Wealthy Home Owners Not Content With One Home
The Institute for Luxury Home Marketing and Unique Homes magazine have released the results of their joint study on the demographics and real estate-purchasing trends of very well-off Americans. The research showed that the overwhelming majority — 70% — of U.S. households with at least one residence worth $2.5 million or more also owned at least one other personal dwelling. The findings from the online survey of 4,000 such households also revealed, among other things, that most multimillion-dollar home owners live in single-family properties with more than four bedrooms, more than four bathrooms, a home office, a home gym and residential Web hookups. (www.inman.com)
Inman News Features Online (11/06/03)
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Number of Superfund Projects Cleaned Up Drops Third Year in Row
The number of Superfund projects completed per year was as high as 88 during the Clinton era but has been in a slide for the past three years. Only 40 contaminated sites were remediated in 2003 — down from 42 in 2002 and 47 in 2001. Overall, 886 Superfund properties — a little more than half of those targeted for cleanup — have been completed. Marian L. Horinko, acting administrator of the Environmental Protection Agency, reasons that the pace of Superfund cleanups has slowed because the remaining projects are both more complicated and more expensive, allowing fewer to be completed during any single year. Critics, however, blame the Bush Administration for failing to seek reauthorization of a corporate tax to fund a trust fund. (www.washingtonpost.com)
Washington Post (11/05/03) P. A4
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Construction Spending Hit All-Time Monthly High in September
The Commerce Department reports that construction spending turned in its best September performance on record, with the total value of building projects under development hitting a seasonally adjusted annual rate of $910.6 billion. The tally reflects a gain of 1.3% from the month before, surpassing analysts' consensus estimates of just a 0.4% jump. Spending by private developers on residential projects increased 1.4% during the month to a rate of $471.4 billion — also the highest monthly level since the federal agency started keeping such records. Looking at commercial projects, spending on office buildings, factories and power plants and lodgings were all categories that posted gains in September. (www.mcall.com/business/local/all-economynov04.story)
Allentown Morning Call Online (11/04/03) Aversa, Jeannine
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Real Estate Remains Foundation of American Dream
The Mortgage Bankers Association's Research Institute for Housing notes that both residential property prices and homeownership rates continue to rise. The economy has helped a greater number of families become owner-occupants in recent years by creating jobs that allow them to save money for the downpayment and monthly mortgage payments, according to MBA Chief Economist Doug Duncan. Low interest rates, innovative loan products and the secondary mortgage market — which fosters competition among lenders and allows them to objectively review borrowers' credit reports — also have driven up homeownership rates. However, the research additionally reveals that poor credit prevents many families from purchasing homes. The study notes that the gap between white and minority homeownership rates remains wide, although the percentage of minority renters setting money aside for home purchases now equals or surpasses the 15%-20% of whites doing the same.
(www.copleynews.com)
Copley News Service (11/03/03) Woodard, James M.
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U.S. Wants Slice of Housing Pie
U.S. and Russian interests expect by the end of the year to assemble a working group on construction, mortgages and housing. While Russia's residential property market is booming, HUD Secretary Mel Martinez says outside cooperation is needed in order to develop home financing and introduce new, inexpensive construction techniques to the country; at the same time, the United States stands to benefit from Russia's success in state-owned housing, which Andrew Somers of the American Chamber of Commerce in Russia identifies as the "least effective" segment of the U.S. property market. The working group will collaborate on such joint projects as high-rise buildings in Moscow and an "American Village" in central Russia as well as a seminar on mortgages planned for February. While Washington is encouraging U.S. firms to get involved in Russia's developing residential property industry and may even earmark $20 million to promote mortgage programs there, George Gaige of Ernst & Young in Moscow speculates that inefficient legislation combined with the lack of credit history and verifiable income sources for most Russians will discourage major American mortgage financiers from jumping into the market in the near future. (www.moscowtimes.ru)
Moscow Times (11/04/03) Maternovsky, Denis
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For Stand-Up Guys, No Home Is Complete Without One of These
Once almost exclusively an installation in the bathrooms of commercial buildings, the urinal finally is beginning to trickle its way down to the residential sector. While no official data is available, representatives at American Standard Cos. and Kohler Co. — two of the biggest toilet manufacturers — confirm that a trend is in the works. The fixtures are especially popular, according to designers, in homes where young boys live. Additionally, celebrities like rocker Ozzy Osborne and footballer Curtis Martin are showing off their models on television shows. The growing appreciation of private, in-home urinals is being aided in part by the expansion in U.S. homes, which feature ever-bigger bathroom space. While American Standard's Gary Uhl speculates that women balk at the fixtures because they are so "overtly male," the emergence of more and more separate male and female wings within the master bath can temper that debate. In addition to larger house size, urinals also are getting a boost from the refinancing boom — which gave households extra cash to undertake improvement projects, including adding urinals. Proponents say that installing urinals allows home owners to save water and also to introduce plush carpeting to bathrooms; and while water pressure can complicate matters in existing homes, putting in a urinal generally is a fairly inexpensive and simple job for a do-it-yourselfer. (www.wsj.com)
Wall Street Journal (11/03/03) P. A1; Morse, Dan
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High-Density Development Good for Cities
Panelists at the Urban Land Institute's recent meeting in San Francisco agreed that high-density development is necessary to curb sprawl, improve the quality of life in the urban core and strengthen the economy. Brookings Institution Center on Urban and Metropolitan Urban Policy Deputy Director Amy Liu says companies want skilled workers; and these workers desire the lifestyles offered by San Francisco, Seattle and other dense cities. Nevertheless, Liu notes that suburban growth continues to outpace that of downtown areas; and jobs continue to move away from the city center. According to Governors Island Preservation and Education Corp. President James Lima, "Central cities are key to the future of the nation. To be competitive in our central cities, we have to create quality-of-life environments." (www.inman.com)
Inman News Features Online (11/04/03) Barrios, Jennifer
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Smart Growth Beyond the 'Burbs
With demand for homes increasing with each consecutive year, developers are realizing the need to shift some of the current focus on infill projects toward greenfields. While it will be instrumental in future growth, land development consultant Donald Priest notes that infill is limited in its reach and that the pace of development in this niche will fall short of market demand in some cities. Speaking at the Urban Land Institute's fall meeting in San Francisco recently, Priest asserted that "equal or greater attention must be given to accommodating the majority of growth in greenfield locations." ULI itself has dubbed greenfield development as the "third leg" of smart growth, with renewal of core-city housing markets as the first line of defense and restructured close-in suburbs as the second. (www.inman.com)
Inman News Features Online (11/03/03) Swesey, Jessica
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Wood, Tile Top the List for Floors
Wood — which conveys a warm, natural look — and ceramic tile — which can lay an attractive path from foyer to kitchen — are favorite flooring options for buyers of new homes. When deciding which is best for them, customers should keep in mind that wood not only provides a rich and seamless look, but it also is easier to stand on than other flooring choices. Additionally, it can be stained to match any color, allowing home owners to coordinate with cabinetry or furnishings. The biggest drawback, however, is the required maintenance for wood — which is more easily scratched and affected by spills and also can be damaged by water. To the contrary, ceramic tiles are hard, durable and extremely low-maintenance. The only requirements are washing regularly and regrouting about every 10 years. Ceramic tile is priced similarly to wood flooring and also allows home owners to match up furniture and design elements through a wide range of patterns, colors and sizes. However, unlike wood — which can be refinished to remedy years of wear — chips or cracks in tiles require the entire damaged piece to be replaced. (www.chicagotribune.com)
Chicago Tribune (11/01/03) Beatty, Allison E.
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Paying the Way With Property
With sales and sin taxes already high in many locales, Patuxent Consulting Group Vice President Ellen Marshall believes cash-strapped state and local governments increasingly will hike property taxes, impact fees on new homes and taxes on real estate and mortgage brokerage services. Officials in California, New Jersey, Virginia, South Florida and Raleigh, NC, have already done so. According to Trammel Crow National Managing Partner J. Ronald Terwilliger and other experts, higher taxes and fees will boost residential property prices and make it difficult for developers to take on affordable multifamily projects. However, Terwilliger also believes that strong economic growth and the creation of new jobs could drive up revenues and take the pressure off the property sector. (cbs.marketwatch.com)
CBSMarketWatch.com Online (10/31/03) Kerch, Steve
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Personal Space: More Builders Allow Customers to Modify Floor Plans
Builders typically do not allow home buyers to design their residence from the ground up because of the time and costs involved and the need to comply with construction codes; however, many do allow them to alter standard floor plans so that a dwelling meets their individual needs. As a result, many buyers turn dens into bedrooms, add extra rooms, convert bedrooms into studies or get rid of a room to make another space bigger. The desire for larger garages, meanwhile, has forced builders to creatively maximize space. According to Florida-based builder Lee Wetherington, all buyers modify the conventional home plans "because they want to make it their own home with their own individual style." However, Wetherington urges them to keep the home's resale value in mind when making changes. (www.bradenton.com)
Bradenton Herald (11/02/03) P. 1; Westbrook, Jesse
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There's No Need for Cold Feet Over Energy Efficiency
With the electric radiant heating system recently rolled out by the Canadian firm Nuheat, home owners can wake up to warm floors during the winter months. The system is installed underneath the ceramic tile or natural stone floor; but unlike the typical hydronic radiant heating systems that use hot water to heat both the air and the floors, Nuheat uses electricity to warm only the floor. This facilitates installation and reduces the cost of the system itself to just $500 to $750 for the average-sized bathroom. The wires are embedded in a thin nylon and polyester mat and coated with waterproof Teflon. For added protection, the mat, programmable thermostat and wall-mounted controls are designed to shut off if the system comes into contact with water. (www.chicagotribune.com)
Chicago Tribune (11/01/03) P. 13; Hunt, Don; Edwards, Brian
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Old-School Agents Fuel Demand for MLS Books
Despite Web technology that gives real estate agents instant access to property listings, often through visual and interactive presentations, some practitioners remain loyal to the paper-based compilations. For instance, Mark Brown of Fidelity National Information Systems — one of the industry's top producers of listing and management tools — says that nearly 90 agents still request the paperback Multiple Listing Service (MLS) book that it prints each week for the Olathe, KS, market. Older agents often prefer the book over online Internet listings, according to Norwalk, CT-based Consolidated Multiple Listing Service President and CEO Don Hull, because of their hesitance to embrace new technology. Younger agents, however, have much computer experience and more easily adapt to such changes. Boise, ID-based Rocky Mountain MLS Executive Director Amy Geddes, meanwhile, believes smart phones complete with telephones, lockbox keys, Web browsers, e-mail capabilities and listings could help veteran agents better cope and improve productivity. (www.inman.com)
Inman News Features Online-- (11/05/03) Kelly, Tom
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More Mobile Staff, Greater Productivity
Mobile technologies are increasing workplace productivity. The IT consultancies Gartner and Meta Group each estimate that within five years, three-fourths of sales and service professionals in developed countries will employ such technologies. Other forecasters say a large hike in spending on mobile infrastructures, including wireless technologies, will occur. Fujitsu Consulting Director Matt Roderick thinks that mobile working is becoming unavoidable, especially in the United Kingdom, where employees work the most hours in Europe and spend the most time commuting to a workplace. Right now, however, mobile working's fast growth also poses challenges, including choosing the best suited mobile product from the quickly broadening selection and best program from a multitude of wireless technologies and networks. While certain industry experts believe that mobile workers will eventually move towards one multi-function device, others think that users will keep sporting several devices that are each optimized for a single mobile-working aspect. "In the short term at least, the likelihood is that users will select the appropriate access device and network for the task at hand," theorizes Benjamin Ellis of the California-based networking technology firm Juniper Networks. (www.ft.com)
Financial Times (10/29/03) P. 4; Taylor, Paul
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