Home Tags Posts tagged with "USA"

USA

187

The narrative we’re used to hearing is pretty simple. Whether the fault lies with an economy that doesn’t provide young people with opportunities or with a lazy, entitled generation that doesn’t know how to save and can’t live without superfast wi-fi, takeout coffee with cinnamon in it and pop tarts for breakfast is a matter of personal opinion, but the facts are very clear. Generation Y – the generation that’s now between 18 and 33 – aren’t moving out of their parents’ houses to form households of their own.

That’s a problem for them – at 18, the basement room looks pretty sweet, but by 30 you’re not so impressive or impressed – and a problem for parents who were looking forward to an empty nest and find themselves sharing staid family homes with their adult children. But it’s a massive problem for the property market in America and in Britain, too, where the same trend is present. Simply put, your country needs YOU – to buy a house, and millennials aren’t cooperating.

Jonathan Smoke, chief economist at Realtor.com, sums up: ‘the story line has been that millennials are not forming households, they’re living with mom and dad.’ But Mr. Smoke points out that that isn’t where they want to stay, if the numbers are anything to go by. In July this year, more than a third of people between 25 and 34 used a mobile device to look at real estate data. That leads him to the opinion that millennials are planning their next move – even if it’s their first – and reaching for the natural tool of their generation, mobile internet, to research the market and learn their options.

That impression is backed up by data from elsewhere. Millennials might be staying with their parents for now, but it’s not the plan – according to a recent Redfin survey, 92% of 25-34-year-olds who don’t currently have a home want to buy one in the future. And they have pretty clear ideas about what they want, according to Nela Richardson, Redfin’s chief economist.

That’s important because we can expect millennials to one day comprise the majority of the housing market, as their parents stop buying and younger people with less income and different interests can’t buy as much market share. The wants and needs of the ‘baby boom’ generation shaped the American housing market for decades, and millennials, says Ms. Richardson, will do the same. Mr. Smoke agrees, and points out that there are 87 million millennials in the USA – compared with 75 million boomers.

Amenity-rich urban environments are currently the big draws for millennial renters, the segment of the population that has a say about where it lives. All the clichés are in place, like coffee shops and bars, but so are some eminently practical, down-to-earth considerations like walking to work and proximity to transportation. Ms. Richardson thinks that when millennials come to buy homes, they’ll transfer this amenity-rich lifestyle right along, and she foresees a suburbia transfigured by millennial preferences. But there’s another alternative. What if millennials are the generation that repopulates American cities – and what if the same happens in the UK and Europe?

727
Igloo

Standing 180 miles out of Anchorage on the George Park Highway is a former luxury hotel, currently on sale for $300, 000 (£217, 000), and its current owner sees it being converted into a restaurant or hotel by its buyer.

So far, so normal.  But there is a unique selling point to this building – or a unique not-selling point, depending on your point of view.

It’s an 80-foot rubber igloo.

The structure, made of polyurethane stretched over a wooden frame, is only inspired by Inuit igloos, it’s not actually made of ice.  But the former Igloo City Hotel is likely to attract the more adventurous buyer.

The current owner, Brad Fisher, bought it in 1996 and thinks it has great potential (for someone else), pointing to its enviable location, passing trade and great views.  It dates to the 1970s when it was built as a motorway rest stop.  More recent years have seen it become a tourist attraction in its own right, as the fascination with the macabre meets the lure of the kitch…

The process of conversion could be expensive, though, as the Igloo Hotel is authentically freezing: there’s no electricity or heat.  Not only is there no electricity inside the building: there’s none nearby.  To supply it, you’d need to build a new substation.

In fact, the Igloo has always been a bit of a white elephant.  It never really opened in the 1970s, and the inside remains structurally incomplete as well as lacking in that Alaskan essential, heating.  It’s been extensively vandalised too, including having fireworks set off inside it.

As much as it sounds like it’s dead in the water, there actually is some method in Bob Fisher’s madness.

The Igloo has stunning views of snowy mountains and beautiful alpine meadows and is on the route out to the six-million-acre Denali National Park, home to the tallest mountain in North America and temporary accommodation to half a million tourists every year.  It’s a great area to see moose, wolves, beaver, wild foxes and grizzly bears.  It’s right next to prime snowmobiling and hiking territory.  And the hotel already has a loyal tourist following.  So yes, you could make something out of it.

You’d need deep pockets, though.  In addition to getting the building actually finished and attached to the grid, you’d need to spend an unknown amount on making sure it’s up to code, including some that didn’t exist when it was built.  The price seems a little steep for what is essentially half a rubber ball but it comes with 38 acres of prime Alaskan land, which is expensive, desirable and saleable.  A buyer might want to do on a larger scale what Mr. Fisher did – run a separate business on the land next to it.  Until 2005, Mr. Fisher operated hut rentals and a petrol station in the grounds of the hotel.  So maybe an enterprising, hiking and outdoors friendly business person could make the Igloo cool again. Fancy it?

671
Rental Image

Demand for rental property in the USA remained strong in March, the last month for which figures are available, according to the National Association of Realtors (NAR).  48% of the organization’s members who are involved in lettings reported higher residential rents compared to 12 months ago, an increase from 46% in February.

That’s backed up by real estate firm Trulia, whose figures show average increases in the 3.9% year-on-year area.  That means rental increases are outpacing economic growth and food price rises – to say nothing of wages – and have become a driver of inflation.

Discussing the implications of the figures, the NAR said that rising rents may make home ownership more attractive, but may also slow the ability of those who are currently renting to save up for deposits.

‘The March data indicates a more upbeat confidence concerning market conditions compared to February,’ said the NAR’s chief economist, Lawrence Yun.

‘The improvement may represent the seasonal uptick in demand with the onset of Spring,’ suggests Mr. Yun.  ‘Confidence about the next six months also showed a slight improvement in March compared to February,’ he went on, an effect that’s unlikely to be down to seasonal changes.

The problems estate agents were reporting were low inventories of available housing stock, and difficulties in obtaining mortgage financing.  It’s therefore possible that some of the increased rental demand is coming from would-be buyers who aren’t able to move up.

Stronger rental demand is usually a good sign in a housing market where sales and prices are rising, since some purchasers are investors or landlords, and a market where people pay higher and higher prices for properties nobody wants to rent, or whose rents don’t make a profit, is obviously unsustainable.

In the USA, though, that’s not the story.  Instead it’s a market where many people would like to be purchasers, but can’t afford to make the capital outlay.  It’s also a market where the benefits of buying or renting are split geographically, with buying a better financial bet than renting in about half of US metro areas.

NAR members reported that the Qualifying Mortgage regulations and the increases in mortgage insurance premiums had adversely affected buyers’ ability to purchase property.

However, there’s good evidence that the rental upswing is powered by recovery in some places just as surely as it’s a symptom of a weak jobs market and high insurance costs in other places. One area of America where rentals are a sign of growth is Detroit, where median house prices in the metro area rose by double digits.  In January of this year, a BuzzFeed contributor named Drew Philp bought a Detroit house for $500.  But that illustrates an outlier, not the general trend.  As the motor industry picks up, jobs become more stable and secure and the rental market expands, purchase prices in Detroit have risen 38% year-on-year since January 2013, according to Realcomp.  Inventory and sales shrank as prices rose.

739
Eileen Battisti

Image: http://www.nydailynews.com/

Eileen Battisti’s $280, 000 home was sold at a tax auction in Beaver County, Pennsylvania, in September 2011; taking the view, as she told newspapers, that ‘for the house to be sod just because of $6.30 is crazy,’ Ms. Battisti took the matter to court.  And many of use would agree with her – especially since she ‘didn’t even know about the $6.30.’

But the case didn’t come down to what was crazy: it came down to the law (by the time you’ve red this, you might think they’re the same thing) – and the judge was clear that the county tax claim bureau followed the letter of the law when it came to notifying Ms. Battisti of her outstanding debt.

That debt came to just $235.00, made up mostly of interest and fees on the original $6.30.  It isn’t owing now – the house sale generated about $116, 000 and most of that money is due to go to Ms. Battisti, who still lives in the house.

Looked at more closely, Ms. Battitsti’s story isn’t an uncommon one, especially for women of her generation: her husband handled all the finances, and he had recently passed away, dying in 2004.  Ms. Battisti says he never informed her of any $6.30 owing.

An attorney for the buyer was unavailable for comment, but the chief solicitor of Beaver County, Joe Askar, said the judge got the decision right, reading straight from the law books.

The judge, Beaver County Common Pleas Judge Gus Kwidis, wrote that the county tax claim bureau had complied with notification requirements in state law.  ‘There is no doubt,’ Judge Kwidis wrote, ‘that [Ms. Battista] had actual receipt of the notification of the tax upset scale on July 7, 2011, and Aug. 16, 2011.  Moreover, on Aug. 12, 2011, a notice of sale was sent by first class mail and was not returned.’

‘The court never wants to see anybody lose their home,’ Mr. Askar said, ‘ but at the same time the tax sale law, the tax real estate law, doesn’t give a whole lot of room for error, either.’

Addressing the question of whether Ms. Battisti knew about the $6.30, Mr. Askar said, ‘it’s bad – she had some hard times, I guess her husband kind of took care of a lot of that stuff.  It seemed that she was having a hard time coping with the loss of her husband – that just made it set in a little more.’

Ms. Battisti has declined to collect on the sale and plans to take her case to the Commonwealth Court to appeal further.  She’ll be allowed to stay in her home until a final ruling is handed down.   The court will be as constrained as Judge Kwidis was by the law, though, and as he put it, ‘under tax law, even if I feel sorry for her, I can’t do a thing for her.’

Overseas Property Mall

643
Photo 1: Aaron Leitz Photography

…in theory, at least.  Seattle’s first Passive House has been built by NK Architects, in partnership with Cascade Built.  Completed late in 2013, the house, Park Passive House in Madison Park, is the first in Seattle to be certified by the Passive House Academy and authorized by the German Passivhaus Institute.

Constructed on a brownfield site that was regarded as barely suitable for homebuilding, the house has a near-airtight envelope that prevents heat loss –hence the attention-grabbing ‘hairdryer’ headline.  In fact, the house uses about as much energy to heat as a hairdryer does to run, though presumably you could go from room to room with a Babyliss and get a similar result!

Cascade Built founder Sloan Ritchie explains the rationale behind the house’s design: ‘Inefficient buildings are the number one consumer of energy in the world, and the largest contributor to climate change,’ says Mr. Ritchie.

The house is intended to use as near to zero energy to heat and cool as possible; in the case of Seattle’s latest contribution to environmentalism, that means a set of high-tech Intus high performance windows and a heat recovery ventilator, while carefully placed glazing in the building’s roof provide maximal natural light and incidentally provide great views out over the park.

A result of all this care to preserve every watt of energy, largely through insulation, is that the Park House uses about 80% less energy than a similar sized home the same size built to standard building codes, and about 90%-95% less energy for heating.

It’s economical in other ways, too: the Park House gets a floor area of 2, 710 feet out of a 2, 000 square foot footprint, in a design Ms. Ritchie calls ‘as bold as the Passive House concept itself.’

In some ways, Passive House design is not all that bold: the idea of passive solar building design, using sunlight to obtain the maximum possible heating effect, dates back to the Greeks and Romans, while super-insulation has been in use in Scandinavian countries particularly for some time; unsurprisingly, Scandic countries have jumped on the Passive House concept.

What is bold about the Passive House concept is the idea of utilizing all these strategies at once to achieve a radical environmental effect: ‘Passive House design standards offer a way forward towards net-zero building with strategies that are relatively easy to implement – better windows and doors, more insulation, improved air sealing. Unlike asking people to stop driving their cars, Passive House reduces our carbon footprint while increasing comfort and quality of life,’ in Ms. Ritchie’s words.

In a nicely poetic nod to the ethos behind the house’s design, a tree salvaged from the construction site provided the timber for the staircases and touches like the bathroom counter top.

NK Architects sees the completion of Park Passive as the beginning, not the end.  Says Boyd Pickrell, Principal at NK: ‘Passive House’s focus on performance, human comfort and simplicity aligns well with our approach to design. It supports our mission to create dense urban housing that is responsive to people’s needs and supportive of highly sustainable lifestyles. We work on a variety of housing scales, and we intend to apply this expertise not only to future single-family projects but also to our larger multi-family projects nationwide where even greater energy efficiency gains can be realized.’

Read other eco friendly articles

533

The city has seen three years in a row of record sales and two years of rising prices, and the Miami real estate market shows no signs of letting up.  The market in Florida’s principal city started out the year with strong sales, robust prices and new listings.

In January, residential real estate sales increased 11.6% year-on-year, according to data from the Miami  Association of Realtors.  The rise was sharper for condominium sales than for family homes – single family homes saw a rise of 9.8% year on year, while condos rose 12.9% the same year.

Prices have increased more than sales, with the average sales price for a family home rising 32.3% year-on-year from $308,978 in January 2013 to $408,626 in January of 2014.  The average sale price of a condominium rose by 24% in the same period, from $290,378 a year ago to $361,295 in January this year.

The rate at which prices are rising is accelerating, too.  In January, family home prices rose by 16% to a median $225,000, and condo process jumped 24.4% to $186,000.

Condominium prices have been rising for slightly longer than family homes too.  Condo prices have now been rising for 31 months, while family homes have seen a few months less – 26 months.

Liza Mendez, chairman of the board of the Miami Association of Realtors, was positive about the changes, saying, ‘while the Miami real estate market continues to strengthen, rising inventory is fortunately creating a more balanced market between buyers and sellers.  Such balance reflects the health of the local market.’

Ms. Mendez believes the balance that’s being restored to the Miami market comes as sellers are tempted onto the market by rising prices.  Backing up her thoughts, the figures for new listings show single family homes listed 13.8% more in January 2014 compared to a year ago, while condo listings rose by 20.1% in the same period.

The Miami Realtors’ Association considers these rising listings a reflection of the success of its campaign to encourage owners to sell during the 2012-2013 years when Miami experienced a shortage of housing stocks.

‘The current performance of the Miami market reflects seller confidence.  Home owners in Miami have recovered value lost during the downturn and have realized it’s a good time to sell, which is bringing much-needed supply to the local market after years of very limited housing inventory,’ says Francisco Angulo, residential president of the MAR.

At the current sales pace, there’s a 5.6 month supply of single family houses and a seven month supply of condominiums, an upward shift of over 20% on last year’s figures.

Other figures indicating a healthy market show Miami real estate selling quickly and usually close to the asking price, with the median number of days a house spends on the market falling year-on-year by 2.1%.  The average percentage of the asking price a Miami home sells for is 95.4%, showing a modest 1% rise from a year ago and indicating that pricing is accurate to the market value.  For condominiums, the average percentage of asking price was 96.1%, showing a slight 0.7% decrease from last year.

The number of cash sales fell slightly over the last year and all-cash sales accounted for a declining percentage of both condo and house sales.  This indicates that the percentage of cash-rich buyers is falling, an indication that the Florida market in general and the Miami market in particular is reliant on broadbased support from residents and second-homers, rather than on investors and developers.

The Miami market offered great investment opportunities a few years ago, but investors were stymied by low inventory.  Overseas buyers have been a traditional prop of the Florida market, but it looks like it’s a market with a future, but not an unsustainable bubble waiting to burst.  Maybe it’s that new balance Ms. Mendez spoke of.

Sheryl Crow

Sheryl Crow is still seeking to sell her Nashville – area ranch.  Cross Creek Farm, in the College Grove area south of Nashville, it has already been relisted twice and is now on offer at about half the original asking price.

Sheryl Crow has been struggling to sell her Nashville-area ranch since 2010, and has recently relisted it at an even lower price.

The farm used to be close to Ms. Crow’s heart, judging by a 2008 interview for People in which she said, ‘We have a ‘white-trash backyard… We pop out the side of the tour bus and set up our lawn chairs, the baby pool and the iPod speakers. It’s totally a tailgate.’

Ms. Crow’s 51-acre equestrian ranch, Cross Creek Farm, sounds authentically country, appropriately enough for the star who was nominated for two American Country Music Awards last year.  Ms. Crow extensively redecorated what was once a very traditionally-styled Southern mansion, aiming for a more family-friendly home – though some more macabre touches, like the vintage bar she installed in the barn, flanked by two Wild West death masks, edged back into Southern Gothic territory.

But Cross Creek Farm clearly no longer feels like home to Ms. Crow, and she’s anxious to sell.

It might be all she wants to do, but mortgage advisor Zillow says Ms. Crow’s home might still be on the shelf because the price is still too high.

According to Zillow’s calculator, ‘Zillow Blog says, ‘a buyer could expect a monthly payment around $15,489, assuming 20% down on a 30-year fixed mortgage,’ placing the home at the high end of College Grove’s housing market.

The 10,433 square foot farm’s spec is certainly strong enough to sell: it has a 14-horse barn, an outdoor pool and indoor arena.

The path to a successful sale has been a winding road, though.  Ms. Crow first put Cross Creek Farm on the market back in 2010 for $7.5 million and relisted it in 2011 with a 40% price cut.  Now the property is back on the market a third time for $3.85 million, though it has been cut down in size to make a sale easier – the original 175-acre parcel of land was proving to be ‘a handful to sell,’ according to The Tennessean’s Nancy Mueller.  After a handful of price manoeuvres and an unsuccessful online auction, Ms. Crow is still struggling to move the farm.

If you’re considering moving to a mansion in rural Tennessee, Cross Creek Farm might be just what you’re looking for.  For $3.85 million – offers may be accepted – you’ll get 50 acres of land, a saltwater pool with fountains, the main estate home, staff quarters, that barn, of course, and a basement recording studio, as well as two solar systems that take care of about 50% of the farm’s energy needs – and a ‘rocking-chair porch’ thrown in.  The farm is also a great hay producer.  Well, if it makes you happy…

Source Article: http://www.dailymail.co.uk/tvshowbiz/article-2530925/Sheryl-Crow-relists-Tennessee-ranch-second-time-time-slashes-price-3-85-million.html

Image source: WikiMedia

Florida’s real estate market is about to get messy! That sounds like something the voiceover for a move trailer would say but it is actually happening in real life. We all know that Florida has one of the biggest foreclosure levels in America — which means in the world as well –, but few would have expected the problem to still be getting worse almost 5 years into the crisis.

florida-foreclosure According to new data from Realty Trac, Fort Myers foreclosures increased by an alarming 31% between January and February, giving it the second highest foreclosure rate in the U.S, with 1 in 90 homes now in foreclosure.

Many people will be shocked by such a large increase when, in the US as a whole, and internationally things are starting to recover. None of those people however, will be analysts are followers of the US housing market data on a regular basis.

Because those people will know that there are millions of US households that meet the criteria for foreclosure, but have yet to be foreclosed upon by the bank in question.

Because those people will know that mortgage interest rates are starting to rise because of the Federal Reserve’s policy of buying Mortgage Backed Securities is coming to an end. This will ultimately put more pressure on anyone struggling to keep up with mortgage repayments and likely cause more increases in foreclosure figures in the months ahead.