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By Susanne Dwyer

A recent NAHB post shows that, after rising to a record high, the size of new single-family homes has leveled off and, as of the second quarter of 2016, is now trending downward slightly.

Several things could be responsible. NAHB (and others) have emphasized a changing mix of repeat and first-time home buyers. Before focusing exclusively on this, however, it would be good to eliminate technical details, such as the way square footage of a home is calculated.

Practices vary, but in the Survey of Construction (which is conducted by the Census Bureau with partial finding from HUD and provides the basic data for housing starts and characteristics of new housing) square footage is based on finished floor space. This includes any area in the basement (if present) where the walls, ceiling and floor all are or will be finished. This means that different square footage can be reported for two homes built with the same physical dimensions, depending on how much of the basement is finished.

Since 2009, the average finished floor space of basements has remained small relative to the overall size of a home, but has nevertheless fluctuated noticeably—from 65 square feet up to 99 in 2014, before declining slightly in 2015 (numbers calculated by NAHB from the Census Bureau’s annual public use data set).

These data can be used to net out finished basement area from the size of a new home. Conveniently, this turns out to have little effect on the basic trends. With or without finished basement area, the average size of a new home increased every year from 2009 through 2013, stayed essentially flat in 2014, then increased again to an all-time high in 2015. Similarly, the median size of a new home increased every year from 2009 through 2013, declined slightly in 2014, then increased to an all-time high in 2015—whether or not finished basement area is taken into account.

It’s probably not surprising that adding or subtracting finished basement area fails to change the historical trends in new home sizes in any meaningful way. Given the attention these trends often receive, however, it’s good to be able to eliminate changing treatment of basements as a possible explanation—and time to return to talking about the mix of repeat and first-time buyers in the market.

This post was originally published on NAHB’s blog, Eye on Housing.

…read more

From:: Finance and Economy

By Susanne Dwyer

A recent NAHB post shows that, after rising to a record high, the size of new single-family homes has leveled off and, as of the second quarter of 2016, is now trending downward slightly.

Several things could be responsible. NAHB (and others) have emphasized a changing mix of repeat and first-time home buyers. Before focusing exclusively on this, however, it would be good to eliminate technical details, such as the way square footage of a home is calculated.

Practices vary, but in the Survey of Construction (which is conducted by the Census Bureau with partial finding from HUD and provides the basic data for housing starts and characteristics of new housing) square footage is based on finished floor space. This includes any area in the basement (if present) where the walls, ceiling and floor all are or will be finished. This means that different square footage can be reported for two homes built with the same physical dimensions, depending on how much of the basement is finished.

Since 2009, the average finished floor space of basements has remained small relative to the overall size of a home, but has nevertheless fluctuated noticeably—from 65 square feet up to 99 in 2014, before declining slightly in 2015 (numbers calculated by NAHB from the Census Bureau’s annual public use data set).

These data can be used to net out finished basement area from the size of a new home. Conveniently, this turns out to have little effect on the basic trends. With or without finished basement area, the average size of a new home increased every year from 2009 through 2013, stayed essentially flat in 2014, then increased again to an all-time high in 2015. Similarly, the median size of a new home increased every year from 2009 through 2013, declined slightly in 2014, then increased to an all-time high in 2015—whether or not finished basement area is taken into account.

It’s probably not surprising that adding or subtracting finished basement area fails to change the historical trends in new home sizes in any meaningful way. Given the attention these trends often receive, however, it’s good to be able to eliminate changing treatment of basements as a possible explanation—and time to return to talking about the mix of repeat and first-time buyers in the market.

This post was originally published on NAHB’s blog, Eye on Housing.

…read more

From:: Real Estate News

By Susanne Dwyer

New state laws relating to real estate have taken effect over the summer, many of which could impact homeowners, homebuyers and sellers in certain states.

One such law, enacted in California, equalizes the rules governing escrow services performed by real estate brokers, independent escrow companies and underwritten title companies (UTCs). The law, sponsored by the California Land Title Association, allows a UTC to handle transactions involving properties located in a county where it is not licensed, among other provisions.

Another California law, effective at the beginning of July, requires condominium projects’ annual budget reports include a statement about status as a Federal Housing Administration (FHA)-approved project and as a Department of Veterans Affairs (VA)-approved project.

A third law, new to California, requires mobile home park management to provide to buyers and sellers, in writing, the standards that determine the approval of a prospective homeowner; it also allows management to withhold approval based on concealment of material facts, deceit or fraud.

In Florida, a newly-enacted law allows property owners to challenge the property assessment indicated on their Truth in Millage (TRIM) notice. The owner, who may be represented by a real estate attorney, agent, broker or appraiser, can challenge the assessment before his or her county’s Value Adjustment Board (VAB).

Another new law in Florida addresses homeowners insurance coverage for sinkholes, which had previously been limited due to misuse of funds. The law mandates insurance companies offer coverage for moderate damage caused by sinkholes, such as cracked walls and sunken floors, and requires policyholders to document repairs.

In Virginia, a new law shortens the period in which a locality providing water or sewer service can discontinue the service for nonpayment—down to 30 days from 60. A similar new law in Virginia allows a locality providing water or sewer service to place a lien on a property in the amount of the number of months of nonpayment, versus up to three months under a previous statute.

Another new law in Virginia makes a litany of changes to existing legislation (the Property Owners’ Association Act and the Condominium Act), with provisions that:

• Eliminate the requirement that an association retain a copy of the lease for a rented unit (it may, however, require the names of the tenant(s), authorized occupants and authorized agents, and vehicle information);
• Prohibit a unit owners’ association from conditioning or prohibiting the rental of a unit, making an assessment, or imposing a rental fee or any other fee except as expressly provided for in law;
• Prohibit associations from evicting tenants or requiring power of attorney to evict tenants, and prohibit associations from requiring power of attorney from landlords who are represented by an agent and present a property management agreement or equivalent document;
• Prohibit associations from requiring use of their lease or addendum, unless association bylaws require that their addendum be attached; and
• Provide that the unit owner may designate a licensed broker to act as the owner’s authorized representative with respect to any lease.

For more information on real estate-related legislation that went into effect this summer, contact your local or regional …read more

From:: Real Estate News

By Susanne Dwyer

As the summer draws to a close and the Hamptons begin to empty out, supermodel Christie Brinkley is drawing attention to the locale…to the tune of $29.5 million.

Brinkley, now an empty nester (her youngest recently graduated high school and is headed to the City) is ready to downsize and begin the next phase of her life in a space that won’t feel quite so overwhelming (aka empty) now that everyone’s flown the coop.

But this isn’t the first time Brinkley has listed her 20-acre chateau. In fact, the 11,037-square-foot home in Bridgehampton, N.Y., has been on and off the market since 2002, so you better act quickly before Brinkley decides that she really doesn’t want to move—again.

In addition to a four-bedroom main house, a four-bedroom guesthouse flanks the property. But even more impressive is the 50-foot observation tower, offering the best vantage point any parent could hope for when trying to keep an eye on their children. Oh, and did I mention the views?

If the observation tower doesn’t have you calling your financial planner to see how you can quickly drum up $29.5 million, it’s worth noting that the gated space also includes a home gym, tennis court, pool, spa and wooded walking paths.

If you’ve always wanted a home in the Hamptons (and who hasn’t?), now’s the time to make your move.

Credit: TopTenRealEstateDeals.com

…read more

From:: Real Estate News