Housing Outlook: Full Speed Ahead
Most commercial real estate professionals agree that President Bush's re-election is good news for their industry. Vornado Realty Trust President Michael Fascitelli told this week's gathering of the Urban Land Institute, "This is a great time to be a borrower. The flow of capital will not stop." Citigroup Property Investors President and CEO Joseph Azrack, though, believes that continued terrorism threats could continue to be a factor in certain downtown markets that employers may deem too risky. ULI officials this week also released the organization's annual housing forecast, which predicts that the residential sector will remain on solid ground as long as interest rates remain reasonably low. Researchers with the organization additionally expect that migration into the nation's downtowns will continue for many childless professionals and empty-nesters, although single-family demand in the suburbs is not expected to suffer as a result. (www.chicagotribune.com)
Chicago Tribune (11/04/04) Handley, John
Lennar Delay Pushes Down Home Builders
Lennar Corp. reports that it may have to delay until fiscal 2005 the delivery of about 600 homes that were promised for the fourth quarter of this year. The residential builder is attributing the anticipated delay to damage caused by hurricanes in Florida, the cooling housing markets in Las Vegas and Southern California and production setbacks in Las Vegas. The company's report caused its shares to fall 3.1% in early Thursday trading. Shares similarly fell for rival home builders Centex, Pulte Homes and Toll Brothers. Pulte had lowered its projected earnings last month, blaming price ceilings that have caused some weakness in the Las Vegas housing market. (www.cbs.marketwatch.com)
CBSMarketWatch.com (11/04/04) Spence, John
Bush's Plans for His Second Term
During his second term, President Bush will continue pushing to reach his goal of 5.5 million new minority home owners by the end of the decade. He also supports streamlining the Section 8 voucher program, as well as the creation of tax credits to spur construction of middle-income housing. Additionally, Bush hopes to establish so-called opportunity zones in urban and rural locales to ensure that these areas are at the top of the list for affordable housing, education and job-training programs, and economic aid. The President's other plans for the next four years include stabilizing Iraq; keeping his $1.9 trillion tax cuts permanently as a means of sparking economic and job growth; broadening the No Child Left Behind initiative; renewing the Patriot Act without changes; and revising the laws governing air pollution. (www.theledger.com)
Lakeland Ledger (FL) (11/04/04)
Seniors Sell Family Homes, Look for Smaller Spaces
More and more property practitioners are obtaining the Senior Real Estate Specialist designation to help older home owners downsize from a family residence. Agents who take the two-day course learn that the mature adult population is comprised of over-50 baby boomers, the parents of baby boomers, and 90-somethings in assisted-living facilities — all of whom have different needs. Many find that mature adults are extremely interested in amenities, and some look for his-and-her offices so they can continue working. Some older adults purchase their retirement homes in preparation for retirement, while others move into larger homes but downsize their maintenance tasks and other responsibilities. (www.ap.org)
Associated Press (11/02/04) Jumper, Kathy
When Fannie Says No, Buyers Often Scramble
Condo buyers often have a difficult time finding loans for units that are not in projects approved by Fannie Mae, and they are likely to be offered more expensive loan terms and rates as a result — even if they have good credit or are investors. "We are getting more and more condominium buyers coming to us in a panic for financing when they find out that their projects are not Fannie Mae-approved," testifies Anthony Cutaia, president of Cutaia Mortgage Group in Boca Raton, FL. Meanwhile, accountant Steven Klein of Gerson Preston & Robinson stresses the importance of considering Fannie Mae's approval guidelines for developers. To discourage speculation, Fannie has set the single-family loan ceiling at $333,700; and, to get its approval, buildings must be complete with a certificate of occupancy and all units must be sold — 60% of them to owner-occupants. Moreover, the condo complex must be turned over to its association. "A Fannie Mae approval issue can adversely impact the cost and availability of [development] funds," notes Klein. Cutaia adds that developers should disclose to potential buyers before a purchase whether their project has been approved by Fannie Mae. (www.southflorida.bcentral.com)
South Florida Business Journal Online (11/01/04) Duggan, Ed
Autumn Fails to Chill Concrete Price Hikes
Cement prices, defying their usual trend of stabilizing or dropping during the autumn months, rose for the third consecutive month in November, climbing 0.7% over October and 3.5% over last November's prices. The rising cost of cement is being blamed for a 1.6% increase in prices for 3,000-psi concrete in October and similar price hikes for 4,000- and 5,000-psi concrete and Portland cement. (www.enr.com)
ENR (11/01/04) Vol. 253, No. 17, P. 28
Home Builders Take Urban Infill to Satellite Towns
Experts believe infill development benefits all of the parties involved — developers, prospective buyers and existing home owners. Developers generally reap substantial profits because infill projects usually are dense and upscale; and buyers like that they typically are in close proximity to shopping centers, schools and other conveniences. However, to avoid complaints from nearby home owners, developers say that collaboration and compromise are key. Beazer Homes USA's Chris Jones says developers must consider zoning and political issues and ensure that new development complements existing communities. "When you really investigate what the community's wants and needs are, and balance density with an appropriate architectural look, you can end up with a very satisfied community," he remarks. Many developers are finding that pedestrian-friendly, mixed-use projects are the most successful, boosting the economy without adding to congested roadways. (www.atlanta.bizjournals.com)
Atlanta Business Chronicle (11/01/04) Dean, Karen
City Home Inspections Go Private
Private firms will be allowed to conduct official building inspections for single-family residential projects in Houston for the first time under a new privatization scheme that aims to solve some of the problems facing the city's building and real estate industries. The plan was developed by "housing czar" John Walsh under the guidance of Mayor Bill White. Local builders say that partial privatization of the residential building inspection process will help alleviate the delays and red tape caused by a recent surge in retirements among public inspectors. The Greater Houston Builders Association estimates that the 20 or so inspection firms in the city will get a significant boost in business under the new plan. The privatization, set to begin on a pilot basis in about four to six weeks, involves a shift in building inspection oversight from the Planning and Development Department to the Department of Public Works and Engineering. In order to qualify, private building inspectors will have to be certified by the city, prove that they have no ties to the company hiring them and agree to a payment cap. (www.houston.bizjournals.com)
Houston Business Journal (11/01/04) Colley, Jenna
A Home on the Links
"They're popular, they're in demand, people are willing to pay," says NAHB research executive Gopal Ahluwalia about golf-course communities. Baby boomers are flocking to these developments as they enter retirement and abandon home-maintenance tasks in favor of recreational amenities. Though many golf-course communities are located in Florida, California, Arizona and other warm retirement havens, the desire to remain close to home has builders erecting them in Michigan, Maryland and other states as well. Builder Clark Turner, currently working on Bulle Rock in Havre de Grace, MD, believes that fitness centers and other amenities at these communities will appeal to retirees who do not wish to leave the area. Amenities are crucial to the success of golf-course communities, especially since Ahluwalia notes that 50% of residents do not even play the sport. In addition to the amenities, many retirees are lured by the vacation lifestyle and the fact that golf-course homes are often viewed as status symbols. (www.baltimoresun.com)
Baltimore Sun (10/31/04) P. 1L; Waldman, Scott
Consumers Want Coverage in Today's High-Cost Housing Market
Home warranties are in high demand due to the increased number of amenity-packed dwellings and soaring property values that characterize today's housing market, says Home Warranty Association of California President Mark Lightfoot. Most warranties are included in sale contracts, but experts say a growing number of home owners are interested in purchasing their own policies. Basic policies cover plumbing, heating and electrical systems as well as built-in appliances and water heaters for one year. However, policyholders now seek coverage for about 1.5 additional items per contract. According to Lightfoot, more and more home owners are shelling out an extra $40-$60 to cover air-conditioning systems and another $150 to cover spas and swimming pools. (www.copleynews.com)
Copley News Service-- (10/31/04) Woodard, James M.
Construction Thefts
Thieves are going after supplies at construction sites in the Eugene, OR, area. New home construction is expensive, and when building materials are taken from a site, it can raise the cost of the home. In addition, theft makes liability insurance harder to obtain for contractors. Eugene police say these thefts are fairly common, happening on a weekly basis. Often, tools are taken out of the city and resold. Besides tools, among the items being stolen are lumber and appliances such as refrigerators and stoves. Sometimes a new home site is also the victim of arson. Some area contractors have installed video cameras and hired around-the-clock security. But police and builders concur that there is no guaranteed way to prevent theft, and the consumer is the one bearing the burden. Any person caught stealing anything worth more than $750 can be charged with a felony. (www2.kval.com)
KVAL 13 (OR) (10/27/04) Castano, Carla
In Praise of the System-Built Home
System-built homes are constructed in factories, and some believe they exceed stick-built or site-built homes in terms of quality. Unlike stick-built dwellings, manufactured, modular and panelized housing is erected in accordance to the original design using top-notch materials. All measurements are exact. Moreover, system-built homes are constructed in a climate-controlled environment that protects materials from weather-related damage and delays. They also are built to withstand travel; and they undergo several inspections to comply with HUD codes as well as federal, state and local building codes. They can be customized to meet the buyer's needs and are built and assembled in a matter of weeks, while stick-built homes take anywhere from six months to a year to be completed. Finally, most system-built homes are cheaper than stick-built homes in terms of square footage. (www.sptimes.com)
St. Petersburg Times (FL) (10/30/04) P. 8F; Bonifield, Len
Nokia Will Offer a New Handset to Take on Personal Organizers
Nokia Corp. is entering the personal-organizer market for the first time with the Nokia 7710. Like other handhelds, the $640 device features a touch-sensitive screen and stylus, built-in phone, Web surfing capabilities and digital camera. Business users will also have access to more sophisticated models with full keyboards, but they will be pricier. (www.wsj.com)
Wall Street Journal (11/02/04) P. D5; Pringle, David |
