MSNBC.msn.com reported today that "Builders began work last year on the second fewest number of homes in more than half a century, as the weak economy kept people from buying houses. Builders broke ground on a total of 587,600 homes in 2010, just barely better than the 554,000 started in 2009. Those are the two worst years on records dating back to 1959.
"In a healthy economy, builders start about one million units a year. They built twice as many in 2005, at the height of the housing boom. Since then the market has been in decline. One positive sign is that builders appear to be planning more projects in 2011. Building permits, considered a good barometer for future activity, rose 16.7% in December to a seasonally adjusted annual rate of 635,000, the best pace since March.
"Housing construction fell in all parts of the country in December except the West, where activity surged 45.8%. Construction dropped 38.4% in the Midwest and was down 24.7% in the Northeast and 2.2% in the South. Severe winter weather likely affected activity in the Northeast and Midwest.
"The stagnation in housing is weighing on the overall economic recovery. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders."
Call or email me to talk about options so you can buy a new home in 2011 in Hamilton or Mercer County and surrounding counties.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
Thursday, January 20, 2011
December a Slow Month for New Home Construction
The U.S. Census Bureau and the Department of Housing and Urban Development have announced residential construction statistics for December 2010.
Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 635,000. This is 16.7% (±2.1%) above the revised November rate of 544,000, but is 6.8%(±2.8%) below the December 2009 estimate of 681,000.
Privately-owned housing starts in December were at a seasonally adjusted annual rate of 529,000. This is 4.3% (±14.1%) below the revised November estimate of 553,000 and is 8.2% (±14.4%) below the December 2009 rate of 576,000.
Privately-owned housing completions in December were at a seasonally adjusted annual rate of 585,000. This is 4.1% (±17.7%) above the revised November estimate of 562,000, but is 22.2% (±11.3%) below the December 2009 rate of 752,000.
For information on single-family and multi-family numbers, read the RealEstateChannel.com article.
Call or email me to talk about new homes in Mercer County and our surrounding areas.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 635,000. This is 16.7% (±2.1%) above the revised November rate of 544,000, but is 6.8%(±2.8%) below the December 2009 estimate of 681,000.
Privately-owned housing starts in December were at a seasonally adjusted annual rate of 529,000. This is 4.3% (±14.1%) below the revised November estimate of 553,000 and is 8.2% (±14.4%) below the December 2009 rate of 576,000.
Privately-owned housing completions in December were at a seasonally adjusted annual rate of 585,000. This is 4.1% (±17.7%) above the revised November estimate of 562,000, but is 22.2% (±11.3%) below the December 2009 rate of 752,000.
For information on single-family and multi-family numbers, read the RealEstateChannel.com article.
Call or email me to talk about new homes in Mercer County and our surrounding areas.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
New Jersey Builders Plan for Trend to Smaller Houses
Buyers want smaller houses, and builders nationwide are listening. “Most builders will build smaller and lower-priced homes in 2011,” said Rose Quint, a researcher with the National Association of Home Builders (NAHB). “Our experts expect the average home size in 2015 to be around 2,150 sq ft.” That’s down from the 2,377 SF average size of single-family homes in the US in 2010, and significantly below the 2,500+ SF average size at the top of the market in 2007. Home sizes are, on average, almost 50% above what builders offered in the 1970s.
NAHB surveyed builders across the country, and 60% said they are planning to cut the sizes of the houses they will build in the next few years. This only makes sense if that is what buyers want, and it is a combination of the economy and changing lifestyles. To accommodate the smaller footprint, builders are replacing formal living and dining rooms with multipurpose areas, or "great rooms." More than 80% of the builders responded that they expect the formal living room to vanish, as will houses with 3+ baths and 4+ bedrooms.
"There are factors behind the decline that are longer-term and will stay with us,” Quint said. "Costs savings and demographics are also shrinking houses. There is an overwhelming desire in the population to keep energy costs down. 20% of our population will be over 65 in a few decades. They don’t want a big home,” added Quint.
Green features are growing strongly in popularity, with both builders and buyers. More than 80% of buyers list energy-efficient heating, air-conditioning and appliances as “must-haves” in their new homes.
The recession and drop in home values have also tempered home buyers’ desires. “People don’t have a lot of equity in their homes to roll into a bigger home. Those times are over,” Quint said. “People have come to realize, ‘Let’s buy what we need, not what we don’t need.’”
To find New Jersey builders who are offering products you want and that fit your lifestyle, call or email me. Not all new home developments in Mercer County and surrounding areas are the same, and not all builders are as "green" as others. Let me know what you're looking for.
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
NAHB surveyed builders across the country, and 60% said they are planning to cut the sizes of the houses they will build in the next few years. This only makes sense if that is what buyers want, and it is a combination of the economy and changing lifestyles. To accommodate the smaller footprint, builders are replacing formal living and dining rooms with multipurpose areas, or "great rooms." More than 80% of the builders responded that they expect the formal living room to vanish, as will houses with 3+ baths and 4+ bedrooms.
"There are factors behind the decline that are longer-term and will stay with us,” Quint said. "Costs savings and demographics are also shrinking houses. There is an overwhelming desire in the population to keep energy costs down. 20% of our population will be over 65 in a few decades. They don’t want a big home,” added Quint.
Green features are growing strongly in popularity, with both builders and buyers. More than 80% of buyers list energy-efficient heating, air-conditioning and appliances as “must-haves” in their new homes.
The recession and drop in home values have also tempered home buyers’ desires. “People don’t have a lot of equity in their homes to roll into a bigger home. Those times are over,” Quint said. “People have come to realize, ‘Let’s buy what we need, not what we don’t need.’”
To find New Jersey builders who are offering products you want and that fit your lifestyle, call or email me. Not all new home developments in Mercer County and surrounding areas are the same, and not all builders are as "green" as others. Let me know what you're looking for.
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
Report on International Builders Show in Orlando
At the recent Builders Show in Orlando, there was plenty of pessimism, but glimmers of hope.
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
Two housing economists, Frank Nothaft, chief economist for Freddie Mac and David Crowe, chief economist of National Association of Home Builders (NAHB) were optimistic. Nothaf predicted a 20% rise in home building for 2011. Both economists acknowledged that any increase would be starting "off a really low base." Crowe forecasted slow but steady growth going forward that will build momentum.
Both agreed that the housing economy has bottomed out. They named several key indicators, including low mortgage rates, lower asking prices for new and existing houses, and marginally better numbers in the economy as a whole. They agreed that it would take "at least" two more years before there is a balance between buyers and sellers.
Other positive factors mentioned are:
Other positive factors mentioned are:
- Homes are affordable and mortgage rates are the lowest "since the 50's".
- There is pent up demand for new rental units and rents are stable or rising especially "for professionally managed large properties" according to Nothaft.
- There is pent up demand of 2,000,000 household that were not formed because of the economy.
- Younger people are staying longer with their parents who would have normally have formed households.
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
US Home Builders' Confidence Stagnates
According to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built, single-family homes held unchanged at a relatively low level of 16 for a third consecutive month in January 2011.
"As we emerge from the traditionally slow holiday season, builders continue to look for signs of improvement in the economy, home buyer demand and builder and consumer credit conditions," said 2011 NAHB Chairman Bob Nielsen. "Unfortunately, a severe lack of construction financing, and widespread difficulties in obtaining accurate appraisal values, continue to limit builders' ability to prepare for anticipated improvements in buyer demand in 2011."
NAHB Chief Economist David Crowe said, "At this point, housing remains on the sidelines of a weak economic recovery as consumers and builders wait for clear and consistent indications that jobs and economic output are reviving. Meanwhile, the problems that builders continue to confront in obtaining production financing, and in maintaining performing lines of credit, threaten to significantly slow the onset of a housing recovery."
I know the builders in central New Jersey, Mercer County and surrounding counties. Call or email me to talk about buying a new home in 2011.
Joe Giancarli, SA
Real Estate Advisor
609-758-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli
(resource: RealEstateChannel.com)
"As we emerge from the traditionally slow holiday season, builders continue to look for signs of improvement in the economy, home buyer demand and builder and consumer credit conditions," said 2011 NAHB Chairman Bob Nielsen. "Unfortunately, a severe lack of construction financing, and widespread difficulties in obtaining accurate appraisal values, continue to limit builders' ability to prepare for anticipated improvements in buyer demand in 2011."
NAHB Chief Economist David Crowe said, "At this point, housing remains on the sidelines of a weak economic recovery as consumers and builders wait for clear and consistent indications that jobs and economic output are reviving. Meanwhile, the problems that builders continue to confront in obtaining production financing, and in maintaining performing lines of credit, threaten to significantly slow the onset of a housing recovery."
I know the builders in central New Jersey, Mercer County and surrounding counties. Call or email me to talk about buying a new home in 2011.
Joe Giancarli, SA
Real Estate Advisor
609-758-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli
(resource: RealEstateChannel.com)
Thursday, January 6, 2011
Build a Dude Den into your New New Jersey Home
We've all read about personalizing the kitchen of your new home for the "little woman" of the house. How about a Dude Den for the man/men? Builders in Mercer County and surrounding areas want buyers, so you might take a few ideas from this post and incorporate into a new home this year.
More and more homeowners are converting their finished basements, attic spaces, or spare rooms into masculine refuges. While "man caves" often revolve around the time-honored rite of male bonding that is spectator sports, there is no single blueprint to a comfortable male refuge. Some guys turn their basements into full-scale game rooms where pool, air hockey, and arcade games rule the space. Movie buffs turn spare rooms into home theaters complete with surround sound and recliners on stadium risers. And many men create their very own pub.
Where to start? The last thing you want is a room crammed full of everything you can jam into it. Before you begin, start thinking about what kind of activities you want to enjoy there. Is your main goal to have a perfect place to watch the big game? Looking for a permanent home for poker night? A place to work out in comfort, or a workshop? Decide on a focus, then tailor furniture, décor and space to match.
It may help to pick one element (home theater system, a pool table, jukebox, etc.) as both the centerpiece and inspiration of the room. Measure all dimensions of the space you have available, and do the same when considering the purchase of any furniture, hardware or stand-alone game systems. Maintain open walking paths throughout the room. If you're centering the room around a home theater system, keep in mind that you'll want to keep clear sightlines for the main seating areas in the room.
Choose granite, laminate, or durable wood surfaces for bar countertops, end and coffee tables. Pick thicker commercial-grade carpet, and stick with darker colors. Thicker carpeting helps with soundproofing, which will help keep the rest of the household happy.
The 3 key elements will be seating, entertainment center, and refreshments. Wrap-around couches are better space savers than individual recliner chairs, but you may want both. Large flat screen TVs are commonplace and affordable, and you can incorporate more technology into that wall as your interests change. You may want a wet bar, and probably at least a dry bar with counter space and mini-refrigerator for snacks and drinks.
Finishing touches could include pool or poker table, game tables, elevated seating, and custom lighting. Within square foot limits, you can have your Dude Den plus a great kitchen in a new home in Mercer County.
Call or email me for the names of builders and developments here in Central New Jersey and let's look at some homes under construction you can personalize to your tastes.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.njhomesource.com/
http://www.joegiancarli.com/
More and more homeowners are converting their finished basements, attic spaces, or spare rooms into masculine refuges. While "man caves" often revolve around the time-honored rite of male bonding that is spectator sports, there is no single blueprint to a comfortable male refuge. Some guys turn their basements into full-scale game rooms where pool, air hockey, and arcade games rule the space. Movie buffs turn spare rooms into home theaters complete with surround sound and recliners on stadium risers. And many men create their very own pub.
Where to start? The last thing you want is a room crammed full of everything you can jam into it. Before you begin, start thinking about what kind of activities you want to enjoy there. Is your main goal to have a perfect place to watch the big game? Looking for a permanent home for poker night? A place to work out in comfort, or a workshop? Decide on a focus, then tailor furniture, décor and space to match.
It may help to pick one element (home theater system, a pool table, jukebox, etc.) as both the centerpiece and inspiration of the room. Measure all dimensions of the space you have available, and do the same when considering the purchase of any furniture, hardware or stand-alone game systems. Maintain open walking paths throughout the room. If you're centering the room around a home theater system, keep in mind that you'll want to keep clear sightlines for the main seating areas in the room.
Choose granite, laminate, or durable wood surfaces for bar countertops, end and coffee tables. Pick thicker commercial-grade carpet, and stick with darker colors. Thicker carpeting helps with soundproofing, which will help keep the rest of the household happy.
The 3 key elements will be seating, entertainment center, and refreshments. Wrap-around couches are better space savers than individual recliner chairs, but you may want both. Large flat screen TVs are commonplace and affordable, and you can incorporate more technology into that wall as your interests change. You may want a wet bar, and probably at least a dry bar with counter space and mini-refrigerator for snacks and drinks.
Finishing touches could include pool or poker table, game tables, elevated seating, and custom lighting. Within square foot limits, you can have your Dude Den plus a great kitchen in a new home in Mercer County.
Call or email me for the names of builders and developments here in Central New Jersey and let's look at some homes under construction you can personalize to your tastes.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.njhomesource.com/
http://www.joegiancarli.com/
Thursday, December 30, 2010
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)
“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)
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