Now Is the Time to Buy that New Home

The news today has reports of people whose lives were ruined by owning more house than they could afford, and dire warnings that “housing is not a good investment.” No doubt both of these have been real and true and still yet they miss the point. Consumers who want an appropriate home and have the right reasons to buy are paralyzed with uncertainty by these reports so they wait to see what the housing market will do. They are more afraid of making a mistake than getting something they want, have prepared for and can afford well, those who aren’t afraid may find themselves grinning like the Cheshire cat a few years down the line because this is a great time to buy a new home. In a moment I will share a few excellent reasons why this is so.

 

Here are a few reasons why it is now a good time buy:

The underlying economy is coming around. We are beginning to see job growth and the early signs of a recovery in the economy across most of the country. There are a few localized markets where this isn’t true, such as Detroit, but for most of us the fundamentals look positive. Historically, recoveries are slow to disclose themselves t their beginnings and it isn’t until they have been documented I n retrospect that we see the optimum time to have bought in the cycle. I have studied the data from the past 50 years and this looks a lot like the beginning of the past five cycles.

Housing materials costs are still rising and will continue to do so. Waiting when costs are certain to increase is not a valid strategy. Cement, drywall, copper and many other materials are simply going to be more expensive in the future. In addition, all the materials that have petroleum content such as asphalt or plastics, or anything that must be shipped (virtually everything in a house) are going to be affected by oil price increases. To hold pricing, builders will have to shrink or simplify homes. What smart buyer wants that?

Land costs and entitlement processing costs are rising even faster than materials. This is a striking phenomenon across the country. Even with the lack of activity cities and counties raise their requirements, lots get smaller, densities increase, privacy dimishes and costs still rise. As Mark Twain observed over one hundred years ago, “Buy land, They ain’t makin’ any more of it!”

Housing prices won’t fall substantially even in the doldrums. If a buyer is waiting for a bargain, (except in localized markets where substantial overbuilding has occurred), they are usually disappointed, why? Because sellers will wait. They will hold out for a buyer at or near their asking price rather than cut price for a quicker sale. This is especially true with sellers who have waited through the worst of the correction and don’t need to move now, a fairly small portion of the homes for sale.

Transferring equity to a home of greater value means the potential gain on the bigger home is greater than the loss on the current home. Many buyers are moving to a home of greater value. Taking the hit on the lesser value home makes sense if they are armed with cash in a buyers market, as the immediate pain translates to long term gain.

Housing is cyclical. What is bottoming now will be strengthening at some future date. While none of us can predict the exact bottom of this cycle, many knowledgeable people feel we have passed it. What if we have another soft year? If you are in a home you love and comfortable with what you have chosen, just wait for it to start appreciating while you enjoy it. Isn’t that better than missing the bottom and more importantly, a perfect home for you? Warren Buffet, the Oracle of Omaha has made a fortune for his investors by believing in long term value proposition of our economy and buying business that are out of flavor, but solid, when they are undervalued. Doesn’t that same logic apply here?

Most of all; Buying now means a home for the right reasons! As my friend Bill Webb says, “The home is just the box that the gift comes in, not the gift.” Your home is a refuge, a gathering place, a place to create memories and celebrate the events that make up a lifetime. It is not an investment like a stock certificate. It is much more. It will increase in value over the long haul, so why not be where you really want to be? If you plan to be in your home for at least five years, timing is perfect: Selection is good, prices are moderate, interest rates are historically low and sellers are motivated to accommodate buyers.

Get going now… Its time to buy a home!

Homestead Oak Spring Decorating- Designer Tips to Freshen Up Your Home for Spring

Add Soft Colors, Fresh Flowers, and Delicate Fabrics for Spring

A new spring season invites changes to your home with fresh spring decorating. Spring calls for delicate colors and soft fabrics. Read what well-known designers recommend to freshen up your home for Spring.

When asked about inexpensive changes to freshen up a bedroom or living room for Spring, we got lots of great suggestions. Which ones will work for your home?

·         Use color and paint on walls, furniture, or trim. Use neutral ground but introduces aqua blues and spring greens. With outdoor colors coming inside, how about bring in a piece of outdoor furniture, too? It will bring in a new interesting texture.

·         I love color and patterns. Take a clue from fashion catalogues and use the colors and patterns in your home. Avoid "pasty pales or deep dark drenched colors" and choose a mid tone. Use organic color to cheer up an uninteresting neutral space. Think of "Mother Nature" and go to the colors you see outside.

Use colorful patterned pillows on a "neutral chenille or canvas couch." Get rid of the fussy beads and fringe. "Let color and pattern do the talking... a crazy hot pink, magenta, marigold and cobalt madras plaid.... a chartreuse, plum and teal floral. These bold ingredients distract the eye." Revive a boring old sofa.

·         Use paint it's cheap, you can do the job yourself, and it creates a major change. I suggest that you "try a color you've never tried before -- kiwi green or a pale violet -- something you've always wanted to try. A couple of gallons of paint is a very inexpensive experiment."

·         "Lighten up!" That means colors, fabrics, and flow. Everything should be clean and refreshing, light and tranquil. Choose sheer fabrics, linens, and open weave textiles. Move from ceramic to crystal and glass, either contemporary or traditional.

And, "nothing says Spring more than fresh flowers. Make sure to be consistent with creating arrangements. Choose a color scheme, like all white, instead of mixing bouquets, use the same type flower in one glass container with a beautiful white satin or grosgrain ribbon wrapped around it."

Without spending much money, you can give a fresh spring look to your home. What a lovely thought!

Homestead Oak - 8 Reasons Why Now Might be the Best Time Ever to Build a New Home

8 Reasons Why Now Might be the Best Time Ever to Build a New Home- By Homestead Oak, Inc.

Come visit the Washington by Pennwest located at our Fairview Lot location.  http://www.homesteadoak.com/

I should have brought stock in Google when it was first released. I knew it then, but I didn’t act. I was scared off by the nay-Sayers in the media. I hesitated, and the ground floor opportunity didn’t wait. Within a year, Google’s stock was up 800%

Today, the opportunity to build a new home is similar to Google’s initial stock offering an excellent investment and a short window of opportunity.

What… housing? A good investment? Is this a joke?

It’s no secret that the housing industry has been in a downward spiral for the past five years. Housing prices have fallen in most markets – some up to 40% or more from their 2005 values. Banks and mortgage companies that extended themselves with bad loans and unrealistic lending programs have restricted their credit standards, gotten out of the mortgage arena, or gone out of business. And, builders and contractors who were too busy to return phone calls are now looking for work, and grateful if they get it.

It’s scary we know. But, these very same factors make now an excellent time for those that can do so to act on building their dream home. Here are eight solid reasons, as expressed by housing expert, Ross Robbins, why those who take action now will save thousands and the construction of their new home, and what to do to take advantage of these favorable – that’s right, favorable – market conditions.

1.     Housing is cyclical.

This period from 1987 – 2005 was one of the strongest housing booms since WWII. By 2004, it became obvious to many that housing starts were growing at unsustainable levels. Land, materials, and home prices were escalating and the term ‘housing bubble’ was coined to describe the frightening pace at which new homes were being built. Like all bubbles, everyone knew it couldn’t last forever, but the economy had become so dependent upon the housing sector that it was hard to ease it back gradually. The “pop” came in late 2005 and by 2006 huge inventories began to erode builder profits and housing values began to fall. Just like 20 years before.

Historically, housing ‘booms’ last 8-12 years. This one lasted 18 years. But these cycles typically run ‘hot’ for about 10 years, then ‘cool’ for 3-4 years. Then cycle starts again.

Today new home inventories are being absorbed and markets are stabilizing. Projections are that by mid-2011 the market will start heating up again as a new up-cycle begins. In fact, in some areas this has already begun. That growth, just like that of past upturns, will mean a reinvigoration of the market… and rising costs to go with it.

2.     Interest rates are at historic lows

As this is being written, 30 year-fixed rates are under 5% and 15-year rates are well below that number. Those are the lowest rates in the past 40 years. True credit is tighter than it was five years ago, but that only affects those with marginal credit. The vast majority of home buyers will not be impacted by more stringent lending standards. Low mortgage rates, combined with the lowest material and land costs we’re never likely to see, mean that right now you can build more house for the money than you will when the housing market recovers.

3.     Material costs are rising, and will continue to do so.

Higher fuel costs are being applied to building materials, as they are to just about everything. However, many building materials are very energy-intensive to produce and so might be more impacted than most consumer goods. The largest cost in producing drywall, for example, is the energy to fire the kilns to dry it. Do you see energy costs going down in the near future? Neither do I.

Now, compare that with the fact that homes being built today are 30% - 50% more energy efficient than older homes, even those built 5 years ago. As energy costs go up, a new home will become even more valuable in energy savings.

4.     Builders, contractors and tradesmen are available

When housing is strong (and it will be again soon) there is a waiting list for contractors. At the height of the housing boom, one of the most discussed topics at builder meetings was the fact that fewer people were entering the trades and builders were having difficulties hiring enough experiences people to form full crews. Today, there is a ‘window of opportunity.’ When crews are available without long waits, homes are built and finished in less time, requiring less interest on construction loans. This favorable situation is temporary – cyclical, remember?

5.     Land is available… while it lasts.

In boom times, bigger builders and developers monopolize the best land and lots, driving up costs and leaving scattered-site builders and home buyers to fight over their leftovers. Now, the large-volume builders are bogged down with excess inventories (homes they built and have all their cash tied up in,) and many aren’t liquid enough to make land investments. That means that lot prices are about as low as they will be, and the choice and availability are at their best.

6.     Housing demand will soon outstrip existing inventory, and is on the rise.

That might be the biggest incentive to act now to build. New families are being formed in the US at a record pace – far faster than new homes are being built to accommodate them. It seems nobody is looking ahead. By the end of this decade it is projected that there will be a need for nearly 2 million new homes per year to handle the population growth in this country. The housing industry has never produced homes at that rat, and with the labor issues that were felt during the past housing boom, it is questionable whether those quotas can be filled.

Today, were on the brink of the next wave in housing. It will start as a trickle, but will gain momentum as the demand for new, energy efficient and sustainable homes continues to grow. When it happens (and no one is sure exactly when it will happen, just that it will) the door will close on individuals who are waiting for the media to give them the ‘all clear’ housing costs will continue to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and homes will become less and less affordable.

What all this means is that buyers who sell their homes today might get 8%-10% less than they would have gotten back in 2005, but the cost of new construction is currently down by nearly 20% from those same levels (but already climbing.) Sure, when the market recovers existing homes will regain their previous value, but they won’t keep up with the rising costs of new construction.

7.     Your needs have changed… and continue to change.

From the mid-1990s through 2005, the theme of the housing industry was ‘bigger is better’ Today, as the economy has shrunk back and society in general is taking a more sensible approach to all products, from automobiles to appliances, that is no longer the case. Just as we’ve given up our Hummers and SUVs for more practical and efficient vehicles, the ‘Mc Mansions’ of the past decade no longer fit the needs of socially-and environmentally-friendly families.

As mentioned, homes built today are much more energy efficient than those built even a few years ago. But that’s not all new ‘smart home’ innovations make today’s homes more livable and comfortable. Wireless technology has changed the way we live, and current homes that incorporate charging stations, media centers and home offices spaces have adapted to fit a new set of requirements. And, thoughtfully laid-out floor plans are actually giving more livability and comfort in less space.

 

8.     The sooner you build; the sooner you’ll enjoy your new home.

This may seem overly simplistic, but so many people are waiting for ‘permission’ from the media and others that they are overlooking one of the fundamentals reasons for building a new home: lifestyle. Today’s homes, more than at any time in the past, are extensions of how we live and who we are. For many of us, putting off the decision to build is tantamount to putting our lives on hold. And for those with the means and circumstances to move forward, acting now to build will return the highest value, financially and emotionally.

These points discussed here are common knowledge and common sense. No, there are no guarantees that the market will recover on schedule, or that some unforeseen event won’t cause another recession next year, or that there won’t be an energy crisis, another terrorist attack, floods in the Midwest or another hurricane. We don’t know what the future holds, other than that housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’ may be something our children only read about.

And that, if you want to realize your dream of owning a new home, there may never be a better time to act on that dream than right now.

Spring is the Air....Well we Hope!

Finally some sun...then rain, and ugh snow...What can you do with this weather?

How about Home and Garden shows? Home Improvement Magazines, garden books?   These are great inspirations to help us get through this moody weather.    Home and Garden Shows are my favorite, I have to say that I am sucker for them.   When you are thinking about your new home, it’s the perfect place to window shop, to dream a little. And to get inspired.   It’s also a great place to find out your style, find your price point.

This years’ home shows have been full of great new products.  And the word “Green” is everywhere and on everything.    Why?  Simply, it saves you money.   And with the way the economy is, they will do anything to keep your business.   Some may feel that its just a sales gimmick.   But fact is the Green movement is here and here to stay.   The Green movement has made companies take a second look at their products.   They have become more aware of their use on materials and resources and going back to basics, to make it healthier.  Innovation is what makes the green movement work, and it’s great to see companies think outside the box.  And you the consumer benefit from it.  

Big things at the home show were Solar panels, Wind turbines, which yes is a great investment but do your research.   Also product materials that last longer. Ceramic Roofing, recycled material for  decking.  Quality products.  I am happy to see that.

 So take the time to comparison shop, read the back grounds to the product.  Always make sure that the company is what they say, look for seals, labels, and accreditations.   Ask for testimonials, locations that you can visit.   As I went out to look, I have found some great companies that I can’t wait to share with you.  I will be doing the some of the research for you and post links for you to check out.   So happy looking and let me know what you find!   

Julie McClymonds

Homestead Oak - Heart Felt Thank You Letter from Mona and Duke

Duke and I are ordinary people who had a heart for children and I believe we have been a willing vessel for God to use. We have been so honored to have been chosen to care for the children sent to us over the years, we never have gone to an agency or had to look around to adopt or take in a child. It has always been by word of mouth and God’s choice to send and entrust to us his children. 52 years ago the scripture we received was in Leviticus 19:34 God says the stranger that dwells among you shall be one such as born to you and you shall love them as you love your own. We have been faithful to do so and God has blessed the children as they go into the world to make a difference in their own lives and the lives of others. We still have 3 young ones at home, ages 7, 11, and 12. We are now 75 and 73, HELLO, how did that happen? The years of joy have flown by and we give honor to God for He alone gives us health, strength, provisions, love and joy to do the work He willed us to do.

Our hearts are even more burdened for children as the world has become such a hard place in which to survive. It is so important to love your children and teach them to love others and teach them how they can make a difference in their own lives and the lives of others. Our world needs peace, love and joy which come from God within our selves. In our homes we need to build our children up in love for they face tough times in their schools and in this world so always let them know its not what you do but who you are.  “You are loved”, tell them every day. Yes, we have raised some 250 children, adopted many, not always as patient as we would have liked to be or could have done a lot of things different maybe, but we had a motto that we loved to give to the children:

“Not flesh of my flesh,

Nor bone of my bone

But still miraculously my own.

Never forget for a minute,

That you did not grow under my heart,

But in it.”

We are so humbled by Homestead Oak in blessing us we thank you and we ray God’s blessing to you as God says in His word In Luke 6:38 “Give and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use it will be measured to you.”

Thank you again In His love and ours,

Duke and Mona         

& all God’s children