June 5, 2011

Returning To A Normal Everything

Readers suggested a topic on changing house styles. “I think we need a new type of house, I say a show on TV about Japanese preform homes built in a factory and set up on location, very nice and no they were not crappy mobile homes. In Phoenix I saw roof truss ( I think that’s what they are called ) built outside from wet Oregon wood brought down weekly on a train. They were some warped trusses by the time they shipped out on a truck to the building site probably Queen Creek or Maricopa.”

“The stick homes ( built like US homes ) are more expensive in Japan and a status symbol.”

Another said, “Builders don’t want to learn a new method. Aerated concrete blocks are the smartest way to build, no termites, no rot, sound proof, fire proof, look like stucco and plaster when done.”

A local perspective, “Around here (California’s eastern Sierra Nevada) we have a few types,

Stick Frame
Log
Post and Beam
Pre-fab
Straw Bale
Steel
Geodesic Dome

Stick Frame is the big winner with pre-fab making big increases.”

A reply, “There is plenty of good design out there. I’m partial to Katrina Cottages. It’s too bad they don’t make those pre-fab. Builders are quite happy with the houses they have. The current McBox with standarized masonite, flush windows, no eaves (to save roofing), and floor plans which maximize plain square footage with few details and less plumbing and electrical are clearly designed for maximum profit on sale, nothing much to live in.”

Voice of America. “McMansions are homes - new and very big homes. The name is borrowed from the ’super-sized’ drinks and French fries and sandwiches at McDonald’s fast-food restaurants. Build a McMansion, and you’ve super-sized the American Dream of home ownership.”

“They’re built by people who want all sorts of amenities and can afford them: lots of bedrooms, a spacious lawn, a three- or four-car garage, maybe even a swimming pool. Throw in a library and a mega-kitchen fit for a king’s chef and the result is a home of gargantuan proportions. But squeeze one onto a modest lot in an older community, and you’ve created, in the eyes of your neighbors, an eyesore that’s absurdly out of scale with its surroundings.”

“For them, a McMansion is not a dream. It’s a nightmare.”

“Communities across the country are passing stricter building restrictions to keep out what some have sneeringly called ’starter castles.’”

“So what’s the backlash to the backlash? In zoning hearings, courtrooms, and online blogs, we’re hearing a lot of sentiments such as this, in response to an MSN Business story online: ‘It is really no one’s business what I decide to build upon my own land or property if I follow the building codes,’ the writer snorted. ‘This is the United States of America, and if I want to build a large or small home, it is my right.’”

The New York Daily News. “Think you are a hero for living in a tiny Manhattan studio? Imagine a family of three in a 320-square-foot home. That’s what one Arkansas family is doing in a fascinating video they submitted to a website that promotes sustainable living. Forced to take on extra work to make mortgage payments on their 2,000-plus-square-foot home, the Jordans found an ad for a local company that would construct custom-made small houses. For less than $20,000, they were able to build the home – and go mortgage-free.”

In the video, Debra Jordan explains that the space - immaculately organized - can now ’sleep six people comfortably, and eight to 10 uncomfortably.’ According to Jordan, downsizing helped the family focus on what matters.”

“‘It’s not what you don’t have, it’s what you do have,’ she said. ‘We just wanted a simple life and this helped contribute to that peaceful feeling. Not always rushing to make payments on a gigantic home.’”

The Australian. “Small is undeniably beautiful for Andrew Maynard, one of the rising stars of architectural environmental activism. Rather than focus on bold stylistic statements, Maynard seeks to maximise the character and absolute functionality of the spaces he designs. ‘We are all about reducing and keeping things small,’ he says. ‘Especially because we do a lot of work in houses and Australian houses are now statistically bigger than American houses. We have the biggest houses in the world.’”

“‘I try to convince my clients that storage is always the biggest part of a brief,’ he says. ‘I guess what we are saying is small houses are really important and a healthy way of living in the future.’”

From Scene. “It feels huge. It’s actually a little bigger than what I need. This is a ton of space. It is beautiful. I feel really lucky. These are all phrases Nelsonville area resident Pat uses when describing the house she had custom built for her in 2005. ‘I did intentionally decide to go small,’ says Pat, who grew up near Nelsonville before moving away and living in urban environments like Japan, California and Minneapolis for 25 years. She moved back to Central Wisconsin in 2003, longing once again for tranquil woods, lakes and nature. ‘It’s a beautiful setting,’ she says of the 17 acres of land she lives on. ‘I just couldn’t bear the thought of plunking some big monster (conventional house) here.’”

“In a time when one in five American homeowners owe the bank more than their houses are worth, and foreclosures are at all-time highs, small homes have one more big draw: they’re not only economical to buy, but they’re economical to maintain, renovate and live in. The average American home costs nearly $250,000 and, for most of us, comes with 30 years of American-style debt. And then there’s the depressing statistic that the larger, more expensive homes have been hit the worse by plummeting home values in recent years.”

“A tiny/micro home, on the other hand, can be yours for less than $20,000. And you guessed it: small homes are retaining their value – even in some cases increasing their value despite the current real estate climate. The savings up front with a smaller home is just the beginning. If you ever need to make routine maintenance and repairs like a new roof, paint or flooring, you can bet that price will be a pittance of what you would pay to make those same repairs on a traditional American-sized home.”

“Sonya Newenhouse, founder of a company developing Sears Roebuck-style kit homes that are small (approximately 600 to 1,000 square feet) and so energy efficient that they don’t need a furnace in winter. No, that’s not a typo. With triple-paned windows and 16-inch walls, the little homes will be so energy efficient that it will take the equivalent of two hairdryers to heat the home. In July, Newenhouse, her husband, and a roommate will move into the approximately 1,000-square foot kit home and give it a test run before the kits hit the market.”

“That means no furnace in the winter next year. ‘I still have a hard time understanding, or believing, even, our own energy model that we won’t need a furnace,’ Newenhouse says with a laugh.”

The Wall Street Journal. “A fresh wave of Chinese buyers, coupled with Canada’s already frothy home prices, has vaulted Vancouver into the ranks of the world’s most unaffordable real-estate markets. Bungalows—small, detached, single-story homes, some in need of significant repair—can command prices well above a million Canadian dollars (US$1.02 million.)”

“Some economists are starting to wave warning flags. Royal Bank of Canada says monthly carrying costs—mortgage payments, property taxes and utilities—for a detached bungalow represent 72% of the average Vancouver household income. That is more than double the 32% threshold that Canadian banks use to gauge whether a borrower can handle a loan.”

“‘The prices appear disconnected to the level of activity and the balance of demand and supply,’ RBC economist Robert Hogue says.”

The Oakdale Leader. “When the housing bubble burst, construction ground to a halt, shaky loans crumbled, leaving homeowners in the rubble of foreclosure, and banks became reluctant property owners, overloaded with shadow inventory. That was then — so what does the snapshot look like today? According to longtime Realtor Scott Abell, a man who has ridden many different housing market waves, the snapshot reveals an industry that remains in flux, but there’s hope on the horizon.”

“The good new is properties are selling. The bad news? Well, that’s easy. More than half the sales are comprised of short sales or foreclosures. Builders are slowly returning to Oakdale but it’s a slow crawl compared to the frenetic pace set by builders in 2002. The days of McMansions are over, according to Abell.”

“‘The days of the 4,000 square foot house and opulence…those days have left the building. We’re going to see more practical, modest housing, more of what we saw in 1990,’ Abell said.”

“And the people who will be buying those homes are the same people who are going to help right the housing market again — first time homebuyers. ‘We’re slowly getting out of this slump. It’s not going to happen overnight. But the cure to fixing the real estate market is simple: J-O-B-S. It’s the key to returning to a normal real estate market. It’s the key to returning to a normal everything,’ Abell said. ‘We continue to live in the wild, wild West of real estate. Homeowners who lost their homes in 2008 and 2009 are now returning to the market, buying the same type of home for half as much.’”

“Abell said. People need to remember to make decisions that aren’t based on fear or greed. If the house you’re in is a good fit, don’t move. Stay, continue to build equity, Abell added. ‘I always tell people, ‘if it ain’t broke, don’t fix it’,’ Abell said.”

“For Oakdale, and the Central Valley, recovery is slow and painful, but it’s coming. ‘There’s a lot more good things than bad. It’s still a community that’s doing a lot better than most and it’s a great place to grow kids,’ Abell said of Oakdale. ‘There’s no place in the Central Valley I’d rather live.’”




Local Market Observations

What do you see in your housing market this weekend? Auctions? “The foreclosure of the Base Village properties in Snowmass Village, most recently scheduled for June 1, has been postponed once again, marking the eighth time the sale date has been moved, according to Tiffany Wancura of the Pitkin County Treasurer’s Office. However, the fact that the banks requested a longer time frame, rather than just month by month, as has become the standard practice, increases the odds that the foreclosure sale may indeed happen following the Labor Day weekend.”

“‘I think this time everyone has taken a more realistic approach (which is), ‘let’s just give it three months and get all of the things we need to get done, done’ said Jim DeFrancia of Lowe Enterprises, which is acting as the property’s receiver.”

“He also said that there is actually some pending activity in the long-stalled base area project. ‘We have some condos in Capitol Peak that are under contract,’ he said.”

Or foreclosures? “Foreclosure activity showed a significant increase last month in Pleasanton, Dublin, Livermore and San Ramon. Pleasanton saw four foreclosures in April, according to CalREsource, a real estate reporting service. They ranged from a 903-square-foot home on Arroyo Court that was obtained by Dublin Limited for $139,700 to a 1,368-square-foot home on Francisco Street that was valued at $570,000.”

“Five foreclosures took place last month in Dublin, with investment groups acquiring properties ranging in value from $245,500 for a 1.234-square-foot home to a 3,790-square-foot home, acquired by the Silvergate Investment Group for $708,400.”

“Livermore saw the most foreclosures during the month, with 10 listed between April 7 and April 25. The lowest-priced foreclosures was a 960-square-foot home on Elm Street, taken over by JP MorganChase Bank for $199,203. The most expensive was a 2,274-square-foot home on Ridgecrest Circle, acquired by ING Bank for $602,799.”

“There were eight foreclosures last month in San Ramon, ranging from $149,121 for a 949-square-foot home on Reflections Drive to a 4,558-square-foot home on Calico Court that was taken over by Bank of America for $1,007,500.”

“Some Realtors suggested that sales opportunities in the mid- to-low-priced housing market fell because incentives for first-time homebuyers went away. That left more sellers whose home mortgages were more than they could afford with few prospective buyers.”

Or development? “For the past 86 years, Miami Corp. has been recognized for “enlightened” management of the 59,000-acre rural Farmton Tree Farm. Miami Corp. officials have come under pressure to develop the site to produce income. The proposed Restoration development, just a little north of Farmton, could double the current population of 21,225 in Edgewater by adding 8,500 homes on 5,181 acres during the next 15 years.”

“In addition to other developments already approved, both Volusia and Brevard counties each have more than 40,000 vacant housing units, according to U.S. Census records.”

“‘You and I know … (those) ranchettes would never happen,’ said Volusia County Councilman Carl Persis, one of two who voted against the Miami Corp. plan. ‘They’re not going to find people to live out there. That would take 200 years.’”




Bits Bucket for June 5, 2011

Post off-topic ideas, links, and Craigslist finds here.