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Low-Income Housing Builders See Green
The Columbia, MD-based Enterprise Foundation has teamed up with Fannie Mae, Freddie Mac, Bank of America, J.P. Morgan Chase and Washington Mutual to provide equity investment funds backed by low-income-housing tax credits to developers of housing that is both environmentally friendly and affordable. The first project to be funded as part of the foundation's Green Communities Initiative was the 50-unit Denny Park in Seattle, which received $5.5 million. Among other things, Denny Park features low-maintenance landscaping, durable exteriors and easy access to public transportation. Green building components generally add 1%-2% to a project's costs, but proponents say residents benefit from healthier environments and lower energy bills. "We're setting out to show that, on a large enough scale, building green doesn't cost anything extra," remarks Enterprise Foundation CEO Bart Harvey. "This should be a standard way that affordable housing is thought about and designed in this country." Affordable-housing developers in California, Oregon, New Jersey and Washington already receive extra points on their tax-credit applications for green components. The foundation hopes that offering equity investment funds at favorable terms to developers who meet their standards will generate interest in such green initiatives in other states as well. (www.forbes.com)
Forbes (12/08/04) Ebeling, Ashlea
Realtors Are Raising Home-Sales Forecast
The National Association of Realtors® anticipates 6.58 million existing-home sales for all of 2004 and 6.38 million next year, up from previous estimates of 6.55 million this year and 6.3 million in 2005. The group also raised its expectations for new-home sales to 1.18 million in 2004 and 1.13 million in the coming year, up from 1.17 million and 1.07 million, respectively. Despite its upwardly revised outlook, NAR is expecting the first drop in home sales in five years in 2005 as low mortgage rates push buyers to make a purchase before the new year. As for home-price appreciation, the trade group expects growth of 7.9% this year — up from an earlier forecast of 6.9% — and 5% in 2005 for resales. For new homes, prices are predicted to climb 8.9% in 2004 — just shy of the previous estimate of 9% — and 5.8% next year. (www.azcentral.com)
Arizona Republic (12/08/04) Howley, Kathleen M.
Study: Greening Raises Property Values by Double Digits
Planting trees and cleaning up vacant lots can add significant premiums to the prices of nearby homes, according to research conducted by the real estate department at the University of Pennsylvania's Wharton Business School. Phase one of the study examined the results of a joint effort between the city of Philadelphia and the Pennsylvania Horticultural Society, called the Green City Strategy. The strategy, employed as part of the city's Neighborhood Transformation Initiative, involves "using place-based policies to transform cities from decline to vibrant health," explained Susan M. Wachter, the study's author and a faculty member at Wharton. In the Kensington community, tree plantings have raised property values by 9%; while "cleaned and greened" vacant lots have given nearby residential values a 64% boost. Overall, the study has found property values rising an average of 30% through greening and vacant land management. (www.globest.com)
GlobeSt.com (12/08/04) Thomas, Marita
Builders Sweeten Deals on New Homes
A new survey from NAHB reveals that developers are dangling incentives such as free or discounted high-end kitchens and flat-screen televisions in an effort to keep new-home sales near the record pace of the last three years. The organization reports that 72% of residential builders are facing "some" or "significant" resistance from buyers to rising prices. In response, 28% of developers are offering more optional items at no extra cost — up from 12% a year ago. Meanwhile, 17% of home builders are relying more on outside real estate agents and brokers, up from 7% a year ago; and they are paying them higher commissions. Other developers are swallowing closing costs and points on mortgage loans when the borrower uses their own mortgage unit or one of their preferred lenders; and some are even lowering their asking prices. "From California to Florida to Texas to Illinois, there's been a steady ratcheting up of the intensity of sales and marketing efforts," declares Mike Inselmann of Metrostudy, which monitors housing in more than 30 markets. The renewed focus on marketing comes as NAHB forecasts a 5.1% decline in sales of new single-family homes in 2005 from a record 1.18 million. (www.wsj.com)
Wall Street Journal (12/07/04) P. D1; Simon, Ruth
Switching Off Bulbs for LEDs
The federal government estimates that switching from light bulbs to white light-emitting diodes (LEDs) can cut the nation's energy costs by $17 billion annually. However, George Craford, CTO of Lumileds — a venture launched by Agilent and Philips Electronics — notes that widespread use of LEDs will not happen anytime soon. Craford has explored different approaches for the eventual replacement of light bulbs with white LEDs during the last 35 years. Lumileds currently manufactures LEDs at factories that operate similarly to chip plants. LEDs need to fall drastically in price — roughly 100-fold — to make the technology viable for widespread use. LEDs can also offer different color lighting, and red LEDs are already used in car taillights. (www.mercurynews.com)
San Jose Mercury News (12/06/04) Takahashi, Dean
Mansion Amenities Are Trickling Down to Everyday Homes
Luxury-home amenities often become standard in lower-end dwellings, with production builders now offering granite countertops, multi-bay garages and multiple family rooms and offices, among other features. The latest trend is stone exteriors, which can be attributed to the popularity of French architecture as well as to the fact that they are durable and require little maintenance. Other desirable touches include specialty spaces — such as prayer rooms, spas, basement basketball courts and home theaters. Affluent buyers also are requesting elevators, outdoor eating areas, shallow wading pools, year-round screen porches, high-tech security systems and even safe rooms. However, the need for more living space has pushed two-story ceilings out of favor. (www.baltimoresun.com)
Baltimore Sun (12/05/04) P. 6L; Stangenes, Sharon; Handley, John
The American Dream Remains Strong
A study from the National Association of Realtors® (NAR) reveals three primary reasons for the continuing desire of young professionals and families in the United States to own their own homes: historically low interest rates, special mortgage plans and the American ideal of "pride of ownership." David Lereah, NAR's chief economist, notes that home sales among first-time buyers has been strong for a little over a decade now, with entry-level buyers making up about 40% of all sales nationwide. He expects this trend to continue and even increase as "echo-boomers, the children of the baby boom generation, will be in their prime years for buying a first home for the next decade." Meanwhile, the NAR survey reveals a decline in the number of first-time buyers who are choosing not to hire a real estate agent. Indeed, first-time buyers without professional assistance now account for about 14% of the market, down from 18% in 1997. (www.copleynews.com)
Copley News Service (12/05/04) Woodard, James M.
Front Loaded; Laundry Rooms Rate as No. 1 for Home Buyers
A 2004 NAHB survey reveals that laundry rooms are at the top of buyers' lists of most desired extra rooms, regardless of the property size or the buyer's income. Laundry rooms are no longer relegated to the basement, and many buyers are requesting more than one. In addition to washers and dryers, home owners want cabinets, countertops, drying racks and pull-down ironing boards, among other amenities. Laundry rooms are now multi-purpose spaces, where home owners store cleaning and pet supplies, surf the Web and do crafts. Builders of single-family homes priced under $200,000 have made deluxe laundry rooms a standard feature, and many are including them in multifamily structures as well. (www.chicagotribune.com)
Chicago Tribune (12/04/04) P. 1; Mann, Leslie
Home View: Door Rescues
A growing number of home owners are purchasing doors made of salvaged wood to jazz up their front entryways. Sellers of antique doors have seen double-digit sales gains in the past year. Home owners can expect to shell out about $450 for a basic two-panel door made of antique walnut, oak or mahogany. Those interested in intricate carvings and leaded-glass side lights, meanwhile, should be prepared to spend at least $10,000. (www.wsj.com)
Wall Street Journal (12/03/04) P. W12
NAR: Homes More Than Stocks Boost Spending
According to a study conducted by Macroeconomic Advisers and Harvard University's Joint Center for Housing Studies on behalf of the National Association of Realtors®, housing wealth plays a greater role in consumer spending than stock wealth. For every dollar increase earned by real estate or stocks, consumers spend about 5.5 cents. However, NAR Chief Economist David Lereah believes that home owners are more willing to spend their equity because they are confident that property values will rise over the long term. Stock wealth, by comparison, can be short-lived. The study reveals that 60% of Americans have more home equity than stock wealth. (feeds.bignewsnetwork.com)
Big News Network (12/01/04)
Your Hard Drive Just Died — Who You Gonna Call?
The Novato, CA, recovery data firm DriveSavers gives suggestions as to what small business owners can do to avoid having their computers' hard drive crash and how to reduce damage if that happens. Backing up data on a daily basis with an automatic back-up system is the first step, and copies of the data should be kept offsite. The automatic backup needs to be checked to make sure it is working correctly. Switching a PC off at night can help a computer circumvent damage from power surges. A high-rated surge protector or UPS will protect a PC from power surges and brownouts; a product that has a high joule rating works best. If the hard drive begins making odd noises, it should be turned off, as the sounds could indicate a large problem and leaving the drive on lowers the chance of recouping the data. If the hard drive data can only be retrieved by a company such as DriveSavers, prepare to pay around $1,000 for the service. (www.smallbusinesscomputing.com)
Small Business Computing (12/01/04) Simonds, Lauren
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