No Sagging in Builder Earnings
U.S. home builders largely are shaking off the threat of climbing interest rates, with major players in the market posting double-digit earnings growth in the second quarter. Lennar Corp. and KB Home registered respective gains of 26% and 25% in their fiscal quarters ended May 31, while the fiscal quarter ended April 30 saw Hovnanian Enterprises Inc.'s earnings up 34%. Raymond James & Associates Inc. analyst Paul Puryear projects that most residential builders will log increases of at least 20% for the three-month period, and there is general industry sentiment that the sector will not cool off anytime soon. Jim Wilson of JMP Securities notes, for example, that orders — which add to the bottom line for the following two or three quarters — are slated to rise 15% on average; while Meritage Corp. CFO Larry Seay adds that stronger balance sheets and more skilled management teams will help sustain builder earnings. (www.wsj.com)
Wall Street Journal (06/30/04) P. B6; Morrissey, Janet
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'Green' Homes Starting to Flower Despite Cost
Rising energy prices are prompting more and more U.S. home owners to consider green building, which involves the use of recycled materials, non-toxic products and energy-efficient features during the construction process. Sub-flooring made from recycled newspapers, straw-bale walls, bathroom tile comprised of recycled car windshields, and bamboo floors are examples of eco-friendly features. Home owners also can opt for energy-efficient appliances, solar panels, solar water systems, roofs covered in grass and other vegetation, and radiant floor heating; but many balk at the upfront costs involved. Although green materials can cost substantially more than traditional products, builders insist that the expense is offset by long-term energy savings. More affordable green materials include paints and carpeting without volatile organic compounds, cellulose insulation and reflective roofs. Home owners may encounter difficulty in locating builders or contractors willing to undertake green projects because of the higher costs, but the industry will get a boost from NAHB when it issues national green-building guidelines later this year. (www.baltimoresun.com)
Baltimore Sun (06/27/04) P. 1L; Mathur, Shruti
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High-Tech Wiring Puts It All at Your Beck and Call
Goehring & Morgan Construction is currently building The New American Home in Baldwin Park, FL, which will be ready for NAHB's 2005 convention slated for Orlando in January. The 6,000-square-foot, estimated $1.8 million property will be positioned around a pool, complete with a waterfall originating above a fireplace. Though impressive, the dwelling's main selling points will be its high-tech features. Technology from Lutron Electronics Inc. will link a dozen televisions positioned throughout the house with telephones, computers, lights and security and audio systems, which can easily be controlled via touch-screen keypads and remotes. The computers and televisions can be used interchangeably. Moreover, home owners will be able to program the lights, control the shades, monitor the front door, activate the sprinkler system, turn on the whole-house vacuum and chlorinate the swimming pool from anywhere in the house. The home also features a combination of Styrofoam and Icynene insulation as well as a multitude of temperature and humidity sensors. Pittsburgh-based Ibacos Inc. will read the sensors for one year to gauge the efficiency of the home's heating and cooling systems. (www.orlandosentinel.com)
Orlando Sentinel (06/27/04) P. J1; Burney, Teresa
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High-Tech Development To Be Built
The Corpus Christi, TX, Chamber of Commerce hosted a groundbreaking ceremony this week for a new "smart" community, Virginia Hills on the Bay, where construction is set to begin within the next couple of months. According to Jerry Reeb, co-owner of Mirabal-Reeb Properties, the technology will make the gated community the first of its kind in Corpus Christi. The 42 homes overlooking the Cayo Del Oso preserve will allow home owners to wirelessly control security cameras, thermostats, lighting and other household systems and appliances. Corpus Christi Builders Association President Tony Brady — owner of Third Coast Construction, which is building the homes and installing the wireless automations systems — describes wireless home automation as "a remote control for your house." The wireless automation system is easy to use, even for those who are not technology savvy; and security is a basic component. "I can have it set up where when somebody rings your doorbell, a picture of who is at the door will pop up on your PDA or you laptop or your monitor at work," says Brady. Reeb, the real estate agent for the property, says five home sites — priced from $170,000 to $400,000 — have been sold and two other sales are pending. Experta Financial Group is handling the mortgage lending services. (www.caller-times.com)
Corpus Christi Caller-Times (06/29/04) P. D6; Nelson, Amanda
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Home View/School's In
A new online poll by HomePriceCheck.com shows that home buyers are less preoccupied with size and more focused on buying in an area with quality schools. Queried about how much house they needed, 42% of the 1,304 people who responded quoted space requirements of 2,000-3,000 square feet. Just 8%, meanwhile, said they needed an even larger residence. As far as what elements are most important in a new neighborhood, 52% of the 733 people who answered cited a good school district. Another 17% thought affordability was the most important, while 4% of the poll-takers said that being near to family was the biggest draw. (www.wsj.com)
Wall Street Journal (06/25/04) P. W8; Reed, Danielle
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When Ease of Lifestyle Trumps Prestige in a Home Choice
Many affluent home buyers are opting for convenience over square footage. These buyers would rather live in smaller homes close to their jobs than lavish dwellings with formal living rooms and large yards in faraway locales. Even so, former National Association of Exclusive Buyers Agents President Abraham Tieh says three-car garages and upscale kitchens and bathrooms remain top priorities. Buyers who favor convenience over prestige should consider their need for a large yard and look for multipurpose spaces instead of many large rooms. Modern kitchens ensure appreciation over time, but experts say buyers are more interested in wood cabinets and computer hookups than size. Finally, buyers who do not want to deal with repairs or remodeling projects should have the property examined by an experienced home inspector before the deal is finalized. (www.chicagotribune.com)
Chicago Tribune (06/25/04) P. 10; Martin, Ellen James
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Home Performance Expands Across Country
Since the New York State Energy Research and Development Authority partnered with the Environmental Protection Agency (EPA) to launch the Home Performance with Energy Star program in 2001, several states have followed suit. The program aims to make existing homes more energy efficient. The Department of Energy (DOE) in 2003 provided grant money to seed programs in Austin, TX; Kansas City and St. Louis, MO; Atlanta; Atlantic City, NJ; and Boise, ID. Similar projects also are underway or under consideration in Vermont, Illinois, Minnesota, Massachusetts and Wisconsin. Meanwhile, HUD has teamed up with EPA and DOE to create a contractor infrastructure, encourage better quality construction and move the program into the multifamily sector. The results of these efforts will be known in the coming years, paving the way for improved business practices, new certification programs and educational and marketing campaigns. (www.homeenergy.org)
Home Energy (06/04) Vol. 21.3, P. 40; Rogers, Mike
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A Yard Over Your Head
Green roofs are gaining popularity in the residential sector, but most home owners are not interested in them as a social space. Rather, Environmental Building News Executive Editor Alex Wilson says modern home owners are employing green roofs to control storm runoff, cool their dwellings during the summer months and create wildlife habitats. These projects are more involved than simply spreading dirt on the roof and planting vegetation, and home owners should keep in mind that they cost significantly more than conventional roofs. In fact, green roofs cost three times more than those comprised of traditional materials at anywhere from $12-$20 per square foot. Since green roof technology is a fairly new concept in the United States, home owners will have to look hard to find knowledgeable engineers, architects and roofers. However, Green Roofs for Healthy Cities currently is working on a certification program for builders and other professionals. Widespread adoption of green roofs is far off, experts say, but the emergence of government incentive programs — like those offered for commercial buildings — will spur consumer acceptance. (www.smarthomeownermag.com)
Smart Homeowner (06/01/04) No. 17, P. 40; McLeister, Dan
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More Storage Changing Way We Use E-mail
Software breakthroughs are altering how users use and manage e-mail. Leading the transformation are software leaders Google and Yahoo!, which have developed solutions that are forcing Internet service providers, browser makers and software vendors to change their approach to e-mail. For its part, Google's Gmail services addresses Webmail limitations, allowing every Gmail user a whole gigabyte for storage and an attachment size limit of 10 megabytes. Meanwhile, Yahoo! has raised its storage to 100MB and attachments to 10MB. MSN Hotmail expects to follow suit, raising its storage to 250MB to 10 MB next month. (www.seattletimes.nwsource.com)
Seattle Times (06/28/04) Andrews, Paul
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