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/