September, 2009

This is one of the most significant national indicators out there, because it looks ahead at real estate transactions that are currently under contract, but which have not yet gone to the settlement table. While many indicators examine what’s just happened, the pending home sales report looks a few months into the future.

This July, the index was up 3.2% nationwide, compared with June. We haven’t seen a winning stretch like this since the index was created back in 2001!

It’s all good news for the nation’s real estate markets, as it signifies the buyers are continuing to move in, and put properties under contract!

Now let’s look around the nation, where most regions showed gains in this month’s Pending Home Sales report, and all the regions showed gains over the same period last year!

The biggest gains in July happened in the West, where pending home sales were up 12.1% over June! And that’s not all, the pending sales in the West were also up 20% over July, last year!

And, in the South, Pending Home Sales rose more than 3% in July over June. Another good gain! This July’s gains in pending home sales were also 12% higher than July a year ago, so we’re seeing some major buyer activity in the South as well.

Looking at the Midwest, pending home sales were down a bit in July over June, by about 2%. But when you compare this July to last July? Pending sales are up in the Midwest by 12%.

In the Northeast, there was a 3% drop in pending home sales in July over June of this year, but like every other section of the country, the Northeast experienced a big jump of 4.7% this July over last July!

When looking at the national figures, the number of pending home sales are up 3.2%, and it’s the sixth straight month in a row that pending home sales are on the rise. As the NAR put it? Pending Home Sales are on a record roll!

A designer can help considerably with these projects. When picking a designer, ask friends and colleagues if they have recommendations, and get some recommendations from previous satisfied customers. Also, make sure that your tastes gel with the designer. Consider putting together a mood sheet which is a selection of clippings from magazines, books and the internet, that best convey your ideas and references.

If you are planning major reconstruction, make sure your designer has a good long standing relationship with reputable and licensed contractors. And, before starting work, be courteous to your new neighbors and notify them of the work being done; people are a lot less likely to complain if they feel like you’ve considered them, so write them a note letting them know about your time frame and keeping them informed of your progress, perhaps including a token of your appreciation.

And what can you expect from your designer in return? Your designer’s role is wide ranging: from making product recommendations to drafting layout plans, helping you make smart decisions on allocating your remodeling dollars, to working with contractors and overseeing construction.

To find out more, we met with Sherry Tyra, assistant designer from HGTV’s “Designed to Sell”. She also runs her own interior design company, C.H.I.C., in the Washington DC area.

Tyra suggests now that home prices have come way down, you can get great bang for your buck –- find a nice older home that has lots of possibilities — and remodel. Many people are taking 1960s homes that have smaller rooms, and removing walls to make an open floor plan.

There are ways to cut costs, and do some of the work yourself, but bear in mind that you’ll need to have a lot of time on your end. If you are handy with a brush and a roll, you can do some of the painting yourself, and while you are down at the local home improvement store getting your paint look around and ask if they have any do-it-yourself classes — many of these stores have workshops to learn basic design skills.

When thinking about the layout of the rooms, you can preview your ideas at the touch of a button with one of the design software packages on the market. The benefit of this is you can try a number of scenarios before setting it in stone.

So, why move into someone else’s dream home when you can create your own — and maybe even push up the property value in the process?

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.

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.

Click to visit Sarah’s Web site, NotSoBigHouse.com, to see the best-seller. Also check our Sarah’s newest book, Not So Big Remodeling, for tips on right-sizing your current home.