As Housing Buoys Economy, It's No Surprise to Fed's Chairman
Federal Reserve Chairman Alan Greenspan has been studying housing and residential finance since the 1960s, even creating related databases to make market predictions; and he discovered long ago the effects cash-out refinancings could have on consumer spending and the economy as a whole. Record-low mortgage rates have sparked a refinancing frenzy; and if home owners had not put their interest savings or their equity back into the economy, the most recent downturn likely would have been much worse. In addition to low rates, the ability of lenders to sell mortgages on the secondary market as well as the emergence of underwriting and credit-scoring software helped to make mortgages less costly and easier to obtain. Despite the risks of a bursting housing bubble, surging debt loads and eventual declines in the housing sector, Greenspan believes a growing pool of prospective home owners makes a market collapse unlikely. (www.wsj.com)
Wall Street Journal (05/28/03) P. A1; Ip, Greg
[ Go to Top ]
Growth Plans Often Ignored
According to a recent study by the Solimar Research Group and the Reason Foundation, a critical housing shortage will plague Ventura County, CA, by 2020, mainly because cities are approving fewer homes than allowed by their long-range development plans. We are learning that you can't freeze-dry a city and think that a general plan written in the 1990s provides an accurate picture of what the city will look like in 2020," remarks Solimar President Bill Fulton. A similar study from December 2001 revealed that housing projects in the county usually have just 55%-80% of the homes allowed, indicating a preference for fewer dwellings per acre over higher-densities. Researchers think local governments should formulate master plans with all the details including homes, schools and commercial space figured out well before the growth occurs. Fulton and Local Agency Formation Commission executive officer Everett Millais have seen more projects with a mix of housing types; a growing number of industrial and retail areas converted for residential purposes; and the use of agricultural land for new homes. (www.latimes.com)
Los Angeles Times (05/23/03) P. B1; Kelley, Daryl
[ Go to Top ]
City to Promote Neighborhoods
A new marketing campaign from the Central Philadelphia Development Corp. aims to attract home buyers to half a dozen middle-income neighborhoods in the city. The communities Cedar Park, Fox Chase, Mount Airy, Overbrook Farms, Roxborough and Southwest Center were targeted for the project due to their stable property values, diverse housing and close proximity to public transit and other amenities. More areas could be added to the campaign in the future, according to Central Philadelphia Development Corp. Executive Director Paul Levy, as 'spillover' from the initial locales creates additional healthy and appreciating neighborhoods. To pump up the six markets that are the initial focus, ads will be posted in newspapers and on public transportation; and corporate relocation specialists will be provided with brochures to pass out to prospective Philadelphia home buyers. 'Look at what the suburbs have been doing for years,' says Levy. 'Advertising is a part of persuading people to make their most significant purchase.' (www.philly.com)
Philadelphia Inquirer Online (05/29/03) Benson, Clea
[ Go to Top ]
Fulton Eases Home Buying
In what has emerged as a nationwide trend, counties across the United States are promoting homeownership instead of rental units as the key to the affordable housing crisis. In Georgia's Fulton County, for example, local officials have abandoned a developer subsidy program for low-income apartment construction in favor of a program that helps working-class and first-time buyers afford to purchase a home. Under its new policy, the county acquires land for a possible residential project. After recruiting a developer to build on the parcel, the country lends $5,000 toward eligible buyers' downpayments and provides $2,500 grants to cover the settlement costs. In turn, a fifth of the homes can cost no more than $130,000 and another 20% must be priced at $170,000 or lower. The initiative also aids qualified recipients who must meet income requirements, cannot already be receiving public assistance and have steady incomes with repair work. (www.accessatlanta.com/ajc)
Atlanta Journal-Constitution (05/29/03) P. 1B; Yoo, Charles
[ Go to Top ]
Energy Efficiency Could Lead to Lower Rates
Houston-based Advantage Capital Funding has become the first lender to enroll in the new Freedom Seal program, which rewards buyers of energy-efficient homes by lowering their interest rate. The certification program which requires a property to be at least 30% more efficient than a comparable dwelling built to1993 energy codes aims to shift the focus of home owners and lenders away from the cost of a residence per square foot and more toward the cost of ownership. Not only will Freedom Seal certification slash utility costs for owners, insurance coverage on such properties may be less expensive as a result of the specific safety and environmental standards they must meet. Participating lenders are encouraged but not required to slash interest rates by 0.5%; and program administrators say that builders' in-house mortgage companies could be the most likely to extend rate discounts, most likely as part of an incentive package. (www.shns.com)
Scripps Howard News Service (05/29/03) Lewis, Holden
[ Go to Top ]
The Lure of a Loft
While the trend first took off in New York, developers in virtually every major U.S. city including Atlanta, Chicago, the District of Columbia and Seattle are now cashing in on the loft craze. The real estate is recognized for its high ceilings, exposed pipes and ductwork, spacious windows, open and/or multi-level floor plans, steel columns and concrete floors. Lofts are deemed authentic only if they were used as a factory, warehouse or other industrial purpose prior to their conversion for residential use; but even the copycats condominium developments built brand new but including many of the architectural touches common in lofts are wildly popular with today's buyers. "Lofts offer the buyer something different than the conventional garden-apartment-style unit or the single-family home," explains Ken Bleakley, president of an Atlanta-based real estate consulting firm. There are no less than 8,000 loft or condo units scheduled to hit the Atlanta market alone by the close of this year. (www.accessatlanta.com/ajc)
Atlanta Journal-Constitution (05/29/03) P. 2NW; Hill, Alma E.
[ Go to Top ]
State Paves Way for Beverly Hills Project
To finance roads, sidewalks and utilities for new construction, developers often seek to have their projects designated as "community development districts." Under this structure, a developer usually will hire an underwriter to issue tax-exempt bonds to bankroll the new infrastructure; the bond debt, in turn, is paid off through a property assessment that is levied against new residents only instead of against all home owners. More than 200 projects in Florida have been named community development districts, the latest of which is the large-scale Tuscany subdivision in Beverly Hills. Gov. Jeb Bush and his Cabinet recently granted their approval for the Citrus County development, which ultimately will encompass as many as 4,000 new homes. As with other community development districts, Tuscany initially will be overseen by a governing board, with resident representatives gradually assuming control as more lots are sold. (www.sptimes.com)
St. Petersburg Times (FL) (05/29/03) P. 1; Pyati, Archana
[ Go to Top ]
Cambridge, Massachusetts, Tops Million-Dollar Market
The nation's hottest market in 2000 for luxury single-family housing was Cambridge, MA, according to a new Census Bureau report. The Home Values: 2000 analysis found that roughly one in eight Cambridge residences was worth at least $1 million dollars the highest proportion of any of the country's large cities with 100,000 or more people. The New England city was trailed by three California destinations San Francisco, Pasadena and Los Angeles where luxury homes accounted for 7%, 4.7% and 3.8% of the housing stock, respectively. The report additionally revealed that the median value of an American home rocketed 18% from the 1990 level of $101,100 to $119,600 a decade later. The highest median value for a single-family home in 2000 was found in Sunnyvale, CA, at $459,200, with Flint, MI, at the other end of the spectrum with a median of $49,700. Among states, Hawaii's median home price of $272,700 was the highest, while Oklahoma's median of $70,700 was the lowest. (www.inman.com)
Inman News Features (05/29/03)
[ Go to Top ]
How to Wi-Fi Your Home
Home owners could spend as much as $250 plus equipment costs to have a professional install a wireless fidelity (Wi-Fi) network in their homes, or they can do it themselves. First, they will need to purchase Windows XP, Apple's OS X or another new operating system and a wireless transmitter. Home owners with wired homes will require only a wireless access point, while those building the network from the ground up will need a router. They should choose the most up-to-date and speedy wireless standard, 802.11g, because it can network more computers, printers and digital equipment than the others. Meanwhile, those with older laptops and desktop computers will need to get Wi-Fi PC cards and adapters for each unit. To set up the network, they should choose a central location six feet off the ground keeping in mind that the signal is good within 150 feet or so of the hub and use an Ethernet cable to link to their high-speed modem if it is positioned elsewhere. Lastly, home owners will need to disengage all firewalls to connect the devices to the network simultaneously; create log-on names and passwords; name each device; and activate the necessary security software. (money.cnn.com)
Money (06/03) Vol. 32, No. 6, P. 127; Clark, Brian L.
[ Go to Top ]
Quantifying Value of Technology
There is still room to improve on productivity through technology. Available information resources have already made improvements in productivity, offering people the ability to make important decisions or make insights into their businesses. Smart clients like personal digital assistants can increase the productivity of the front-line workers if they connect to the back office. Digital meetings are about to become possible through the convergence of networks and audio and video conferencing, and these will have digital meeting records for those who are not able to attend. Technologies, used properly, can double information work productivity this decade, according to this article. (www.emedia.com.my)
New Straits Times (Malaysia) Online (05/22/03) Khoobchandani, Haresh
[ Go to Top ]
Where Wireless Works
Wireless technology appears to have a greater impact on the bottom line when companies supply workers outside the executive level with mobile tools. For example, Seattle-based Starbucks has provided mobile tools to some 600 district managers (each one oversees eight to 10 stores) so that they can have greater access to data such as sales figures or labor reports. By enabling Starbucks district managers to stay connected with T-Mobile's wireless Wi-Fi network capability and virtual private networking for their laptop computers, they are able to spend less time at the regional office and more time in stores. Starbucks district managers are now hailing mobile tools as a tremendous benefit for their jobs, and Ken Hyers, senior analyst in the wireless group for In-Stat/MDR, says wireless technology works well in business environments that demand quick reactions and high transaction rates. Although more companies are embracing mobile tools in a manner similar to Starbucks, until recently networks were not fast enough and they did not offer the necessary coverage capacity. A 2002 report from The Yankee Groups reveals that 28% of all mobile workers at large corporations are now field service technicians and engineers. As a result of the state of the U.S. economy, companies are creating small pilot programs before committing to full-scale mobile service project. Some observers say management is more like likely to invest in mobile solutions if they are already using mobile tools. (www.cfo.com)
CFO (05/03) Vol. 19, No. 6, P. 81; Karaian, Jason
[ Go to Top ]
|