New Housing Starts Predicted to be Strong in 2011

Housing starts will probably reach a three-year high of 739,000 in 2011, creating about 500,000 jobs and helping trim the unemployment rate to 9.1%, said David Crowe, chief economist for the National Association of Home Builders, in an interview with Bloomberg.

“This is an ugly economic cycle,” he said. “We need job creation to get people comfortable with buying a home. If they do that, we’ll create jobs that will reinforce that home buying and fuel additional job growth.”

Job growth in other sectors, as well as population growth, will also likely have an effect. The number of U.S. households will rise 0.7% to 118.7 million in 2011, the largest annual gain since the beginning of the housing crisis in 2007. Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, N.J., expects jobs to rise by an average of 200,000 per month in 2011.

The CEO of luxury home builder Toll Brothers is optimistic. “The recovery is here to stay,” said Douglas Yearley. “I think 2011 will be an improving year, but I think 2012 will be a big year for us.”

Call or email me to find the best new home developments in Mercer County and surrounds, and the builders offering the best buyer incentives.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
Source: Realtor.org, Bloomberg, Joshua Zumbrun and Kathleen M. Howley (12/28/2010)

Smaller Builders are the Foundation of the US Housing Industry

According to a new study by economists at the National Association of Home Builders (NAHB), small home builders are the mainstay of the nation's housing industry, including a sizable number of self-employed mom-and-pop operations.  "We are seeing market conditions returning to normal in many parts of the country after a long, hard downturn, and these companies have the agility to move quickly and start leading the economy forward," Bob Jones, NAHB chairman, said. "But first they need access to financing to build, which remains scarce during this critical phase of the recovery."

The report concluded, "The residential construction industry is very dynamic, and a large number of firms enter the industry each year and a large number exit each year.  With few barriers of entry, start-up builders can launch their business with a single new home. Most home builders and remodelers are small businesses, further facilitating movement into the industry when opportunities improve, and exiting either because of business failure or life-cycle decisions."  In addition, a much higher share of small businesses both enter and fail in the residential construction industry when compared to all U.S. firms, according to the report.

NAHB estimates that the ratio of the income of usually small, self-employed independent contractors to wages and salaries generated in the construction industry is one to four. This is compared to a ratio of one to 10 in some other industries, such as manufacturing.  Housing also provides more opportunities for Hispanic businesses than U.S. industries overall, the study found.

For ideas on where and how you can purchase a new home in Mercer County and surrounds, call or email me.  There are many builders who want your business.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

Habitat for Humanity Builds 400,000th Home

Habitat for Humanity is one of the nation's largest builders.  Founded in 1976, it has served more than 2 million people worldwide.

"In 2005 we celebrated our 200,000th house. Now, five years later, we have more than doubled that number thanks to the generous support of our volunteers and sponsors,” says CEO Jonathan Reckford.  Habitat and its homeowners, volunteers and partners build so much more than houses for these families, however. They build community, friendships, health, tolerance, construction skills, and financial literacy.

A copy of Habitat for Humanity International's fiscal year 2010 annual report, "What We Build," is now available on the group's Web site. The report gives a snapshot of Habitat's work around the world.

The organization seeks to eliminate poverty housing and homelessness from the world and to make decent shelter a matter of conscience and action.  To accomplish these goals, they invite people of all backgrounds, races and religions to build houses together in partnership with families in need.

Learn more about the work and volunteer or fundraising opportunities for this very meaningful and needed non-profit at the Habitat for Humanity web site.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

New Construction Statistics in November Show Mixed Market

Here are the U.S. Census Bureau and the Department of Housing and Urban Development (HUD), new residential construction statistics for November 2010.

Single-family housing starts in November were at a rate of 465,000; this is 6.9% (±13.5%) above the revised October figure of 435,000. The November rate for units in buildings with five units or more was 72,000.

Single-family building permits in November were at a rate of 416,000; this is 3.0% (±1.0%) above the revised October figure of 404,000. Authorizations of units in buildings with five units or more were at a rate of 94,000 in November.

Single-family housing completions in November were at a rate of 436,000; this is 10.1% (±11.6%) below the revised October rate of 485,000. The November rate for units in buildings with five units or more was 73,000.

These numbers don't mean much if you can't find new homes in your area.  Call or email me and let's discuss your options.  I can fill you in on all the new homes available in Mercer County and our central New Jersey areas.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

Builder Confidence Waits for Spring

According to the National Association of Home Builders (NAHB) - Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built, single-family homes remained unchanged in December from the previous month at 16.  "Builders are bracing themselves for a slow holiday season as a number of factors continue to cause uncertainty among consumers and builders alike," said NAHB Chairman Bob Jones. "While the HMI is adjusted for seasonal factors, the typical cold-weather slowdown in sales activity is being accentuated by ongoing weakness in the job market, the rising number of foreclosures and short-sales, and very challenging credit conditions for both builders and buyers."

"The steady but low level of the HMI reflects the fact that builders and consumers have yet to see consistent signs that the economy is improving," noted NAHB Chief Economist David Crowe. "The good news is that the index and its subcomponents remain above recent lows from the early fall. NAHB expects an improving job market this spring will help prospective buyers feel more confident and propel more sales activity in 2011. However, the continued problems that builders are facing in obtaining construction credit and accurate appraisal values could significantly slow the onset of a housing recovery."

Two out of three components of December's HMI remained unchanged from the previous month, including the component gauging current sales conditions (which remained at 16) and the component gauging sales expectations in the next six months (which was flat at 25). The component gauging traffic of prospective buyers fell a single point, to 11.  Regionally, the Northeast, which can display greater month-to-month volatility due to its smaller survey sample, posted a 12-point gain to 24 in December.

Call or email me and let's talk about your new home options in Mercer County and surrounding areas.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/

Baby Boomers Using Remodeling to Satisfy their Changing Needs

The decline in prices in the suburbs appears to be keeping a lot of aging boomers from selling and moving to accommodate a change in lifestyle.  David Crowe, chief economist for the National Association of Home Builders (NAHB), said, “National conditions for this sector have not yet turned the corner, and they will not improve until employment improves and consumers are more confident of keeping their jobs.”

Boomer-watchers say this wants-to-move-but-can’t generation is engaging in “recession remodeling,” making small and not-so-expensive changes to their houses to accommodate health or other life-changing issues.  80% of those 65 and older, who responded to a July telephone poll of 1,616 adults ages 45 and up conducted for AARP, said they wanted to stay in their houses as long as possible.

A few tweaks to remodeling plans can make a house more user-friendly.  Recently AARP sponsored a “recession remodel” contest to demonstrate that comfort and efficiency were achievable, even in hard times.  The winners: a kitchen in a farmhouse in Richfield, N.C., about an hour from Charlotte, and a bathroom in a house in Snohomish, Wash., near Seattle.

The kitchen renovation was the result of a move to the house by the owner’s 67-year-old mother, after the death of the owner’s father, who had built the house.  The kitchen was outdated and difficult to use. AARP’s makeover expanded and brightened the room, and added an open floor plan, cabinet and counter space, multilevel work and eating space, and easy-to-reach appliances.

The bathroom renovation was for a daughter who cares for her parents, one in a wheelchair with Parkinson's, and the other who uses a walker.  A cramped bathroom that could accommodate neither parent was changed to remove barriers and add a walk-in shower, a heated nonslip floor, and glare-free lighting.  AARP arranged donations to the two winners of appliances, fixtures, and other building products, along with designer and contractor services.

“These makeovers demonstrate what homeowners can do when they finally get around to remodeling,” AARP’s Ginzler said. The work “can make them ready for whatever surprises life can bring.”

Many New Jersey builders are ready and willing to help you with remodeling projects, especially this time of year.  Call or email me to discuss your needs and ideas.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/


(resource:  RISMedia.com)

New Consumer Web Site Launched to Keep Mortgage Interest Deduction

The National Association of Home Builders (NAHB) has launched a newly-designed consumer-oriented website, http://www.savemymortgageinterestdeduction.com/, to provide up-to-date information on the threat to the mortgage interest deduction.

The website separates the myths about the mortgage interest deduction from reality, and shows why this cornerstone of American housing policy is essential for millions of middle-class homeowners and families who aspire to own their own home.

The site contains fact sheets, FAQs, statistics, and other information to allow consumers to stay informed as debate on the mortgage interest deduction moves forward.  Also, he website tells visitors how to make their opinions are heard by connecting through NAHB’s Facebook and Twitter mortgage interest deduction communities and Eye on Housing (http://eyeonhousing.wordpress.com/) blog.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/

US Builder Confidence Improves in November

Builder confidence for newly built, single-family homes improved slightly in November 2010, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.

“Though the gains have been incremental, the fact that builder confidence has improved over the past two months is encouraging,” said NAHB Chairman Bob Jones. “Many builders are reporting that while the quantity of buyer traffic through their model homes has not improved dramatically, the quality of that traffic seems to be getting better—meaning that more people appear to be serious about buying in the near future. Builders remain very concerned, however, about the lack of available financing for new-home construction at a time when inventories of completed new homes are quite thin; after all, you can’t sell what you can’t build.”

“The most positive aspect of today’s report is the future expectations component, which not only held onto the five-point gain it registered in October, but improved by an additional two points to 25 for November,” said NAHB Chief Economist David Crowe. “This is the highest that component of the HMI has been since the home buyer tax credit program spurred sales activity this spring.” At the same time, he noted, “The most concerning aspect of the report is that survey participants say they have observed absolutely no improvement in their ability to access credit to build viable new projects. This problem is clearly a roadblock to recovery in many markets.”

The Northeast was the only region to post a decline in its HMI score in November, with a three-point drop to 13. Meanwhile, the Midwest posted a five-point gain to 18, the West posted a three-point gain to 15 and the South held even at 18.  This regional shift reflects the winter weather patterns, which return first to the Northeast.

There are many new homes available in Hamilton, NJ, Mercer County, and surrounding areas.  Call or email me to preview your choices.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.dogwoodmeadowsnewhomes.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

New Jersey Green Homes - a Viable Alternative for Builders

A recent article on RISMedia.com explores the questions now for builders about the costs of Building Green.   "Green homes offer a wide variety of benefits from reducing carbon footprints to saving money on utility bills to even improving the health of children. However, a recent Whirlpool Corporation and Habitat for Humanity survey conducted by the NAHB Research Center, polled home builders, as well as consumers, and found many believe there’s a disconnect between living in a green home and purchasing one. Yet, the majority of respondents (64%) indicated that savings from green home features were sometimes worth the added costs and efforts. This finding was consistent across all income level groups for both renters and homeowners.

"The majority of High (67%), Upper Middle (65%), and Middle (59%) income respondents, as well as nearly half of low income respondents (48%), indicated they believe a completely green home would be affordable to live in or maintain. Yet only high-income respondents were more likely to indicate that a completely green home would be affordable to purchase (71%).

"The builder survey, fielded July-August 2010 to members of the Research Center’s Online Builder Panel, found that 87% believe green homes are affordable for middle income families to live in, while 30% felt green homes were too expensive for the segment to purchase or build. For low-income families, 70% of home builders believe green homes are affordable to live in, and nearly 60% of builders thought green homes were too expensive for low-income families to purchase or build.

“'The health benefits, low utility costs and other factors make green homes ideal for all homeowners. However, it takes a united front of manufacturers, builders and organizations to help builders and consumers understand that building green can be affordable,' said Tom Halford, general manager, contract sales and marketing, Whirlpool Corporation. 'There’s a need to bridge the perception gap between green-building and affordability, so that builders and families understand that options exist to improve their footprint in the long-term, while saving money and resources in the short-term.'

“'Under Habitat’s nonprofit construction model, Habitat affiliates across the United States are incorporating sustainable materials and energy-efficient products in Habitat homes, as this is both a responsible building practice and it improves the affordability of homes for Habitat partner homeowners,' said Larry Gluth, senior vice president of U.S. and Canada for Habitat for Humanity International. 'The challenge is to help people understand that building green doesn’t mean it can’t be affordable too.'”

Contact me for information about which New Jersey builders are offering (or will be in 2011) Green Homes so you can make your own decisions on the solutions that fit your needs.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
www.activerain.com/blogs/josephgiancarli
http://www.njhomesource.blogspot.com/

New Home Sector for Active Adult Housing Flat

The third-quarter results from the National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI)confirm that builder confidence in the mature-market sector reflects the larger housing market’s bleak landscape. Almost all categories surveyed declined from the levels reported in the third quarter of 2009.

The sector is influenced by the housing pressures of the younger buyers, explained NAHB’s Chief Economist, David Crowe.  “While we have anecdotal information that some local 55+ markets are beginning to rebound, the third-quarter data show that national conditions for this sector have not yet turned the corner,” he said.  “Real improvement won’t happen until we have better employment numbers, and consumers who are more confident of keeping their jobs. Those consumers will buy the homes of the 55+ age cohort, so that the mature buyers will be able to move to more appropriate housing.”

The 55+ single-family HMI measures builder sentiment based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market. A number greater than 50 indicates that more builders view conditions as good than poor. In the third quarter of 2010, the index came in at 15, a five-point drop from the third quarter of the previous year. Present sales dropped four points, to 15. Expected sales (six months into the future) dropped six points, to 24. And traffic of prospective buyers fell seven points, to 11.

Multifamily rentals are performing against the trend. While present production is quite low, and not expected to grow significantly in the next six months (both show index levels in the low teens), present demand came in at 28, while expected demand is at 32.   These statistics indicate that more respondents see some strength in rental demand, compared to the number who see any growth in production of new rental apartments to support that demand.

Mercer County NJ and surrounding areas have many Active Adult Communities for your lifestyle.  If you would like information on available properties, just call or email.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

(resource:  RisMedia.com)

New Home Sales Down in October

According to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family houses in October 2010 were at a seasonally adjusted annual rate of 283,000,

This is 8.1% (±16.1%) below the revised September rate of 308,000 and is 28.5% (±12.6%) below the October 2009 estimate of 396,000.

The median sales price of new houses nationwide sold in October 2010 was $194,900, the average sales price $248,200. The seasonally adjusted estimate of new houses for sale at the end of October was 202,000. This represents a supply of 8.6 months at the current sales rate.

If you are interested in buying a new home in Mercer County or the surrounding areas, call or email me.  I can suggest the best builders with the best buyer incentives.  And take a look at Dogwood Meadows.  There is one lot left with 3 home choices, or a spec home under construction.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

US Becoming Severly "Underbuilt"

According to a special study by economists at the National Association of Home Builders (NAHB), annual single-family housing production in 2008 and 2009 fell about one million units short of the housing that would be needed in a normally functioning economy, suggesting that builders will have a lot of catching up to do as the economy improves and household formations return to trend levels.  The report, "Extent of Underbuilding in the Single-Family Housing Market," finds that there was an excessive amount of single-family building from 2003 through 2005, but overbuilding largely ended by 2006 and the subsequent downturn was severe enough to more than offset those annual surpluses. This year is likely to add to the growing deficit of single-family homes by another one million units, the report finds.

"The single-family housing market in the U.S. currently finds itself in a significantly underbuilt state," said NAHB Chairman Bob Jones. "Pent-up demand for housing will at some point need to be worked off, pushing single-family production in a positive direction. In the meantime, the deficit continues to grow as builders remain cut off from the credit they need to begin developing and building new housing."

Accumulating annual surpluses peaked at 493,000 single-family units in 2005, and that was worked off entirely by the end of 2007. Depressed levels of single-family housing production resulted in a cumulative deficit of 2.17 million units by 2009 and will likely grow to 3.28 million by the end of this year.

The study also found that there are now single-family housing deficits in most of the states. This includes the states that had the hottest markets during the boom: Arizona, with a deficit of 144,500; California, 49,500; Florida, 112,600; and Nevada, 75,600.

Read more at RealEstateChannel.com. 

If you are interested in a new home in Mercer County or the surrounding areas in New Jersey, I can help you find available developments and builders offering quality products.  I've been involved with the building trade here for more than 20 years, and can help you find the home that fits your needs.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.dogwoodmeadowsnewhomes.com/

Builder Confidence Improves Slightly in November

According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today, U.S. home builder confidence in the market for newly built, single-family homes improved slightly in November. The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.

"Though the gains have been incremental, the fact that builder confidence has improved over the past two months is encouraging," said NAHB Chairman Bob Jones. "Many builders are reporting that while the quantity of buyer traffic through their model homes has not improved dramatically, the quality of that traffic seems to be getting better - meaning that more people appear to be serious about buying in the near future. Builders remain very concerned, however, about the lack of available financing for new-home construction at a time when inventories of completed new homes are quite thin; after all, you can't sell what you can't build."

"The most positive aspect of today's report is the future expectations component, which not only held onto the five-point gain it registered in October, but improved by an additional two points to 25 for November," said NAHB Chief Economist David Crowe.  At the same time, he noted, "The most concerning aspect of the report is that survey participants say they have observed absolutely no improvement in their ability to access credit to build viable new projects. This problem is clearly a roadblock to recovery in many markets."

The Northeast was the only region to post a decline in its HMI score in November, with a three-point drop to 13.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.dogwoodmeadowsnewhomes.com/

Housing Starts Decline in October

The U.S. Commerce Department has released figures showing a nationwide decline in housing starts of 11.7%, to a seasonally adjusted annual rate of 519,000 units in October.  The decline was primarily registered in the more volatile multifamily sector, where starts retreated 43.5% to an 83,000-unit rate, while single-family starts posted a more modest 1.1% decline to 436,000 units.

"Home builders continue to be very cautious about starting new projects at this time," said Bob Jones, chairman of the National Association of Home Builders (NAHB). "That said, in markets where consumer demand for new homes is reviving, builders are finding it almost impossible to obtain construction financing, and this frustrating situation is producing an unnecessary drag on both new home production and economic growth."

"October single-family starts and permitting activity remained essentially in line with the third quarter's trend," noted NAHB Chief Economist David Crowe. "What this tells us is that the market is running at a steady, but slow, rate following the downturn that took place upon expiration of the home buyer tax credit program and the economic slowdown this summer. Today, builders are just starting to report some improvement in buyer demand, which should gradually translate into more sales activity, and more starts, as the economy strengthens. The great concern is that this positive momentum will be stifled due to builders' inability to obtain financing for new construction at a time when inventories of completed new homes are very thin."

Regionally, starts activity was mixed across the nation in October, with gains of 12.9 percent and 1 percent reported in the Northeast and Midwest, respectively, and declines of 13.4 percent and 30.5 percent reported in the South and West, respectively.  Permit activity showed no change in the Northeast.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.dogwoodmeadowsnewhomes.com/

Mortgage Rates Hit New Historic Lows - Buy a NJ New Home Now

According to Freddie Mac's (OTC:FMCC) latest Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgage (FRM) and the 15-year (FRM) set new records for all-time lows. The 5-year ARM also reached another new low in the survey while the 1-year ARM remained flat.

The 30-year fixed-rate mortgage (FRM) averaged 4.17% with an average 0.8 point for the week ending November 11, 2010, down from last week when it averaged 4.24%. Last year at this time, the 30-year FRM averaged 4.91%.

Freddie Mac's chief economist Frank Nothaft said "Despite historically low mortgage rates, however, the housing recovery continues to be slow owing in part to household job uncertainty and tight credit conditions.

"If you want to buy a new home under construction in New Jersey, you just can't beat the conditions now - builder inventory, buyer incentives, and these low low rates.  Contact me to find the best alternatives for your needs and interests.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/

Problems of Half-built Houses in New Jersey and Nationwide

Half-built homes are prevalent across the country now, leftover from the real estate market meltdown and ongoing foreclosures. Many were tear-downs of existing homes, replaced by skeletal structures that neighbors fear will lower their property values.  Residents, lenders, builders, and communities all must face the problems of abandoned, partially-completed houses. 

No one company seems to be tracking the numbers, and no experts have thought of a solution.  The owners, mostly lenders, are also dealing with foreclosures and short sales of occupied houses.  Unfinished houses pose a new challenge for many communities because they have few options for how to best deal with them.  Lenders can maintain a property, but can’t improve it until they get ownership. Banks could sell such properties sooner if owners/builders would deed the property to them rather than just walking away.

“It is a national problem," said Eli Lehrer, senior fellow at The Heartland Institute.  Even when uncompleted houses are on the market, they are difficult to sell, because they often require full cash payment and face a host of construction issues that only certain builders and lenders are willing to tackle.

"With the market so depressed, some owners and banks are letting unfinished properties sit until prices improve," said John Wozniak, incoming president of the Homebuilders Association of Greater Chicago. And financing is very difficult to get for such projects. “Banks are only going to spend what they have to, because they’ve already taken a hit on the property,” he added. “They’re trying to minimize their loss, the same as any other institution.”

The Heartland Institute’s Lehrer believes the problem of half-built houses will eventually correct itself as the housing market improves. Meanwhile, he doesn’t think neighbors should worry about their property values declining. “For a typical home in a typical neighborhood, a single unbuilt house—or even a group of them—isn’t likely to hurt the value,” he said. “But the presence of an eyesore may make an existing home harder to sell.”

Some municipalities around the country have developed programs to use abandoned or vacant houses, if livable, for homeless families.  But this is just one solution to a widespread problem.

If you are interested in purchasing a home under construction in New Jersey and completing it, call or email me for some ideas.  If you are a builder who needs to sell, I can help.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/

New Appraisal Guidance for New Homes

The National Association of Home Builders (NAHB) welcomes the Federal Reserve’s new interim rule on appraisals.  The association has long worked for an appraisal process that provides transparency and flexibility for the unique challenges of valuing a new home.

“The interim rule makes it clear that home builders and others can ask an appraiser to consider additional information about a property, including information about additional comparable properties,” said Joe Robson, NAHB’s immediate past chairman.. “That’s critical to our members because in far too many cases we’re seeing appraisals based on inappropriate comparables," Robson added.

“Many appraisers do not understand the impact of new code requirements, new green building practices and other aspects of new construction that add value to a home,” Robson said. “It is particularly important that home builders be allowed to provide appraisers with information to assist in appraising new construction."

The rule will take effect 60 days after it is published in the Federal Register, with the Fed accepting comments during this period. Compliance is voluntary until April 1, 2011. The Fed’s action was required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law on July 21, 2010.

If you have an interest in new home construction, in central New Jersey, Mercer County, and surrounding townships, call or email me.  I know the builders, the developments, and the buyer incentives waiting for you to buy a new home.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://njhomesource.blogspot.com/

New Home Sales Jump in September

According to according to new market data released by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family houses in September 2010 beat market expectations and were at a seasonally adjusted annual rate of 307,000.  This represents the second straight month of gains, but still well below the pace when a tax credit existed.

This is 6.6 percent (±16.9%) above the revised August rate of 288,000, but is 21.5 percent (±13.3%) below the September 2009 estimate of 391,000.

The median sales price of new houses sold in September 2010 was $223,800; the average sales price was $257,500. The seasonally adjusted estimate of new houses for sale at the end of September was 204,000.

There’s also still plenty of supply, with the government estimating supply of eight months of unsold homes, though that’s down from 8.6 months in August. The stock of unsold houses fell 1% from August and dropped 19% from Sept. 2009.

New-home sales won't be affected by foreclosure disputes and could benefit by virtue of purchasers getting “clean” title when buying new properties.

Contact me to find the builders and best buys for new homes in Mercer County and surrounding areas.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://njhomesource.blogspot.com/

What is a Smart Home?

Many listings now say "Smart Home Features" but what does that mean to you?  As reported by HowStuffWorks, Inc. via RISMedia, "There are really two sides to the 'smart' label. One side is smart in terms of a home’s resource consumption—water, energy, construction materials and so on. The other is smart in terms of intelligent systems that control the house. We can start on the resource side, because this is where a lot of the monetary benefit comes from.

"When you think about owning a home and the costs of owning it, there are two places where the money can really add up fast: energy, which has to get paid every month, and upkeep, which often comes in big, expensive bursts. There has been a lot of advancement on the energy side because of the improvements in solar energy technology.

"A smart house can use solar energy in three ways. First, it can be designed to take advantage of passive heating and cooling. This usually involves the placement of windows with heat-absorbing materials to capture the sun’s heat in the winter, and to provide cooling ventilation in warmer months. Second, a smart house can actively collect solar energy with solar panels for heating, hot water and electricity generation. There are even solar air conditioners available now. Instead of using electricity and a compressor to drive the refrigeration cycle, they use the sun’s heat to drive it. A smart house can lower its net energy consumption toward zero, or even create net positive energy that is sold back to the grid, by making intelligent use of the sun.

"Even if using more traditional technologies, it is possible to save lots of energy. For example, heat pumps can now use geothermal technology to radically improve efficiency. Instead of using outside coils exposed to the air, the outside coils are buried in the yard or in a well, where temperatures are steady year round. Heating and cooling costs can in some cases be cut in half.

"Another place where a house can save on resources is in terms of water consumption. A good example of how far water technology has come can be seen in the smart house at Duke University. First, the house collects water off the roof and stores it in six 350 gallon containers in the basement. This water is filtered, purified with UV light and then used for things like flushing toilets, washing dishes and doing laundry. The house also collects water from the roof and stores it in two massive 1,000 gallon tanks outside. This water is used for landscape irrigation. Some smart houses also reuse greywater, defined as wastewater produced by everything but toilets. Greywater can be treated and used for irrigation or flushing toilets.

"Many smart homes are also starting to incorporate green roofs—rooftop landscapes that can provide significant energy savings indoors while also cutting runoff and heat pooling in urban areas.

"The intelligence side of smart houses comes through a home’s awareness of the people living inside it. This awareness can come in the form of biometric locks, heating and lighting systems that recognize if rooms are empty, advanced security systems and camera systems that record everything happening in a home. A smart house can also track energy consumption in real time and suggest ways to save energy.

"With intelligent systems like these, a smart house can detect when no one is home. It goes into hibernation mode, cutting its energy consumption to the bare minimum. The house also secures itself against unwanted intruders. When people return, the house senses this though biometric locks, motion detectors and cameras. It wakes back up to provide lighting, heating and cooling in the areas where it is needed."

Sounds like a smart home is not just the wave of the future but the goal of energy use and home building today.  Contact me to find Smart Home Builders in central New Jersey, Mercer County, and the surrounding areas, so you can start saving on your energy bills.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
http://www.joegiancarli.com/
jgiancarli@remax.net

Builder Confidence Climbs in October

According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for October, builder confidence in the market for newly built, single-family homes rose three points to 16. This was the first improvement registered by the HMI in five months, and returns the index to a level last seen in June of this year.

"Builders are starting to see some flickers of interest among potential buyers, and are hopeful that this interest will translate to more sales in the coming months," said NAHB Chairman Bob Jones. "However, because most builders still have no access to credit for building homes, there is a real concern that we will not be able to meet the pent-up demand when consumers are ready to get back in the market. This problem threatens to severely slow the housing and economic recovery."

Echoed NAHB Chief Economist David Crowe, "Builders have seen a slight increase in consumers who are considering a home purchase. The toughest obstacles really come down to financing - the scarcity of construction credit for builders along with tougher mortgage requirements for consumers."

All three of the HMI's component indexes registered gains in October. The index gauging current sales conditions rose three points to16, while the index gauging sales expectations in the next six months rose five points to 23, and the index gauging traffic of prospective buyers rose two points to 11.

Builder confidence improved across every region in October. The South and West each posted four-point gains, while the Northeast and Midwest each posted single-point gains.

Contact me by phone or email to find the best areas in Mercer County for new home developments.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/

Housing Choices for N J Seniors - Remodeling Specialists

There's a new home building specialty now available to builders, the Certified Aging-in-Place Specialist (CAPS).  Those receiving this education are trained to help homeowners adapt their homes for easier accessibility and improved functionality.  Aging in place has been a popular theory for several years, but the reality has not caught up with the demand.  Remodelers trained in this type of home design will bring positive change to the options available for New Jersey seniors, as they have learned about aging-in-place home design as well as partnering with other professionals to create a more comfortable home.

Actually, Oct 11-15 has been Aging-in-Place week, organized by NAHB (National Assn of Home Builders).  According to AARP, most seniors prefer to stay in their home rather than move due to health and independence concerns, and the CAPS courses were developed in partnership with AARP.  There are now more than 3,500 certified CAPS nationwide to choose from when considering home modifications. Remodelers, designers, occupational therapists, and other professions working with seniors and people with disabilities have become CAPS certified to assist with aging-in-place plans.

Aging-in-place solutions are tailored for each individual, but home remodels frequently include installing grab bars to minimize falling, adding comfort-height toilets, building no-step showers, and widening doorways to allow for mobility-assistance equipment such as wheelchairs.  Universal design features can be easily incorporated into aging-in-place changes.  Creating no-step access from a patio to a home’s interior, constructing raised-bed planters for easier gardening, changing the height of door knobs and electrical outlets, all can combine fashion with accessibility.

Visit the NAHB page for Aging in Place, for more information, and contact me to help you find a local Mercer County builder who has received the CAPS certification, if you need this type of home modification.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

Joe Giancarli Now Offers Mobile MLS Search

You can now find homes for sale using my new mobile app. Just text JOEG to 87778 and you will be sent download instructions.

Once installed on your device, you will be able to do searches and see complete listing details including photos and prices.

If your device is GPS enabled you will also see the listings on a map.

(data rates may apply)
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/

New Jersey New Home Buyers Want Less Cost, Less Square Footage

According to research from economists at the National Association of Home Builders (NAHB), a growing segment of the housing market, first-time home buyers are contributing to an increase in demand for smaller and less expensive new homes.  A recent study conducted by the Department of Housing and Urban Development and the Census Bureau in 2009, "Characteristics of New and First-Time Home Buyers," found that 41% of the 8.4 million households who bought a home between 2007 and 2009 were first-time buyers.

"Builders are increasingly gearing their homes to the needs of first-time buyers, and we expect the trend to continue in the period ahead as the economy begins generating more jobs and more people in their 20s form households," said Bob Jones, chairman of NAHB.  He continued, "New homes are a better match for the needs of the population in general.  Compared to what is typically available in the existing housing stock, they are more energy-efficient, easier to maintain and have designs better suited to today's lifestyles."  First-time buyers for the two years of the study had an average age of 34, compared to 46 for those trading up.

First-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up.  46% of first-timers bought homes smaller than 1,500 SF.

New Jersey builders are adjusting to these new market trends, using energy-efficient materials and designing plans with less square footage but more flexibility.  Call or email me for some ideas on builders here in Mercer County, and available new home developments.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

Builder Optimism Cautious and Holding Steady

According to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today, builder confidence in the market for newly built, single-family homes held unchanged in September.  "In general, builders haven't seen any reason for improved optimism in market conditions over the past month," noted NAHB Chairman Bob Jones.

"The stall in the nation's housing market continues," agreed NAHB Chief Economist David Crowe. "Builders report that the two leading obstacles to new-home sales right now are consumer reluctance in the face of the poor job market and the large number of foreclosed properties for sale. However, we do expect that moderate improvement in the job market will help boost consumer confidence and improve conditions for new-home sales in this year's final quarter."

I can help you get into a new home here in Hamilton and other Mercer County townships.  I know the builders and the developments in New Jersey.  Call or email me so you can get that new home with good buyer incentives.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

Housing Starts Up in August

The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for August 2010, showing new home starts were at the highest levels in the last four 'post tax credit expiration' months.

Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 569,000. This is 1.8% (±2.0%) above the revised July rate of 559,000, but 6.7% (±1.4%) below the August 2009 estimate of 610,000.

Privately-owned housing starts in August were at a seasonally adjusted annual rate of 598,000. This is 10.5% (±11.9%) above 11.9% the revised July estimate of 541,000 and is 2.2% (±9.7%) above the August 2009 rate of 585,000.

Privately-owned housing completions in August were at a seasonally adjusted annual rate of 603,000. This is 5.6% (±12.6%) above the revised July estimate of 571,000, but is 23.7% (±9.6%) below the August 2009 rate of 790,000.

While housing starts are seasonal, and the August figures reflect the height of the building season, this is still good news both for New Jersey builders and buyers of new homes.
 
Contact me to find out about new home developments in Mercer County and our surrounding areas.
 
Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

4 Reasons to Buy a New Home in New Jersey Now

There is a lot of press now about the reasons to buy in this market, and they are particularly true for new homes, for new construction in Mercer County.  Here are 4 reasons to consider a New Jersey new home now.

1.  Builders are offering big discounts.
Homebuilders are getting even more aggressive with their pricing today - they want to move their inventory before winter.  Eddi Fadel, author of Don’t Rent, Buy!, recommends looking at completed new homes 1st because builders are offering such steep discounts. Plus, you’d have a warranty not only on the home itself, but also on the home’s appliances, he said. “Builders want to save their credit, save their brand, save their reputation and clear out inventory,” he said. “They can go buy cheap land today with that cash.” His advice: Walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.

2.  Mortgage rates are still at historic lows. 
This would help you buy a new home or resale, but think ahead.  In 5 or 10 years, you could have an incredibly low mortgage on a 5 or 10 year-old house, instead of a 30 or 40-year old house.  Which is a better long-term investment?  Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. This allows new homeowners to have a little give to absorb any ups and downs as housing market continues to gain traction.

3.  Your home will be in move-in condition.
So many houses on the market today are short sales or foreclosures, even here in Mercer County, NJ.  And homeowners who are having trouble paying their mortgage don't have much left for maintenance or improvements.  Your new home will have new appliances, flooring, window coverings - all new.  You won't be buying someone else's deferred maintenance.

4.  You have many choices.
Yes, there is a large inventory of resale houses too, but if you want to consider new, there are many developments here in Mercer County and surrounding areas.

I know the builders and the construction sites, so call or email and let's look at some new New Jersey homes.  Here's a sample of a small Hamilton NJ development, Dogwood Meadows, with 3 lots left and 6 models to choose from.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

New Jersey Multifamily Builders see Encouraging Signs

The National Association of Home Builders’ Multifamily Market Indices (MMI) show that current and expected demand for rental apartments improved significantly in the second quarter of 2010 compared to the first quarter. The current indexes for Class A, Class B and Class C apartments rose to 59.5, 57.6 and 56.6, respectively, increases of more than 15 points when compared to the first quarter and the highest level since 2007.  An index number greater than 50 indicates that the number of builders who view conditions as getting stronger outnumber those who view conditions as becoming weaker.

The MMI measures multifamily builder sentiment based on production and occupancy at the current time, as well as builders’ expectations for conditions over the next six months.  Builders’ expectations for demand in the next six months increased to similar levels.

“Lenders have been unwilling to fund multifamily development, because the inventory of rental housing expanded from traditional multifamily communities to foreclosed and investor-owned single-family homes made available for rent as a means of creating a temporary cash flow until the homes can be sold,” said David Crowe, NAHB’s chief economist. “As the supply of additional units declines and pent-up household formations re-emerge when the labor markets improve, demand for traditional rental apartments will rise. It is possible that the supply of new units will not arrive in time to meet the emerging demand and some shortages will occur in some markets. Even in robust production years, it is only possible to increase the stock of rental units by a relatively small percentage through new construction.”

I can answer your questions on new home developments and builders in Mercer County and surrounding areas.  Call or email any time.  I've been in the building trades for many years here in New Jersey.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

(resource:  RISMedia.com)

Some Buyers Choosing New Homes over Short Sales

A recent Florida buyer shared this story with NewsGeni.us:

"'I purchased a new home because I will never ever go through a short sale nightmare again in my lifetime,' said buyer Lynn Buonviri. Her dream short-sale fell through when the seller cancelled without telling anybody, refused to move out, and would not come to the door. The fact that she had just arrived after pulling a trailer 1,000 miles for the scheduled final inspection, did not help. 'My broker negotiated with the bank and owner for 5.5 months. The stress on both of us was incredible, but the idea of going through this again was unbearable.'"

Buonviri chose instead to purchase a new home with a 10-year warranty.  Another buyer interviewed for the story was in escrow on a short sale that cancelled unexpectedly because the seller backed out.  But he closed for cash on a new, upgraded home for about $2/SF less than the short sale.  One obvious fact about new homes - the builder is very unlikely to cancel a sale, especially with the glut of inventory nationwide.

Does there seem to be a trend, which would be welcomed by builders, that new homes are emerging as an alternative to the short sale?  Sean Strickler, Vice President of Sales for the Pulte Group, which builds here in New Jersey, thinks so.  He said that the Pulte-branded communities maintain an inventory home program specific to each community, "While we don't want to overbuild in a particular community, our goal is to always have a quick move -in or two for those buyers who don't want to wait for their home to be constructed."

There are many new home "products" to choose from in Mercer County and surrounding areas.  While you can visit sales centers and spend time looking for them and driving around, you could ask an expert in new homes - like myself - to tell you which developments would fit your needs and price.  I know the builders and the homes - just call or email for information on buying a new home in New Jersey.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

If You Want to Purchase a Newly-built Home in New Jersey, Here are Some Ideas

Newly-built homes, often in recently developed communities, are much more affordable than in years past. New homebuilders are using desirable, open floor plans in smaller sizes, and helping buyers purchase new homes, with incentives and financing options.  Use these important tips in a new home transaction to ensure that your hopes become reality.

1. Choose a Realtor Who Has New Home Sales Experience

Hire a buyer’s agent to represent you, act as your fiduciary, and disclose the positives as well as the negatives about the transaction. Builder’s agents don’t discuss drawbacks.  They want to move their inventory.  If your contract contains a contingency to sell your existing home before buying, hire your own seller’s agent to list your home.

I have experience and local knowledge of all our builders, in Mercer County and surrounding areas.  This expertise is free to you, the buyer.

2. Carefully Evaluate the Builder’s Lender before Committing

Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it’s one-stop shopping for a builder.  Builders will offer huge incentives to get you into your new home; sometimes up to 15% of the value of the home. However, they will often put one big stipulation on those incentives – that you use their lender. There are many problems that may crop up when you pigeon-hole yourself to one lender – higher rates and higher closing costs are the two biggest.

Ask to see a copy of your credit report and FICO cores. You can also order your own free credit report before shopping for a new home.

Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere. Reputable lenders will honor that request, even though it’s not required by law.  I can recommend several qualified, reputable local lenders familiar with new construction in New Jersey.

3. Check out the Builder’s Reputation

If a buyer has a bad experience with a builder, word spreads rapidly. However, accurately and fairly assessing a builder’s history is the appropriate path.  Check public records for lawsuits or complaints and evaluate their resolutions but, again, if you hire a local Realtor familiar with the builders (me), he or she can be a goldmine of information.

Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building same-sized or larger than existing properties, or are homes shrinking in size, which could reduce neighborhood value?

Learn if the builder limits investor purchases.  This ensures that the neighborhood doesn’t turn into a “rental” neighborhood, which may appear less well-maintained and reduce property value.

4. Hire a Home Inspector

Many people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper to bumper” warranty that includes everything, and many home buyers feel that they can find out if there are any construction flaws during those 12 months. The problem is that many problems won’t surface until well after the 12-month warranty has expired.  An inspection provides education about the property, and offers the validation of a trained, independent third party assessment of the structure and systems.

If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn’t licensed to address that issue.

5. Obtain Legal Advice before Buying a Brand New Home

All of our New Jersey purchase contracts go through "Attorney Review."  Make sure you understand what you are signing and what contingencies protect you, the buyer.  Ask questions about removal of contingencies and your cancellation rights.  A knowledgeable local Realtor - me - can protect you and explain the contract. 

Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.

Your best course of action is to be represented by a local Realtor who knows the builders, their product, their reputation, and what is available in the area where you want to live.  I have that experience.  Call or email me so you can start looking and move into your new home in New Jersey before the cold weather.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli



(read more at RISMedia)

July Sales Decline Affects New Jersey Builders

The U.S. Commerce Department reported of a 12.4% decline of new home sales for July.  With newly built single-family home sales now at annual rate of 276,000 units that month, this represents the lowest sales rate for new homes on record.  Bob Jones, chairman of the National Association of Home Builders (NAHB) commented, "Potential home buyers have become very hesitant due to uncertainty about the economy and job market, and are putting off the decision to buy until they feel more confident."

"The slow pace of economic recovery and worries about job security are weighing heavily on the minds of potential home buyers right now," agreed NAHB Chief Economist David Crowe. "As a result, the housing market is clearly in a holding pattern. That said, NAHB does not project that a double-dip recession is in the cards, and we are looking for employment gains later this year to help bolster sales activity moving forward."

Sales of new homes fell across every region in July, with a 13.9% decline reported in the Northeast.  The latest figures indicated that builders are keeping a tight rein on the inventory of new homes for sale. That inventory remained unchanged at 210,000 units in July. However, due to the slower pace of sales activity, the month's supply of homes rose to 9.1 from 8.0 in the previous month.

Call or email me with your questions on new homes in New Jersey, and new home developments in Mercer County and surrounding areas.  I can help you find that New Jersey new home and be in before the snow falls.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

(resource: RealEstateChannel.com)

Builder Confidence Down for 2nd Quarter in NJ Senior Housing Market

Builder confidence in the mature-housing market retreated during this year’s second quarter, according to data from the National Association of Home Builders’ 55+ Housing Market Index (55+ HMI), a quarterly survey of the association’s builder members engaged in the production of mature-market housing. This past quarter’s index values dropped for all areas surveyed, compared to the previous year’s second quarter.

“The same factors that affect activity in the overall housing market—including hesitant home buyers, tight consumer credit and continuing competition from foreclosed and distressed properties—are having an impact on the 55+ segment of the market, which remains stalled in most regions,” says NAHB’s Chief Economist, David Crowe. “In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes, causing them to postpone plans to look for a home that offers reduced maintenance or is otherwise more appropriately designed to accommodate their current lifestyles.”

The 55+ single-family HMI measures builder sentiment based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market. A number greater than 50 indicates that more builders view conditions as good than poor. In the second quarter of 2010, the index slipped four points compared to the same period a year earlier, down to 12. Present sales fell to 12, down four points; expected sales to 17, down seven points, and traffic to 12, down 2 points.

The 55+ multifamily condo index continued to record the lowest values, with a drop of five points over the previous year’s second quarter, to a record low value of 7, reflecting drops in current sales, expected sales, and traffic from prospective buyers.

Based on the sentiments of New Jersey builders I know and represent, this lack of confidence in the senior housing market are prevalent in Mercer County and surrounding areas as well.

If you are interested in new construction in New Jersey, call or email me.  I can recommend builders and know all the developments, from my 20+ years of experience in the field.

Joe Giancarli, Sales Associate
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.jnhomesource.net/
www.activerain.com/blogs/josephgiancarli

New Jersey Home Builders Cautiously Optimistic

As nationwide housing starts inched up 1.7% to a seasonally adjusted annual rate of 546,000 units in July, from a downwardly revised figure in the previous month, home builders nationwide are holding their breath.  According to U.S. Commerce Department, all new home construction gains occurred entirely on the multi-family side, with single-family housing production falling 4.2% to 432,000 units.

"Right now the housing market is essentially in a holding pattern," acknowledged NAHB Chief Economist David Crowe. "As our latest member surveys have indicated, builders are seeing greater hesitancy among potential home buyers who are uncertain about what's in store for the economy and jobs going forward. That said, favorable home buying conditions including historically low mortgage rates and low house prices should help spur additional demand as the job market gradually improves later this year."

Two regions registered improved starts activity in July, with the Northeast and Midwest each posting double-digit gains, of 30.5% and 10.7%, respectively.

New Jersey home builders are ready to move their inventory.  Contact me to find out what bargains and buyer incentives you can negotiate for a new home in Mercer County.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

July Housing Starts Post Small Increase

US Housing Starts July, 2010
Privately-owned housing starts in July were at a seasonally adjusted annual rate of 546,000. This is 1.7% (±9.7%) above the revised June estimate of 537,000, but is 7.0% (±7.5%) below the July 2009 rate of 587,000.

Single-family housing starts in July were at a rate of 432,000; this is 4.2% (±8.7%) below the revised June figure of 451,000. The July rate for units in buildings with five units or more was 95,000.

US Building Permits July, 2010
Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 565,000. This is 3.1% (±2.0%) below the revised June rate of 583,000 and is 3.7% (±2.2%) below the July 2009 estimate of 587,000.

Single-family authorizations in July were at a rate of 416,000; this is 1.2% (±1.2%) below the revised June figure of 421,000. Authorizations of units in buildings with five units or more were at a rate of 129,000 in July.

US Housing Completions July 2010Privately-owned housing completions in July were at a seasonally adjusted annual rate of 587,000. This is 32.8% (±6.8%) below the revised June estimate of 874,000 and is 25.4% (±7.3%) below the July 2009 rate of 787,000.

Single-family housing completions in July were at a rate of 490,000; this is 27.5% (±7.6%) below the revised June rate of 676,000. The July rate for units in buildings with five units or more was 91,000.

Contact me for information on Mercer County and New Jersey home building statistics.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.nhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

Builders Shrinking Homes to Fit Scaled-back Buyer Tastes

The economic slowdown in the country has affected our lifestyles, plans, and business realities.  One of the trends which has emerged is the preference of buyers toward smaller houses - greener, less square footage to heat, more sensible, and cheaper.  Builders have seen the change, and adapted, constructing smaller homes to appeal to more buyers.  “I do believe the younger generation isn’t looking to build mansions anymore,” said Sam Palazzolo, Michigan builder. “They are looking at simpler lives. They aren’t looking for the same houses that the baby boomers were.”

The trend for smaller new homes has been building over the past few years as the economy and housing crisis have taken a toll on consumer confidence.  The average sizes of new homes built in the US shrank last year to 2,438 SF, after nearly three decades of growing floor plans. The average single-family home peaked at 2,521 SF in 2007.  Square footage was flat in 2008, and then dropped in 2009, according to U.S. Census data released by the National Association of Home Builders.

New homes shrank by nearly 100 SF in 2009 compared with 2007. Those built today have fewer bedrooms as three-bedroom homes become the norm instead of four-bedroom homes. Other things getting smaller include the number of bathrooms and floors.

The last time there was a drop in the size of homes was in the early 1980s during the national recession, said David Crowe, chief economist for the National Association of Home Builders (NAHB). While that home-size decline was temporary, this time the changes could last longer because of an increased number of first-time home buyers, a desire to keep energy costs low, smaller amounts of equity in homes to roll into the next one, tighter credit, and less focus on the investment component of buying a home, he perceives .  “Many of these tendencies are likely to persist and continue affecting the new home market for an extended period of time,” Crowe said.

Chris Naatz, the Midwest-area director of marketing for Bloomfield Hills, Mich.-based Pulte Group, also a builder here in central New Jersey, feels there is a demand for more-affordable homes and that builders will meet that demand.  “Five years ago, home sizes were growing each year.  Now people seem more practical.  Savings are up, and a home is a very tangible thing that you enjoy every day.”  Part of the growth during the boom was driven not only by consumer demand, but also by municipalities that required a certain lot size for each home such as an acre, he said.  Pulte has introduced new products to meet the new buyer demands.

You have plenty of choices for new homes in Mercer County NJ and surrounding areas.  I know the builders and the developments. Call or email me and let's talk about your options.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

Builders and the 55+ Market - 2nd Quarter Report

Our area of New Jersey has several high quality "retirement communities" so this report on builder confidence does have some relevance to our real estate market.

According to new data from the National Association of Home Builders' (NAHB) 55+ Housing Market Index (55+ HMI), a quarterly survey of the association's builder members in the mature-market housing market, builder confidence retreated during the 2010 second quarter.

"The same factors that affect activity in the overall housing market - including hesitant home buyers, tight consumer credit, and continuing competition from foreclosed and distressed properties - are having an impact on the 55+ segment of the market, which remains stalled in most regions," says NAHB's Chief Economist, David Crowe. "In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes, causing them to postpone plans to look for a home that offers reduced maintenance or is otherwise more appropriately designed to accommodate their current lifestyles."

The 55+ multifamily condo index continued to record the lowest values, with a drop of five points over the previous year's second quarter, reflecting drops in current sales, expected sales, and traffic from prospective buyers.

If you are interested in finding new construction in a 55+ community, call or email.  I'm up to date on all new housing here in Mercer County and surrounding areas.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli

Construction Spending Rises in June

As reported in Realtor.Mag,

"Overall construction spending rose in June, driven by record government spending, the U.S. Department of Commerce reported.

"Spending on single-family residential structures declined 0.7% in June, the first time that number has gone down in a year.

"Funding for public construction increased 1.5% in June, with most of the money spent on power, sewage, and waste disposal plants. Federal building rose 4.6% to $31.7 billion, the highest spending on record.

“'Support to construction spending via new homes should continue to remain dampened in the coming months,' Maxwell Clarke, chief U.S. economist at IDEAglobal Inc. in New York, said in a note to clients before the report from Commerce. 'Ongoing difficulty of accessing capital for speculative commercial real estate ventures will continue to act as a deadweight in the overall construction measure.'”

For information on new home developments in Mercer County, NJ, call or email so you can find your new home while the weather is good for looking.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli



Source: Bloomberg, Courtney Schlisserman (08/02/2010)

Remodeling Projects Decrease

The latest National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) indicates that in the second quarter of 2010, declines were seen in many key markets.  NAHB Remodelers Chairman Donna Shirey said, "Remodelers are suffering from weak consumer confidence and constricted credit lines. Homeowners are delaying remodeling projects because of economic uncertainty."

The regions that fared the worst were the Northeast and the South.

The homeowners who are choosing to remodel instead of trade up are most commonly working on the bathroom - 61%, and kitchen - 52%.

An interesting change in the industry is the rise of handy"man" services.  The NAHB survey found, "None of the professional remodelers responding to the survey reported that it was common for their companies to perform handyman services in 2004, while 33% of remodelers were regularly providing handyman work in the first half of 2010."

In summation, NAHB Chief Economist David Crowe predicts, "While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a more robust recovery beginning early next year.  For now, professional remodelers are taking on smaller projects and working to find consumers willing to spend money despite the economic uncertainty."

If you aren't sure if a remodeling project will increase the value of your home when you decide to sell, call or email me.  With my construction background and knowledge of our Mercer County NJ real estate sales, I can help you decide.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
619-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli