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Small Is ‘In’, Formal Spaces ‘Out’

By Melissa Dittmann Tracey, REALTOR® Magazine

The sagging economy is influencing home design as more home owners favor smaller indoor and outdoor spaces that are often cheaper to maintain. Forget the formal spaces that are rarely used. Home owners nowadays don’t want to waste space and want to use every square inch of their home.

Home sizes and lots continue to decrease as preferences grow for low maintenance property improvements, according to the American Institute of Architects Home Design Trends Survey for the first quarter of 2010.

“We continue to move away from the McMansion chapter of residential design, with more demand for practicality throughout the home,” AIA Chief Economist Kermit Baker said in a public statement about the survey results. “There has been a drop off in the popularity of upscale property enhancements such as formal landscaping, decorative water features, tennis courts, and gazebos.”

Instead, slightly more home owners than in 2009 say they want open space layouts, informal spaces, a finished basement or attic, and a single-floor plan, according to the survey.

Large, expansive homes, once on top of many home owners’ wish-lists, are being replaced with a preference for more flexible, open and informal layouts that are more conducive for families, Baker said.

But how can you ensure that small space doesn’t feel too cramped? I recently spoke with Jennie Norris, president of the International Association of Home Staging Professionals, who had several tips on how you can Make Small Spaces Bigger. Read some of her tips to get ideas.

Sales Slow but Remain Above Last Year

With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.

Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said. “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.

The national median existing-home price for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.

NAR President Vicki Cox Golder said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value REALTORS® bring to buyers and sellers in this market.”

A parallel NAR practitioner survey shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.

Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.

“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.

Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.

Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. In addition, existing single-family home sales rose in 12 of the 19 areas from a year ago while two were unchanged.

Existing condominium and co-op sales slipped 1.5 percent to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5 percent higher than the 556,000-unit pace in June 2009. The median existing condo price was $180,100 in June, which is 1.4 percent below a year ago.

Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago.

Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.

In the South, existing-home sales fell 6.5 percent to an annual level of 2.01 million in June but are 11.0 percent above June 2009. The median price in the South was $163,600, unchanged from a year ago.

Existing-home sales in the West dropped 9.3 percent to an annual pace of 1.17 million in June but are 0.9 percent higher than a year ago. The median price in the West was $221,800, up 1.5 percent from June 2009.

Source: NAR-July 22, 2010

Area home sales up for 10th-straight month

By Wayne Faulkner
Wayne.Faulkner@StarNewsOnline.com

Published: Wednesday, July 14, 2010 at 8:28 p.m.
Last Modified: Wednesday, July 14, 2010 at 8:28 p.m.

Home sales in the Wilmington area rose in June, the 10th-straight month that sales have shown year-over-year gains.

Sales of homes in areas covered by the Wilmington Regional Association of Realtors – New Hanover and Pender counties, and parts of Brunswick – rose to 507 last month, compared with 416 in June 2009, according to WRAR figures released Wednesday.

Year-over-year gains began last September, but they reflect comparisons to very weak sales as the nation fell deeper into the recession.

Still, if the trend continues it could indicate that the market here has bottomed and even is modestly rebounding.

Prices of homes sold, however, continued to lag those of a year earlier, according to WRAR statistics.

The average price of homes sold in June was $238,610, down from $256,616 in June 2009.

The median price – meaning half sold for more and half for less – was $188,000 last month compared with $195,205 a year earlier.

Prices are only for homes sold – that is, deals closed – in June and do not necessarily reflect housing prices as a whole. They are, however, an indication of the market's strength.

Prices may be weighed down because of the number of so-called distressed sales – foreclosures and short sales – which have increased steadily over the last year.

You know you have made a great relocation choice when the place you have chosen to make your new home makes the latest Relocate America Top 100 Cities list.  Click on the link below to see the cities throughout the United States that made the Top 100 and be sure to click around on the site for lots of other interesting information.

http://www.relocateamerica.com/top-100-cities/

If you would like more information on the many things the Greater Wilmington, NC area has to offer, be sure to give me a call at 910.228.9893.  Now, that is what I call Making Real Estate Easy! 

Here is the latest real facts about North Carolina Real Estate from the North Carolina Association of Realtors for July/August 2010.  There are lots of interesting statistics providing a look at numbers you do not normally hear from the mass media.  Hope you enjoy!

For The Record July-August 2010.pdf

Until next time, drink lots of fluids in the summer heat and be sure to make every day a great day!