Construction Booms Even as Prices for Materials Soar
Soaring steel and lumber prices have boosted the cost of new homes in many cities across the country, tacking about $5,000-$6,000 onto the average price of a 2,000-square-foot dwelling in Anchorage, AK, according to local builder Chuck Spinelli. Economists at NAHB blame robust demand and low production capacity for driving up lumber prices and the building frenzy in China for jumps in the cost of steel. Research by Random Lengths shows a surge in the price of oriented strand board from about $200 per 1,000 square feet to $495 during the year-over-year period ending in April, at the same time the cost of composite framing lumber skyrocketed 58%. Both steel rebar and septic tanks, meanwhile, have risen in price in recent weeks. Nevertheless, building activity remains healthy, with nationwide home sales climbing nearly 22% during the year-over-year period ending in March. Low interest rates, coupled with higher levels of government spending and other factors, continue to fuel the construction boom. (www.alaskajournal.com)
Alaska Journal of Commerce Online (05/10/04)
Top Housing Markets
National Association of Realtors® Chief Economist David Lereah says the mixed performance of home prices during the first quarter of the year is the result of supply and demand. The trade group reports that 35 of the 126 metropolitan markets tracked registered double-digit price increases over the past year, led by Riverside and San Bernardino Counties near Los Angeles — where home values grew 32.9% to $258,900. Low interest rates helped as the national existing-home price rose 6.5% to a median of $170,800 during the first quarter, and prices were slightly down from $171,600 during the previous quarter. NAR also found declining home prices in 16 markets, led by Springfield, IL, with a 10.2% decline to $84,000 over the past year — which Lereah attributed to struggling local economies rather than to a housing market bubble. (money.cnn.com)
CNNMoney 05/12/04) Max, Sarah
Condo Firm to Build Across U.S.
The concept of a national company focusing on condominium development has not been done in this country before, and National Association of Realtors® research executive Ellen Roche speculates that the U.S. housing market might not have supported such an operation as little as five years ago. Now, however, with high-end condos in as much demand as traditional, lower-cost versions, Roche says the timing of Coldwell Banker The Condo Store just might be right to succeed. Founded in 1993 as simply The Condo Store, the firm initially served the suburban Atlanta market. Since acquiring the business five years ago, however, management at Coldwell Banker has been cultivating a strategy for a nationwide expansion. The company already has spread out to markets where Coldwell Banker already does business, including Jacksonville, FL; Boston and Houston. South Florida, Detroit, New York, Charlotte, NC, and Washington, D.C., are future target markets. (www.atlanta.bcentral.com/atlanta)
Atlanta Business Chronicle Online (05/10/04) Schoolcraft, Lisa R.
Interest Rate Fears Drive Home Builder Shares to Six-Month Lows
Fears of interest-rate hikes in June pushed the Standard & Poor's Supercomposite Homebuilding Index to a six-month low of 498.91 earlier last week. The stock prices of Centex Corp., D.R. Horton and Lennar Corp. plunged by 94 cents, 86 cents and 66 cents, respectively, during the afternoon of May 11. Many investors predict the improving job market will prompt Federal Reserve officials to boost the overnight interest rate in the coming weeks, driving up mortgage rates and putting a damper on housing demand. However, JMP Securities research director James Wilson notes that demand also depends on job growth and population expansion. (www.floridabiz.com)
Broward Daily Business Review (FL) (05/11/04) P. 3
Living Large Outdoors Is Very Much In
Landscape designers have noticed an increase in demand for garden rooms among home owners who are seeking to create either a calm and serene area for relaxation or a more grandiose upgrade of their small outdoor spaces, according to Emily Nolting, a Kansas State University horticulturist. Garden rooms vary in size and shape, and some people may opt for multiple rooms connected by walking paths or bridges. Nolting notes that as the trend grows in popularity, garden room designs are becoming more complex to accommodate many different uses, from relaxation to entertainment. She says home owners should plan their garden rooms to match the existing interior and exterior designs of their residence and to reflect their own personalities and tastes. (www.ap.org)
Associated Press (05/10/04) Fosdick, Dean
The Housing Boom Hits the High End
Home sales in the lower price segments outpaced those in the luxury market in recent years due to record low interest rates, but experts have seen more upper-end activity as both the national economy and the stock market rebound. For instance, sales surged 96% for $2 million-$5 million dwellings and 157% for homes with $5 million-plus price tags in Naples, FL, between January and April. The trend is not, however, limited to Florida — which has always enjoyed an edge with luxury buyers because of its homestead protection law and its absence of state income tax. Sales activity in the $1 million-plus segment is picking up in California, Rhode Island and other areas of the country as well. Price discounts are luring buyers in some locales, while limited inventory is fueling bidding wars in others. However, experts fear limited supply and concerns about inflation and the war in Iraq could soon stamp out the sector's budding recovery.
(www.wsj.com)
Wall Street Journal (05/12/04) P. D1; Simon, Ruth
Realtors Expect Minor Slowdown
The latest forecast from the National Association of Realtors® calls for sales of previously owned homes to slip 1.6% this year from a record 6 million units in 2003. Sales of new homes also are expected to fall back from last year's highs, dipping 1.2% to settle at 1.07 million units. The trade group's outlook additionally predicts higher property prices in both categories, with the existing-home price jumping 4.7% to a median of $178,100 and the new-home price bouncing up 5.1% to a median of $205,500. Finally, NAR projects that the long-term mortgage rate will float up to 6.6% by the end of the year. (www.investors.com)
Investor's Business Daily (05/11/04) P. A2
Home Buyers Spend $3,100 Remodeling New Places
A study released at the 2004 National Hardware Show in Las Vegas last week reveals that home buyers spend an average of $3,100 to remodel or repair their property within the first year of moving in. The survey, conducted by the non-profit Home Improvement Research Institute, found that buyers of new dwellings sunk an average of $5,000 into their property; while those moving into an existing abode typically invest about $2,000. Rob Cappiello, industry vice president for the National Hardware Show, explains that while existing-home buyers tend to plan and complete more projects, new-home buyers, who generally have higher incomes, tend to spend more money because they are more likely to hire contractors and use high-end products. The most common projects planned by new-home buyers were decorating and landscaping for the purpose of beautification. Meanwhile, those working on existing residences were more likely to repair or replace older, worn-out structures and materials, such as flooring, electrical wiring and appliances. In both new and existing units, bathrooms, kitchens and living rooms were the most common targets for improvement projects. In addition to remodeling their new homes, recent home buyers also said they had spent an average of $3,000 making improvements to their previous homes in preparation for selling them. The most common jobs include painting, structural improvements, repairs and room conversions. (cbs.marketwatch.com)
CBSMarketWatch.com (05/11/04) Kerch, Steve
Air Leaks Can Inflate a Home's Electric Bills
Home owners are shelling out hundreds of dollars more than necessary on their heating and cooling bills due to cracks in the walls; openings around doors and windows; and insufficient seals around ceiling lights and fans, water lines and attic doors, among other building imperfections. Besides wasting energy, these problems can create uneven heating and cooling throughout a residence. However, these air leaks can be easily fixed with caulk, foam sealant and fiberglass insulation. Home owners can check for disruptions in air flow by turning off the water heater and appliances, closing the fireplace flue, shutting all doors and windows, using an exhaust fan to depressurize the home and then watching the movement of smoke from a candle or incense stick. They can then repair any holes or cracks, restoring comfort and lowering utility bills. (www.chicagotribune.com)
Chicago Tribune (05/07/04) Sheinkopf, Ken
Lofty New Look Making Old Mills a Hot Commodity
Lofts are popping up all over New England as developers seek to rejuvenate industrial cities, boost the housing stock and conserve open space by converting vacant mills and other throwbacks to the factory age. Such projects are popular in Lowell, Holyoke, Millbury, Williamstown, Fall River, Westford and Amesbury, MA; as well as in Hartford, Norwich and Bridgeport, CT; and the Rhode Island communities of Providence, Pawtucket, Cumberland, West Warwick and Bristol. The first mill conversions were completed during the 1970s; but low mortgage rates, state and federal tax incentives and the desire for a city lifestyle have renewed interest in these projects throughout the region and nationwide. (www.boston.com/globe)
Boston Globe (05/10/04)
Outdoor Home Spas Spark a Cascade of Luxury
Many home owners are shelling out anywhere from $8,000-$200,000 or more on outdoor spas, which can rival the designs of their indoor counterparts. The National Spa & Pool Institute's Suzanne Barrows attributes the trend to home owners choosing backyard escapes over travel plans. Today's spas often are equipped with DVD players, built-in card tables, a standing area for full-body massages and sophisticated pump and filtration systems. Some even employ sonar technology that alerts home owners when the water is disturbed, which is especially helpful in homes with small children. (www.usatoday.com)
USA Today (05/07/04) P. 8D; della Cava, Marco R.
Builders and Remodelers Staying Abreast of 'Older' Trend
Seniors who prefer to remain in their long-time homes as they age are sometimes forced to make improvements that allow them to accomplish this goal without compromising safety, independence and comfort. According to NAHB Remodelors™ Council Chairman Doug Sutton, "Remodeling for aging in place demands sensitive integration of myriad functional and design considerations into a unified, aesthetically pleasing whole." Builders who have earned NAHB's Certified Aging-in-Place Specialist (CAPS) designation can handle such improvements, which range from first-floor bedrooms and entrance ramps to lower counters and shower grab bars. (www.copleynews.com)
Copley News Service (05/10/04) Woodard, James M.
ProSystem fx Practice 6.0
ProSystem fx Practice 6.0 updates its Client Management and Project Tracking modules, the latter of which is now called Project Management. The Project Management module gives users access to tax forms for various projects and automatically calculates filing deadlines. The Client Management module, meanwhile, boasts better data organization and can be set up to permit only certain users to view sensitive information on the Administrative and Billing tabs. By integrating with ProSystem fx Tax, users can easily exchange data and access productivity, tax planning, trial balance and other integrated products. (www.electronicaccountant.com/html/cpawealth)
CPA Wealth Provider (04/04) P. 6 |
