Building Trends

What changes can we expect in new home features? Several, in upcoming months. And the reason is that the profile of the "typical" buyer is changing. Where once our big demand for housing was the Baby Boomer generation, we're now seeing a big demand surge from the Generation X (the post-Baby Boomers) and Generation Y (aka The Millennials - those born after 1980). Builders are striving to accommodate new demand - Gen X and Gen Y aren't looking for homes which may be bought at a bargain because they need TLC; for the most part, they're looking for new construction, and simply want to move in, unpack their clothes, and text for pizza delivery. These are younger buyers with different criteria from their predecessors. To meet their needs, builders are adapting. Here's what we can expect:
1. A back-to-basics push as builders try to get prices down; houses will tend toward "no frills" as some of the "fancy stuff" falls by the wayside
2. Energy Star houses will be more in demand than ever, and their standards will be more rigidly enforced; energy efficiency will be much sought-after as utility costs rise and people become more conscious of costs and the ecological effects of energy-squandering
3. Houses will become smaller and storage sheds will become more in demand
4. As approximately 81 million Echo Boomers (those born between 1988 and 1999) enter the market, buidlers will respond to their demands; expect homes which take advantage of technology with advanced thermostats, Energy Star-rated appliances, and other eletronic advances, but all with an eye toward the bottom line
5. You'd best get used to the word WINKS (Women with Income, No Kids), as their numbers are growing quickly, and their demands will be specific to their own needs, rather than the traditional family requirements
6. We'll see more of the "Sandwich Generation" - people whose parents and children live with them; there will be an increased demand for two master suites, two cooking areas, and generous storage
7. Baby Boomers who plan to move are staying put - at least, they're staying in their own areas; they're going to want first-floor master suites, laundry areas near the bedroom, and lots of storage

Ask any Realtor, and they'll tell you that marketing techniques have had to change radically in the past five or six years, as the demographics of the Buyers have changed. Where we used to actually pick up the phone and call people, we text now, as they often prefer it. Where we relied heavily on print advertising, your listing is dead in the water if it isn't well represented on the internet. Builders are experiencing changes, as well - and we can expect to see those changes reflected in the market over the next few years as existing inventories dwindle and new homes are built.

Health Care Sales Tax on the Sale of Your Home?

THE MYTH:
By now, each of us has received at least one email which says something to the effect of: "Under the new health care bill - did you know that all real estate transactions are subject to a 3.8% sales tax?" And, as so often happens, this has been taken as gospel by many just because it passed along the internet with assurances that it came from reliable sources. NOT...

THE TRUTH:
Q: Does the health care law impose a 3.8% tax on profits from selling your home?
A: No, with a few exceptions. The first $250,000 in profit from thh sale of a personal residence won't be taxed, or the first $500,000 in profit in the case of a married couple, and then only those with incomes over $200,000 per year ($250,000 per year for a married couple) will be subject to it.

This is separate from capital gains taxes, which have been in place for years. The 3.8% "health care tax" will, in fact, affect very few people.

Interest Rates Forecast

Mark Zandi, a housing economist, recently addressed an assemblage of Realtors and asserted that he believes interest rates will remain low for the remainder of 2010...BUT...could start accelerating in 2011 and 2012. Deficit spending in the greatest threat to the U.S. economy, according to Zandi.

Changes in the interest rate can greatly affect "how much house" you can buy for your money. If you needed a "reason" to buy now....taking advantage of the current interest rates should be reason enough.

The Tax Credit Countdown Has Begun

Easter weekend....with glorious weather, azaleas and wisteria and bridal wreath and a host of other flowers in bloom. What a lovely time of year. But the clock is ticking - the tax credit available to first time home buyers (up to $8,000) and to current home owners (up to $6,500 for those who've been in their home at least five of the last eight years) calls for buyers having a home under contract by April 30th, 2010, and closed by June 30th, 2010.

If you'd like more details, please contact me at aduhe@vaneatonromero.com, or call me at 337-254-7812.

A New Decade

As 2009 segues into 2010, we reflect on the past decade - was it really 10 years ago that we worried about the Y2K Bug? - and look forward to what the new decade holds.

For me, personally, the decade which began with Y2K brought a challenging and rewarding new career, and quite literally changed my life from one in which I went to work to one in which work is no longer "work," but pleasure. Being a Realtor has brought new friends, new challenges, and new rewards. For the most part, it has been the most pleasant part of my life, to date.

No doubt, 2010 will bring new challenges, new friends, and new rewards. Interest rates are predicted to rise (which makes home buying now a prudent decision), and in April, 2010, the tax credits for first time home buyers and some home buyers moving from existing homes will expire, which will definitely impact the real estate market. Even so, I expect that 2010 and the years following it will offer new goals, new rewards, and a host of new experiences to make life interesting and rewarding.

For those of you with whom I've worked during this past decade, thank you for your patronage, and for your friendship. Please remember that referrals from you are what keep me at the top of the success ladder, and I thank you for them.

And to those of you I'm yet to meet, thank you for taking the time to read my blog, which contains information about home buying and selling, with updates on market conditions; I'm looking forward to meeting and hopefully working with you during this new decade.

Happy New Year, everyone!

Time Is Of The Essence!

The November 30th deadline to take advantage of the First Time Home Buyer's $8,000 tax credit is fast approaching. These days, it takes approximately 45 days to get a loan closed, and to qualify for the tax credit, your loan must close by November 30th, 2009. With super-low interest rates and a tax credit yours for the taking, now is the time to buy!

House Hunting Made Easy!

If you want to make life easier for yourself when you go house hunting, here are some easy-to-follow tips:
BEFORE YOU MEET WITH AN AGENT:

• Make a list of "must haves." This can include a geographic area or neighborhood, square footage, number of bedrooms/baths, proximity to work, and/or school districts you prefer
• Get pre-approved! Call a mortgage broker or bank to get a pre-approval letter; offers accompanied by a pre-approval letter are viewed more seriously be sellers and their agents. This also lets you know what you can best afford, and what your monthly payments are likely to be
• Make a list of "It would be nice to have" items. Bear in mind that a house which meets 99% of the "must have" items is great to find; including a few "nice to have" items is what the French call "lagniappe" - something a little extra
• Surf the MLS on the net! Narrow your possibilities by looking at active listings on the internet; most sites offer all the MLS listings available on the internet - they just stick their own logo on them so you'll call the agency through which you're browsing, rather than the listing agency. You can find all homes currently listed through our MLS system's internet listing service by using my site: http://www.justaskallen.com/ It isn't necessary to browse more than one site; what's on one is most often on all of them
• Use the Virtual Tours when they're available! Why not do a "walk-through" of a house before ever having to drive out to see it?
• Be flexible; if you make too many demands in what your "idea" home will have, you are likely to be house hunting for a long time, and not overly satisfied with your final decision
• Work with an agent in whom you have confidence, and trust that they know they local market. Remember that their advice is generally based on prior experience in that market. Also remember that your agent works for you; his or her goal is to help you make the best deal on the property which best works for you.