Category Archives: Westchester NY

Features and Colors of Kitchens in New Homes | Cross River Real Estate

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What are the features and colors included in kitchens of newly constructed homes? Data from Houzz, combined with information from the 2016 Builder Practices Survey, provides insight.

The 2016 Builder Practices Survey (BPS) is a national survey of homebuilders, conducted by Home Innovation Research Labs, that captures valuable information on the product features included in new residential construction, both single-family and multifamily.

It is a robust survey of 1,381 respondents who built single-family detached units and 199 respondents who built multifamily or single-family attached units (i.e. townhomes). Results are available on national and regional levels.

Analyzing the BPS can uncover interesting trends in the construction of new kitchens, such as countertop material type, cabinet type, and appliances.

Although the BPS covers a broad range of topics, it does not touch upon the color themes of kitchens in new construction. Houzz, an online platform dedicated to home remodeling and design, conducted an online survey on this very topic. Its survey asked recent buyers of newly constructed homes about the colors themes in their kitchens. The survey is national in scope and had 203 respondents.

Combining data from the BPS with the Houzz survey can provide powerful information on what today’s new kitchens look like. The following provides a snapshot of the 2015 product features and color themes included in kitchens of newly constructed single-family homes:

Countertops & Backsplashes
Figure 1 displays the type of countertop material installed in new kitchens. Granite countertops are overwhelmingly the most popular with 64 percent of new homes having this material type. It is no surprise that only 14 percent of new homes have laminate countertops. Based on NAHB’s Consumer Preference Surveyreport, laminate countertops are the least desired kitchen feature and are likely only installed when affordability is a major concern. Besides these material types, 9 percent each of new homes have engineered stone and solid-surface countertops.

Figure 1: Countertop Material Type (1)
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The Houzz survey provides insight on countertop color. Figure 2 displays the countertop color of those who have granite countertops, the most popular countertop material. Three color choices stand out: 30 percent of respondents have multi-colored countertops, 26 percent have white, and 18 percent have black. Twenty-six percent reported some other color, or were not sure about their countertop color.

Figure 2: Countertop Material Color (2)

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In addition to countertop material color, buyers also noted the color of their backsplashes (Figure 3). Twenty-six percent of respondents reported having white backsplashes, 13 percent reported beige, 12 percent reported multi-colored, and 6 percent reported gray. Forty-three percent reported some other color, or were not sure of their backsplash color.

Figure 3: Backsplash Color (3)

figure3

 

Cabinetry
Figure 4 displays the types of cabinets installed in new homes. Wood-based cabinets are the most common, but there is variation in the panel type of wood cabinets. Sixty percent of new homes have raised panel wood cabinets, compared to 25 percent that have flat panel wood cabinets. Only 5 percent of new homes have laminate cabinets, and the remaining 10 percent consists of various other types, such as glass cabinets.

Figure 4: Cabinet Type (4)

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Figure 5 displays the cabinet colors reported by respondents in the Houzz survey. The most popular color is white (34 percent), followed by wood – medium tone (20 percent), gray (9 percent), wood – dark tone (7 percent), and multi-colored (6 percent).

Figure 5: Cabinet Color (5)

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Appliances
Figure 6 displays the percentage of new homes that have each appliance listed. Cooktops and ranges are almost always provided in new kitchens with 97 percent of new homes having these features. Features that are also commonly installed include dishwashers (92 percent), microwave ovens and garbage disposals (both 84 percent); and refrigerators and freezer (65 percent).

Items less frequently installed in new homes include clothes dryers and washers (36 and 34 percent, respectively), wall ovens (18 percent), hot water recirculation piping (17 percent), water softeners and central vacuum systems (both 13 percent); hot water dispensers and standby generators (both 8 percent); trash compactors (4 percent), and elevators (2 percent).

Figure 6: Percentage of New Homes that Include Appliance (6)

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Figure 7 displays the colors of appliances installed in new kitchens. Most respondents reported that “stainless steel” is the color theme of their appliances, 6 percent reported black, and 4 percent reported white.

Figure 7: Appliance Colors (7)

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The combination of data from the BPS and the Houzz survey provides a sense of what new kitchens look like. New kitchens tend to have granite countertops, raised panel wood cabinets, and come with a standard set of appliances, such as cooktops & ranges, microwaves, dishwashers and garbage disposals. New kitchens also have white, multi-colored, or wood-based color themes, and are complemented by “stainless steel” appliances.

 

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http://eyeonhousing.org/2016/10/features-and-colors-of-kitchens-in-new-homes/

US New Home Sales Unexpectedly Rise 3.1% | South Salem Real Estate

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Sales of new single-family houses in the United States rose 3.1 percent to a seasonally adjusted annual rate of 593,000 in September of 2016, compared to market expectations of a 1 percent decline. Figures for the previous month were revised down by 34,000 to 575,000. New Home Sales in the United States averaged 651.94 Thousand from 1963 until 2016, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011. New Home Sales in the United States is reported by the U.S. Census Bureau.

United States New Home Sales
CalendarGMTReferenceActualPreviousConsensusForecast (i)
2016-09-2602:00 PMAug-7.6%13.8%-8.8%
2016-10-2602:00 PMSep593K575K600K610K
2016-10-2602:00 PMSep3.1%-8.6%-1%
2016-11-2303:00 PMOct3.1%
2016-11-2303:00 PMOct593K450K
2016-12-2303:00 PMNov

 

 

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http://www.tradingeconomics.com/united-states/new-home-sales

Schiller: Always reason to worry about housing prices | Waccabuc Real Estate

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US home price gains slowed slighting in July, as many on Wall Street are speculating that the Federal Reserve will raise rates before the end of the year. The S&P/Case-Shiller 20-City Composite Index rose 5.0% year-over-year, missing analysts’ expectations of a 5.1% increase but still above the 4.8% pace of the prior two years.

The recent surge in real estate demand has pushed home prices near their pre-crisis peak in 2006, which is making it increasingly difficult for new home buyers to enter the market. Home sales fell 0.9% in August from the previous month, according to the National Association of Realtors. That’s the second straight month of declines.

Higher home prices have begged the question by many as to whether the current pace is sustainable, or if there’s reason to fear another massive collapse in real estate.

“There’s always reason to worry [about a coming collapse],” Robert Shiller, Nobel Prize–winning economist and co-creator of the S&P/Case Shiller Index, told Yahoo Finance’s Seana Smith in the video above. But he is quick to point out one stark difference between today’s housing market and that of 2006. “We’re in a holding pattern right now … People are less excited about buying because they themselves don’t believe [home prices] will be going up a lot. Back in 2006, when the homeownership rate was setting records, people had extravagant expectations.”

His comments on Americans’ hesitation to buy echo the findings of a recent study byPulsenomics, which found that just 38% of renters surveyed think now is a good time to buy. Today, home values have reached or surpassed peak levels in about a quarter of US markets.

How rising rates could impact the housing market

While prospective buyers continue to benefit from relatively low borrowing costs, the big question is whether a series of rate hikes will increase mortgage rates and prompt a fallout in the housing sector. Fed funds futures suggests a roughly 57% chance of higher US interest rates by December, according to data from CME Group.

Shiller says it’s very difficult to forecast how the housing market will react to rising rates but is quick to point out that even in an uncertain environment, rate hikes shouldn’t be a factor for potential buyers.

“The Fed raised [rates] in December just a quarter of one percent, and plausibly they’ll raise [rates] by another quarter or a half percent, and it may not be a big deal,” said Shiller. “On the other hand, it might be a big deal because we’re in this strange period of near zero interest rates, and if people see it as a major turning point, it could affect home prices … My opinion is if you want a house, go out and buy it. It’s not an extremely unusual time. There are always risks.

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http://finance.yahoo.com/news/robert-shiller-theres-always-reason-to-worry-about-a-coming-collapse-in-housing-124331739.html

Housing #affordability at the worst level in seven years | South Salem Real Estate

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Home affordability is at the worst level in seven years, with 24% of the U.S. county housing markets less affordable than their historic affordability averages in the third quarter, the most recent ATTOM Data Solutions Home Affordability Index for third quarter 2016 recorded.

This level is not only up from 22% of markets in the previous quarter, but it is up from 19% of markets a year ago.

The only other time affordability came in worse than this was in third quarter of 2009 when 47% of markets were less affordable than their historic affordability averages.

The affordability index is based on the percentage of average wages needed to make monthly house payments on a median-priced home with a 30-year fixed rate and a 3% down payment — including property taxes and insurance.

“The improving affordability trend we noted in our second quarter report reversed course in the third quarter as home price appreciation accelerated in the majority of markets and wage growth slowed in the majority of local markets as well as nationwide, where average weekly wages declined in the first quarter of this year following 13 consecutive quarters with year-over-year increases,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.

“This unhealthy combination resulted in worsening affordability in 63% of markets despite mortgage rates that are down 45 basis points from a year ago.

According to the report, out of the 414 counties analyzed in the report, 101 counties (24%) had an affordability index below 100 in the third quarter of 2016, meaning that buying a median-priced home in that county was less affordable than the historic average for that county going back to the first quarter of 2005.

Key counties highlighted include: Harris County (Houston), Texas; Kings County (Brooklyn), New York; Dallas County, Texas; Bexar County (San Antonio), Texas; and Alameda County, California in the San Francisco metro area.

Despite the negative news, Blomquist did point out one positive area.

“Some silver lining in this report is that affordability actually improved in some of the highest-priced markets that have been bastions of bad affordability, mostly the result of annual home price appreciation slowing to low single-digit percentages in those markets,” Blomquist continued.

He explained that this is an indication that home prices are finally responding to affordability constraints — a modicum of good news for prospective buyers who have been priced out of those high-priced markets.

This infographic from ATTOM Data Solutions shows the U.S. home affordability affliction and some possible antidotes.

 

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Housing affordability at the worst level in seven years

Mortgage rates average 3.47% | Bedford Corners Real Estate

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Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates slipping from last week’s spike and the 30-year fixed-rate mortgage easing back to its summertime range below 3.5 percent.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.47 percent with an average 0.6 point for the week ending October 27, 2016, down 5 basis points from 3.52 percent last week. A year ago at this time, the 30-year FRM averaged 3.76 percent.
  • 15-year FRM this week averaged 2.78 percent with an average 0.5 point, down slightly from last week when they averaged 2.79 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“Mortgage rates continue to be relatively stable and at near record lows. The 30-year fixed-rate mortgage fell 5 basis points week-over-week to 3.47 percent, erasing last week’s increase. At the same time, the 10-year Treasury yield ended the week relatively flat — up about 2 basis points.”

New home sales unexpectedly rise in September | Mt Kisco Real Estate

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– New U.S. single-family home sales unexpectedly rose in September, pointing to sustained demand for housing even as data for August was revised sharply down.

The Commerce Department said on Wednesday new home sales increased 3.1 percent to a seasonally adjusted annual rate of 593,000 units last month, pulling them close to a nine-year high touched in July.

August’s sales pace was revised down to 575,000 units from the previously reported 609,000 units.

Economists polled by Reuters had forecast single-family home sales, which account for about 9.8 percent of overall home sales, falling to a rate of 600,000 units last month.

New home sales, which are derived from building permits, are volatile on a month-to-month basis and subject to large revisions.

Sales increased 29.8 percent from a year ago. They rose in the third quarter compared to the April-June period, indicating strong demand for housing.

Residential construction, however, likely remained a drag on gross domestic product in the third quarter.

Despite rising demand for housing, home building has been lagging, with builders complaining about land and labor shortages. Demand is being driven by rising wages as the labor market nears full employment, as well as by very low mortgage rates.

New single-family homes sales surged 33.3 percent in the Northeast and soared 8.6 percent in the Midwest last month.

Sales in the South, which accounts for more than half of new home sales, climbed 3.4 percent.

Sales fell 4.5 percent in the West, which has seen a sharp increase in home prices amid tight inventories.

 

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http://www.reuters.com/article/us-usa-economy-newhomesales-idUSKCN12Q1VJ?il=0

Case-Shiller: Rising house prices just below record highs | Pound Ridge Real Estate

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Home prices are continuing to rise; now mere basis points below the all-time highs for prices, set in 2006.

According to the latest data released Tuesday by S&P Dow Jones Indices and CoreLogic, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, reported a 5.3% annual gain in August, up from 5% in July.

Per the report, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index is currently at 184.42, which is within 0.1% of its record high of 184.62, set in July 2006.

The increase in August represents the 52nd consecutive month of positive gains.

According to the Case-Shiller report, the 10-City Composite posted a 4.3% annual increase, up from 4.1% in July, while the 20-City Composite posted a 5.1% annual increase, up from 5.0% in July.

The report states that Portland, Seattle and Denver turned in the highest year-over-year gains among the 20 cities for the seventh consecutive month, with year-over-year increases of 11.7%, 11.4% and 8.8%, respectively.

“Supported by continued moderate economic growth, home prices extended recent gains,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.

“All 20 cities saw prices higher than a year earlier with 10 enjoying larger annual gains than last month,” Blitzer continued. “The seasonally adjusted month-over-month data showed that home prices in 14 cities were higher in August than in July.”

Blitzer also noted that other housing data including sales of existing single-family homes, measures of housing affordability, and permits for new construction also point to a “reasonably healthy housing market.”

Additionally, the Case-Shiller report showed that before seasonal adjustment, the National Index posted a month-over-month gain of 0.5% in August.

The report also showed that both the 10-City Composite and the 20-City Composite posted a 0.4% increase in August.

After seasonal adjustment, the National Index recorded a 0.6% month-over-month increase, and both the 10-City Composite and the 20-City Composite reported 0.2% month-over-month increases.

 

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Case-Shiller: Rising house prices just below record highs

Consumer Confidence Rises | Bedford Corners Real Estate

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The Consumer Confidence Index, reported by the Conference Board, rose in September. Compared with last month, consumers were more optimistic about both the current situation and the near term outlook.

The Consumer Confidence Index rose to 104.1, from 101.8 in August. The present situation index rose to 128.5, from 125.3, and the expectations index increased to 87.8, from 86.1.

Consumers’ assessments of current business conditions were mixed. Assessments shifted from both “good” and “bad” to “normal”. The share of respondents rating business conditions “normal” rose by 4.9 percentage points from 51.5% to 56.4%. A net decline of 2.9 percentage points in assessments of “good” combined with a 2.0 percentage point net decline in assessments of “bad” for the total.

Similar to consumers’ assessments of current business conditions, expectations of business conditions over the next six months were mixed. The share of respondents expecting future business conditions to be the same rose from 71.0% to 73.3%. About half of the increase was the result of a net decline in respondents expecting future business conditions to be worse, an upgrade, while the rest was the result of a net decline in respondents expecting future business conditions to be better, a downgrade.

Consumers’ assessments of current employment conditions improved. The share of respondents reporting that jobs were “hard to get” dropped to 21.6%, from 22.8%. Most of the 1.2 percentage point decline (1.1 percentage point) upgraded to “jobs plentiful”.

Also, consumers’ expectations of employment over the next six months were more upbeat than in August. The share of respondents expecting “more jobs” rose to 15.1%, from 14.4%. Most of the 0.7 percentage point increase (0.5 percentage point) shifted from “fewer jobs”, while the rest shifted from “same jobs”.

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The Conference Board also reports the share of respondents planning to buy a home within six months. The share of respondents planning to buy a home declined to 5.1%, from 6.9%. The share of respondents planning to buy a newly constructed home and an existing home were 0.6% and 3.5%, respectively; the share of respondents who were “uncertain” whether they would buy a newly constructed or an existing home was 1.0%.

 

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http://eyeonhousing.org/2016/09/consumer-confidence-in-september-another-optimistic-month/

Case-Shiller up 5.1% | Mt Kisco Real Estate

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United States S&P Case-Shiller Home Price Index  

The S&P CoreLogic Case-Shiller 20-City Composite Home Price Index rose 5.1 percent year-on-year in August of 2016, following a 5 percent increase in July and above market expectations of 5 percent. Portland, Seattle and Denver reported the highest annual gains over each of the last seven months with prices up by 11.7 percent, 11.4 percent and 8.8 percent respectively in August. On a monthly basis, the S&P CoreLogic Case-Shiller 20-City Composite Home Price Index increased 0.4 percent, easing from a 0.6 percent rise in July. Case Shiller Home Price Index in the United States averaged 157.24 Index Points from 2000 until 2016, reaching an all time high of 206.52 Index Points in July of 2006 and a record low of 100 Index Points in January of 2000. Case Shiller Home Price Index in the United States is reported by the Standard & Poor’s.

United States S&P Case-Shiller Home Price Index
CalendarGMTReferenceActualPreviousConsensusForecast (i)
2016-09-2701:00 PMJul5%5.1%5.1%5.1%
2016-10-2501:00 PMAug5.1%5%5%5%
2016-10-2501:00 PMAug0.4%0.6%0.4%0.5%
2016-11-2402:00 PMSep0.4%
2016-11-2402:00 PMSep5.1%
2016-12-2902:00 PMOct

 

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http://www.tradingeconomics.com/united-states/case-shiller-home-price-index

Freddie Mac real estate outlook | Armonk Real Estate

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Freddie Mac (OTCQB: FMCC) released today its monthly Outlook for October showing that housing remains a bright spot in the face of a marginally improving U.S. economy and tight inventories of for-sale homes. However, mortgage activity, which has benefited greatly from low mortgage rates post-Brexit, is starting to see a slowdown in refinance activity that will persist into next year as the mortgage market transitions to a purchase-dominated mix.

Outlook Highlights

  • Continued strength in consumer spending and a reduction in the drag from inventory spending should boost second half growth, resulting in full-year 2016 GDP growth of 1.6 percent. The economy should do modestly better in 2017, posting 1.9 percent year-over-year growth.
  • A mature expansion operating near full employment only needs to generate enough jobs to keep the unemployment rate steady. Expect the unemployment rate to decline slightly over the next year-and-a-half, ending 2017 at 4.7 percent.
  • Even if worldwide bond yields recover to the pre-Brexit status quo, mortgage interest rates are likely to remain low for an extended period. Expect a gradual rise in rates throughout the remainder of 2016 and into 2017, with the 30-year fixed-rate mortgage averaging 3.9 percent in the fourth quarter of 2017.
  • Don’t expect much increase in total home sales going forward with a slight decline in seasonally-adjusted sales in the fourth quarter. Next year, rising new home sales driven by increases in new single-family housing construction will push total home sales slightly higher, to 6.16 million in 2017 compared to 6.04 million in 2016.
  • Forecasting house prices will grow at a 5.6 percent annual rate in 2016, moderating to 4.7 percent in 2017.

Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.

“The economy and labor markets are looking better. We’re even seeing modest wage gains. And Fed watchers are increasingly predicting a December rate hike as things improve. However, worldwide economic growth is weak and its prospects have gotten worse. This may all sound familiar because we’ve been here before… last year.

“As the economy sputters along a little bit faster than stall speed, the U.S. housing market continues to be a bright spot, though there’s less room to run than in the prior few years. Unlike new home sales, existing home sales have nearly recovered back to pre-recession norms. Regardless, we see new home sales improving some next year driven by increases in new single-family housing construction which will push total home sales slightly higher.”