Real Estate News Headlines: July - Aug 2008

The following headlines and news items were compiled from a number of authoritative sources and industry experts including Freddie Mac, REALTOR® Magazine Online, the National Association of Realtors, Realty Track and the Wall Street Journal. The next news update is scheduled to be released September 1, 2008.

Landscaping Trends: Just Add Water

Pools, spas, hot tubs, ponds, waterfalls, fountains and creeks all offer soothing sights and sounds that appeal to today's buyers. Water can do great things for a back yard. Whether it’s rippling in a swimming pool, bubbling in a creek, or splashing down a fountain, water features can add a luxurious look and block undesired noise and can also add a “wow” factor that makes the home memorable in the eyes of potential buyers.

When adding a water feature, home owners should make sure it matches the scale and style of the house and the neighborhood. Cost, safety, and maintenance are also top considerations that shouldn’t be overlooked.

Some home owners also want to be sure that they’re not out of step with good environmental practices. While a water feature may seem wasteful, there are ways to do it right, consuming less energy, using less water, and actually attracting wildlife. “A bird bath can be placed low enough to the ground so it also attracts frogs and toads,” says Cheryl Long, editor-in-chief of Mother Earth News.

Emulating Nature. Many home owners, particularly in luxury markets, are asking for natural-looking pools with rock outcroppings, waterfalls, built-in slides, sun shelves and a pebbly bottom.  Some of these features can be costly with prices for a lagoon running from $65,0000-plus in some areas.

Infinity pools. These “zero-edge” pools give the illusion of water disappearing into the horizon. Some home owners also favor saltwater instead of chlorinated water for health and sustainability. The cost of a pool depends on the size, materials, labor, and bells and whistles but buyers should expect to pay at least $40,000 for a pool with a waterfall in most areas.

Hot Tubs and Spas. The popularity of freestanding hot tubs has waned in many markets being replaced by spas constructed adjacent to or part of a pool; however, tubs still remain popular among clients who like the idea of a quick getaway at home and the cost to install is relatively reasonable ranging around $3,500 to install and about $30 a month to maintain.

Ponds Full of Wildlife. Ponds full of wildlife is another option for some home owners.  Average installation costs can run between $8,000 to $10,000 and maintenance can add $150 per visit; monthly costs may run $50.

Creeks. For an even more of a natural look, some home owners prefer a creek, particularly when they have large acreage or a second home.  The cost for a 20-foot long stream with waterfall, widened in parts for aquatic plants and bordered with rocks, starts at about $7,500, with price depending on plants and boulders.  The biggest maintenance cost is running the pump which may run around $50 a month.

Re-circulating Fountains. Re-circulating fountains are another option for home owners with small pets or those concerned about children's safety or with smaller yards.   The cost for large fountains or urns may range from $3,500 to $15,000.

Water Walls. Constructed to edge a pool or serve as a freestanding element, a 6’-8’-high x 6’-8’-wide wall offers an affordable solution to introduce the sight and sound of water flowing over an attractive surface, possibly built from slate or travertine. Installation costs have been estimated to run around  $2,000 with the cost with pump with an additional $50 monthly maintenance charge.

Maintenance Matters. At a time when heating and cooling costs continue to skyrocket and water conservation has become a priority, home owners find they can still enjoy a water feature while being good eco-citizens. Some recommendations from landscaping experts include using a pool cover to keep water from evaporating, prevent leaves and debris from collecting, and avoid running a high-wattage filter.

Other Recommendations. Many experts recommend using a solar thermal water heater or putting a conventional heater and lights on timers. Using salt rather than chlorinated water in pools, use plants and rocks to cleanse debris naturally from water and select drought-tolerant materials and water-loving plants, since both thrive with minimal human care.  Installing a micro irrigation system with tiny heads and rain monitors can also cut water usage.

Source: National Association of Realtors Weekly Magazine | July 2008

Real Estate Trends

• Sales of new and existing homes in 2008 are forecasted to reach 6.0 million, a level more consistent with 10-year growth patterns.
• U.S. homeownership rate remains high at 68.1%.

Source: National Association of Realtors Weekly Magazine | July 2008

U.S. Senate Passes Housing Stimulus Bill

The U.S. Senate passed a bipartisan mortgage rescue bill on Friday that allows the Federal Housing Administration to refinance troubled mortgages as long as banks agree to take a loss. The program would allow the FHA to help as many as 400,000 homeowners.

Now the bill goes to a bipartisan committee in the House for revision. Rep. Barney Frank (D-Mass.), the Financial Services Committee chairman and a primary supporter of the bill, says the few but significant revisions House leaders seek could be made in as little as one week.

The measure includes higher limits for FHA loans and creates a new regulator for Fannie Mae and Freddie Mac. It also would provide $14.5 billion in housing tax breaks, including a credit of up to $8,000 for first-time homebuyers.

In a statement by the NATIONAL ASSOCIATION OF REALTORS® President Richard F. Gaylord, "the bill is a big step toward helping people buy and keep their homes. We are eager for the House and Senate to come together to finalize an aggressive bill that will ensure that every American who can afford to own a home and wants to do so will have the opportunity, and that every American who responsibly owns a home is able to keep it.”

NAR has expressed ongoing support for many of the provisions in the legislation, including Federal Housing Administration Modernization that will make FHA-backed mortgages more available, a tax credit for first-time homebuyers, reform of Fannie Mae and Freddie Mac, and a program to expand FHA that would allow more mortgages to be refinanced. A summary of the provisions of this bill is available for viewing at US Housing Recovery Act of 2008.

“The tax credit for first-time home buyers would be a strong stimulus to a weak housing market, and FHA stabilization should help thousands of families refinance existing mortgages and in many cases keep their homes,” Gaylord said.
Source: The Associated Press (07/11/08)

National Association of Realtors Weekly Magazine | July 2008

Freddie Mac's Weekly Mortgage Market Survey (PMMS®)

Freddie Mac's Weekly Primary Mortgage Market Survey® (PMMS®) is conducted on Mondays through Wednesdays with results reported on Thursdays. The survey is based on responses from 125 lenders to determine the average rates and points charged by each lender for their most popular 30-year fixed-rate mortgage rate, 15-year fixed-rate, 5/1 hybrid amortizing adjustable-rate, and 1-year amortizing adjustable rate mortgage products. The mix of lender types used for the survey is approximately proportional to the level of mortgage business that each type of lender commands in the marketplace nationwide. This include thrifts, commercial banks and mortgage lending companies.

The survey is based on conventional conforming mortgages with a loan-to-value ratio of 80 percent for first-lien prime mortgage notes. The adjustable-rate mortgage (ARM) products are indexed to constant-maturity U.S. Treasury rates. Lenders are asked to provide initial coupon rate, points and the margin on ARM products.

Freddie Mac's Primary Mortgage Market Survey is heavily relied upon by the mortgage industry and the public in gauging market conditions and has evolved into the most reliable and representative source of regional and national mortgage rate trends. The data reported for the nation for the week ending July 31, 2008 is tabulated below.

For a breakdown of U.S. Regional Mortgage Rates, you may wish to visit the Official Freddie Mac website.

For Gilbert Real Estate news, look no further than Rick & Jennifer LeForce, your Gilbert Arizona realty experts!