture and applying a fresh coat of paint to any room in need are just as important. But to convey a cozy impression in winter, it may behoove you to turn up the thermostat and have a fire in the fireplace for open houses. It will give you an edge over the many vacant homes on the market.

Staging may in fact be even more important in winter, according to Loren Keim, a real estate broker and professor of real estate at Lehigh University. “If you have a vacant house in winter with the heat turned down to 50, chances are someone will make a very low offer,” he says. “And if you can leave at least a few pieces of furniture behind, it has more of an impact.”

Displaying photos of how your property looks in summer is a good idea. Some staging experts also recommend decorating with warm colors such as deep orange or crimson.

Clear paths:  It might seem obvious to keep sidewalks and driveways free and clear of ice, snow and leaves. But many homeowners who have already vacated their houses either aren’t diligent about that winter duty or don’t do a thorough job.

It’s important for reasons of safety, aesthetics and, once again, competition. In particular, a foreclosed house probably won’t have walks and parking spaces shoveled out, and “people don’t like to deal with that,” says Holden Lewis, real estate expert for Bankrate.com.

Lewis recalls pulling up in front of a house he had an appointment to see one February years ago in Toledo, Ohio. The sidewalk wasn’t shoveled, and he took a look at the house from his car and decided not to go in. “If you want to sell the house, everything needs to be shoveled and clear,” he says.

Good lighting: Your home may appear darker due to less daylight. Fight the gloom. Turn on all the lights possible for visitors — this is no time to worry about the electric bill. Open blinds, drapes and shutters to let natural light pour in. Make sure to clean any grime off the windows first.

Encourage showings during high-daylight hours. Showing after work in the dark isn’t a great idea. Make sure you have enough outside illumination for drive-by visitors in the evening, however. And keep the place well-lit even when you’re not there.

Tasteful holiday decor: The holidays give you an extra chance to make your home stand out. Keep decorations conservative and don’t overdo it on outdoor lighting. You don’t want to put 25,000 lights on the roof like Clark Griswold in “National Lampoon’s Christmas Vacation.” As sure as he blacked out the neighborhood, you would scare off buyers. But a big red bow on the For Sale sign and some holiday greenery, twinkling lights and elegant decorations inside can help give buyers a dose of seasonal cheer.

When Christmas and Hanukkah are over, you can keep the spirit alive. A colorful winter wreath on the front door and colorful poinsettias and holly bushes in the yard will help retain a festive look for January and February, when more house-shoppers start to turn up.

How to Increase a Home’s Usability

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With buyers looking for homes that will be usable for years as their family needs evolve, design pros are stepping up to meet the challenge with a variety of flexible solutions.

October 2011 | By Barbara Ballinger

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When Creighton and Tracey Gibson built a ranch 15 years ago, Creighton’s job as owner of a franchise that offers nonmedical care and companionship to seniors made him sensitive to his own aging family members’ needs. Accordingly, the couple added some features to their North Carolina home to accommodate them when they moved in.

First, an extra bedroom with kitchenette and a bathroom with grab rails were put in when Creighton’s father moved in after a fall in 1998. After he died and Tracey’s mom, an amputee, couldn’t manage alone, the couple built a ramp at their front door for her wheelchair. The Gibsons have found the arrangement offers benefits to each generation, including for their 11-year-old daughter, who gained a live-in babysitter when she was young and now can offer companionship as she gets older.

Housing aging parents for health, safety, or to avoid loneliness as they’re living longer isn’t the only reason that home owners are altering floor plans:

A rising immigrant population whose cultural traditions often encourage everyone to live under one roof is making the multiple-generation household more common.

The difficult economy is spurring college graduates to do what was once unthinkable — move home and reclaim childhood bedrooms until they land a job or save enough money to be on their own. Ditto for young divorced adults, sometimes with a child in tow.

The tough resale market is convincing empty-nesters to stay put and remodel homes to maximize unused space, including spare kids’ bedrooms.

Because of the differences in needs, ages, traditions, budgets, and property types, there’s not a single layout that works for a large cross-section of consumers, says Brian Brunhofer, president of Meritus Homes, a home builder in Deerfield, Ill. As a real estate professional, your job is to help buyers and sellers assess housing options for now and later with three major objectives in mind:

Incorporate Universally Appealing Universal Design

Any home — newly built or remodeled — should consider this concept as much as possible since it strives to make a home safe and useable for a variety of ages, abilities, gender, budgets, and physical challenges, says John Salmen, member of the American Institute of Architects and founder of Universal Designers & Consultants in Takoma Park, Md. Among its prime tenets:

▪ Easy circulation: Navigating space freely is key, whether people move among different levels or spaces on the same level, Salmen says. Doors and openings should be at least 32” wide for wheelchairs and walkers to get through. Elevators can eliminate stair climbing for those physically challenged or even for home owners needing to carry heavy groceries up stairs. Adding a two-stop model in an existing house might cost between $20,000 and $25,000, but leaving a 4’ by 5’ shaft, so equipment can be installed later if needed, would cost less than $5,000 initially, says Richard Bubnowski, design principal of his eponymous firm in Point Pleasant, N.J.

▪ Good illumination: Aging eyes need three to five times more light than people do at 18 years of age, says Salmen.

▪ Non-slippery floors and low-piled rugs: These help people of all ages avoid falls.

▪ Easy room and appliance access: Instead of knobs, levers facilitate opening doors for young and arthritic hands. Touch faucets allow easier access to water, particularly when hands are sticky or fingers also are arthritic.

▪ Movable storage: Placed under kitchen countertops, these can be rolled away to allow home owners to sit in a traditional chair or wheelchair.

▪ Zero-step entrances: Whether crossing a main door or walking into a shower, these make traversing spaces carefree.

▪ Discreet grab bars: These eliminate an institutional look and can mimic wainscoting or any trim, says Lake Bluff, Ill.-based builder Orren Pickell.

Maximize Existing Space to Avoid Expensive Additions

Before adding space, home owners should make better use of what they have, says designer Marianne Cusato, author of Get Your House Right (Sterling Publishing, 2008). “Perhaps there’s stuff that can be put away with affordable storage purchased at places like IKEA, or a rarely used dining room that can become an office,” she says. Other ideas include:

▪ Transforming basements and attics: When houses include these levels, typically unfinished, converting them can cost less than adding on to a first floor, says Pickell. The main expenses may be a nicer stairway; stronger floor or subfloor; better insulation, ventilation, and windows; plumbing for a bathroom; and an outside egress to meet building codes.

▪ Converting dens, family rooms, and garages: These main floor spaces can be remodeled into a bedroom for full- or part-time use for someone not able to climb stairs, and a nearby powder room can be remodeled to accommodate a shower if there’s space, says Elizabeth M. Sorensen with Dale Sorensen Real Estate in Vero Beach, Fla. When a door to the outside can be built, the suite becomes more desirable and private, says Brunhofer. Adding this type of suite can cost less than a year at a nursing home, says Michigan designer Leslie Hart-Davidson. “Home owners should think in terms of long-term savings,” she says.

▪ Rethinking empty bedrooms: For home owners whose children aren’t returning, Hart-Davidson transforms bedrooms into gyms, hobby rooms, offices, and walk-in storage.

▪ Melding indoors and outdoors: Homes become more usable and enjoyable by opening them to the outdoors through large windows and walls that provide a visual and physical connection, says Irvine, Calif.-based architect Robert Hidey. The outdoor areas themselves become more room-like and functional when designed with distinct areas to cook, sit, and dine, preferably with a “roof” and “walls” to screen hot sun, rain, and bugs, he says.

Build New to Meet Needs for the Long Haul

Constructing a new home from the get-go to meet a range of life stages helps avoid expensive alterations. Among the most usable designs:

▪ Hip ranches: Popular after World War II as new suburbs sprouted, they’re attracting attention again since they offer a cost-effective plan and main-level master suite. Brunhofer estimates the layout may run 10 to 15 percent less than a comparable two-story home. His firm sometimes adds a second master bedroom for future family needs.

▪ Loft-style plans: Whatever the house style, Bubnowski advocates one open sweep inside for living, eating, and cooking. So does Colleen Reardon, manager and sales associate at K. Hovnanian Homes in Orlando, Fla., which conducts extensive research and has seen interest also in open ceilings and bigger living spaces.

▪ The “New Economy Home”: Cusato’s efficiently scaled 1,771 square-foot, two-story “New Economy Home” was planned with the latest demographic trends in mind. The house is compact, so it costs less to build and is easier to maintain than most other homes, and features one master suite upstairs and a second one downstairs off the kitchen with an adjacent bathroom and back door to a porch and the outdoors.

▪ Bonus rooms: Once built above a garage for myriad uses, the bonus room is back, as it’s able to change functions as family needs demand. Today it’s a playroom; tomorrow it’s a home office or gym.

▪ Ancillary cottages: When land, budget, and codes permit, some home owners build a separate structure away from the main house, says Cusato. These detached bungalows or casitas are a way to gain a separate living or work space for family or a hideaway for guests who stay a while, says Hidey.

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Foreclosures Cause Wave of Poor Health, Study Says

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More studies are pointing to how foreclosures can hurt home owner’s health. 

In the most recent study, home owners aged 50 and older who were unable to make their mortgage payments were found to have high rates of depression and a “higher likelihood of making unhealthy financial trade offs regarding food and needed prescription drugs,” according to the study, recently published inthe American Journal of Public Health.

Researchers found that nearly one-third of the home owners aged 50 or older who were delinquent on their mortgage reported fair or poor health, compared to 19 percent who were not delinquent.

“More than a quarter of people in mortgage default or foreclosure are over 50,” says Dawn E. Alley, the study’s principle investigator. “For an older person with chronic conditions like diabetes or hypertension, the types of health problems we saw are short-term consequences of falling behind on a mortgage that could have long-run implications for that person’s health.” 

An earlier study released this year, conducted by Princeton University and Georgia State University researchers, found that the higher the foreclosure rates, the more risks to your community’s health. Researchers had found that a higher number of foreclosures in Arizona, California, Florida, and New Jersey were found to coincide with a rise of stress-related health problems in those states, including an increase in the number of hospital visits for preventable conditions and increase in emergency room visits and hospitalizations for hypertension. 

Source: “A Health Crisis Follows Foreclosure Crisis,” Los Angeles Times (Oct. 25, 2011)

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