A Valentines Day Special - Real Estate Through The Eyes

America’s homebuilders say they are starting to see the skies clearing just a bit, thanks in part to the first-time homebuyers credit. The nation’s 14 publicly traded home builders have been forced to write off nearly 34 billion dollars in losses since the start of 2006, but now a couple of them are starting to show profit again. Beazer Homes saw its number new home orders in the last quarter rise 37 percent, and its number of cancellations cut nearly in half. And, D.R. Horton is reporting a 192 million dollar profit, compared to a 62 million dollar LOSS a year earlier. Of course, builders also say their health is totally dependent on the health of the economy, and no one is nearly ready to declare an end to the tough times just yet.

But when we flash forward a year, we can see one of those rescues having a major impact on the recovery of the real estate market. Lawrence Yun, chief economist for the NATIONAL ASSOCIATION OF REALTORS®, says the government’s first-time home buyer credit was THE dominant factor in the growth we saw in home sales in the last quarter of last year, combined with record low mortgage interest rates. The average rate for a 30-year conventional fixed rate loan fell nearly a full point in the 4th quarter to just under 5 percent compared to a year ago.

Now – while the number of home sales has increased virtually everywhere, home PRICES are much more of a mixed bag. 44 percent of the Metro areas in the survey reported higher median prices in the last quarter, compared with a year ago. The national median price for a home is 173-thousand dollars – 4 percent less than the last quarter of 2008. But economist Yun says even that news has a silver lining – it’s the smallest quarterly decline in over two years, and Yun says it shows a broad stabilization in home prices.

Taking a quick look at sales by region:

Home sales in the Northeast rose 11 percent compared to the summer, and by a third compared to a year ago. Median prices did fall by 6 percent in the year-to-year comparison, but the swings were smaller in areas with lower priced homes.

In the Midwest, sales enjoyed a 15 percent increase from the third quarter, and a 30 percent jump from a year ago. And median prices managed a 1 percent year-to-year increase, as well. The Midwest enjoyed the most growth in prices, but that news was balanced by big challenges in unemployment in many markets.

Looking South, the number of homes sold in the last quarter outpaced the third quarter by 14 percent, and was 28 percent higher than a year earlier. Median prices were off 2 and a half percent from 2008.

And finally – out West, home sales were up 16 percent from the summer, and 18 percent higher than a year ago. Prices are still a challenge – with the median falling 9 percent year-to-year.

But how do our differences play out when we join with our significant other to shop for a new home? Well, this is where myth meets reality. In a world where two incomes are often necessary to create a household, no one seems to dominate when it comes to making a decision as big as purchasing a home. And, that’s never been truer than right now. Employment figures and several studies have shown that far more men lost their jobs than women in the recent recession, and more and more frequently, women are bearing a larger financial responsibility for their families than men. The growth in women’s pay is outpacing men’s, and they are outpacing men in terms of education growth as well.

So while the playing field is leveling out somewhat economically, that doesn’t mean the genders are singing kumbayah when it comes to agreeing on what’s important when it comes to buying a home. In a study commissioned last year by Coldwell Banker Real Estate, one thousand men and women were asked about their priorities in finding the right home, and sure, enough, the gender differences came right out. For example – would you want a home that is closer to your job, or closer to your extended family? 55 percent of women voted with their hearts, and chose the family, while only 37 percent of men made the same choice. Women also expressed a greater need for feeling secure. In fact, nearly two-thirds of women in the survey said if they found the home of their dreams, but had concerns about its security, they would walk away from it. About half of men agreed they would do the same thing.

Couples do seem to agree how to use the space in their home – at least for the most part – When asked how they would use an extra 12 foot by 12 foot room, men and women both provided the same top answers – as a bedroom, office or den.

But here’s where the study takes a somewhat predictable turn… Those of us with a “Y” chromosome – the guys – really do want a “man cave” to call our own. The number of men who would use that extra space as an entertainment center outnumbered women by a four- to- one margin!

So now you’ve gone shopping, and looked at several homes and staked out your man-caves… Who’s going to be ready to buy first? The results might surprise you. 70 percent of women say they knew they had found the right home the first time they walked into it, as opposed to 62 percent of men. Nearly a third of the men say they needed two or more visits to make up their minds, while less than a quarter of women needed a second look.
So HE may need an extra look… SHE may need to do a little coaxing… But in the end, when couples make the move to buy their home, nearly 70 percent of men and women agree the decision is mutual. That still leaves nearly a quarter of those surveyed thinking they really do wear the pants in the family – slightly more men than women.

The important thing is – your local REALTOR® is garment-blind. He or she will recognize the pants-wearer in both of you, and is ready and able to help you find the perfect home that will allow you to put all of your wishes – even a man-cave – under one roof.

There are many things you can do right now to show your love. You know that powder room that you’ve been promising to paint for the past several months? Get out to the store right now – pick up a gallon of your spouse’s favorite color – put a bow on it, and present it as a gift. You can throw in the chocolates as a bonus…

But, now that you’ve bought the paint, you have to use the paint! Thankfully, for most of us, this is also a three-day weekend, courtesy of President’s Day, and what better way is there to show your love and your patriotism than to exercise some good old fashioned manual labor?

Our next idea comes from John Matthews, one of the people who works behind the scenes here at Real Estate Today. John lives in the suburbs of Washington, DC, which just went through its second 2-foot blizzard of the season last weekend. John says he got through the storms only because of a gift his loving wife gave him – a snow blower. Romance is a lot more romantic, after all, if your loved one isn’t suffering from sore muscles and exhaustion after moving a bank of snow one shovelful at a time!

If you’re looking for a home improvement gift with a bit more romance attached to it, this might be the right time to purchase a hot tub. Not only will it keep you and your Valentine warm and cozy in the deep midwinter, it will also add value to your home. Hot tubs are not cheap – they can run 5-thousand dollars or more – but they are not as difficult to maintain as swimming pools, and many of them have covers that can be locked to keep them from being a safety hazard for small children.

If hot, bubbly water doesn’t float your boat, you might consider adding an attractive, energy efficient gas fireplace – perfect for cozy-ing up in front of with the mister or missus… Now, of course, you can’t go out and pick up a hot tub or a fireplace as the minutes tick away to Valentine’s Day, but you can get on the computer right now and print out a picture of one to put in a flowery card for your lover – along with an earnest I.O.U…

Your home is your single biggest investment, and as long as you’re sharing it with the love of your life, you may as well make is as comfortable and romantic as you can. A little TLC can go a long way – for both your relationship – and for the value of your home.