March, 2009

In every part of the nation, sales were up—for an overall, nationwide jump of 5.1% from January to February. Analysts credit the $8,000 first-time homebuyers tax credit and rock-bottom interest rates for helping kick start the jump.

In specific markets:

In the Northeast: Here, the biggest surge in existing home sales happened in February, with sales up 15.6% over a month earlier.

In the South, sales rose just over 6%, the second-biggest regional rise in the nation.

Out West, after several long months of tough going, existing home sales finally increased. The 2.6% jump is due to buyers finding great bargains.

In the Midwest, the sales increase was slower but still positive—with a 1% rise over January.

Now, while sales and even some prices rose last month, they were still way down from February of last year in both sales and prices. Prices, especially, fell 15.5% in the past year. But remember that more than 40% of sales are currently distressed properties, including short sales and foreclosures, which are bargains for homebuyers but which are helping drive down average sale prices everywhere.

As the inventory of distressed properties clears out, prices will start reflecting what’s happening in the rest of the market. And the sales jump we saw in February is a good indication that inventory is slowly being cleared away.

Just remember: Recovery happens month by month, not all at once. So keep listening for the signs of recovery.

Existing home sales and price data provided by the National Association of Realtors®.

According to Sarah, Americans live more comfortably when they see their home less as an investment and more as the place they actually live. Here are four tips to think about when buying, or designing, or remodeling your home.

Forget the dollar-per-square-foot mindset. It’s your home, it’s not an extra-value meal at McDonald’s. Sarah recommends thinking of home value in terms of the comfort of the space and the quality of the design, instead of just calculating how much space you’re getting for your money. “Having designed houses since the early eighties and watched them sell—many of them for a price point higher than the square footage would suggest,” Sarah says, “I know that the design and comfort of a home sells it better than the size.”

Buy what you can furnish. In times like now when money is tight, it doesn’t make sense to buy more house than you can furnish. Be careful about buying the ‘hamburger bun’… if you can’t afford the hamburger!

Save money on space. Big houses don’t just cost a lot, they also cost a lot to heat and cool. Buying a house that suits your lifestyle like a glove will save your utility bills.

Save your weekend. The right-sized home will also take less cleaning and maintenance, so you can spend your weekend relaxing instead of mopping.

Also check our Sarah’s newest book, Not So Big Remodeling, for tips on right-sizing your current home.

Four design trends that will make your house stand out:

Chrome. Yes — as in ’58 Cadillac — chrome is making a comeback. It’s a modern, chic design element you’ll see in many details of hip homes.

Green. Environmentalism is hot right now, but buyers aren’t just looking for any old green touch: look for “eco-chic” trends such as well-designed green details, like bamboo flooring that are both good for the environment and beautiful.

Neutral. Many sellers paint their home white or cream, giving prospective buyers a “blank canvas” for the home. Although it’s a good idea to stick to neutral tones so you don’t send buyers running screaming, livening up your walls with grey, sage, or even pumpkin paints will help your “blank canvas” still stand out.

Open. It’s an established trend, but it’s so important: Buyers want an open living space that will keep the family united, especially if you can open up the kitchen into other rooms in the floor plan.

* Floor your ceiling—a special bonus tip. Do you have that “popcorn ceiling” anywhere in your home? Usually sprayed on to cover up flaws in the ceiling, this popcorn covering is unattractive and hard to remove. Taniya recommends putting hardwood flooring over it! You can cover the popcorn and transform any room in a beautiful, creative way.

This article was published in 1901. Here we are, more than a hundred years later, and even though “going green” is the hot topic of the day, good luck finding solar power on homes anywhere in your neighborhood.

Click here to see a PDF of the entire article in the Library of Congress’s Online Archive.

If you add up all the ways we use energy in the US, solar power amounts to less than one tenth of one percent of energy consumed.

That said, even if your roof isn’t covered in solar yet, there are many more green features in your home that you may not even know about. In the hundred years since the “Solar Motor” was invented, American households have incorporated many other kinds of green features into their basic design.

For example:

Heating and cooling systems are better. Most new homes come with heating and cooling systems that are computer controlled, making them more accurate. Some homes even incorporate radiant heat, which is more efficient: it eliminates surges of power required to heat or cool, instead keeping temperature evenly distributed and more easily controlled.

Appliances are better designed. Many appliances are designed to conserve energy, using less electricity and — in the case of clothes or dish washers — less water.

Insulation is better. More windows these days come standard with high-tech glass and vinyl-clad frames, which do a better job of regulating temperature than the regular glass and aluminum-frame windows of the past. Most homes also come with extra insulation in the attic and higher R-value insulation throughout the whole house. So even though you may not have a huge array of solar panels on your roof, chances are, in some way big or small, you are doing something to help save energy.

And who knows? With the stimulus bill offering huge tax credits for renewable energy-installations in regular homes, solar panels might be on the horizon.