2008 November « Fox Valley IL Real Estate

Archive for November, 2008

Green Building is Growing Despite Down Market

Published November 26, 2008 Real Estate Advice Leave a Comment
Tags: green building, growing

McGraw-Hill Construction, a part of The McGraw-Hill Companies, in partnership with the National Association of Home Builders (NAHB) National Green Building Program, released the full update to its 2006 study with 2008 green home building data. The new SmartMarket® Report, The Green Home Builder: Navigating for Success in a Down Economy, covers market opportunities, key triggers and obstacles, and trends in green home building practices from 2001 to 2007, such as the impact of the down market on this sector.

Major findings include:

Forty percent of builders find “building green” makes it easier to market in a down economy; 16% find it makes it much easier.
In 2009, 21% of builders expect to be building 90% of projects green.
Sixty percent of builders claim homebuyers are willing to pay more for green homes. This is greater than the opinion in 2006 (56%).
“Quality” is the top driver behind green home building, which is a shift from the top driver in 2006, “doing the right thing.” This seems to indicate that green homebuyers in today’s market are not just “green consumers,” but are also buying a green home for investment and performance reasons.
Fourteen percent of builders find today’s homes overall more than 30% more environmentally friendly than two years ago. 85% think that energy-efficient features are the ones making these homes more environmentally friendly.
Builders use products that lead to energy efficiency far more than other elements. In particular, they focus on air sealing/tight construction, increased insulation, water-efficient plumbing fixtures, and Energy Star products.
The region in the U.S. with the best growth in green building is the Pacific, followed by the South Atlantic and Mountain regions. The East South Central region has the lowest growth.

“Green building has definitely reached its upper tipping point,” said Harvey M. Bernstein, McGraw-Hill Construction vice president of Industry Analytics, Alliances and Strategic Initiatives. “Builders can no longer ignore the benefits and market advantages of green building. Especially considering today’s market and current economic situation, builders need to differentiate themselves from their competitors and hold steady or prosper in the down economy. Green building gives builders that opportunity to expand their market share and ride out this economic slump.”

“Education, training, advocacy and other services that NAHB offers its members help ensure that home builders and remodelers are prepared to go green,” said Bob Jones, NAHB vice chairman/treasurer and a Michigan home builder. “This survey clearly indicates that the market is moving toward more sustainable home building practices, and our members are ready.” The report also features special sections detailing government regulations, NAHB Green Home Rating Systems, and case studies on different types of green homes (e.g., customized, affordable, and large productions). Commentary on green-washing, product availability, brand awareness, and certification provides further background data and analysis of the market.

To order a copy of The Green Home Builder: Navigating for Success in a Down Economy, visit this link. Previous SmartMarket Reports also available online include Global Green Building Trends, Greening of Corporate America, The Green Homeowner, Green Building: Health Care, and Green Building: Education.

Written by Peter L. Mosca

Living in HOA Harmony

Published November 26, 2008 Real Estate Advice Leave a Comment
Tags: hoa

While conflict is inevitable in homeowner associations, we do have choices about how we are going to deal with it. When handled in a constructive manner conflict can be a catalyst for new awareness, new understanding, creative solutions and enhanced relationships.

However, when conflict occurs we don’t always deal with it in the most constructive way or we sometimes don’t deal with it at all. Conflicts rarely get better with time. Here are some suggestions for how to deal with conflict the next time it arises.

Speak Directly. Talk directly with the person with whom you have the problem unless there is a threat of violence. Meet face to face, or talk over the phone, to explain your concern in a positive, respectful manner. Direct conversation is much more effective than sending an anonymous letter, banging on the wall, or complaining to your friends and neighbors.

Plan What You Will Say. Think about what you want to say in advance. You will want to talk about the problem as you see it and how it affects you. You want to help the other person understand that a problem exists and invite them to help you find a solution that you can both live with.

Choose a Good Time. Choose to talk with your neighbor when there will be enough time for a thorough discussion. Consider a time when you think the other person will be most receptive. A quiet place where you won’t be easily disturbed can make it easier to talk and listen.

Speak Openly and Honestly. Have a positive attitude about working together to find solutions. Using unfriendly language or blaming the other person for everything makes it harder for him or her to hear you and understand your concerns. Remain open to hear a different perspective than your own, seeking to understand before being understood.

When you talk: Focus on Giving Information. Discuss your concern with a focus on your feelings regarding the situation and how it affects you, not delivering a message.

Listen. Give the other person a chance to explain their view, describe their own concerns, and share their own feelings. Relax and try to understand how the person feels about the situation. Summarize what you hear and ask questions to clarify your understanding of their view of the problem. Understanding the other person’s perspective does not mean that you are agreeing with them. However, in order to find a solution you must have a complete picture of the problem.

Talk it Through. Once you start, get all the issues and feelings out in the open. Don’t ignore the part that seems too “difficult” or “minor”. Your resolution will be durable if everyone’s issues and needs are considered and addressed.

Consider Possible Options Brainstorm some solutions that might remedy the problem. Be creative in thinking up solutions but don’t critique them until you have run out of ideas. Discuss the solutions that you both think might work. Two or more people cooperating to find a creative solution are much more effective than one person demanding that the other make a change.

Be Clear and Specific About a Solution. Play it SMART (Specific, Measurable, Achievable, Realistic and Timely). For example, “Beginning tomorrow, I will bring my dog in at 9:30. If I forget, please call me to remind me.”

Follow Through. Agree on when and how you will check in with each other to make sure that your agreement is working, and then do it. Communicate immediately about any changes, or if your solutions are not having the desired result. Congratulate yourselves on working together to resolve the problem.

Information provided from the City of Beaverton Oregon Dispute Resolution Center. For more innovative homeowner association management strategies, see Regenesis.net.

Written by Richard Thompson

Home Sales Picking Up Tempo

Published November 25, 2008 Real Estate Advice Leave a Comment
Tags: home, increasing, picking up, real estate, sales

Here’s a key question about the current market: Do you look at home prices to figure out where we are in the real estate recovery cycle, or do you focus on sales?

In an economy where an estimated 35 to 40 percent of all home transactions are foreclosures or short sales – distress situations in other words — prices won’t really guide you much beyond the conclusion that: We’re still “correcting” the excesses of the boom years, still peeling back those wild and unsustainable hyperinflationary price run ups.

So it’s no surprise that median prices are down, year to year, in a majority of large markets across the country.

Sales statistics, on the other hand, tell you how fast buyers are responding to those lower prices — and greatly improved affordability.

Right now, in market after market, sales are picking up tempo — especially in places where prices once spiraled out of control.

Third quarter sales of existing homes in the U.S. were up by 2.6 percent over second quarter 2008 levels, according to the National Association of Realtors’ latest study.

That’s not spectacular — but let’s face it: It’s forward movement … and we’re in a recession.

In the Western states, sales were up by 13.1 percent in the third quarter! In Florida, sales jumped by 5 percent from year earlier levels, while median selling prices were down by 20 percent.

In a majority of Florida’s metropolitan markets, sales were up, year over year. For example, Orlando sales were 10 percent higher this October than the year before. Sales were up strongly as well in hard-hit Ft. Myers and much of the west coast of the state, and Fort Lauderdale, north of Miami.

Similar recent upturns in sales are occurring in many of the California markets where prices have plummeted during the past two years.

No question that a high proportion of these sales are distress situations.

But that’s what the bottom of a real estate cycle looks like: Value-savvy buyers see the opportunities, move in and mop up the mess left over after the big party.

Happily, in this cycle, they’re getting real help from the capital markets: Mortgage money is at historically-attractive low levels, and is readily available to anyone with a downpayment and reasonable credit.

Rates fell again last week to an average 6.16 percent for 30-year fixed loans, according to the Mortgage Bankers Association, and to 5.87 percent on average for 15 year loans.

If you can spot the opportunities — and have the resources — it’s not a bad time to be a buyer.

Written by Kenneth R. Harney

Embracing Feng Shui at Home

Published November 25, 2008 Uncategorized 1 Comment
Tags: feng shui

In uncertain times such as these, many families find themselves frazzled by the stresses and pressures of everyday life. The one place where people should feel most at peace is in their home.

Home is where we retreat to after the days work to rest and recharge. But for many people, the home is less of a safe-haven and more of a mess, and that’s where Feng Shui can help.

Feng Shui is an ancient Asian art that began in China with the Tang Dynasty and dates back at least 3000 years. The basic principles are intended to help people live more balanced and harmonious lives.

In fact, many famous folks like Donald Trump, Oprah Winfrey and Steven Spielberg actively practice Feng Shui in their homes and offices.

Feng Shui focuses on a balance between the Yin and Yang, which are masculine and feminine energy, and the five elements of fire, earth, metal, water and wood. It can get a bit complicated since there are about nine schools of Feng Shui all of which offer different interpretations of the art. Basically it’s an intuitive art, so as you’re remodeling or redecorating really listen to your instincts as to what feels natural and comfortable to you.

The front door of the home is considered the “Mouth of the Chi.” Chi is positive energy; keep that in mind as you choose your paint color or plant choices. Because this is the first place you and others will walk through to enter the home it’s very important to give off a welcoming and calm air.

The living room is another important area because that’s where families spend so much of their time. In this room it’s all about promoting an easy flow of positive energy. First, de-clutter the room; when things are neat and tidy it’s easier to feel at ease in the space. As far as furniture goes, less is more in Feng Shui. Arrange what is needed in a comfortable layout, preferably in a circular pattern rather than having most of the furniture against a wall or corner.

Mirrors are great to incorporate in the living room as they tend to give the illusion of more space. But when you are hanging mirrors be aware of what that mirror will be reflecting. It should be something beautiful like a plant, or a piece of art hanging across the room. As far as lighting, brighten it up. Make sure that the light is even throughout and there are no dark corners.

The kitchen isn’t just the room where everybody ends up at parties and gatherings; it’s also considered the heart of the home because that’s where food is prepared which helps sustain life. According to Feng Shui principles, the kitchen should be light and bright with full spectrum bulbs. White is a preferable color to use in paint and décor as it stands for purity. Just like every other place in the home, Feng Shui dictates the kitchen to always be kept clean and tidy, free from clutter. And all appliances should be in good working order.

In Feng Shui the bathroom represents cleanliness, comfort and convenience. Earth color tones are ideal to use in this space to compliment the element of water which is already present. Although in traditional Feng Shui the bathroom doesn’t hold great significance, it’s still important to create a clean, inviting space you can unwind in. Incorporating luxurious items like scented candles and fluffy towels can help to create a tranquil setting.

The bedroom is one of the most personal and private places in the home and therefore requires careful attention. To create a balanced and relaxed environment in your bedroom try painting it a pastel shade, put dimmers on the lights so that you can adjust the mood, and take out the TV. To achieve a restful nights sleep invest in a good mattress, use high-quality natural fiber sheets and balance the bed with nightstands on either side.

These simple suggestions just brush the surface of true Feng Shui design elements. But with just a few changes here and there you just might enhance your family’s Chi.

Written by Tara Darby

St Charles IL Real Estate Market Trends

Published November 24, 2008 Real Estate Advice Leave a Comment
Tags: conditions, fox valley, illinois, kane county, market, real estate, st charles, statistics, trends

There are currently 736 single family and townhomes listed for sale in St Charles. The average home is priced at $416,950. Closings are down 27% with 512 YTD. The median sale price of $361,000 is up 7% from last year. Market time is up 23% over last year with the average home being on the market for 179 days. This information was pulled from the Multiple Listing Service of Northern Illinois on Monday, November 24th, 2008.