‘Smart Home’ Set to Open in Chicago Museum
March 15, 2008 | Filed Under Real Estate News | Leave a Comment
On the heels of Disneyland’s announcement that it is resurrecting the “House of the Future” at its theme park in California, Chicago’s Museum of Science and Industry announced that it will launch a similar exhibit later this spring.
The exhibit, Smart Home: Green + Wired, Powered by ComEd and Warmed by Peoples Gas, will showcase the latest innovations in sustainable living and environmentally-friendly technology. The 2,500-square-foot home and surrounding gardens will feature energy-efficient heating, ventilation and air-conditioning systems, and earth-friendly components to create a healthy living environment.
The exhibit opens May 8, 2008 and runs through Jan. 4, 2009.
How Bad Is The Housing Market ‘Crisis?’
March 8, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | 4 Comments
It seems no one can avoid the negative news surrounding the real estate industry. But is the housing market really as bad as people think?
After analyzing recent foreclosure numbers from RealtyTrac and information from various government agencies, Bankrate.com and MSN Money personal finance columnist Scott Burns both conclude that the data offers some reassuring news. The national foreclosure rate did climb 79 percent between December 2006 and December 2007, with foreclosures affecting 1.2 million properties last year. But that’s less than 1 percent of all U.S. households, which number approximately 128 million, Bankrate.com reports.
Burns notes that in the top 100 housing markets, the foreclosure rate is slightly higher at 1.38 percent. But if you rank-ordered the top 100 housing markets, only 34 had foreclosure rates above the group average and 51 areas had rates of 1 percent or less.
Some analysts have warned that the number of adjustable-rate mortgages (ARMs) that are scheduled to reset this year or next year could have a big impact on the overall housing market. Bankrate.com reports that the problem will not be widespread. Approximately 1.3 million of the 3.7 million prime ARMs (35 percent) and 2 million of the 2.1 million subprime ARMs (92 percent) are scheduled to reset this year or next year. But the total number of ARM resets amounts to only 3.3 million loans, affecting just 2.6 percent of U.S. households.
In our 2007 Year End Boston Real Estate Market Report we saw a value increase in the Boston market, especially in Boston’s prime neighborhoods Back Bay, Beacon Hill, South End and Downtown.
Presidential Candidates Divided on Housing Policy
March 8, 2008 | Filed Under Real Estate News | Leave a Comment
Democratic presidential candidates Hillary Clinton and Barack Obama may be running neck and neck in the race for their party’s nomination, but they’re far apart in their views on how to handle the housing crisis. According to the Wall Street Journal, Senator Clinton advocates more immediate government intervention and claims that she is the only candidate with a “comprehensive plan to end the housing crisis.” One part of her plan calls for a freeze on foreclosures for 90 days to allow lenders to work out problems with borrowers.
While Senator Obama supports a foreclosure freeze, it is not an explicit part of his economic proposal. His plan calls for a $10 billion fund that would help homeowners refinance their loans to avoid default. He also wants to make it easier for many homeowners to take advantage of existing tax deductions for mortgage interest payments.
Presumptive Republican presidential nominee Senator John McCain does not list specific housing policy on his Web site. But the St. Petersburg Times reports that McCain told an economic round table in Orlando that he advocates a crackdown on predatory lenders, mortgage brokers and rating agencies. He also supports making the mortgage process simpler and more transparent for borrowers.
NAR Forecasts Gradual Recovery This Year
March 8, 2008 | Filed Under Real Estate News | 3 Comments
Existing-home sales are expected to remain flat for the next few months at an annual level of 4.9 million before beginning a gradual recovery at a 5.8-million pace in the second half of this year, NAR announced in a forecast released this morning. But total existing-home sales for 2008 are projected to be 5.38 million, 4.8 percent below the 2007 level, and rise 3.5 percent to 5.60 million in 2009. The median sale price of existing homes is projected to fall 1.2 percent to $216,300 this year, then increase 3.5 percent to $223,800 in 2009.
New-home sales are expected to drop 23.7 percent to 590,000 this year before rising 7.2 percent to 633,000 in 2009, reports NAR. Housing starts are projected to fall 25.1 percent to 1.01 million units in 2008 and slip another 2.7 percent to 987,000 in 2009. The median new-home price is expected to fall 6.1 percent to $232,200 in 2008 and rise 5.1 percent in 2009.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in January, remained unchanged from December, but was 19.6 percent below a year ago. The PHSI in the West jumped 13.0 percent in January, but was 12.7 percent below a year ago. The index rose 0.6 percent in the Midwest but is 13.3 percent below January 2007. The PHSI fell 4.1 percent in the Northeast and was 28.0 percent below a year ago, and it fell 6.1 percent in the South, which was 23.8 percent below January 2007.
Lawrence Yun, NAR’s chief economist, said the steady January index data gives reason for optimism. “This additional sign of a stabilizing market is encouraging, and our members are telling us there’s been a pickup in shopping activity,” he said. “Our hope is that the increased traffic of buyers looking at homes will translate soon to more contract offers.”
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