Ultimate Open House
Ultimate Open House Final Weekend!
Homes of the Future: What’s Hot and What’s Not
Are you planning to move to a new home in the next few years? Thinking about renovating your current home so it’s more appealing to potential buyers when you do decide to move on? Or maybe you just want to change your space to follow the latest trends?
Whatever your plans for your existing or future home, research from the National Association of Home Builders and Better Homes and Gardens magazine shows what features and floor plans will be popular over the next few years.
According to an NAHB survey of home builders on their expectations for homes in 2015, smaller homes with lower prices and more green features will be the predominant force in the marketplace.
As the average size of new single-family homes continues to decline to 2,377 square feet from a peak of 2,521 in 2007, floor plans are focusing on frequently-used rooms. More than half of the builders surveyed said the size of the family room will increase, while the formal living room, entry foyer and dining room are expected to decrease or disappear.
Other features that builders predict are highly likely to be included in the average new home of 2015 include a walk-in closet in the master bedroom; a laundry room; ceiling fans; a master bedroom on the first floor in homes with two stories; and a two-car garage.
Nearly 70 percent of the respondents said that homes will be greener, and about one-third expect them to have more features related to technology.
The most common green features in 2015’s new homes will be low-E windows; engineered wood beams, joists or trusses; water-efficient features such as dual-flush toilets or low-flow faucets; and an Energy Star rating for the whole house.
The families who will be looking to move into new or renovated homes have high expectations for their new space as well.
A December 2010 survey of Better Homes and Garden readers who consider themselves prospective home buyers or who are planning a major improvement to their home indicated that home buyers don’t want any “wasted space” in their next home and they are seeking significant value for the money they spend.
Eighty-nine percent of consumers want high-efficiency heating and cooling in their next home, 85 percent want high-efficiency appliances, and 78 percent want upgraded features and fixtures such as granite countertops, wood flooring, faucets and lighting fixtures.
Efficient use of space also ranks highly in consumers’ desires. The top-ranked living spaces include a separate laundry room; additional storage space; walk-in closets or built-ins; a home office space, workspace or family computing center; and everyday eating space in or close to the kitchen.
Handyman Bob
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Study Shows First-Time Home Buyers Purchase Smaller, Less Expensive Homes
From NAHB
A growing segment of the housing market, first-time home buyers are contributing to an increase in demand for smaller and less expensive new homes, according to research from economists at the National Association of Home Builders (NAHB).
Delving into data from the most recent biennial American Housing Survey, which was conducted by the Department of Housing and Urban Development and the Census Bureau in 2009, the study, “Characteristics of New and First-Time Home Buyers,” finds that 41 percent of the 8.4 million households who bought a home between 2007 and 2009 were first-time buyers.
“Builders are increasingly gearing their homes to the needs of first-time buyers, and we expect the trend to continue in the period ahead as the economy begins generating more jobs and more people in their 20s form households,” said Bob Jones, chairman of NAHB and a home builder from Bloomfield Hills, Mich.
“New homes are a better match for the needs of the population in general,” Jones said. “Compared to what is typically available in the existing housing stock, they are more energy-efficient, easier to maintain and have designs better suited to today’s lifestyles.”
The market share of first-timers was up from 35 percent in both 2005 and 2007. Although some of the demand was fueled by the initial version of the home buyer tax credit in mid-2008, which was specifically targeted to those buying a home for the first time, the upward trend is expected to continue as children of baby boomers — members of a generation that is larger than their parents’ — move into their household formation years in the period ahead.
Although new housing is significantly more expensive than the existing housing stock, 13 percent of first-time buyers between 2007 and 2009 purchased new homes. By comparison, 17 percent of all the homes sold during that period were new.
Competing with foreclosures and large house price declines in the existing home market, new homes lost ground disproportionately during the housing downturn, falling from a 21 percent share of the homes sold in both 2005 and 2007.
The average market value of a new home purchased was more than $315,000, compared to more than $238,000 for existing homes.
First-time buyers for the two years of the study had an average age of 34, compared to 46 for those trading up.
The average income of first-timers was over $67,000, about 30 percent below the average household income of trade-up buyers of $97,000. About half of the first-time buyers earned less than $60,000.
The household size of both first-time and trade-up buyers has been declining, while single-person households have been on the rise.
First-timers bought homes with an average market value of about $184,000, compared to more than $297,000 for trade-up buyers.
First-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up. Forty-six percent of first-timers bought homes smaller than 1,500 square feet.
The large majority of first-time buyers — 82 percent — purchased single-family detached homes.
Looking at survey findings on the reasons that buyers chose a particular home, the NAHB study notes that price was the top consideration for 38 percent of the first-time buyers, followed by the design and layout of the home, at 36 percent.
On average, first-time home buyers looked at 15 homes before making their purchase; 63 percent used their savings as the source of the downpayment; and 22 percent of them had no downpayment. That was down from a peak of 25 percent in 2007, reflecting a tightening of credit standards in the mortgage market.
The full report is available at www.nahb.org/homebuyerstudy.
American Dream Is Alive and Now Is the Time to Buy
The American dream will continue to endure despite the catastrophic drubbing that the nation’s housing market has taken since 2005, Karl E. Case, an economics professor at Wellesley and co-creator of Standard & Poor’s Case-Shiller housing index, writes in the Sept. 1 issue of The New York Times.
At a time when many in the news media have been suggesting that the nation’s commitment to homeownership should be abandoned, Case, in an article entitled “A Dream House After All,” says that the effect of homeownership on household wealth “has been huge” and that today’s market offers many significant advantages for prospective buyers.
“Do the math,” he writes. “Four years ago, the monthly payment on a $300,000 house with 20% down and a mortgage rate of about 6.6% was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20% down would carry a rate of about 4.2% and a monthly payment of $833. In addition, the downpayment would be $42,600 instead of $60,000.”
Even before calculating the capital gains from the sale of a house after it has appreciated over the years, the “net imputed rent from owner-occupied housing,” or the value of being able to live in it and receive “a real flow of valuable services,” he writes, “is the equivalent of about a 6% return on your investment after maintenance and repair, and it is constant over time in real terms.
“Consider it this way: when Enron went belly up, shareholders ended up with nothing, but when the housing market drops, home owners still have a house. And this benefit is tax-free.”
About two months ago the housing market appeared to be turning around, according to Case. The expiration of the housing tax credit at the end of April and household formations that have been suppressed by the recession and such factors as immigration and emigration are likely partially responsible for the lull in the markets this summer.
But “one important reason for the recent downturn is clear: The steady drip of bad news about the economy has sapped the confidence of buyers, sellers and lenders,” Case writes. “And there is no understating the importance of expectations and confidence in this industry.”
In his article, Case also points to signs of improvement for housing.
A survey that he and economist Robert Shiller conduct annually among 2,000 recent home buyers in San Francisco, Los Angeles, Milwaukee and Boston show that consumers are expecting to see the value of their houses rise over the next year.
In 2005, those participating in the survey felt that prices would rise an average of 9.6%. In 2008, they anticipated a small drop. In 2010, they expected an average gain of 3.2%. A survey tabulated this spring found an anticipated gain of 5.2% in the year ahead.
“In a given year, the number of completed sales is about 4% to 5% of the housing stock. Thus it doesn’t take a change in mood of a large number of buyers to change the overall direction of the market,” Case writes.
“The financial crisis has made us all too aware that we live in a Catch 22 world: the performance of the housing market drives the economy, and the performance of the economy drives the housing market. But housing has perhaps never been a better bargain, and sooner or later buyers will regain faith, inventories will shrink to reasonable levels, prices will rise and we’ll even start building again. The American dream is not dead — it’s just taking a well-deserved rest.”
Mortgage Rates at Historic Lows
Definitely working to the advantage of home buyers in recent weeks has been a continuing downward trend in mortgage interest rates.
In the results of Freddie Mac’s Primary Mortgage Market Survey for the week ending on Thursday, Sept. 2, 30-year fixed-rate mortgages reached yet another record low, falling to 4.32%. This was the 10th time in 11 weeks that rates hit a historic low.
Amy Crews Cutts, Freddie Mac’s deputy chief economist, said that mortgage rates have remained so low because overall inflation expectations are “well at bay” and should remain so for some time.
She also reported good news from the S&P/Case Shiller National Home Price Index. She said that house prices “appear to be firming;” they rose 2.3% between the first and second quarter of this year, reaching the highest level since the fourth quarter of 2008, according to the index.
“In addition, 15 metropolitan areas in the 20-City Composite Index experienced annual house price growth in June, compared to 13 in May and 11 in April,” Crews Cutts said.
Building Industry Celebrates Excellence at Annual Awards Ceremony
Nearly 200 home building professionals gathered May 22 for the Home Builders Association of Metropolitan Portland’s sixth annual Excellence Awards Banquet, which recognizes the outstanding work of local companies across a variety of categories.
In addition to the 34 Excellence Awards, the HBA presented Annual Awards to individual members who demonstrated exceptional commitment to the association in 2009.
“It is important that we take some time each year to applaud the individuals and companies who lead our association through their efforts,” said HBA Chief Executive Officer Dave Nielsen. “We were proud to have so many awards to issue this year, and so many difficult decisions to make when judging submissions. The Portland area’s homebuilding industry is home to some amazing talent and some outstanding professionals.”
Annual Awards
HBA Lifetime Achievement Award: Richard Edwards and Hans Vantheuer
HBF Volunteer of the Year: Roy Abramowitz, Perkins and Co.
Builder of the Year: Roger Neu, Nupark Development
Remodeler of the Year: Steve Stolze, SLS Remodeling
Associate of the Year:Kimberly Wheeler, Bank of the West
Trade Contractor of the Year: Jamie Pepiot, Pepiot Painting
Spike Award: Kimberly Wheeler, Bank of the West (fourth year in a row)
Other Excellence Award winners included the following:
Sales & Marketing Awards
Best Website by an Associate: United Tile
Best Website by a Developer/Builder/Remodeler: Costa Pacific Homes
Best Print Media: Art4orm (for Legend Homes)
Best Production Media: Art4orm (for Legend Homes)
Best Social Media/Internet Campaign: Costa Pacific Homes
Best Overall Marketing Campaign: Milgard Manufacturing
Green Building Awards
Ultimate Energy Performance Score without Solar under 2000 SF: Costa Pacific Homes
Ultimate Energy Performance Score with Solar over 2000 SF: Legend Homes
Ultimate Energy Performance Score without Solar over 2000 SF: Marnella Homes
Best Certified Home under 2000 SF: Costa Pacific Homes
Best Certified Home over 2000 SF: Legend Homes
Best Development/Site Plan: Costa Pacific Homes
Remodeling Excellence Awards
Bathroom Remodel $50,000 and above : Neil Kelly Design/Build Remodeling
Kitchen Remodel under $100,000 : Craftsman Design and Renovation
Kitchen Remodel $100,000 and above: Cascade Restoration & Remodeling
Open Category : Craftsman Design and Renovation
Exterior/Outdoor Living/Deck Remodel : Champion of Portland
Whole House Remodel under $250,000 : Stanley Home Renovation & Design
Whole House Remodel $250,000-$375,000 : Neil Kelly Design/Build Remodeling
Whole House Remodel $375,000-$500,000 : Metke Remodeling & Woodworking
Design REX Awards
Residential Bath Design : Paolo Design Group
Residential Kitchen Design : Z-3 Design Studio, Inc.
Residential Whole House Design : Paolo Design Group
Building Excellence Awards
Single Family Home attached under $300,000 : Costa Pacific Homes
Single Family Home attached $300,000-$500,000 : Costa Pacific Homes
Single Family Home attached $500,000-$700,000 : Parallel Development
Single Family Home attached $700,000-$1,000,000 : 937 Group
Single Family Home attached over $1,000,000 : Hoyt Realty Group
Single Family Home under $250,000 : D.R. Horton
Single Family Home $250,000-$350,000 : S & K Homes
Single Family Home $350,000-$450,000 : Arbor Custom Homes
Single Family Home $450,000-$550,000 : C&L Properties
Single Family Home $750,000-$1,000,000 : Hymark Custom Homes
Single Family Home $1,000,000 and above : BC Custom Homes
Earth Advantage Institute Looks 10 Years Forward
Earth Advantage Institute, a green building certification resource and educational organization that has certified more than 11,000 homes, has taken a look forward at green building expectations for the next decade.
“Since 2000, despite two wars and a serious economic slowdown, the United States has made significant progress in sustainable construction,” said Sean Penrith, executive director, Earth Advantage Institute. “We’ve come from a point where the perception of green building involved remote off-the-grid homes to a point where the National Association of Homebuilders now has a green building standard in place and the federal government has invested $4 billion of its stimulus money in energy efficiency for its buildings nationwide. The next 10 years will accelerate these trends.”
Based on trends tracked over the past 5 years, Earth Advantage Institute staff has compiled a list of 8 predictions that provide a glimpse of American homes and the home industry over the next decade.
Newly built homes will use one third the energy that they do today. Progressive builders are already going far beyond the current standards to build “net-zero” homes that produce at least as much energy as they consume over one year. The techniques used in building these high performance homes will filter down to the mainstream rapidly as homebuyers see how easy it is to create energy efficient and even furnace-free homes using readily available materials and emerging technology.
Buying decisions will be based on better information about the “life cycle” impact of products. New studies are underway on the total environmental cost of building materials, from raw materials collection to manufacture, installation and eventual disposal or recycling. Homebuyers will also see data on durability and maintenance of those materials. Earth Advantage Institute recently completed a lifecycle analysis of residential building materials and practices for the state of Oregon’s Department of Environmental Quality.
The rising cost of clean water will drive most people to stop using it to water lawns and flush toilets. Many homes will use graywater (domestic wastewater from any source except toilet and garbage) and rainwater for these purposes. Many states, including Texas and the Southwestern and West Coast states, have passed legislation authorizing the use of graywater by households for yard irrigation. Arizona, for example, allows up to 400 gallons per day of graywater use on lawns and gardens.
Lenders will demand energy efficient buildings because they are more stable investments. Sustainable homes are built durably to protect the homes from moisture, excessive heat and cold, and airborne toxins – all of which can cause unhealthy conditions for occupants or decomposition of building materials. Equally important, efficient homes cost less to operate, so occupants have more cash available to pay rents and mortgages.
Communities will become denser, making better use of pedestrian walkways, bicycle paths and mass transit. The 2010 New Partners for Smart Growth conference documented the growing preference among today’s young people and today’s older citizens to live in denser, more convenient urban environments offering easy access to cultural activities, dining, entertainment and green space.
In the future, not just buildings will be certified, but neighborhoods and entire cities will be certified. This verification work will not only cover eco-friendly structures and materials, but will ensure that unique bio-regional conditions, water conservation, green space preservation, access to public transportation, and ongoing resident sustainability education are addressed.
All buildings will have baseline energy scores based on home design and the physical properties of the house. Home owners will have a better idea of where they stand with regard to energy efficiency and will understand how to upgrade their homes cost-effectively. Buyers will know more about energy performance when they shop for a home. The U.S. Department of Energy and the Environmental Protection Agency will create a voluntary national energy scoring system for homes by October of this year.
All homeowners will know significantly more about their energy and water use and their energy habits. The use of stand-alone or online home energy displays will enable them to monitor consumption in real time. Consumers will know how many times they opened their refrigerator door, when the hairdryer was used, how many gallons of water their teenager used during their shower, and the approximate dollar cost of each activity.
Legend Homes Exits Bankruptcy
From Portland Business Journal
An Oregon bankruptcy judge has approved a reorganization plan for Legend Homes, one of four Portland-area homebuilders that filed for bankruptcy after the residential home meltdown.
The judge approved the plan Wednesday. Legend Homes will formally emerge from Chapter 11 on June 1. Marnella Homes and Renaissance Custom Homes have also completed their reorganization process. Vancouver-based Pacific Lifestyle Homes is still working through bankruptcy.
Under the court-approved plan, Legend’s unsecured creditors will receive between 45 percent and 55 percent of the approximately $28 million they’re owed.
Jim Chapman, president, said contractors are owed about $2 million. That group will receive 50 percent on June 1 to satisfy the debt and no other payments.
The remaining unsecured creditors, collectively owed $26 million, will receive 19 percent of their money on June 21 and over time will receive at least 50 percent of their money as Legend regains its footing.
Chapman said he’s hopeful the company will repay more than 50 percent.
Funds for the June 1 payments will come from company cash, including $12.8 million in tax refunds based on losses in recent years.
Chapman said reorganizing rather than liquidating the company is better for creditors, who would have had to settle for just 20 percent of what they were owed had the company’s assets been broken up.
Under the plan, founder David Oringdulph and his daughter, Kara, surrender ownership and new shares will be issued to Chapman and the executive team, which includes Chief Financial Officer Diana Jarvis and director of production Mike Goodrich. Oringdulph will continue to work for the company he founded in 1965 as a special projects manager.
Legend’s parent company, Matrix Development, filed to reorganize its debt under Chapter 11 of the U.S. Bankruptcy Code on June 10, 2008, one month after a court judgment led to a cash flow crisis.
The surviving company will be known as Legend Homes.
In bankruptcy, the firm began to sell homes and address debts, including loans by seven banks, unpaid taxes and 388 liens totaling more than $2 million. It surrendered unworkable projects in Tigard, Wilsonville, Albany, Hillsboro, Happy Valley, Tualatin and Corvallis to lenders.
It will continue to build homes on nearly 500 lots in five subdivisions it still controls. Banks have agreed to issue construction loans for all five: Wachovia Bank for Villebois in Wilsonville, KeyBank for Edgewater in King City, JP Morgan Chase for Willamette Landing in Corvallis, Columbia State Bank for Walnut Creek in the Tigard area and Bank of America for Orenco Station at Hillsboro.
Legend creditors rejected two earlier reorganization plans. The one that finally won approval was filed March 29.
“This plan gives us the ability to build the company back into a long-term entity,” Chapman said.
Hoyt neighborhood scores LEED platinum
From The Portland Business Journal
Pearl District developer Hoyt Properties announced Wednesday that the Hoyt Yards neighborhood received the platinum LEED for Neighborhood Development award from the U.S. Green Building Council.
It’s the highest possible rating under the Leadership in Energy and Environmental Design pilot program, launched in 2007, to designate entire green neighborhoods in addition to individual buildings.
Hoyt Yards is just the seventh development in North America to receive the platinum award, including the Olympic Village in Vancouver, B.C., and the first in Portland.
The LEED Neighborhood Development program launches formally Thursday.
Hoyt Yards was among seven Portland-area projects in the pilot program. Of the others in the pilot program, Eliot Tower received a silver award, Helensview and Ladd Tower received gold awards.
Hoyt Yards is on 34 acres of former brownfields formerly occupied by the Burlington Northern rail yards and abandoned warehouses. The neighborhood now boasts 14 mixed-use and condominium buildings, restaurants, coffee shops, boutiques, art galleries, offices, and two public parks. The third park, a 3.2-acre area currently called the Fields, is scheduled to break ground in early 2011.
The LEED neighborhood development award focuses on smart uses of transportation, energy and land use in addition to green building practices. It was co-developed by the U.S. Green Building Council, Congress for the New Urbanism, and the Natural Resources Defense Council.
In order to achieve the LEED ND Platinum rating, Hoyt and the City of Portland used innovative energy, water and transit solutions in the Hoyt Yards plan. Examples include the Portland Street Car’s service to the neighborhood and planning for a North Pearl power plant that will provide clean power and heating to neighborhood buildings.
“Our vision for Hoyt Yards all along has been to create a vibrant, urban and green neighborhood that supports sustainability and an earth-friendly lifestyle,” said Tiffany Sweitzer, Hoyt president and partner, in a press release. “Receiving the highest rating for our plan is truly the crown jewel of our completed and future efforts here in the Pearl.”















