NEW YORK – Aug. 5, 2015 – What building materials are trending in new-home construction? The latest Annual Builder Practices Survey, conducted by Home Innovation, reveals what buyers can expect to see in the new-home market.
1. Garages: The garage door is getting more enhancements, including windows, insulated doors, and doors made of composite or plastic materials. In 2014, 32 percent of all new single-family homes had bays for three or more cars – the most ever recorded in this study’s history.
2. Flooring: Carpeting continues to be the most popular flooring option for new construction, included in about 83 percent of all new-home bedroom installations. However, only about 40 percent of living rooms now have carpet. Hardwood flooring – both solid and engineered– is the second most popular type of flooring included in 27 percent of all new-home installations. Ceramic tile (which appears in 72 percent of all bathroom floor installation) follows in third place, making up 20 percent of all new-home floor installations.
3. Countertops: For kitchen countertops, granite continues to reign in two out of three homes (64 percent of new-home installations). Quartz/engineered stone is gaining popularity while laminate, solid surfacing and ceramic tile are losing appeal.
4. Appliances: Cooktops and wall oven combinations are gaining in popularity and make up about 24 percent of the market, compared to freestanding ovens (45 percent). Freezer-on-bottom refrigerators are gaining in popularity at 19 percent, while side-by-side has fallen to 28 percent of the share.
5. Kitchen sinks: More buyers are paying attention to their kitchen sink, with the single basin kitchen sink making a comeback, growing from 5 percent to 20 percent of all new single-family homes in the past decade. Also growing in popularity are granite/stone kitchen sinks (at 8 percent). One-piece cultured marble lavatories are continuing to decline in demand.
Source: “Material World: The Hottest Trends From the 2015 Builder Practices Survey,” BUILDER Online (July 29, 2015)
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IRVINE, Calif. — July 30, 2015 — RealtyTrac released its second quarter (Q2) 2015 U.S. Home Equity & Underwater Report, which listed four Florida cities at the top of the list for homes seriously underwater – properties where the homeowners owe at least 25 percent more than the home’s current market worth.
Areas (population greater than 500,000) with the highest percentage of seriously underwater properties included Florida markets such as Lakeland (28.5 percent), Cleveland, Ohio (28.2 percent), Las Vegas (27.9 percent), Akron, Ohio (27.3 percent), Orlando (26.1 percent), Tampa (24.8 percent), Chicago (24.8 percent), Palm Bay(24.4 percent) and Toledo, Ohio (24.3 percent).
In addition, RealtyTrac looked at underwater homes that are also in the foreclosure process.
In the same Florida cities, over half of the homeowners going through foreclosure were seriously underwater:Lakeland (54.8 percent of foreclosures seriously underwater), Tampa (51.7 percent), Palm Bay (51.5 percent) and Orlando (51.2 percent).
Statewide, 23.6 percent Florida of homeowners with a mortgage were seriously underwater in the Q2 2015 – a drop from 23.8 percent in the first quarter and 30.3 percent year-to-year.
On the flipside, RealtyTrac found that 17.6 percent of Florida owners with a mortgage were “equity rich” with at least 50 percent equity. That’s a slight drop for the first quarter’s 17.8 percent but an increase from 15.9 percent year-to-year.
Looking only at homes in foreclosure, 62.8 percent in Florida were seriously underwater, while 18.6 percent, even though going through foreclosure, were equity rich.
“Strong South Florida price increases over the past few years have moved many homeowners from negative to positive equity. We would encourage the remaining distressed homeowners to ask for a Broker Price Opinion (BPO) regarding the value of their property – many may be surprised at their improving value,” says Mike Pappas, CEO and president of Keyes Company in South Florida.
Nationwide, 13.3 percent of all properties with a mortgage were seriously underwater in Q2, an increase from 13.2 percent of all homes in the first quarter. However, they dropped from 17.2 percent year-to-year. At the peak of the foreclosure crisis in 2012, the percentage was 28.6 percent.
“Slowing home price appreciation in 2015 has resulted in the share of seriously underwater properties plateauing at about 13 percent of all properties with a mortgage,” says Daren Blomquist, vice president at RealtyTrac.
“However, the share of homeowners with the double-whammy of seriously underwater properties also in foreclosure is continuing to decrease and is now at the lowest level we’ve seen since we began tracking that metric in the first quarter of 2012,” he adds.
© 2015 Florida Realtors®
DAILY REAL ESTATE NEWS | TUESDAY, SEPTEMBER 16, 2014
What home-design trends will likely catch on in new construction? Builder Online recently spoke to Mollie Carmichael, principal at John Burns Real Estate Consulting, and Nick Lehnert, executive director at architecture firm KTGY, about the design trends that are gaining popularity in the new-home market this year:
Baby boomers, empty nesters, and Gen Yers are showing a preference for homes that have more private outdoor spaces, straying from the traditional “public” backyard, according to surveys. One way some builders are fulfilling this desire is by positioning the home’s architecture strategically around the outdoor space to enclose it more and allow it to be more open to the interior living spaces. They also are creating more covered outdoor spaces.
The “Super Kitchen”
Besides being a place for cooking, the kitchen is also the entertainment/conversation area in a home. Open-kitchen layouts have continued to grow in popularity, putting kitchens more front-and-center and visibly exposed to other areas of the house. Kitchen islands are offering extra seating and prep space while larger pantries are offering greater storage. “As the hub, it becomes a consumer’s dream to design these elements together with function, practicality, and flair,” the designers say.
Bigger Media Hubs
More home owners are looking for a place for their large flat-screen television. Larger television sizes are prompting more builders to realize the need for greater wall space to hang the televisions and larger entertainment rooms to accommodate more seating.
Larger Garage Spaces
If home owners had their way, garages wouldn’t be just for parking the cars. More home owners want spaces for hobbies and storage, and builders are taking notice by creating larger garages for multi-use purposes.
An office and den space is becoming a bigger desire among home buyers, and the location of it in the home is becoming increasingly important. Placing the home office off the entry is no longer considered the most practical location for it, but builders are experimenting with moving it closer to the “living” area, such as off the kitchen or the family room.
Two Homes in One
As multigenerational living gains popularity, builders are responding by carving out more separate spaces for several generations to live together. For example, some builders are offering semi-independent suites with separate entries, bathrooms, and kitchenettes.
Source: “14 New-Home Design Trends for 2014,” BUILDER Online (Sept. 5, 2014)
South Florida’s new condo market is built with renters in mind. After the loss of thousands of rentals to condo conversion during the last real estate boom, and resurgent market focused on luxury condos, 13 new rental apartment projects with 3,508 units were developed recently in Broward and Miami-Dade, with another 9,841 units on the way, the Miami Herald reported, citing a pipeline report from the Fort Lauderdale-based Hunter Group of Institutional Property Advisors.
Despite a revival of condo construction, unit inventory remains tight, and with many people either unable or unwilling to buy, rentals have become an attractive prospect for developers and yield-chasing investors.
SkyView, a 32-story tower that opens in mid-September developed by Miami-based Melo Group, exemplifies a new generation of rental developments emerging in South Florida.
Just like during the last cycle, Jorge Pérez’s Related Group is leading the pack. Related has 13 market-rate rental projects with about 4,000 units in the works, the Herald said.
[Miami Herald] — Emily Schmall
IRVINE, Calif. – May 9, 2013 – RealtyTrac released its U.S. Foreclosure Market Report for April 2013 today. It finds that foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 144,790 U.S. properties in April, a decrease of 5 percent from the previous month and down 23 percent from April 2012.
Total foreclosure activity hit a 74-month low in April – at its lowest level since February 2007.
Foreclosure activity represents all homes in the foreclosure process, including those that received a first notice. The drop suggests stability.
On the other side of the coin, judicial foreclosure auctions represent homes leaving the foreclosure process in states such as Florida where they go through the court system. Nationally, judicial foreclosure auctions increased 22 percent and 31 percent year-to-year, suggesting a new push to move foreclosure inventory.
Scheduled foreclosure auctions increased from a year ago in 15 of the nation’s 26 judicial or quasi-judicial foreclosure states, including Florida, where they rose 55 percent.
Other judicial states saw an even bigger boost, including Maryland (199 percent increase), New Jersey (91 percent increase), Ohio (73 percent increase) and Oklahoma (57 percent increase).
On a RealtyTrac city analysis, Florida had five cities in the top 10 for foreclosure rates, including No. 2 Ocala (one in every 255 housing units had at least one foreclosure filing), No. 3 Miami (one in every 269 units), No. 4 Orlando (one in every 287 units), No. 7 Jacksonville (one in every 345 units) and No. 9 Tampa at No. 9 (one in every 384 units).
Nationally, one in every 905 U.S. housing units had a foreclosure filing during April.
“The April numbers indicate that the pig is moving through the python when it comes to deferred foreclosures in judicial foreclosure states,” says Daren Blomquist, vice president at RealtyTrac.
“Foreclosure starts have been increasing for several months in many of the judicial states, and now that increased volume is showing up in the second stage of the process: the public foreclosure auction,” he adds. “Scheduled foreclosure auctions in judicial states jumped to a 30-month high in April, evidence that lenders are serious about moving forward with completing the foreclosure process – either through repossession or sale to a third party investor at public auction.
Other report findings
• Scheduled non-judicial foreclosure auctions in states where foreclosures don’t need to go through the court system were down 7 percent in April from March and 43 percent year-to-year. These auctions were at an 88-month low – since April December 2005.
• A total of 70,133 U.S. properties started the foreclosure process in April, down 4 percent from the previous month and down 28 percent from a year ago.
• Lenders repossessed 34,997 U.S. properties in April, down 20 percent from March and down 32 percent from April 2012 to the lowest level since July 2007 – a 69-month low.
• Lender repossessions (REO) decreased from a year ago in 37 states and the District of Columbia.
• Non-Florida cities in the top 10 for foreclosure rates include No. 1 Akron, Ohio, with a 147 percent annual increase; Columbus, Ohio; Las Vegas, Myrtle Beach, S.C., and Chicago.
• At the beginning of May, A total of 11.3 million mortgages nationwide were seriously underwater, meaning combined amount of mortgages secured by the home was at least 25 percent more than the estimated value of the home. That represented 26 percent of all outstanding mortgages, but it’s down nearly 1.5 million from the 12.8 million seriously underwater mortgages in May 2012.
© 2013 Florida Realtors®
NEW YORK – May 14, 2013 – Hopeful borrowers with credit scores below 620 increasingly are denied a mortgage as they struggle to meet lenders’ more stringent underwriting standards, according to Elizabeth Duke, a member of the Board of Governors for the Federal Reserve System, at a recent Housing Policy Executive Council.
From 2007 to 2012, mortgage originations for borrowers with a credit score between 620 and 680 fell nearly 90 percent, Duke said. During that time, mortgage originations fell only 30 percent for borrowers with credit scores higher than 780.
According to an April survey by the Federal Reserve, lenders are less likely to originate a mortgage for a borrower with a FICO score in the 620 range, even if the borrower has a 10 percent or 20 percent downpayment.
“The path to easier credit conditions is somewhat murky,” Duke says. “Some of the forces damping mortgage credit availability – such as capacity constraints and concerns about economic conditions or house prices – are likely to unwind through normal cyclical forces.”
In 2007, the median credit score was 730 compared to 770 in 2013, Duke said.
Source: “Lower credit scores disappear from housing market: Fed governor,” HousingWire (May 9, 2013)
© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688
DELRAY BEACH, Fla. – May 16, 2013 – A RealtyTrac housing market analysis compared building permit data released by the U.S. Department of Housing (HUD) for the first quarter to foreclosure starts for the same time period. RealtyTrac looked at the national, state and city level.
“Nationwide and in most markets, it appears builders are planning to ramp up activity that will help offset a drop in foreclosure starts, but there are some markets where a jump in both building permits and foreclosure starts in the first quarter indicate the scales will tip more heavily in favor of supply of homes for sale in the coming months – both new homes and foreclosures,” says Daren Blomquist, vice president at RealtyTrac.
“On the other extreme there are some markets where both building permits and foreclosure starts are down dramatically, indicating that there will be no reprieve from the shortage of homes for sale in those markets in the near future.”
First quarter findings
• Nationwide, single-family building permits increased 27 percent from a year ago – the highest first-quarter total since 2008. Meanwhile, U.S. foreclosure starts decreased the same amount, 27 percent, to the lowest quarterly level since the second quarter of 2006.
• The majority of building permits in the first quarter were for single-family homes (64 percent of total permits), followed by 5+ unit multi-family properties (33 percent). Overall, multi-family building permits increased 23 percent from a year ago.
• States with the most single family building permits in the first quarter were Texas, Florida, North Carolina, California and Georgia, all of which posted double-digit percentage increases from a year ago.
• All these top states also posted decreasing foreclosure starts from a year ago, although Florida foreclosure starts were down just 1 percent.
• States where both single family building permits and foreclosure starts increased from a year ago included Nevada, Washington, New Jersey, Maryland and New York.
• Cities with the most single family building permits in the first quarter were Houston, Oklahoma City, Austin, El Paso and Fort Worth. Of these top five, all except for Austin posted decreasing foreclosure starts during the same time period. Austin foreclosure starts increased 19 percent.
• Cities with the most foreclosure starts in the first quarter were Miami, Las Vegas, Chicago, Fort Lauderdale and Orlando, with Las Vegas, Fort Lauderdale and Orlando posting increases in foreclosure starts from a year ago. All five cities posted increases in single-family building permits from a year ago.
• Cities where both single family building permits and foreclosure starts increased at least 10 percent from a year ago in the first quarter included Las Vegas, Seattle, Raleigh, N.C., Reno, Nevada, and Boca Raton.
• Cities where both single family building permits and foreclosure starts decreased from a year ago in the first quarter included San Antonio, Albuquerque, Fresno, Bakersfield (both in California) and Greensboro, N.C.
• RealtyTrac posted a chart of 19 U.S. cities with “the most for-sale inventory coming.” In Florida, Delray Beach ranked No. 1, with Boca Raton at No. 16 and Ocoee at No. 19.
© 2013 Florida Realtors®
NEW YORK – May 21, 2013 – Real estate columnist Ken Harney says that FHA officials assured him the agency is not trying to exclude hundreds or thousands of condominiums nationwide from qualifying for financing under its mortgage insurance program.
However, he says FHA’s abrupt, new “no-tolerance” stance has many condo associations wondering if that’s true.
The issue is complicated, and it revolves around language tucked away in many condo complex’s covenants, conditions, and restrictions (“CC&Rs”). While the CC&Rs may ban rentals for periods of 30 days or less, many also have a seemingly innocuous exception to that rule – one that allows units taken back via foreclosure by mortgage lenders or investors to rent the unit for 30 days or less.
Until recently, FHA showed little interest in the 30-day language. A few weeks ago, however, it started rejecting applications. According to Harney, Department of Housing and Urban Development (HUD) lawyers claim the 30-day language violates a 1994 amendment to the National Housing Act.
The Community Associations Institute has received numerous complaints from members upset by what they consider a sudden and unannounced policy shift. Harney says FHA is “aware of the problem,” but “had no choice” in taking the action.
Source: Inman News (05/21/13) Harney, Ken
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