Monthly Archives: July 2013

Saddle Up With These Southwestern Homes | Bedford Hills Real Estate

There’s nothing like a good Western film to make you want to grab your cowboy boots and move to the desert. Fortunately, unlike fictional ghost towns with tumbleweed rolling by, Southwestern homes are full of life with Spanish and Pueblo influences giving rise to a variety of architectural styles — from traditional adobe constructions to homes with colonial flair. Here’s a look at a few of our favorites currently on the market.

Tucson, AZ

2376 E Placita De La Victoria, Tucson, AZ
For sale: $1.55 million

Tucson, AZ
Adjacent to Pima Canyon, this Tucson home is a contemporary take on classic adobe design. Inside, 4 masonry fireplaces, custom-milled doors and wood-beamed ceilings create a canvas for Southwestern-style rugs and other native design elements.

Santa Fe, NM

558 Camino Del Monte Sol, Santa Fe, NM
For sale: $1.2 million

Santa Fe, NM
Frank Applegate, a famed Santa Fe architect and sculptor who founded the Spanish Colonial Arts Society, built this 4-bedroom house in 1921 when Camino del Monte Sol was just a dirt road. Today, Applegate is considered one of the masters of Pueblo revival or Santa Fe style. A great room was added by architect William Lumpkins around 1978, but several original architectural details remain.

Saint George, UT

2410 Entrada Trl Unit 1, Saint George, UT 
For sale: $759,000

Saint George, UT
Located in the southwestern corner of Utah, bordering Arizona and Nevada, this 4,511-square-foot home blends with the surrounding red-rock mesas and alpine wilderness. Saint George has attracted retirees and second-home owners over the past 20 years with several parks, bike trails and golf courses nearby.

Long Beach, CA

440 Ximeno Ave, Long Beach, CA
For sale: $399,900

Long Beach, CA
Built in 1923, this Long Beach home is full of Spanish influences, with built-ins, archways, classic moldings, period windows and touches of turquoise and orange throughout. Minutes from the Colorado Lagoon and the Pacific Ocean, the bungalow is in a prime location for Southern California beach lovers.

El Paso, TX

1709 Old Paint Dr, El Paso, TX
For sale: $355,000

El Paso, TX
Part of a new Spanish revival development in El Paso, this home mixes traditional architectural features with contemporary amenities including custom-designed cabinetry, quartz countertops and stainless steel appliances.

 

Saddle Up With These Southwestern Homes | Zillow Blog.

Another ‘bubble’ in housing is unlikely | Katonah Real Estate

Home sales and prices are increasing so dramatically, many people are wondering if another “bubble” situation might be just around the corner.

 

Most housing industry leaders and economists doubt a housing bubble will resurface in the foreseeable future. Despite double-digit price gains in many markets, the housing outlook is bubble free for now as the sector recovers for the next several years, experts say.

 

Leading off a panel of economists addressing a gathering of journalists, Lawrence Yun, chief economist for the National Association of Realtors, said he expected a multiyear recovery as home price growth lifts more owners out of underwater situations and helps the economy.

 

“Housing wealth is easily offsetting the negative effect of sequestration,” Yun told the National Association of Real Estate Editors. But the normally housing bullish economist tempered his optimism because double-digit increases in home prices are outpacing income growth, it was noted in a Real Trends report.

 

“Any time that happens over a sustained period it is an unhealthy state for the country,” Yun added.

 

The Wall Street Journal posted the following statement in explaining why the market might look as though another bubble might be emerging:

 

“The fact that homes are selling quickly is in large part due to supply and demand. The past five years have seen subdued construction activity and many homes either tied up in foreclosure or ‘underwater’ due to negative home equity, all adding up to constrained supply.”

 

Q: Are mortgage interest rates still rising?

 

A: Yes, they are rising dramatically. The largest weekly increase in more than 26 years was announced by Freddie Mac on June 27. Rates on 30-year, fixed-rate home loans spiked 0.53 percentage points to an average of 4.46 percent during the week.

 

The 30-year loan, which stood at 3.35 percent as recently as early May, is at its highest level since July 2011, it was reported by CNN Money. Rates for 15-year loans, popular with homeowners refinancing their mortgages, jumped 0.46 percentage points to 3.5 percent.

 

An extra percentage point will cost homebuyers with 30-year, fixed-rate mortgages $56 more a month for every $100,000 they borrow, it was noted.

 

Q: Will rising mortgage rates make homes less affordable?

 

A: The steady increase in mortgage rates in recent weeks, coupled with rising home prices, may dampen demand, but the upward movement in rates is not enough to make housing unaffordable to median income earners, according to Freddie Mac’s economic and housing outlook for June.

 

In fact, Freddie’s analysis showed mortgage rates would have to climb to nearly 7 percent before a median priced home is no longer affordable to median income earners in most parts of the country.

 

Another ‘bubble’ in housing is unlikely.

The Real Estate Market Meets the Internet: How Zillow Came to Be (Z) | South Salem Real Estate

The Fool is exploring Seattle. Today, CEO Spencer Rascoff introduces us to Zillow  (NASDAQ: Z  ) , telling us how the online home and real estate marketplace works, what he considers its greatest strengths, and what investors should know about it.

 

Spencer recounts how the idea for Zillow was born of his time at Expedia, and how far the company has come since then. He also offers some insight on what investors should look for when evaluating any tech company.

 

The Real Estate Market Meets the Internet: How Zillow Came to Be (Z).

Hot Real Estate Market Causes Unexpected Glitch For Buyers, Sellers | Cross River Real Estate

The real estate market in the Boston area has been crazy lately and that’s adding up to trouble for both buyers and sellers.

 

Demand is way up and inventory is way down. That means buyers are all chomping at the bit to bid on the few houses that are on the market. “I’ve had clients this spring who have offered on properties without even seeing them,” explained realtor Kerrianne Ciccone.

 

In the most popular neighborhoods, sellers are routinely getting multiple offers above the asking price. While that may sound like great news for Ciccone’s clients like Neil Maniar, it can create some problems. “You never quite know what you are going to get into when you sell your house,” Maniar said.

 

One of the biggest unknowns in the current market is the appraisal. If a bidding war pushes the price above asking, the appraisal may come in too low.

 

 

Appraisers use recent sales to set the value of a home, but prices have been rising so fast that sales from a few months ago are out of step with current rates. That, according to Boston realtor P.T. Vineburgh, can put both buyer and seller back to square one. “It could completely create an inability for someone to secure financing,” he said. “Our company has definitely lost deals,” he added.

 

New rules to avoid another mortgage meltdown are also causing problems. Banks can no longer hire their own appraisers and that means appraisers are sometimes sent to unfamiliar territory. Vineburgh says he almost lost a deal because an appraiser from the Cape was sent to evaluate a condo in the Back Bay.

 

“He valued the parking space at like $20, 000,” he said. You may recall a parking space in that neighborhood recently sold for $560,000.

 

If you are a buyer and your appraisal comes in low, here are a few things to try.

 

Put more money down. The bank is more likely to sign off if you improve the loan-to-value ratio.

Renegotiate the price with the seller. They may be willing to come down rather than start from scratch.

Find another bank and hope the appraisal comes back higher.

Everything worked out for the Maniars, but it was a stressful time. “There certainly were a couple of knots in our stomachs,” he said.

 

Rising interest rates could put a damper on this frenzied market, but as long as inventories stay low, there will still be stiff competition for the few homes that are available.

 

Hot Real Estate Market Causes Unexpected Glitch For Buyers, Sellers « CBS Boston.

Housing market heats up with young buyers but average real estate agent age 57 | Waccabuc Real Estate

As the housing market heats up again, the real estate industry is facing a new challenge: finding enough younger agents.

Even though many of the top agents make well into six-figures, a new survey shows real estate executives here and across the country are worried about not attracting new blood.

 

“Clearly there’s a resurgence in the housing market among the Gen X and Gen Y participants, and that’s the next market,” says Kevin Hawkins, the vice president of Imprev Inc., a Bellevue real estate marketing firm that did the survey. “The concern of brokers is not just for today, but what business is going to look like tomorrow.”

 

While buyers are getting younger, agents are not. Only six-percent are under the age of 34.

 

“The average age of a realtor is 57 years old. The average age of an American worker is 41 years old. If you look at the typical age of a first time home buyer, it’s 31. So, there’s clearly an age gap,” he says.

 

During the housing meltdown between 2007 and 2010, there was a tremendous weeding out process in the industry. Hawkins says it was survival of the fittest, and many of the less-experienced agents got out of the business.

 

But the housing market is booming again, yet 42 percent of the real estate executives surveyed said the need for more agents is their number one concern. They’re worried that younger, qualified candidates are going into other industries, and they’re taking their talents with them.

 

“Younger agents are much more adept with technology and the internet and all the other tools that people want to use when they first start looking for a home. The surveys show that older agents are more reluctant to adopting the new technologies,” Hawkins says.

 

Pamela Jensen is a longtime managing broker for Windermere. She has trained many new agents over the last two decades and says being “young” in the industry can work against you.

 

“What I have found is that if they’re too young, nobody uses them,” she says. “Many homeowners want someone who has owned a home, or who’s bought and sold one. If you’re 23, you haven’t done that.”

 

She says even the Gen X-ers who work in the tech industry want someone who’s experienced because buying a home is one of the biggest investments they’ll ever make.

 

But Hawkins says with the average age of a real estate agent being 57, the top execs realize they need to revamp their recruiting strategies so that they can attract younger realtors.

 

“If they don’t do it now and this group of realtors ages to a point they start retiring, which we’re getting close to that tipping point, then you’ll see a real loss of opportunity of taking that experience and knowledge and imparting it on a whole new workforce,” he says.

 

Housing market heats up with young buyers but average real estate agent age 57 – Local – MyNorthwest.com.

Why the Fed Wants Higher Prices | North Salem Real Estate

Wealth effects merit increased attention these days. They play a fundamental role in the attempt to find recuperative power as the U.S. economy struggles to exit from the financial crisis. The Federal Reserve, however, ignores wealth effects in its current policy statements. Its formula is outcome-driven. The Fed has identified 6.5% as a target unemployment rate as long as inflation remains below or around 2.5%.

An important issue that the Fed has not discussed in detail is the idea that rising asset values in housing and the stock market will translate into more economic activity, and a speedier economic recovery—the impact of wealth effects.

Wealth effects are determined by changes in asset prices. In the U.S., two asset classes determine the intensity of wealth effects. They are housing prices and the stock market.

IN SOME SEMINAL RESEARCH, economists Karl Case, John Quigley, and Robert Shiller examined the housing sector’s wealth effect for the 37 years ending in 2012. Their findings are published in National Bureau of Economic Research Working Paper 18667. The authors determined that a major change occurred with the financial crisis that started in 2007.

Prior to the crisis, the U.S. saw decades of housing and business cycles during which housing had only a positive wealth effect. The economists’ research showed that households increase their spending when house prices rise, but there has been no significant decrease in consumption when house prices fall. The wealth effect from housing was always positive until the recent crisis period.

Tim Foley for Barron’s

But the housing crash from 2005 to 2009 introduced a negative wealth effect to the U.S. Technical measures of the response of personal consumption with respect to wealth changes—elasticities, in economics lingo—were large. The Case-Quigley-Shiller study found that real housing wealth gains in the 2001-2005 period pushed up household spending by about 4.3% and the decrease in real housing wealth from 2005 to 2009 was associated with a decline in household consumption of 3.5%.

Separate research by Neal Soss and Henry Mo of Credit Suisse published in February reached a similar conclusion. They said, “Mortgage equity withdrawals, once the main channels through which consumers generated the cash flow to spend beyond their take-home pay, show no sign of recovery following the collapse from 2006-2008. Less cash from monetized home equity implies less purchasing power and consumer expenditures, and hence a smaller housing wealth effect.”

While the Fed says its policy is focused on employment and inflation targets, the Fed decision makers know that smaller wealth effects make their job more difficult. That is why interest rates are being managed to very low levels. The Fed wants housing prices to rise in order to achieve positive wealth effects. To do that, it must make the cost of financing housing cheap and keep it cheap.

 

 

Why the Fed Wants Higher Prices – Barrons.com.

Rising mortgage rates hit home affordability | Mt Kisco Real Estate

The much talked-about recovery of the housing market, which has buoyed home sales up from recession lows, has come about through intervention from the Federal Reserve, record low interest rates, and higher home prices that have helped borrowers across the nation improve their financial standing.

Both low interest rates and higher home prices have played a role in the housing recovery changes, but as mortgage rates begin to tick upward, housing affordability will decrease, which in turn could cause a pause in the recovery’s progression.

Evidence of an upcoming bump in the road is not yet evident in the numbers. The most recent figures all pointed to a surging recovery: The Department of Commerce reported that sales of new homes rose in May to the highest annual rate since July 2008, while Standard & Poor’s Case-Shiller index of property values showed home prices posted the highest annual gain in more than seven years in April.

But mortgage rates are now rising higher and faster than previously, though there is little precedent for such movement. Between the beginning of May and the end of June, the average interest rate for a 30-year fixed-rate mortgage surged from 3.59 percent to 4.68 percent, according to the Mortgage Bankers Association. Interest rates are now at their highest level since 2011.

Mortgage rates began a swift climb in early May from record low levels, making May the last month that mortgage rates will boost housing affordability above month-over-month and year-over-year levels, reported the National Association of Realtors. But for month of May, the pressure on affordability came from record-high home prices. In all regions across the United States, affordability was down from the previous month. The South experienced the largest month-over-month drop, and the biggest year-over-year drop came in the West.

According to the association’s report, while affordability will certainly weaken in upcoming months, because the metric is coming down from such a high level, affordability should remain historically favorable despite rising mortgage rates and home prices.

A new survey conducted by Fannie Mae showed consumers believe that mortgage rates will continue to increase over the next year. The number of respondents who thought so jumped 11 percentage points from May to hit 57 percent in June, the highest level in the survey’s three-year history. People expecting home prices to increase over the same period also hit a survey high of 57 percent. Only 7 percent believe prices will decline.

“Consumers may recognize that today’s still favorable mortgage rates and home ownership affordability levels will recede over time,” Doug Duncan, senior vice president and chief economist at Fannie Mae, said in a press release. “Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence.”

 

 

Rising mortgage rates hit home affordability.

Rooftop solar takes off across California as costs come down | Bedford Hills Real Estate

California’s groundbreaking efforts to encourage homeowners and businesses to install rooftop solar panels were so successful in 2012 that the program is now effectively winding down, according to a new report.

A record 391 megawatts of solar power were installed statewide in 2012, a growth of 26 percent from 2011, according to a report by the California Solar Initiative released Wednesday.

“The program has made solar affordable for ordinary Californians,” said Susannah Churchill of the San Francisco-based solar advocacy group Vote Solar. “Solar is a classic California success story.”

In January 2007, California launched an unprecedented $3.3 billion effort to install 3,000 megawatts of new solar over

the next decade and transform the market for solar energy by reducing the cost of solar-generating equipment.

One megawatt is enough to power 750 to 1,000 homes. But because the sun doesn’t shine all the time, solar industry experts say that one megawatt of solar can power about 200 households.

The California Public Utilities Commission’s California Solar Initiative, known as CSI,provides rebates for residential and commercial customers of the state’s three large, investor-owned utilities: Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.

The initiative’s road map calls for 1,750 new megawatts of solar power to be installed on residential and commercial roofs in the state by

 

 

Rooftop solar takes off across California as costs come down – San Jose Mercury News.

Solar energy gets boost with New York state funding | Bedford Real Estate

New York’s solar energy capacity is getting an upgrade with $54 million announced by Gov. Andrew Cuomo for 79 solar projects across the state to help reduce stress on the electric grid.

The competitive funding is part of the governor’s NY-Sun initiative working to make the state a leader in solar energy by addressing climate change and boosting clean energy technologies.

“The investments we are making in solar power will help businesses around the state control and reduce their utility expenses, while increasing the amount of electricity the state gets from renewable energy and reducing demand on the electric grid,” saidFrancis Murray, CEO of the New York State Energy Research and Development Authority (NYSERDA).

The Capital Region is expected to have 10 sites that will house solar energy projects including Raymour & Flanigan stores in Clifton Park and Niskayuna. The other eight sites are to be determined.

The awards were administered by NYSERDA to 20 recipients to finance the solar energy projects that will be located in 26 counties. The sites themselves would use the solar power to drop electricity usage.

The projects are expected to add up to 64 megawatts to the state’s solar capacity. One megawatt is equal to one million watts of power. Most of the projects should be finished by the first half of next year, Cuomo said.

“Not only will these projects benefit our environment by reducing dependence on fossil fuels and using renewable energy, but they are also creating well-paying jobs for New Yorkers,” Cuomo said in a statement.

 

Solar energy gets boost with New York state funding – The Business Review.

World’s biggest offshore wind farm with 300 turbines | Pound Ridge Real Estate

Plans to create the world’s biggest offshore wind farm off the coast of Britain have been approved.

Work on the massive Triton Knoll site – 288 giant wind turbines off the Lincolnshire coast – can now begin after the £3.6bn project was given the go ahead.

It will dwarf Britain’s current largest offshore facility, the 175-turbine London Array in the Thames Estuary unveiled last week by David Cameron.

Go-ahead: An offshore wind farm off the coast of Skegness in Lincolnshire

Go-ahead: An offshore wind farm off the coast of Skegness in Lincolnshire

When complete, the new giant windfarm will generate 1.2 gigawatts of electricity, enough to power for 820,000 homes.

But critics say it will not come without a cost, as offshore power is currently subsidised by the taxpayer at three time the wholesale price of conventionally-produced electricity.

And the scheme is not without controversy. As part of the project, energy giant RWE are proposing building a substation the size of 30 football pitches connected to the offshore turbines, in the Lincolnshire countryside.

The proposal was met with anger by some residents, who have accused the company of trying to turn the area into an industrial site.

Others said it would drive down house prices The Government also approved a second scheme yesterday, in Wales. Energy company Vattenfall confirmed it is investing £400 million in England and Wales’ largest onshore wind farm at Pen y Cymoedd, South Wales.

The scheme, which will consist of 76 turbines, will begin next year, with the first power being generated for the grid in 2016.

Hundreds of jobs are expected to be created in the construction phase of both projects.

Plans: Map showing where the massive Triton Knoll wind farm will be built off the Lincolnshire coastline

Plans: Map showing where the massive Triton Knoll wind farm will be built off the Lincolnshire coastline

Tensions between energy firms and residents have been growing over the past two years as applications have soared.

There are currently more than 3,000 onshore wind turbines in Britain, with a further 2,500 approved or being built.

Despite increasing public anger at the subsidies paid for green power, ministers have shown no sign of changing course.

Last month , Ed Davey, the Energy Secretary, promised guaranteed prices – fixed at up to triple the market rate – for electricity from ‘green’ technologies such as wind, solar and biomass until 2019, in a bid to expand the sector.

Ministers say the financial incentive will make Britain an attractive place to invest and transform our energy supply, and are hoping that 30 per cent of power produced by 2020 will be from renewables.

Onshore wind farms are set to be given a minimum of £100 per megawatt hour – double the current wholesale rate of £50 – while offshore wind will receive a staggering £150.

The difference between the wholesale price and the agreed rate will be met by the taxpayer.

In February, more than 100 Tory MPs criticised the Government’s plan to introduce more wind farms.

Dozens of backbenchers wrote to David Cameron to demand that the £400million in subsidies paid to the ‘inefficient’ industry each year is ‘dramatically cut’.

Director of offshore renewables at industry body RenewableUK Nick Medic said the approval for the new Triton Knoll offshore wind farm was a ‘historic step’ for the industry.

He said: ‘It is the biggest project consented so far anywhere in the world, and shows the UK’s offshore sector maturing to take on new challenges of scale.

‘Following world leading projects such as the London Array, opened last week, Triton Knoll will demonstrate what offshore wind can do for the UK on a grand scale.

‘The planning consent today keeps the country firmly at the forefront of offshore wind development and will help secure up to 20 per cent of electricity from offshore wind per year by 2020.’

Read more: http://www.dailymail.co.uk/news/article-2361335/Worlds-biggest-offshore-wind-farm-300-turbines-built-Lincolnshire.html#ixzz2YvNXPgjE
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World’s biggest offshore wind farm with 300 turbines will be built in Lincolnshire | Mail Online.