Daily Archives: December 16, 2014

Tiny Houses Have A Not-So-Tiny Problem | Bedford Hills Real Estate

 

As much as we love gorgeous small-scale architecture, not all micro-housing is created equal. Over at City Lab, Kriston Capps argues thattiny houses plopped onto huge lots in the middle of nowhere miss the entire point of micro-housing: to provide more options for affordable housing, especially in crowded, expensive cities.

He takes issue with the 650-square-foot prefabricated zeroHouse, the self-sufficient modular home seen above:

The zeroHouse is so modular and low maintenance, in fact, that all you need to own a zeroHouse is—after $350,000—a plot of land. Any kind of land.

Which is, of course, the problem with zeroHouse: Nobody needs micro-housing in places where plots of prairie, mountain, and sea (!) are available in plenty.

The Delta Shelter by Olson Kundig in Mazama, Washington.Image: Courtesy Olson Sunderberg Kundig Allen Architects/Taschen

If you’re determined to live on a sprawling piece of rural land, it’s probably more environmentally friendly to do so in a prefab house that’s designed to function off the grid. “Basically, a tiny house is sort of the suburban or maybe even rural version of a small apartment,” asRyan Mitchell, author of the book Tiny House Living, told Salon.

But trendy tiny dwellings more often come in this form than the variety people more desperately need: the kind that makes urban living affordable for those of us who aren’t oligarchs. “Lovely granny flats, Voltron head-cubes, and stories that tug at the heart-strings are nice, but support for these doesn’t amount to support for real micro-housing—or congregate housing developments, perhaps a better term for urbanist housing solutions,” Capps writes.

What cities need in micro-housing, he argues, is “at least the option to build for a range of buyers and renters, at a range of densities. When tiny-house enthusiasts go on about what are essentially single-family homes, they are confirming the status quo, if shrinking it a little.”

Ultimately, we need both. It’s true that crowded cities—especially those with a high concentration of young professionals who aren’t trying to fit an entire family into a 129-square-foot apartment—need affordable micro-units to alleviate intense pressure on the housing market. It’s perhaps no surprise that we don’t see that many of those designs yet, considering that even in housing-strapped cities like San Francisco,micro-apartments remain controversial. The prospect of allowing developers to pack people into a whole new definition of “cozy” worries some tenants rights advocates and even some psychologists.

 

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http://www.fastcodesign.com/3032535/slicker-city/tiny-houses-have-a-not-so-tiny-problem?fullsite&partner=ps03101titles

A Big Mortgage Change Happened This Weekend: Should You Care? | Bedford Real Estate

 

Saving up to buy a home might not be as much of a challenge as it used to be, now that the Federal Housing Finance Agency (FHFA) will allow some first-time homebuyers to make down payments of as little as 3%.

The change went into effect Saturday with the goal of making homeownership more accessible to Americans than it has been in a tight post-recession mortgage market. These low-down-payment loansapply to 30-year, fixed-rate mortgages guaranteed by Fannie Mae and Freddie Mac. (The FHFA regulates Fannie and Freddie, which guarantee the majority of U.S. mortgages.)

What does this mean for you? Well, if you want to buy a home but don’t have a ton of cash on hand for a down payment and closing costs, you might be able to qualify for an affordable home loan. Keep in mind lenders will require you to pay private mortgage insurance (PMI) if you pay less than 20% upfront, a cost homebuyers often overlook when determining how much they can pay — you can figure out how much house you can afford using this free calculator and watch how your monthly payments change with different down payments.

Even with a low-down-payment mortgage, you can find ways to make the monthly payments more affordable. One of the first things you’ll want to look at before applying for a home loan is your credit score. Your credit standing not only affects the mortgage rate you qualify for, it also impacts how much you must pay in PMI. You can also get rid of PMI after you’ve built a certain amount of equity in your home, among other requirements, but it’s on you to go through the process of removing PMI from your loan.

With the new directive from the FHFA, buying your first home may be more attainable, but the decision requires just as much careful thought as it would if you needed to put down 20% of the home’s value to get a mortgage. Consider the overall impact on your life of buying a home, and make sure your credit is in good shape before applying for a mortgage. You’re entitled to free annual credit reports from each of the major credit reporting agencies, and you can get two of your credit scores for free every 30 days on Credit.com.

 

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http://finance.yahoo.com/news/big-mortgage-change-happened-weekend-120039626.html

Solid Housing Starts Report for November | Pound Ridge Real Estate

 

Data for housing construction activity in November indicated ongoing high levels of activity as builder confidence remains positive.

According to the data from the Census Bureau and HUD, the pace of total November housing starts was down slightly (1.6%) from an upwardly revised October number. The October housing starts estimate was revised up from the initial reading of 1.009 million units (on a seasonally adjusted annual pace) to 1.045 million, with increases for both single-family and multifamily construction.

For November, the rate of single-family construction starts came in at 677,000, down 5.4% from the elevated October reading (716,000).

Multifamily starts of properties with five or more units increased 7.6% to a 340,000 rate in November. The starts rate for 5+ unit construction has been in an approximate stable range of 300,000 to 350,000 since August.

The pace of total starts was up in three of the four Census regions. Single-family starts were down noticeably in the South, after a jump in October.

Housing Starts_Nov_3moMA_v2

On a three-month moving average basis (graphed above) the November report is consistent with positive builder confidence, as reported by the NAHB / Wells Fargo Housing Market Index, and confirms that housing construction is experiencing solid but gradual gains.

For November, single-family starts, on a three-month moving average basis, stand at 685,000, which is a post-recession high. Total housing starts, on a three-month moving average basis came in at 1.034 million – also a post-recession high. The moving average for total housing starts has now been above a one million annual rate for three consecutive months.

Homes under construction_Nov

Another metric consistent with the ongoing recovery in housing, including its economic impact, is the count of housing units under construction. For November, the number of single-family units under construction (on a seasonally adjusted basis) was 364,000, while the count for multifamily was 450,000 according to the Census/HUD estimates. At the start of 2014, the single-family count was 336,000 homes.

 

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http://eyeonhousing.org/2014/12/solid-housing-starts-report-for-november/

US homebuilder sentiment slips in December | Bedford Corners Real Estate

 

U.S. homebuilders are feeling slightly less confident in their sales prospects heading into next year, even as their overall sales outlook remains favorable.

The National Association of Home Builders/Wells Fargo builder sentiment index released Monday slipped this month to 57, down one point from 58 in November.

Readings above 50 indicate more builders view sales conditions as good, rather than poor.

Builders’ view of current sales conditions and their outlook for sales over the next six months also declined slightly. A measure of traffic by prospective buyers held steady.

The index also found sentiment had improved in the West and Northeast, but took a step back in the Midwest and South, which accounts for half of the new-home market.

The latest reading reflects a housing market that is slowly recovering, said David Crowe, the NAHB’s chief economist.

“As we head into 2015, the housing market should continue to recover at a steady, gradual pace,” Crowe said.

Housing, while still a long way from the boom of several years ago, has been recovering over the past two years.

New home sales reached a seasonally adjusted annual rate of 458,000 homes in October, the highest point since May. Still, sales remain sharply below the annual rate of 700,000 seen during the 1990s.

At the same time, home prices continue to climb.

The median price of a home sold in October was $305,000, up 16.5 percent from a year ago. November data on new-home sales are due out next week.

The steady rise in home prices has held back many potential buyers, particularly first-time buyers. Many lack the savings and strong credit history needed to afford a home, causing them to rent or remain in their existing homes instead of upgrading.

 

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http://news.yahoo.com/us-homebuilder-sentiment-slips-december-150117768–finance.html