REPOST: Housing Market Blows Hot and Cold

 Is the endless snow affecting the housing market? This article from Bloomberg View explains the seasonal trends in housing sales.

THIS ONE HAS GREAT CURB APPEAL. | Image Source: bloombergview.com

The northern third of the U.S. is locked in a straitjacket of snow, ice and bleak weather better suited to staying at home than going out and hunting for a new one. I can almost hear it now: Remember how awful last year’s polar vortex was for the fledgling housing-market recovery? Looks like we're in for more of the same this year.

Except that this construct reflects a significant misunderstanding about the practical nature of housing sales. Homebuyers who decide not to view property during a bout of cold weather don't drop out of the market. They just delay their search until the weather becomes more agreeable, usually in a few weeks or months at most.

Consider the chart below, which uses the average temperature of the 48 contiguous states from the National Oceanic and Atmospheric Administration and the number of non-seasonally adjusted existing home sales from the National Association of Realtors. Notice anything? The seasonal trends are remarkably in sync: Housing sales rise in warm weather and fall in cold weather no matter the availability of credit, what direction interest rates are moving or the extent of wage and job growth.

Image Source: bloombergview.com

The reality is that housing sales are seasonal -- always have been, always will be.

Here's where things can get confusing, though.

Most national housing studies, such as those by the NAR, emphasize a month-over-month analysis of seasonally adjusted numbers. Throw in a federal housing-stimulus plan or a change in housing tax policy and those seasonal adjustments distort the market trends.

Other reports, such those by S&P/Case Shiller and CoreLogic, are based on a methodology that essentially strips away seasonal trends. That's a key reason those reports feel out of step with actual market patterns. 

Over the years I’ve had conversations with a number of well-respected economists about the virtues of their seasonal-adjustment methodologies. Yet consumers and real-estate brokers have a very different perspective and see the housing market as a series of “waves.” That probably is a more accurate representation of what's going on.

And that’s pretty cool.

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Continued improvement of the housing market seen in 2015

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2014 proved to be a good year for the housing market, with the steady path to recovery opening. The activity in the market is considered to be the best it has ever been since the crash almost a decade ago and the positive trend is expected to continue well into 2015. With a return to a balanced state, the housing market is now expected to benefit both buyers and sellers.

To start, experts expect a stronger job market, continued economic growth, and increasing home prices to improve existing home sales by 7.4 percent. More and better paying jobs should also affect the millennials, especially the older ones who are now getting married and starting families. They are now expected to join the market and make up for a significant portion of new home purchases in the next five years.

Image Source: mortgagecalculator.org

However, millennials could also encounter some obstacles to home ownership. Financing is still difficult to obtain with the strict mortgage qualifications. This could prevent many millennials from buying the house that they want. Additionally, mortgage rates are still rising.

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Meanwhile, builders focused more on multifamily homes in 2014. This year, they are expected to build more single-family homes. Experts predict healthy growth in single-family starts, which will only be limited by the supply of labor and materials. The foreclosure crisis is also expected to end this year as the number of foreclosures should return to a normal level. These factors could significantly normalize the housing market.

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REPOST: Home-building: simple ways to add value to your home

Most people who are planning to sell their home consider renovating their place, but how much value do these improvements add to the property? This article shares some home renovations that can bring more bang to your buck than others.

Creating more space in your home won't be cheap, but should reap dividends when you sell. | Image Source: theguardian.com

If you’re thinking about adding value, you are probably also thinking about moving in the short to medium term. This means the first thing you need to consider is whether you want to add value or just make your home more sellable. Making your home more sellable is all down to aesthetics: get everything really clean, sort out your front garden, change the ironmongery on your front door if it is drab, give everything a lick of paint, put down new carpets, change dreary light fittings and tidy up the back garden. It’s all very cosmetic, but first impressions definitely last.

Creating more space Adding value, on the other hand, is all about adding space. Loft conversions are just one idea: extensions, garage conversions, conservatories and even a studio or glamorous garden shed at the bottom of the garden will all provide extra rooms in your house (albeit a garden room in some cases). They’re going to cost you money, but they are also going to increase the asking price of your home.

Basement conversions are another very good way of adding value, but these can be costly to do and are only worth it in areas with very high property prices per square foot, like London. An easier way to utilise cellar space is to waterproof the existing space, paint it, add a good mechanical ventilation system and some decent lighting and turn it into a utility/storage room. This way, it won’t matter if there are no windows and the headroom is restricted. A room like this will always be a great asset and selling point in a family home.

Little improvements can make a big difference If your budget doesn’t stretch far enough to choose one of these options, or you can’t create extra space because of the type of property you own, it is still possible to add value in other ways. Any general improvements that make your home more comfortable or energy efficient will help increase the selling price. This could be double glazing (or triple glazing, especially if you’re near a busy road); replacing the boiler; rewiring, or insulating to a high specification. If you want to make your property stand out from the crowd, consider changing your kitchen or bathroom: it’ll make your home look hygienic and smart and appeal to all those buyers looking to move into a property that doesn’t require work.

Think smart Relatively minor changes can make your home feel more spacious. Start by decluttering – this can make your rooms seem bigger straight away. Fit some fully integrated storage units for the things you do want to keep. If your budget stretches to more than this, consider installing underfloor heating (removing radiators frees up valuable wall space) or reorganising the internal walls to give more space to the rooms that really need it.

Make sure you have dealt with any rotten windows, cracks, damp, broken downpipes, missing roof tiles or rusty radiators before you give the estate agents a call. A surveyor will pick up on these immediately and then your buyer will ask for a reduction.

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Don't touch that lever: The beauty of secret rooms in houses

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Ever since time immemorial, many people have fostered a love of secret rooms and passageways. It is not uncommon to hear adults fantasizing of walls that open after pressing a specific piano key or after pulling a mysteriously large book. Popular media encourage these visions, too; from Indiana Jones to the Addams Family, many films and literature feature a secret room that is usually a space for something precious, like gold, jewellery, or the protagonist’s costume and weapons, or even just a space to hide away from the world.

But this is usually where the dreams and fantasies stop. Most people consider these visions as something only the eccentric would do. The truth of the matter is, there are a lot of modern applications for secret rooms. As with the early Egyptians who built these spaces to hide their secrets and prevent robbers from stealing any of their goods, today’s secret rooms serve a similar function. They can be the homeowner’s private and personal space, or an ideal area where precious materials can be placed.

Image Source: bitrebels.com

This does not necessarily mean that secret rooms are only for the rich. These can also be installed in ordinary homes as libraries or gaming rooms, or any space where the homeowner can be himself or herself without any fear of judgement. The beauty of these rooms is as implied: They are secret.

The early Egyptians used to kill the slaves who worked on these passageways so that the secret would die with them. Today, however, this is hardly necessary as architects and custom home builders are obligated by law never to divulge these types of information. Additionally, with the growth of technology and enhancement of design options, many secret rooms can be designed and customized to the homeowner’s specific needs and objectives.

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REPOST: Your Home in Their Hands, BBC One, review: 'sadistic but dull'

Sarah Crompton reviews the home makeover show, "Your Home in Their Hands." Her verdict: The program is less fun than it sounds. Read the rest of the review below:

Image Source: telegraph.co.uk

Your Home in Their Hands (BBC One), conversely, left a very nasty taste in the mouth. This is clearly intended as some kind of successor to Changing Rooms, the design programme that launched a million pieces of stencilled hardboard into the world.

But where that show attempted home improvement, this one seemed bent on home destruction, by placing the hopes and dreams of unsuspecting home owners in the hands of amateur designers, who lacked any sensitivity to people’s aesthetic tastes or practical requirements.

The whole horrible mess is corralled by Celia Sawyer, who describes herself as an interior designer. On the basis of her dress sense alone – all skintight skirts and flash jewellery – I’d be slamming the door in her face. Unfortunately, nice Kelly and Andy Pitwell opened it. She liked “lairy” colours and va va voom, he liked white walls, but neither could have expected a bedroom turned into a psychedelic red and purple bordello by Kirsty McKenzie, a woman who thought it the height of style to plonk a soft toy on her head.

In Portsmouth, Yvonne Lavery was reduced to tears by a kitchen so migraine-inducing that even Sawyer turned up her retroussé nose. What made it worse was that one built with love by her dad had been ripped out to bring in this monstrosity. “The ceiling’s still the same,” said husband Dan, helpfully.

The designers – two in each home – fell out among themselves, and also wept. All of which makes this programme sound more fun than it was. It was not only sadistic, but also dull, as an awful lot of people intoned about being worried, and Sawyer said things like “This is all part of the business of interior design”. It really isn’t.

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Factors in choosing the best roofing materials

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Having a sturdy and good-looking roof is not enough to make you feel secure. From natural to manufactured products, roofing materials hold a distinct element that may determine the overall beauty and longevity of your home.

According to the DIY Network, the best roofing material for your home depends on three factors:

Image Source: maierroofing.com

Style. Determining the look you want for your home is important because each roof style has a different effect on a house’s exterior. Shingles, for example, is one good option for those who want something unique in terms of roof color. To better assess the roofing material that matches your house’s style, it is best to ask for the opinion of a stylist or by using a “virtual renovation” service.

Cost. Quality comes with cost. A slate roof, for example, is considered one of the most expensive materials in the market today, costing between $250 and $600 per square depending on the complexity of the roof. It is, however, the most durable, with a life span of at least 100 years and strength that can hold a heavy load.

Image Source: nmdprojects.net

Location. Weather conditions in a particular area should also be considered in choosing the right material. For example, it is wise to stay away from clay-based materials if you live in an area prone to heavy snow or rainfall. Instead, choose materials like concrete or shingles which can withstand harsh conditions.

When choosing the right material—whether for a modest house or fancy mansion—it is most important to take time to look for as many options as possible. Talk to experts and do your research.

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REPOST: Home Improvements: DIY or Hire a Pro?

 This article from Fox Business helps us decide whether a renovation project at home is DIY or better left with the pros.

Image Source: foxbusiness.com

Home improvement shows and magazines make repairs look easy, but sometimes taking the do-it-yourself approach can end up costing more money than hiring a professional.

Unless you are handy or have experience in the home improvement business, experts recommend doing extensive research before going at a project alone.  

“DIY projects are rarely as easy as they seem, and all too often it ends up costing you,” says Angie Hicks, founder of online referral service Angie's List www.angieslist.com. “Thousands of people, for example, end up in the emergency room every year because of ladder falls, power tools that got away from them, situations like that. Even if you’re not injured, you could end up paying twice for the project – once for your attempt and then again when you’re in over your head and have to call a pro to fix the mess.”

Home improvement experts recommend evaluating your strengths and ability to get a job done before launching a project After all, you don’t want to start something only to let it languish for months or even years, which according to Hicks, is often the case. She suggests evaluating whether you have the time and tools to properly complete a project.

The cost of your time should also be considered when contemplating a project. “Too often, people forget to put a price on their time when they’re deciding whether to DIY or hire,” says Hicks. “They add up the cost of the supplies and think they’re going to be saving themselves a bundle. They forget that they are likely going to spend more time on the work than a professional would, even if it goes well.”

Another potential expense homeowners don’t think about: getting hurt. Professionals are licensed and insured, so if they get injured on a job the homeowner doesn’t have to worry about paying the medical bills. But if you get hurt during a project, you not only face medical bills you will also have to pay for a professional to come in and make the fixes.

A rule of thumb, according to Zillow.com’s real estate expert Brendon DeSimone, if it’s a cosmetic fix or project, DIY might be the way to go. But if it’s something that requires a permit or a specialist--leave it to the pros. “You should paint, resand your floors, grout your tiles and stain your deck on your own,” says DeSimone. “Anything that requires specific knowledge or permits, you need to hire a professional.” He adds bringing in an expert to deal with any structural, plumbing or electrical work as well.

If you do want to get involved with some DIY projects, experts say to start off small. Paint a room in your house before tackling the entire interior, or plant a small garden before taking on a large landscaping project.

“Don’t decide one day on a lark that you’re going to build yourself a stone patio with a full outside kitchen and you’re going to get it done in a weekend or on a summer vacation. Never plan your project in the aisle of a big box store,” says Hicks. “Take the time to research, evaluate your space, budget and true needs/wants.”

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