First Quarter 2010, Strong Sales and Stable Prices for Wisconsin’s Housing Market
Wisconsin Outperforms the Nation and the Midwest in First Quarter
Wisconsin REALTORS® Association, May 11, 2010
2010 started like 2009 ended for Wisconsin’s housing market, with strong sales and stable prices, according to first quarter data released by the Wisconsin REALTORS® Association (WRA). Sales of existing homes rose by 16.8 percent in the first three months of 2010 compared to the same quarter last year. This percentage outperforms the nation, which grew at 11.4 percent, and the broad Midwest region which increased 10.8 percent over the period. Median prices were essentially unchanged, increasing less than 0.1 percent.
“This marks the third straight quarter of positive gains in home sales and the second straight quarter of double-digit growth,” said John Flor, Chairman of the WRA Board of Directors. According to Flor, extension of the federal home tax credit helped stimulate the Wisconsin market in the first quarter, but strong market fundamentals like low mortgage rates and improving unemployment numbers also played an important role in the strong first quarter numbers. “Mortgage rates are in the neighborhood of 5 percent, and while the state unemployment rate remains stubbornly high at 8.8 percent, we are finally beginning to add jobs,” Flor said. State unemployment figures show that after bottoming out in January, Wisconsin has gained more than 10,000 jobs. “While we have a long way to go to recoup the roughly 189,000 jobs that were lost between January 2007 and January of this year, at least we are moving in the right direction,” said Flor.
WRA President William Malkasian also pointed to data indicating the national economy is beginning to show some signs of life. “The so-called Great Recession has been long and deep, but we are hopefully now seeing the beginning of an upswing,” said Malkasian. Malkasian said broad indicators of business cycle activity are all pointed toward a recovery, including leading economic indicators, which precede movements in the national economy, as well as current economic indicators that mirror business activity at any given moment in time. “These indicators help feed consumer confidence which is perhaps the most important economic barometer of all,” said Malkasian.
Malkasian, however, cautioned that solid job growth and continued improvement in consumer confidence were needed to sustain the recovery in the housing market now that the federal home tax credit has expired. “The market fundamentals are solid,” said Malkasian, “so we’re hopeful consumers will recognize the opportunities in this market and take advantage of the combination of low interest rates, reasonable prices and excellent inventories.”
Top 10 Must-Have Features in Today’s New Homes
RISMEDIA, January 25, 2010, Steve Kerch
Americans want smaller houses and they are willing to strip some of yesterday’s most popular rooms—such as home theaters—from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show. The answer for most home buyers is authenticity,” said Heather McCune, director of marketing for Bassenian Lagoni Architects in Park Ridge, Ill. Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed ‘green’ from the outset,” she said. The key for home builders is “finding the balance between what buyers want and the price point.”
For many buyers, their next house will be smaller than their current one, said Carol Lavender, president of the Lavender Design Group in San Antonio, Texas. Large kitchens that are open to the main family living area, old-fashioned bathrooms with clawfoot tubs and small spaces such as wine grottos are design features that will resonate today, she said. “What we’re hearing is ‘harvest’ as a home theme—the feeling of Thanksgiving. It’s all about family togetherness—casual living, entertaining and flexible spaces,” Lavender said. Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of home buyer preferences, said there are 10 “must” features in new homes:
- Large kitchens, with an island. “If you’re going to spend design dollars, spend them where people want them—spend them in the kitchen,” McCune said.
- Granite countertops are a must for move-up buyers and buyers of custom homes, but for others “they are on the bubble,” Cardis said.
- Energy-efficient appliances, high-efficiency insulation and high window efficiency. Among the “green” features touted in homes, these are the ones buyers value most, said Cardis. While large windows had been a major draw, energy concerns are giving customers pause on those. The use of recycled or synthetic materials is only borderline desirable.
- Home office/study. People would much rather have this space rather than, say, a formal dining room. “People are feeling like they can dine out again and so the dining room has become tradable,” Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the “shift from boom to correction.”
- Main-floor master suite. This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.
- Outdoor living room. The popularity of outdoor spaces continues to grow, even in Canada. The idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.
- Master suite soaker tubs. Whirlpools are still desirable for many home buyers, but they clearly went down a notch in the latest survey. Oversize showers with seating areas are also moving up in popularity.
- Stone and brick exteriors. Stucco and vinyl don’t make the cut.
- Community landscaping, with walking paths and playgrounds. Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.
- Two-car garages. A given at all levels; three-car garages, in which the third bay is more often than not used for additional storage and not automobiles, is desirable in the move-up and custom categories.
First-time Homebuyers Drive March Housing Market
REAL Trends E-mail Update, April 20, 2010
First-time homebuyers drove the housing market in March, posting a record high share, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.
The survey found that a huge 48.2% of March’s home purchase transactions were attributable to first-time homebuyers. This eclipsed the previous peak of 46.9% reached last October when the expected November expiration of the original homebuyer tax credit sent purchases by first-time homebuyers soaring.
The surge in first-time homebuyer activity in March came at the same time the volume of distressed properties in the housing market climbed to over 50%, according to the Campbell/Inside Mortgage Finance survey. This was far above the low of 37.3% recorded in November, when a combination of government-mandated loan modification efforts and foreclosure moratoriums significantly reduced the inventory of distressed properties in the housing market.
Study Finds Trees Add Value to Homes
Real Estate Intelligence Report, February 15, 2010
A new paper published in Landscape and Urban Planning reports that front-yard trees can add as much as $8,870 to the value of neighborhood homes and reduce their time on the market by 1.7 days. The study was conducted by Geoffret Donovan of the U.S. Forest Service’s Pacific Northwest Research Station. Donovan’s paper, however, points out that while all residents along a street see their values lifted by trees, only the property owner bears the cost of caring for trees – including planting, raking leaves and repairing sidewalks and water lines broken by tree roots.
In promoting the benefit of trees, Donovan said communities also benefit from shade provided by trees, control of storm water runoff and higher property values. Because of the higher property values, municipalities see higher property taxes.
Around the Home — Avoid Allergens, Reap the Rewards of Gardening
RISMEDIA, February 20, 2010
The beauty of budding plants and bouquet of aromas are sources of satisfaction for many gardeners. For allergy sufferers, though, gardening can be as much a chore as pursuit of passion. Pollen from trees, shrubs and grasses can cause an onslaught of allergy symptoms, including sneezing, itchy eyes, congestion and in some cases, an asthma attack. But sensitive people can take a few simple steps to minimize their risk of exposure to bothersome allergens, according to the American Academy of Allergy, Asthma & Immunology (AAAAI). “Gardening outside during times of high pollen counts puts patients at risk for severe allergic symptoms,” said Dr. Henry Legere. “Avoidance measures, as well as the use of medications and allergy immunotherapy, can make the difference between having fun in the garden and being miserable.” An allergist/immunologist can help determine what plant species are causing an allergic reaction and advise on the best times of day or season to work in the garden. For example, pollen levels are typically lower on rainy, cloudy and windless days. Immunotherapy (allergy shots), medications and other treatments can also help reduce symptoms. People with allergies can also trim irritation by carefully choosing the plants they include in their landscaping or garden. Certain flowers, trees and grasses are naturally better suited for the gardens of allergic people. They are less likely to produce bothersome pollen and will still add color and variety to the garden. These include:
- Cacti
- Cherry
- Dahlia
- Daisy
- Geranium
- Iris
- Magnolia
- Rose
- Snapdragon
- Tulip
In general, highly-allergenic plants to avoid include:
- Ash
- Cedar
- Cottonwood
- Oak
- Maple
- Pine
- Saltgrass
- Timothy
The best way to determine which plants will trigger reactions is through skin testing at an allergist/immunologist’s office. An allergist/immunologist can help patients develop strategies to avoid troublesome plants and pollen and can prescribe medication to alleviate symptoms.
