My New Outside Blog

I like this posting alot. 2012 'Hot or Not' Real Estate Survey. Real Estate is Local  I thought I would reblog it so others could also read and learn from this great resourse here on ActiveRain. Via Activerain blog…

Innerloop Houston Texas

Linda Jamail Marshall, Independent Broker

713-523-4600 info@LindaMarshallRealtors.com

A very important news alert from Market Watch, reblogged with permission

Economic Report

Sept. 22, 2010, 10:59 a.m. EDT · Recommend (5) · Post:

U.S. house prices lowest in nearly six years

Prices fall 0.5% in July, and June price drop revised to 1.2%

By Steve Goldstein, MarketWatch

WASHINGTON (MarketWatch) - U.S. house prices fell 0.5% in July to the lowest level in nearly six years, according to data released Wednesday by the Federal Housing Finance Agency.

The 0.5% seasonally adjusted drop in monthly prices came after a 1.2% drop in June; the FHFA initially reported that June prices slipped 0.3%.

Over 12 months, prices are down 3.3%. The FHFA said that the July index is roughly the same value as was seen in September 2004.

The FHFA monthly index is calculated based on purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The more closely followed Case-Shiller home price index for July is due on Tuesday.

House prices have been hurt more recently by the expiration of the home-buyer tax credit, and more broadly by the availability of foreclosed homes and a nearly 10% unemployment rate.

"In the absence of a rapid employment growth, and factoring in all the potential excess housing supply from foreclosures and looming delinquencies, housing prices will likely remain under pressure and continue trending lower throughout this year and next," said Yelena Schulyatyeva, an economist at BNP Paribas.

Reblogged with permission from Texas Real Estate Center (College Station Texas)news release 8/20/2010

WEAK HOME SALES NUMBERS NOT WHOLE STORY

COLLEGE STATION (Real Estate Center) - Home sales statistics are likely to paint a picture of a weakening market through the end of 2010 and the first half of 2011. While it's tempting to attribute the bleak numbers to a deteriorating housing market, an economist with the Real Estate Center at Texas A&M University said that doesn't tell the whole story.

"The year-over-year decline in existing home sales will be the result of comparing months when there was no tax credit with those from a year earlier, when the tax credit was artificially increasing sales," said Dr. Mark Dotzour, the Center's chief economist.

The $8,000 tax credit for first-time homebuyers went into effect in January 2009 and was planned to expire in November 2009. Home sales gradually started to increase after the tax credit was announced, after bottoming out in January at an annual rate just above 4.5 million sales.

Existing home sales gradually increased in 2009 as buyers and real estate agents became more familiar with the program. Sales topped an annual rate of five million in July 2009 for the first time since September 2008.

As the tax credit deadline approached, home sales spiked in September, October and November 2009. November 2009 was the peak at an annual rate of almost 6.5 million.

The tax credit was extended late in 2009 to include sales with contracts written until April 30, 2010, and closed by June 30 (extended to September 30). Initial homebuyer response to this extension was tepid, but sales picked up substantially in March, April and May 2010, when sales were up 18 percent, 28 percent and 18 percent, respectively, over the same months in 2009.

Then the process reversed itself. Pending home sales fell dramatically in May 2010, the month after the tax credits expired. This was followed by a significant drop in home sales in June and July. In Texas, July 2010 sales were down approximately 25 percent from July 2009.

Dotzour said August figures may not be much better since many buyers purchased homes before the tax incentive expired.

"When you ‘bring forward' sales through tax incentives, sales will be lower after the tax credit ends," he said.

Unless Congress creates a new tax credit this fall, Dotzour said monthly sales for 2010 will likely exhibit significant variance from 2009, and a true reading of housing market conditions may not be possible until June or July 2011.

2010 is unfolding before us and some primary trends are emerging:

The average size of single family homes was flat in 2006 and down 2007-2009, which suggests that that trend will continue.

Homes that were built with at least 3 bedrooms was down in 2009 for the first time since 1992

Homes with 4 or more bedrooms has been falling since 2007.

Homes with 2 or more stories peaked in 2006 and then started a downward trend.

The implications on home design

Even thought todays homes are becoming smaller builders architects and designers insist that they do not necessarily have to feel smaller.  It is coming to light that alot of consumers actually prefer smaller homes as energy conservation and costs come to the forefront of the public awareness.

Home owners are still interested in the WOW factor but living in a space wasting energy guzzling home is not desirable and is beginning to have negative connotations in the innerloop more eco-hip circles.  We are actually starting to witness a backlash against McMansions.  There are other ways builders are adding that WOW factor besides cavernous space.  That point was evident when the National Association of Home Builders surveyed builders in 2010 and learned that 9 foot ceilings on the first floor of homes was one of the TOP ten priorities in 2010.  "In todays environment builders are very focused on giving  homebuyers  more bang for their buck" says Stephen Melman NAHB Director of Economic Services.  He went on to say "there's a prime emphasis on good design that helps home feel larger by raising overall ceiling height, adding more light through windows, and using space efficiently."

Trends we see for 2010:

Whole House Efficiency--Open floor plans are very desirable but with a scaled back approach.  We are seeing the death of the 2 story family room atrium style.  The most desirable is the on-story multi functional space.

Kitchens and eating areas are open and connected to great rooms.  Food prep entertaining and relaxing all are contained in a flowing layout of the home allowing for full use of all of your space. 

Energy efficiency doesn't stop with these flowing floorplans, curbing energy use is of the highest priority among builders as well as their buyers.  they are utilizing insulated doors, low e windows, programmable thermostats, tech shield radiant barrier(especially important with our South Texas sun), energy efficient appliances and lighting.

Still in demand is the Master Bedroom Suite.  Builders are seeing no let up in the demand for the full featured master bedroom with (in some cases) adjoining sitting rooms.  They have continued to design in walk in master closets, and above all a separate shower and tub in the new master bath(retreat).  Buyers want the master bath to feel like a small spa and demand features that provide a step above ordinary baths in the house.

What is not on the 2010 List:

Well the outdoor kitchen has gone the wayside.  Other things they will not be including in new homes outdoor fireplaces, sunrooms, butlers pantries and media rooms.

 More on this subject in the next few days