Residential Topics

Austin -- HomeAway, Inc., a large international network of vacation rental websites, has announced its acquisition of EscapeHomes.com, a 10-year-old online marketplace that connects buyers and sellers of second homes and resort real estate.

The acquisition means HomeAway now provides comprehensive services for second home owners for the lifecycle of their properties.

Through its vacation rental sites, including HomeAway.com, VRBO.com, Holiday-Rentals.co.uk, Abritel.fr and FeWo-direkt.de, HomeAway has already streamlined the process for homeowners to easily and affordably advertise their vacation rental properties. With EscapeHomes, HomeAway significantly expands its offerings, providing owners the tools to research and find real estate professionals who specialize in second homes and their dream vacation, investment or retirement home.

“The purchase of EscapeHomes was a natural next step for our business, making HomeAway the only company specializing in second homes throughout the entire ownership process,” says Brian Sharples, CEO of HomeAway.

Second home sales accounted for a third of existing and new home sales in 2007, according to the National Association of Realtors.

“HomeAway is excited to apply our expertise in and commitment to providing owners the best and most trusted resources to the second home real estate market,” says Sharples.

A redesign of EscapeHomes.com is currently underway. However, the site will continue to feature the popular profiles of real estate agents, detail-rich descriptions of locations, second home lifestyle advice and decision support tools.

As part of its relaunch, EscapeHomes invites real estate agents to participate in its “Open House” program to receive a free subscription to the site and immediately benefit from its exceptional search engine rankings. This limited-time offer allows agents to create a personalized agent profile and feature unlimited vacation property listings.

EscapeHomes was founded by highly-respected real estate veteran Clark Thompson. Recognizing the Internet could streamline the time-consuming and costly process of finding a second home and locating qualified agents in remote destinations, Thompson founded the company to make the search for a second home easier.

EscapeHomes is led by a team of second home and vacation rental industry veterans from HomeAway’s Austin, TX headquarters. The terms of the acquisition were not disclosed.

The HomeAway, Inc. websites connect homeowners and property managers with travelers who seek the space, value and amenities of vacation rental homes as an alternative to hotels. With more than 284,000 global listings across the sites, travelers may easily search for budget to luxury-priced vacation rentals on HomeAway.com, VRBO.com, VacationRentals.com, CyberRentals.com, A1Vacations.com, GreatRentals.com, TripHomes.com, Holiday-Rentals.co.uk, OwnersDirect.co.uk, FeWo-direkt.de and Abritel.fr. The sites also feature Reviews and the HomeAway Rent with Confidence Guarantee, which help ensure a memorable HomeAway from home® experience. HomeAway is headquartered in Austin and funded by Austin Ventures, Redpoint Ventures, American Capital, Institutional Venture Partners and Trident Capital.

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The idea for an affordable housing design competition grew out of the
Housing Texas meeting held in San Antonio in 2005. In the wake of
the devastation of Hurricane Rita on low income Texas communities the
design competition was directed at homes that are affordable to
low-income hurricane survivors seeking to rebuild. Housing Texas
member Tom Hatch took the lead in coordinating the design competition
with the Texas Society of Architects.

"The 'Texas Grow Home' concept represents an entirely new approach to
disaster recovery. More than two years after Hurricane Rita, tens of
thousands of Texans are still living in severely damaged homes. Their
situation proves that we need a new approach to rebuilding homes,"
said John Henneberger, co-director of the Texas Low Income Housing
Information Service. "Rather than spend up to $70,000 to house people
for months in a temporary FEMA trailer, we should use those funds to
get devastated families into a quality, permanent home."

Eighty-one teams of Texas Architects submitted designs. This
represents thousands of hours of Texas architects' time donated to
improving the way government helps low-income victims of natural
disasters. The winning designs offer disaster survivors a range of
choices from traditional to modern to straightforward to innovative,
all with attention to affordability, sustainability, and efficient
delivery following a natural disaster. Housing Texas, the Texas Low
Income Housing Information Service (TxLIHIS), Texas Society of
Architects, Texas Department of Housing & Community Affairs, Covenant
Community Capital, Chase Bank, Marquette Financial Services, the
Houston Endowment and the Foundation for Expanding Horizons sponsored
the competition and exhibition of the designs.

the creativity these architects have shown." said Michael Gerber,
TDHCA Executive Director. "We are proud to finance the building of
these three homes, which will help several Southeast Texas families
with their recovery. We are also proud to partner with the Texas Low
Income Housing Information Service and their team to develop new
housing ideas for when a hurricane or other natural disaster strikes."

The winning designs will be constructed in Southeast Texas by
Covenant Community Capital as prototypes, and sold with state-funded,
zero-interest mortgages to three low-income families whose homes were
destroyed by Hurricane Rita.

and these ommitted professionals for their role in this
forward-thinking project," said Linda McMahon, Chase Bank's Southwest
Region Manager for Community Development. "Grow Home will ensure that
when disaster strikes, Texas will be prepared to house families
quickly in a high-quality, affordable home."

Each home will be a total of 1,100 sf. The homes will consist
of two modules: the core module will be a minimum of 700 square feet
and contain a living area, bath and two bedrooms. The 400 square-foot
second module will contain an additional bedroom and bath. The first
module will be erected in the days immediately following a disaster
instead of a FEMA trailer, providing a new, permanent home for
families who lost their homes. The second module will give families
the opportunity to expand their post-disaster core home into
something larger as time and their finances permit. The two-bedroom
core module is designed to cost $54,000. The one-bedroom, one-bath
addition would cost $23,000.

The National Association of Realtors supports President Bush's plan to provide at-risk homeowners with special mortgage refinancing through FHA. "The National Association of Realtors strongly commends President Bush for his leadership in proposing a set of policies designed to ease the crisis in the mortgage industry and halt the rapidly increasing rate of foreclosures affecting many American families today," said Pat V. Combs, president of NAR. "The proposed changes will allow more people to refinance with FHA insurance, like those that have fallen behind in their mortgage because of so-called “exploding ARMs.” Many families who have been making their mortgage payments at the starter rate but were unable to keep them up after the loan reset have been unable to refinance through the FHA, but with this increased flexibility, FHA can now help many more families in jeopardy of losing their home."

Editor's Note: The following series of stories, first published in a special edition of Texas A&M RECON report (Real Estate Center Online News) provides a wrap-up of the recent International Builders Show in Orlando, Fla. News writing credits to the Real Estate Center at Texas A&M.

ORLANDO, Fla. (NAHB) – Any way you look at it, the International Builders Show (IBS) is big. In fact, the show has grown so large that many cities cannot host it any more. Not many warm-weather cities have 50,000 hotel rooms and one million square feet of exhibit space. Some 100,000 attended this year's show — the equivalent of all residents of Boulder, Colo., coming to town.

Those wanting to see all 1,900 exhibitors needed to wear comfortable shoes and walk 11.5 miles up and down the aisles of the exhibit hall. That is equivalent of walking every square foot of the landmark Chrysler Building, a 77-story New York City skyscraper. This year’s show had 450 new exhibitors. Products spanned 300 categories ranging from residential and light commercial to construction.

ORLANDO, Fla. (NAHB) – For the first time in 24 years, two official showcase homes were unveiled at the International Builders Show (IBS). In addition to The New American Home, which has been a traditional showpiece since 1984, the 2007 show also had The Renewed American Home. The homes were built on adjacent lots in a historic district near downtown.

The New American Home is designed as a real-world laboratory with the latest theories and concepts in architectural design, product development, construction techniques and lifestyle trends. The National Council of the Housing Industry/Supplier 100 co-sponsors construction of the show homes along with Builder Magazine.

This year’s home illustrates how builders could revitalize an older neighborhood. Both homes are built on urban infill sites. While the New American Home was built to add a contemporary flair to the historic neighborhood, the Renewed American Home demonstrates how today’s technologies and building advances can update older homes.

Both homes have the latest in universal design, energy efficiency and cutting-edge technology, including extensive use of low-voltage systems such as home-run structured wiring and whole-house lighting control, entertainment and security. Both homes have been certified “green” by the Florida Green Building Coalition and are Energy Star rated. The New American home includes a photovoltaic system, impact-resistant windows, a generator and a cistern that collects rainwater for landscape irrigation.

The 2007 New American Home is a three-story urban loft boasting 5,800 square feet of living area and a 576-square-foot suite above the two-car garage. There is a roof plaza, courtyard and swimming pool. The home was inspired by the national trend of homeowners leaving the suburbs to live in urban areas to be within walking distance of restaurants, parks and entertainment venues.

Originally built in 1909, the Renewed American Home is a blend of Victorian, coastal design and bungalow. The renovation more than doubled the home’s size. The historic home has modern luxuries, four bedrooms, five and a half baths, structured wiring, security, multizone audio, lighting control and flat panel displays. A basement was added with a wine cellar, exercise room, laundry suite, gift-wrapping station and game room.

ORLANDO, Fla. (NAHB) – Nothing lasts forever, including our homes. However, some parts of our homes last longer than others. A recent study by the National Association of Home Builders (NAHB) and Bank of America Home Equity provides insight into the life expectancies of certain home products.

According to the study, properly installed insulation can last a lifetime as long as it is kept dry and not damaged. A coat of paint can be good for upwards of 20 years, depending on the quality of paint and its exposure to the elements. Aluminum windows can last 15 to 20 years, while wood windows can last up to 30 years.

The longevity of roofs also depends partly on materials used. Slate, copper, clay or concrete roofs can last more than 50 years, asphalt roofs more than 20 years, fiber cement shingle roofs about 25 years, and wood shakes about 30 years.

“Usage, weather and a number of other factors can influence life expectancy,” said NAHB Staff Vice President for Research Gopal Ahluwalia at this year's International Builders Show. “Moreover, homeowners often replace materials long before the end of their expected life span due to personal preferences and changing trends.”

ORLANDO, Fla. (NAHB) – A new report from the National Association of Home Builders' (NAHB) 50+ Housing Council, presented at this year's International Builders Show, predicts that 40 percent of all households will be headed by someone 55 or older by 2012.

The number of people age 55 or older is expected to hit 85 million by 2014. The number of households in the 65–74 age bracket by itself will grow by 4.5 million between 2005 and 2014, an increase of more than 38 percent in only ten years.

The annual 55+ estimates are generated by applying the American Housing Survey percentages to NAHB’s forecast of housing activity for calendar year 2007.

ORLANDO, Fla (NAHB) – Is the condominium market here to stay or is the current slowdown in some markets signaling the end?

Condominium starts accounted for almost half of the more than 350,000 multifamily starts in 2005, an increase of about 30 percent from 2003. Speculators have driven demand for the past three years, creating excess inventory in markets such as Florida and Las Vegas.

According to Bill Donges, CEO of the Lane Company, demand for condos will continue driving the market because today’s buyers want to live close to work, transportation, entertainment and retail.

Bernie Markstein, National Association of Home Builders’ (NAHB) senior economist, said the long-term forecast looks for condominium starts to account for about 30 percent of the overall multifamily starts, a sustainable figure.

NAHB 2007 Multifamily Condo Buyers Survey results show that two-thirds of condominium dwellers own their units, with over half of owners being repeat purchasers. The typical condo dweller’s median age is 49 and earns around $40,000. Single females occupy most condos (32 percent), single males are a distant second (20 percent) and married without children are next (17 percent). The average unit is over 30 years old, has two bedrooms and one bath, is part of ten or more units built together, and is considered a primary residence.

“Condominiums remain an active, viable segment to the housing market. A great location, a distinct product, and a good price point for your market are critical to a condominium community’s success,” Donges said.

ORLANDO, Fla. (NAHB) – Three members of the National Association of Home Builders (NAHB) are helping lead the home-building industry toward a greener tomorrow, and their resource-efficient homes have features all homebuyers can incorporate.

Ferrier Custom Homes of Fort Worth made green affordable with Heather’s Home. Comfortable yet cutting-edge — and with a monthly utility bill of only $15 — the home includes low-flow faucets, dual-flush toilets, compact fluorescent lighting, structural insulated panel walls and the latest heating and air-conditioning systems. It was also built using passive solar design techniques, including overhangs to block the sun.

In 2005, the Home Builders Association of St. Louis and Eastern Missouri launched a green building program based on NAHB’s Model Green Home Building Guidelines. Since the program’s inception, more than 20 homes have been built according to the guidelines, and another 70 are either under construction or on the drawing board.

Pardee Homes of Los Angeles is enjoying increasing success with its “Living Smart” program, which incorporates features that are environmentally sensitive as well as energy conscious into new home developments. The company also has model homes that demonstrate the benefits of green homes and show what the homes will look like.

“Consumers want to go green, but they also want choices, and they want to make sure that any additional costs are paid back in a reasonable amount of time through energy bill savings,” said NAHB Green Building Subcommittee Chair Ray Tonjes at the International Builders Show. “These builders show that NAHB members are taking the lead, and that voluntary programs are the most cost-effective, yet innovative way to go.”

ORLANDO, Fla. (NAHB) – What’s in store for home design in 2015? Thanks to a recent study conducted by the National Association of Home Builders' (NAHB) Economics Group, visitors at the International Homebuilders Show did not need a crystal ball to find out.

Average home size is likely to stay in the range of today’s 2,400 square feet, and homes are likely to be two-story rather than one-story. They will be greener and more resource-efficient, and there will be a stronger emphasis on universal design and handicap access.

Kitchens and bathrooms will continue featuring upgraded materials and appliances, and more consumers will prefer recessed lighting and wood floors. Three-car garages with larger garage door openings will also become more popular.

Finally, there will be a definite trend toward outdoor living. An increasing number of high-end homes will come with outdoor kitchens, outdoor fireplaces, pools and spas, and outdoor home entertainment equipment.

Editor's Note: Special thanks to David S. Jones of the Real Estate Center at Texas A&M University for this coverage of the home builders convention.

Wayne Murray, president of Houston based Weichert Realtors - Wayne Murray Properties, has announced the company’s expansion through an agreement to purchase the business of Weichert Realtors - Reichardt & Associates, located at 301 Commerce Green Boulevard in Sugar Land.

The acquisition “greatly increases our ability to serve the community,” Murray said. “Everything’s the same except that a two-office company now has a larger sales team working together with centralized leadership to serve a greater market.”

In 2004, Murray’s 17-year independent agency was the first Texas company to become a franchise of Weichert Real Estate Affiliates, Inc. Weichert launched its first franchise in January 2002 in Jupiter, Fla., and now has some 300 signed affiliates in 29 states, 10 of them in Texas.

The full-service organization includes mortgage and insurance services, a commercial and investments division, a new homes and land division, an award-winning Internet lead generation platform, and a multinational relocation company .

Weichert has nearly 18,500 sales associates in more than 480 company-owned and franchised sales offices in key markets throughout the U.S. Each Weichert franchised office is independently owned and operated.

The popular Ask George & Chuck real estate column is linking with the Texas Association of REALTORS® on its consumer Web site, TexasRealEstate.com, to make the realty advice column available to more consumers via the Internet.

Members of the Texas Association of REALTORS® will be able to offer the Ask George & Chuck column on their company Web sites. The program is part of a growing trend where consumer-friendly content is being offered on realty company Web sites.

The Ask George & Chuck column is one of the most well-read realty columns in the nation, appearing in major publications including the Houston Chronicle, Realty Times, and TexasRealEstate.com. The column answers readers' questions dealing with everything from the fine points of home buying negotiations to how to disclose defects in a home for sale. Since the column began, thousands of consumers have submitted questions in search of wisdom in the complicated world of real estate.

The column's writers are two of the most experienced realty experts-- George C. Stephens and Charles "Chuck" Jacobus.

Stephens, a REALTOR® for 25 years, holds real estate broker licenses in Texas, Georgia and Massachusetts. He is a Texas-licensed mortgage broker. Stephens is co-author with Jacobus of Texas Real Estate Brokerage and Law of Agency, a textbook for realty agents.

Jacobus, an attorney, is Board Certified by the State Bar of Texas Board of Legal Specialization in both Residential and Commercial Real Estate. Jacobus, author of several real estate textbooks, is former president of the Real Estate Educators Association.

The publication agreement with the Texas Association of REALTORS® will expand the availability of the Ask George & Chuck column. Texas real estate firms and their agents who are part of the 87,000-member association will be able to paste RSS (Really Simple Syndication) code on their company Web sites, enabling their customers to view the column. The RSS process will allow consumers to view and access news and columns from the association's Web site, TexasRealEstate.com.

Real estate companies are rapidly enhancing their Web site offerings to appeal to consumers. Judging from preliminary feedback, it is anticipated that before the end of the year a significant number of Texas realty firms will feature the Ask George & Chuck column on their Web sites.

By Glenn Roberts Jr.
Inman News

Prudential Real Estate Affiliates is launching a new service that allows home sellers to monitor virtual visitors to online property listings.

Prudential real estate agents can subscribe to the new program, called Online Seller Advantage, which allows them to provide detailed Web traffic statistics to their clients.

The statistics, based on online property searches at Yahoo! Real Estate and Prudential.com sites and local property data, describe how often a client's property appeared on search results; how often the property was viewed in a detailed format; how many viewers saved the property information; and discusses price changes of homes in the immediate neighborhood and status changes of other for-sale properties in the area. Clients also receive information about new property listings in the area.

Russell Capper, president of Prudential Real Estate Services Co., an e-commerce subsidiary of Prudential, said that the new program has been tested for several weeks by a group of about 600 agents, and the company formally announced the program today. Prudential did not announce the cost of a subscription to this new program. Capper was a speaker at the recent National Association of Real Estate Editors conference in Charlotte, NC.

Consumers whose agents participate in the program receive daily e-mails about Web statistics. Agents also will have the option to purchase an attachment to a for-sale yard sign that features a unique identification number that consumers can enter at the Yahoo! Web site to view property information.

Agents can post this number in fliers and other marketing materials, and Prudential has plans to integrate the Web identification system with wireless Internet-capable devices so consumers can receive on-the-spot information about these properties.

Yahoo! Inc. and Prudential in 2004 announced an exclusive agreement through which Prudential brokers supply property listings for display at the Yahoo! Real Estate site while drumming up Web traffic for Prudential Web sites.

Capper, who founded eRealty Inc., a real estate technology company that Prudential acquired in 2004, said the new program was conceived during the eRealty days. "Most of the interest and activity involved in the Web in real estate was really focused on the buyers. We often thought there were all sorts of advantages that the Internet could offer to sellers that were being ignored until now," he said.

Prudential launched an online platform in 1999 that connects consumers and real estate professionals, and this platform is now active through Prudential Real Estate affiliates in 47 states and Washington, D.C., and offers access to about 2 million property listings across the country. The Prudential network has about 1.3 million buyers who have registered with the company, and the company monitors buyer search activity through its Internet platform.

Capper said the Online Seller Advantage program can be a good tool for listings presentations, and it's also a good way for agents to keep in touch with existing clients. The daily e-mails, he said, include interactive links so that clients can view more detailed statistical information. And consumers who are working with agents in the test group have responded well to the new program, he said.

"It's a good opportunity to demonstrate a commitment to the modern digital consumer," he said. "The world is digital now. I've often contended it's the consumer base that has been ahead of the Realtors for quite some time. I've always been an advocate of maximum information and fresh information because that's what the consumer wants and needs."

Aaron Lewis, a real estate agent with Prudential California Realty in Turlock, Calif., said in a statement that the new program helps to inform clients about local market conditions. "Sometimes, the sellers' perspective of their property's value is different from what the market will bear. The ... e-mails they receive daily provide hard evidence to support my recommendations on staying competitive," Lewis stated.

Another agent using the program, Trudy Van Horn of Prudential Shimmering Sands Realty in Panama City Beach, Fla., said in a statement that the program "takes a big burden off me because my sellers are able to stay informed without my having to call them as often."

And Earl Lee, president of Prudential Real Estate Affiliates Inc., stated, "Until now, technology tools offered to sellers were limited to virtual tools and other visual online listing enhancements."

Prudential has about 2,000 franchise real estate offices and about 64,000 sales professionals in its franchise network in the United States and Canada.

Visit www.inman.com for more real estate articles

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Who's Building What

By Jessica Swesey
Inman News

CHARLOTTE, N.C. -- Less than one month before hurricane season begins in the Gulf Coast region there are still thousands of families who were displaced by Hurricane Katrina last summer living in mobile homes that are neither secure nor permanent.

Housing rehabilitation and design experts say that while mobile homes were the wrong solution to Katrina's wrath, which destroyed or severely damaged some 500,000 homes, they now pose a new problem as this year's storm season gets underway.

"People in mobile homes are in a transition where they are not in an emergency (situation) but still are not moving forward with their lives either," said New York architect Marianne Cusato, principal of Marianne Cusato Architects. Cusato was a speaker at the recent National Association of Real Estate Editors conference.

Cusato's proposed alternative to the trailers dispersed by the Federal Emergency Management Agency is to build 300-square-foot cottages that later can be integrated into the resident's permanent housing. The cottages, which are more attractive than emergency trailers, can be built for less than $35,000 and constructed much faster.

The cottages can be site built by individual contractors or factory built and delivered to the site prefabricated, and there are several design options.

The design for the Katrina Cottage was first unveiled at the Mississippi Renewal Forum last fall and it was showcased at the National Association of Home Builders' International Builders Show in January in Orlando, Fla.

The Katrina cottage is still an idea at this point, Cusato told reporters last week, and it was created to start a dialogue about a better solution.

"A lot of possibilities were born out of this tragedy," she said, including a new way of thinking about affordable housing.

Cusato believes her cottage prototype can create more dignified affordable housing options that may be similar to Sears Roebuck mail-order homes from the early decades of the 1900s.

While showing the cottage prototype at a recent home builder event, she said, many people were impressed with the space and said they'd like to vacation in one. Cusato resisted the idea at first, but later realized that if people found the home inviting and attractive it could mean that emergency and affordable housing for once could shed its long-held image of low-level housing.

The architect expects the first cottage to be ready for a Gulf Coast family to move in this summer.

Meanwhile, Habitat for Humanity has already begun constructing new homes, though the number pales in comparison with how many are needed.

More than eight months after Katrina hit, about 300,000 families are still without homes, said Ken Meinert of the Habitat for Humanity. In that time, the grassroots housing organization has boxed and shipped 195 homes to affected areas and has more than 200 homes scheduled for assembly and shipment.

About 195 more homes are under construction in the Gulf Coast, Meinert said.

Some of the challenges Habitat for Humanity has faced in helping families rebuild, he said, are problems acquiring buildable land, changes with building codes and flood-plain elevations and finding volunteer housing.

The organization, which has built more than 200,000 houses around the world, aims to build 1,000 homes for Katrina victims by summer 2007 and continue with long-term building efforts as long as funding and resources allow.

Each year the National Association of Realtors works with Habitat for Humanity on a local home in the city where the trade group holds its annual convention. This year, NAR will meet in New Orleans and plans to announce some opportunities for Realtors to collaborate with Habitat building efforts, according to an NAR spokesperson.

Even as groups like Habitat have moved along in helping families rebuild their homes and lives, many officials still argue whether rebuilding in the storm-ravaged Gulf Coast makes sense long term.

Ed Olsen from the University of Virginia has compiled information on available rental housing units and found that the vacancy rate was at a historic high when Katrina hit - especially in the South. Cost-wise, placing families in these rentals makes more sense than continuing to house them in hotels and mobile homes, he found.

"My conclusion was that we should provide (the poorest) families transportation to another area and Section 8 vouchers so they could start their lives somewhere else," said Olsen, who studies low-income housing.

More than 1 million rental units in the South rent for less than $700 per month, Olsen discovered.

"Using the existing stock of rental housing would've save billions of dollars," Olsen told a group of reporters on Friday, adding that evidence also points to housing vouchers as a better solution than construction. And even top officials at FEMA have come to this conclusion, he said, albeit too late.

"Construction programs do not perform better than housing vouchers in any respect," he said.

Visit www.inman.com for more real estate articles

Drawn to the American dream of homeownership - yet unfamiliar with U.S. real estate practices and wary to report abuse - Latinos are twice as likely as other groups to be targeted by a growing wave of predatory lending and other real estate con games.

To help Latinos avoid falling victim to real estate scams, www.CasaNuevaHouston.com has posted a "Home Buyers Bill of Rights" that highlights the most common abuses.

Unfortunately, there has been no shortage of real estate con games aimed at Latino home buyers. Widespread examples include:

· Fictitious fees, including unethical real estate agents charging hundreds or thousands of dollars just to look at homes. In the United States, agents are paid by the seller, not the buyer, and payment occurs only at closing.

· Padding loans with inflated and unauthorized charges. There have been reports of predatory lenders charging up to 10 points to originate loans, while the standard origination fee is 1 point.

· Channeling borrowers into loans with much higher interest rates, even when they would qualify for a lower rate.

· Selling properties for more than their market value and covering up major structural problems.

· "Bait and switch" tactics that stick buyers with much higher interest rates, prepayment penalties and other onerous terms. Predatory lenders often do everything they can to force buyers to default, so they can resell the property to more victims.

CasaNuevaHouston.com decided to create the "Home Buyer's Bill of Rights" when its founders kept hearing stories of predatory lending and other real estate scams from consumers and real estate agents in Houston's Latino community.

"Latinos are quick to embrace the American dream of homeownership, because in most Latin American countries, mortgage lending as we know it doesn't exist," said Anita Sparks-Bohn, a founder of CasaNuevaHouston.com. "This eagerness creates a wide opening for scam artists, especially when combined with a language barrier and a general lack of understanding about the home buying process."

Sparks-Bohn said creating a "Home Buyer's Bill of Rights" was a logical step for CasaNuevaHouston.com, launched in 2005 to help educate Latinos about the home buying process in Houston and other cities. A San Antonio version, CasaNuevaSanAntonio.com, was launched in 2006.

Some of the rights described in the "Home Buyer's Bill of Rights" take direct aim at preventing abuses such as those described above, while others are designed to improve understanding of opportunities available to Latino home buyers who may or may not be U.S. citizens.

For example, many Latino buyers may have the right to purchase a new home in the United States even if they do not have a Social Security number, lack traditional credit, or receive part of their income in cash. Some buyers may also be eligible for programs that provide assistance with down payments and closing costs.

"When more Latino home buyers understand their rights, options and opportunities, they will hopefully be less likely to be taken advantage of," said Sparks-Bohn.

The complete "Home Buyer's Bill of Rights" can be found at www.CasaNuevaHouston.com.
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    It's rare that a property owner can avoid paying the penalties, O'Connor said. However, exceptions to the penalties may exist when:
     1. The value has not been certified, or the billing process has not been completed. (In December 2005 there were more than 30,000 Harris County accounts that still had not been either valued or certified and for which owners will likely not be required to pay tax bills by the end of January.)
     2. An act of omission or error by an officer and employee of an appraisal district or tax entity causes an error and the property       owner pays the tax bill within 21 days of when he knew or should have known of the delinquent taxes.
     3. The tax bill is not delivered to the owner even though the appraisal district had the address via either the property owner or via the deed. This exception expires if the property owner does not inquire about the missing tax bill within 181 days of the delinquency date.
     4. A property owner goes ahead and pays any undisputed amount of taxes while an appeal is pending. This could be either an administrative appeal such as a 25.25.c or 25.25.d or a lawsuit appeal in a statedistrict court.

    "Despite those circumstances that warrant a waiver on penalty and interest it is a tedious, difficult and time-consuming process to obtain a waiver," O'Connor said. "Prudent property owners will ensure all taxes are paid timely, even if the appraisal district or tax entity makes an error in sending a bill to the wrong location. Most commercial property owners maintain a reference list of properties and their corresponding taxing entities to ensure all bills are received and taxes are paid timely."

Q: Mr. Stevens, what's in store for the real estate market in 2006?
A: For the most part the real estate market around the country is still very strong. We started to see certain areas where there is a little softening. But we couldn't continue to keep at that pace we'd been going with home appreciation at 15 and 20 and 25 percent. We need to be in a little more steady market. I think we are going to be in a little bit of a correction and I think that's going to be good. It will be a steadier market with the prices not jumping as high. More people will be able to afford housing.

Q: So there will be fewer homes sold in 2006 than in the record-setting 2005?
A: If 2006 is the second best year we've had, it will still be a great real estate market.

Q: President Bush's panel on tax reform has introduced the possibility of altering the mortgage interest rate deduction. What is your opinion?
A: We are waiting to see what the White House comes out with as far as a proposal. But we think even discussion of tinkering with the deductibility of mortgage interest can really hurt the real estate market and the consumer. Some of the things we are hearing about is taking away the mortgage deduction and turning it into a tax credit. For the typical consumer out there it could be about a $30,000 difference in the value of their home. We think it is going to drive prices down.

Q: So if the mortgage deductibility were changed it would have a direct impact on housing values?
A: No question about it.

Q: A lawsuit has been filed by the U.S. Department of Justice regarding NAR policies on home listings being displayed on the Internet. Can you comment on that and what the suit could mean to the real estate industry?
A: This is a major decision that will occur as a result of the Justice Department action. It's basically going to say who owns that real estate data. Our brokers go out and work hard to create that business. We feel very good about our position.

Q: If the outcome of the lawsuit is not favorable, the NAR general counsel contends that it could lead to major real estate brokers withdrawing from the MLS. Do you view that as a possibility?
A: I think large brokers would be pulling out. They wouldn't want what they've worked for -- their inventory -- to be given away. I kind of look at it just as a grocery store. The grocery store has its inventory on its shelves and basically they are saying someone can take it and sell it themselves. That's not the way, I don't think, businesses should operate.

Q: What impact have the recent hurricanes had on the real estate market?
A: So far in those coastal areas, Baton Rouge and those nearby areas, the immediate impact has been they have sold a lot of houses. People are buying houses sight unseen because they know they are not moving back.Their homes are gone. So there has been an increase in housing sales in the coastal areas. But overall, it's going to put a squeeze on the building materials and it is going to start driving some of the prices up because building material prices will go up.

Q: We have heard about the bubble bursting in the housing markets, particularly in cities that have been vastly overheated. Are there some markets around the nation that are in for a real slowdown?
A: There will be market corrections. There always are. But there's still demand and there's not a huge inventory in most markets. There is still a shortage of inventory in certain price ranges. So we don't see a major correction. We certainly don't see a bubble bursting. We might see a little softening or a little air coming out of the balloon. Some of the markets that have had the greater appreciation they will probably correct a little more than markets that haven't seen that great appreciation. But again, it's going to get us back to a steadier market and I think that is good for the consumer.

Q: Longtime Federal Reserve Chairman Alan Greenspan will be stepping down at the end of the January and Ben Bernanke is expected to move into that position. Will this have an impact on mortgage interest rates and the real estate market?
A: Bernanke is a kind of a protege of Alan Greenspan. He has been there and he has served as one of the Federal Reserve officers. We are pretty familiar with him. His thinking is along the lines of Alan Greenspan. So we don't see a lot change there, he's very conservative. We think he is good choice.

First American Title Insurance Company announced the launch of a new diversity marketing program in Houston designed to help increase homeownership opportunities among Houston’s Latino, Asian American and African American
communities. This program will address the specific needs of minority homebuyers by assisting real estate practitioners in better serving these traditionally under-served communities.

The Houston kickoff marks the extension of First American’s Emerging Markets Program—a comprehensive plan helping to increase home sales to Hispanic, African-American, Asian-American and other traditionally under-served consumer segments—into Texas. The First American Title Launches Diversity Program in Houston Page 2-2-2 program has been highly successful in California and has begun to take root in other key regions across the United States.

According to the U.S. Census, Hispanics, African-Americans and Asian-Americans are the fastest growing segment of homebuyers in the nation. First American has set the goal of
becoming the leading provider of title insurance and real estate information services to this growth segment.

First American’s Houston diversity program will help breakdown the cultural and financial education barriers that often arise when members of minority communities enter the homebuying process. It is comprised of consumer-focused outreach and educational events, specialized programs for real estate professionals and the hiring and training of key First American staff to better service ethnically diverse communities.

The Houston program will operate in conjunction with The First American Corporation’s broader Emerging Markets Program, a corporate-wide commitment launched in 2003 to promote
an increase in home sales to traditionally under-served consumer segments. Combining multicultural sales and marketing strategies with industry alliances, philanthropic
giving/investment and an increased commitment to management and workforce diversity at First
American, the multiyear, multimillion dollar program is designed to help First American capture additional market share by offering innovative solutions to common barriers to homebuying.

WASHINGTON – The direct housing needs for evacuees of Hurricane Katrina and lower interest rates that will soften its economic hit mean there will be long-term consequences for housing as well as the overall economy, according to the National Association of Realtors ® .

David Lereah, NAR’s chief economist, said shortages of building materials, made worse by the need to rebuild in areas hit by Katrina, will increase construction costs. “Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices,” Lereah said. “As displaced residents try to get back on their feet in new locations, home sales have spiked – along with rental demand – in regions surrounding the disaster zone.”

Existing-home sales are expected to increase 3.4 percent to 7.02 million this year, while new-home sales are forecast to rise 6.7 percent to 1.28 million for 2005 – both would be records. Last month, the totals were projected to be 6.98 million and 1.26 million respectively. Total housing starts – single-family and multifamily – should grow by 4.8 percent to 2.04 million units this year, the highest since 1973; single-family starts are expected at a record of 1.69 million.

“Mortgage interest rates will rise more slowly as a result of post-storm economic conditions to accommodate the losses of homes, jobs and businesses,” Lereah said. “The lower level of borrowing costs will provide additional lift to home sales in other regions. Demand will continue to outstrip supply in most areas, which will keep pressure on home prices.” Total housing, commercial and public property losses by Katrina are in the range of $100 billion.

The 30-year fixed-rate mortgage is forecast to rise more slowly, reaching 5.9 percent in the fourth quarter, and 6.7 percent by the end of 2006. The national median existing-home price for all housing types is projected to rise 10.8 percent in 2005 to $205,100. With a greater concentration of construction in lower cost areas, the median new-home price should increase 3.8 percent to $229,300 this year before rising at a faster clip of 6.2 percent in 2006.

It is estimated that most of the flooded homes will have to be rebuilt, including about 80 percent of the homes in the city of New Orleans. Along with homes that will have to be replaced along the Mississippi and Alabama coastline, a minimum of 200,000 homes have been lost. However, the level of new housing construction will be only 130,000 higher than pre-Katrina projections.

“Housing construction will be insufficient to replace the number of homes destroyed or that will have to be demolished,” NAR President Al Mansell said. “Apartment vacancies are dwindling, and mobile homes will help to address the jump in housing needs.”

The Louisiana Realtors ® Association has launched www.HurricaneHousing.net . Realtor ® members and property owners alike can submit data on available shelter in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi and Texas, and people displaced by the hurricane can search the database directly.

The storm’s impact will cause the economy to grow more slowly than in earlier projections, but the economy will get a lift once rebuilding gets under way. The U.S. gross domestic product is forecast to grow at a pace of 2.3 percent in the third quarter and 2.7 percent in the fourth quarter, with GDP for all of 2006 pegged at 3.8 percent.

The unemployment rate is seen to peak at 5.3 percent during the first half of next year before declining in the second half. The Consumer Price Index is expected to increase 3.5 percent this year, while inflation-adjusted disposable personal income should grow by 1.4 percent. The consumer confidence index is likely to dip to 100 early next year, and then rise to 107 by the end of 2006.

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Part 1: Condo craze: Flippers, converters and first-time buyers grab a slice

The condo market is on fire across the country, with prices appreciating faster than single-family homes in some cases. Buyers are scrambling to be the first in line, and amateur real estate investing is akin to sports and hobbies in the hottest markets. In this three-part series from Inman News , we examine the trend from the trenches, catching up with part-time investors and first-time buyers, along with an example of the type of unique conversion projects taking place.

Rajpal "R.J." Singh is selling a "super luxury Trump condo" in Manhattan's Upper West Side for $1.7 million. He's also selling a West Side condo for $699,000 and renting out another condo in the Hudson Heights neighborhood. That's not his day job. Singh works in the software industry. Real estate investment is something he does on the side - he is not a licensed real estate agent.

"I happen to like new construction lately," he said. He focuses on Manhattan and Queens, and believes those markets are generally still a safe bet. The condo market has sizzled in many markets across the country, with condo-price appreciation in some cases exceeding home-price increases.

Murmurs of bubbles and busts haven't scared away condo developers from low-rise, high-rise and condo-conversion projects, though. And buyers in some markets are still scrambling to be the first in line for a condo unit in a pending project - even when that project is little more than a hole in the ground. Singh said he has seen a lot of amateur investors getting into the real estate market, a trend that seemed to catch fire in 2003.

He said the percentage of condo owners who live in their condos appears to be shrinking while the number of owners who rent out the condos is growing, which may be an indicator of this growing push by investors in the real estate market.

"I think it used to be roughly 90 percent owners, 10 percent renters - today I've seen 70 percent owners and 30 percent renters. If it goes to 60-40 or - God forbid - 50-50" he said. "Because of the stock market and mutual funds not producing much return, people are shifting that money to real estate. A lot of people need an investment vehicle and they are finding real estate as the investment vehicle for right now," he added.

And then there is the demand from those people who are simply looking for housing - "There seems to be a steady flow of people that are in need of housing, hence they are willing to pay top dollar," Singh said. Some New York markets may already be overpriced, such as the Brooklyn waterfront, he also said. Robert Holtz, of Hoboken, N.J., is selling a condo that he bought two years ago for about $419,000. He has already purchased another condo, a unit in a new development that is under construction. He's still fixing up the condo he's living in, he said, though he said he's willing to move out now if someone will give him the right price.

Then again, he said, he might consider selling the new condo instead - if he can get the right price for that one. "If I can get $559,000 without having to move into it - I don't have to sell where I'm living at now. I can put the other one on the market." Decisions, decisions.

Condo sales, as a percentage of total real estate sales, have grown from 8.8 percent in 1994 to 12.1 percent in 2004, the National Association of Realtors reported. And the rate of condo and co-op price increases has eclipsed that of single-family homes for the past several years.

The average U.S. condo price increased 16.5 percent from 2001 to 2002, 13.7 percent from 2002 to 2003 and 16.4 percent from 2003 to 2004, the association reported, while single-family home prices increased 8.8 percent from 2001 to 2002, 7.2 percent from 2002 to 2003 and 9.3 percent from 2003 to 2004.

Also, the total number of existing condo sales grew 9.7 percent in 2002, 11.3 percent in 2003 and 12.2 percent in 2004; while homes sales rose 5.1 percent in 2002, 9.6 percent, and 9.4 percent in 2004.

Holtz said he knows that the real estate market can be cyclical, and there is always some cause for alarm when prices inflate very rapidly. He cited the example of a $609,000 "pile of dirt" in Florida that ended up selling as a $740,000 real estate deal just 90 days later. That was a deal he worked on with his family.

"It's always a worry when you start talking about one-half million dollars like it's nothing," he said. "But we're not talking about a (dot-com) or an Enron or something like that." Real estate is a tangible thing, he said. "People need to live some place. They need four walls and a roof." So far, the local real estate market continues to thrive, he said. "If you price it right it sells in one day."

A first-quarter 2005 report released by Prudential Real Estate Investors, a part of Prudential Financial, though, expresses some serious caution about the condo boom. "The potential fallout from a meltdown in the condo market is unquestionably one of the biggest risks facing the real estate industry," the report states. "While we believe the excesses are fairly concentrated within a few markets, the effects of a shock would reverberate throughout the industry."

The report also states, "As housing prices soar, comparisons between the housing market today and the dot-com bubble during the late '90s tech bull market grow more frequent by the week. Although condo fever is more of a coastal phenomenon than a national epidemic and is more bubble-like in some markets than others, the warning signs are getting harder to ignore."

The report mentions media reports of properties that are sold and resold in a short period of time - in some cases in the same day. "If a condo bubble develops (or already exists) and bursts as interest rates rise, loan delinquencies could increase sharply and liquidity in the debt markets could dry up very quickly, at least until lenders can assess the impact of falling property values."

On the other hand, the report notes that a downturn in the condo market could benefit the apartment rental industry, as condo rentals are typically more expensive than apartment rentals.

Philip Conner, vice president in the Investment Research department of Prudential Real Estate Investors, said, "There are a lot of factors driving the condo market that aren't necessarily symptomatic of a bubble," such as the higher cost of single-family homes and the "urban renaissance" phenomenon of residents moving into denser housing developments in downtown areas.

But some markets, particularly in Florida, have been named as exhibiting some bubble-like characteristics, Conner said. Some warning signs of a condo slowdown are an oversupply in condo inventory and a growing gap between the ownership costs of a condo unit versus the cost of rental housing in a given market area, he added

. Michael Gasior, president and founder of American Financial Services, an investment training company, titled his March newsletter "Real Estate is Over." Gasior said that last month he saw an e-mail notice about an East Florida condo that was selling for about $850,000. "I went back through my e-mail box and saw that same condo about 90 days prior and it was $779,000. Now it's $940,000." The listing price kept escalating even though the property hadn't sold, he said. "When you see speculators enter the residential real estate market that's often a sign of the top. There's no way borrowing money is going to be easier or cheaper than it's been," he added, and condos may feel the brunt of a market slide.

Gasior noted in his newsletter that if the 30-year fixed interest rate rises about 8 percent, "the market will need to give back nearly all the gains enjoyed between 1999 and 2005 in order to stabilize the marketplace.

"The decline that would result would be more severe than the one experienced in the Northeast and Southern California between 1989 and 1994 when homes depreciated between 20 percent to 25 percent in those markets and condo prices dropped between 40 percent and 60 percent. No region of the U.S. would be immune although each area could look to 1999 market values for an idea where their respective bottom might be."

To capitalize on the frenzy for pre-construction condos in Florida, Realtor Steve Dalia of Exit Team Realty in Coral Springs, Fla., launched a Web site this year, PreConstructionProfits.com. Dalia said some condo markets in Florida "seem to be absolutely on fire" in terms of buyer demand, and most of the visitors to his Web site are from outside the area.

On the other side of the country, Mike Machado, a Realtor for Pacific Union GMAC Real Estate in San Francisco, is selling a one-bedroom, one-bathroom condo unit in a high-rise development for $689,000.

Machado said that as with other cycles, it may be too late when real estate investors and speculators realize the market is turning - people may not realize what's happening "until we all get burned." He added, "It's just like the stock market in the late 1990s. Now, we're all in real estate. Real estate's the new stock market. Which we all know can't last forever."

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Converting hospital to condos
Part 2: Condo craze

By Janis Mara
Inman News

Editor's note: The condo market is on fire across the country, with prices appreciating faster than single-family homes in some cases. Buyers are scrambling to be the first in line, and amateur real estate investing is akin to sports and hobbies in the hottest markets. In this three-part series, we examine the trend from the trenches, catching up with part-time investors and first-time buyers, along with an example of the type of unique conversion projects taking place.

In tiny Adams , Mass. , developers are converting a former hospital into condominiums, in a sign that the national condo conversion craze is hitting New England .

Halfway through construction, 11 of the 16 units already have sold, according to Dave Carver, managing partner of Scarafoni Associates of North Adams. Scarafoni is the real estate management and development company converting the hospital.

"This is the first condo project in the town," said Carver. Adams, which has 8,000 residents, is a sleepy community, a former mill town in the Berkshire Hills . But apparently even Adams - and the Plunkett Hospital , erected in 1918 - can't escape the inexorable condo conversion trend.

"The condo craze is penetrating into Massachusetts ," Carver acknowledged.

The news should come as no surprise. Condo converters accounted for 22 percent of apartment sales in 2004, and 45 percent of total volume in January 2005, according to Prudential Real Estate Investors' U.S. Market Outlook for the first quarter of 2005.

The condo market has sizzled in many markets across the country, with condo-price appreciation in some cases exceeding home-price increases. Murmurs of bubbles and busts haven't scared away condo developers from low-rise, high-rise and condo-conversion projects, though. And buyers in some markets are still scrambling to be the first in line for a condo unit.

The former hospital in Adams has two classic red brick New England buildings, one of which boasts a cupola and a 6-foot gold leaf weathervane. It stands on "the best parcel of land in Adams ," according to Ronald King, Scarafoni's project manager. Perched high on the hill, the buildings, which total around 40,000 feet, have a striking view of downtown and the surrounding area.

Though the exterior has been preserved, the insides have been gutted, King said. "No remnants of the hospital remain inside," he said. "Hospitals and houses don't have much in common." He acknowledged, "It's somewhat difficult to fit these things into what was a hospital and make it work properly." Overall, the "medium-difficult" job is going well, he said.

Deemed a historic resource by Historic Massachusetts, a state advocate for historical preservation, the hospital sat empty for nearly 20 years. Proposals for the town-owned property went nowhere.

During that period, thieves plundered the boarded-up hospital's copper piping and downspouts. Some even considered the neglected property to be haunted, according to Carver and ghost spotting Web sites that reported, "Screams can be heard along with sightings of ghosts that usually resemble patients that may have died there." Carver, however, said, "If there are ghosts there, they are friendly ghosts."

In 2003, Scarafoni proposed to bring the "haunted" hospital back from the dead, with a plan to create condominiums selling for $150,000 to $250,000, targeting the "empty-nest" market of local retirees.

City officials were ecstatic. "We are quite pleased this is a positive proposal and believe it is a realistic proposal," Faith Yando of the Massachusetts Development Finance Agency, which handled the proposal process, told the local paper, the Berkshire Eagle. "I'm glad it's a local developer and one with a good reputation," Edward Driscoll, vice chairman of the Selectmen, told the Eagle.

Work began in late 2003. Scarafoni expects to complete the job in 2006. The hospital's 200-odd windows have been replaced with windows that, while modern, are mullioned and resemble the old windows. The old gutters and ironwork have been replaced, and now the interior is being rebuilt.

"We are trying to direct this to the older market," said Carver. "A lot of the houses in town are occupied with people who raised their families and now want to downsize.

"This keeps those people in the community and also frees up the larger houses for young couples who plan to have families," Carver said.

The unit mix ranges from a 1,222-square-foot, one-bedroom, one-bath unit with a deck, to a 2,823-square-foot, two-bedroom-plus-den with two baths. All the units have garages. Unlike many condo complexes, the 16-unit property doesn't have a common area.

The condos are priced from $150,000 to $250,000. According to King, new houses in Adams , "which is what these essentially are," sell for around $200,000. The smallest unit is 1,129 square feet, with one bedroom and one bath. The largest is 2,823 square feet, with two bedrooms, a den and a deck.

It appears that Adams residents aren't scared of the hospital's "haunted" reputation, with 11 of the 16 units selling before construction was completed. Indeed, King anticipates that the brick buildings crowning the hill in the center of town will radiate a sense of community.

"Some of the people who are moving in already know each other," King said. "I'm sure it will become a close-knit group."

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First-time buyers flood condo market
Part 3: Condo craze

By Jessica Swesey and Glenn Roberts Jr.
Inman News

Editor's note: The condo market is on fire across the country, with prices appreciating faster than single-family homes in some cases. Buyers are scrambling to be the first in line, and amateur real estate investing is akin to sports and hobbies in the hottest markets. In this three-part series, we examine the trend from the trenches, catching up with part-time investors and first-time buyers, along with an example of the type of unique conversion projects taking place.

Ryan Sankey dropped the first moving box on the floor of his first-floor condo about a month and a half ago. At 27, he's feeling good about his decision to buy a condo in a Seattle suburb.

Sankey viewed the purchase as a way he could own real estate without having to worry about the exterior headaches that come with owning a single-family home. And the price was still within reach at $121,000. Houses in his area of Everett , Wash. , sell for about $200,000 to $250,000 on average, he said.

The condo market has sizzled in many markets across the country, with condo-price appreciation in some cases exceeding home-price increases. Murmurs of bubbles and busts haven't scared away condo developers from low-rise, high-rise and condo-conversion projects, though. And buyers in some markets are still scrambling to be first in line for a condo unit.

"The primary motivation was being able to find something decent for less money since houses are still expensive in my market," Sankey said.

Also, he's still within reasonable distance of his technical support job at Microsoft in nearby Redmond . If he'd bought a house, he'd most likely be further from his job.

Sankey figures that by keeping the interior nice, he'll build some attractive equity by the time he's ready to move again. "I figured if I do this, I will live here maybe two years, three. I may turn this into an investment," he said.

Sankey's two-bedroom condo is part of a former apartment complex that's been converted. He said a conversion group is now finishing converting the second to last complex.

"They basically took all the carpet out, all the detailing out, repainted everything - all the fixtures - and basically updated it so it looked like a brand-new interior," he said.

The Everett area is in high demand because of its proximity to Seattle - about 30 miles, Sankey said. Many of Sankey's friends have bought condos or are looking to buy condos. "Everyone is recognizing the fact that its just easier to purchase...it's not that much harder than renting, and its yours," he said.

Sankey said he's been hearing chatter that the housing market in his region is set to cool down. "The condo market, however, seems to be more on the rise than on the fall," he said.

Condo markets are booming nationwide, with sales and prices in this market segment rising steadily for eight consecutive years. The median price of condos and co-ops has increased roughly twice as fast as that of existing single-family homes, according to Harvard's Joint Center for Housing report for 2004.

"The market in general favors single-family, detached homes, and when they become unaffordable, condos are the preferred alternative," said Leslie Appleton-Young, chief economist for the California Association of Realtors.

The median price for condos in California rose by 24.2 percent year-over-year from $303,060 in January 2004, to $376,300 in January 2005, according to a recent report from the state Realtors association.

And annual price appreciation of condos surpassed that of detached homes in all but one of the last five years in California .

Nationwide, sales of condos and co-ops went from 657,000 units sold in 2002, to 731,000 in 2003, to 820,000 units sold in 2004, according to the National Association of Realtors. And the average U.S. condo price increased 16.4 percent from 2003 to 2004, while single-family home prices increased 9.3 percent during that same period.

Appleton-Young said condos are a welcomed addition to the California housing stock, particularly in the coastal areas where the supply of homes for sale is low.

"We really do see condominiums come to life when the single-family, detached alternative is too expensive," she said. The median price of a single-family home in California reached $485,700 in January.

Indeed, price and location were among the top reasons recent condo buyers gave Inman News for buying this type of housing rather than a single-family home.

Simon Horwith, chief information officer for AboutWeb, recently purchased a condo in the Logan Circle area of Washington , D.C. Horwith and his wife are first-time buyers.

"The deciding factor in purchasing a condo versus a house was the fact that my wife and I wanted to live in the city as opposed to the suburbs," Horwith said. "We like to go out to bars and clubs, little shops and coffee shops, and we like to walk."

Horwith said the condo market was competitive. The seller of the condo he eventually purchased received many bids - including Horwith's - in the first weekend of the sale. "Without an escalation clause and willingness to pay above the asking price, we wouldn't have got the condo," he said.

The Horwiths also had to compromise a little on location to get in on the condo market. The couple started looking for condos in the Dupont Circle area of D.C., but opted for a larger unit for about the same price at the nearby Logan Circle neighborhood. Horwith said they were able to purchase a two-bedroom, two-bathroom condo for the same price they would've paid for a small one-bedroom just a few blocks away.

Iris Garica, a Bronx , N.Y., resident, turned to the condo market because she is priced out of the single-family market. Garcia said condo prices in the area have been a wake-up call for her, and she has expanded her search to a four-state area that includes Connecticut , New Jersey , New York and Pennsylvania .

"You can't find a two-bedroom condo for $92,000. They all start at $120,000 and up. Some of them are about $300,000," she said. "The prices are ridiculous. I figured I would be able to buy something and I really haven't been able to."

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Houston builders sold almost 40,000 new homes in 2004, up 11 percent from 2003. With strong job growth in play, the city's housing industry is poised for an impressive 2005, says economist and housing expert Mike Inselmann of Metrostudy.

For the first time in years, Houston rang in the new year with some momentum, said Inselmann. “The local economy is expanding at a sustainable rate and the labor force is showing signs of significant growth. Local business owners are reaping the benefits of productivity and technological gains, energy prices are high and rig counts are at the highest level in 18 years. These factors combine to form what should be a very exciting 2005.”

Houston’s job market set the groundwork for a solid recovery and is now growing at a healthy rate, said Inselmann. “With a gain of 34,900 jobs in 2004, Houston has come full circle — from booming employment in the mid- to late 1990s, to a recession in 2002 and 2003, and then back to healthy job growth in 2004. Total employment reached 2.143 million, a new high-water mark for the Houston labor force.”

This increased productivity should translate into higher wages and greater worker demand in 2005. For the housing industry, that means greater employment combined with Houston’s burgeoning population, which should offset the initial measured increased in interest rates, ensuring the potential of another solid year, said Inselmann.

Continuing to thrive, the Houston housing market set a year-end record of 40,599 new home starts during 2004. “However, it appears the meteoric growth of the past few years is reaching a plateau,” said Inselmann. Signs of the market peaking are in the numbers: The annual growth rate for 2004 was 7.0 percent, the lowest percentage growth rate since 1999. Metrostudy recorded 8,473 starts during the fourth quarter of 2004, a 4.1 percent decrease compared to the fourth quarter of 2003. The fourth quarter of 2004 was only the fifth quarter in the past 10 years in which quarterly starts declined.

WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson has outlined HUD's timetable to develop modern mortgage rules that regulate how American consumers buy and refinance homes. The Department's roadmap for reforming the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA) will include three informal meetings in July and August with consumer organizations and industry representatives. To read HUD's formal announcement of these roundtables, visit HUD's website .

In addition to these Washington roundtable discussions, the Small Business Administration and HUD will co-sponsor meetings in Los Angeles, Chicago and Fort Worth to listen to the unique concerns of smaller real estate and settlement service providers with an interest in RESPA reform.

"Simplifying and improving the way consumers buy and refinance homes in this country will drive our campaign along this road to reform," said Jackson. "There is universal agreement that current regulations can and should be improved to allow even more families to share in the American Dream."

Beginning next month, the Department will host three roundtables with members of industry and consumer organizations (July 14, July 28, and August 18). Participation in these sessions is by invitation and is focused on those individuals and groups that offered an analysis of HUD's 2002 RESPA reform proposals or offered alternative reforms for HUD's consideration. The purpose of these sessions is to stimulate a meaningful exchange of ideas among participants over the substance of new RESPA reform proposals, not to reach consensus through negotiation.

Jackson added, "I understand that with so many competing interests, it will be difficult to make everyone happy. But I promise that before we put pen to paper, we will carefully consider the input from consumers and industry alike. I want to repeat my cardinal rule for RESPA reform: I am more concerned with doing this right, than doing it fast."

Today, buying a home is too complicated, confusing and costly. Each year, Americans spend approximately $55 billion on closing costs they don't fully understand. For most other purchases a consumer makes, the bottom line price is clear and firm. Over the last three decades the mortgage industry has experienced substantial and dynamic change while HUD's disclosure requirements have remained essentially the same.

RESPA became law in 1974 to provide consumers with advance disclosures of settlement charges and to prohibit illegal kickbacks and excessive fees in the homebuying process. Nevertheless, consumers complain that when they reach the closing table, they don't understand the charges and often pay more than they anticipated. In addition, homebuyers are severely limited in shopping for settlement services that could significantly lower the cost of homeownership.

Homeownership is at record levels with increasing numbers of families either purchasing their first home or taking advantage of low interest rates to refinance their existing home mortgages. Yet downpayments and closing costs remain the greatest obstacles confronting potential homebuyers. Creating a simpler, more transparent and less expensive homebuying process will allow even more families to purchase a home or refinance their existing mortgage terms. For more information about reforming the mortgage settlement process, visit HUD's new website devoted to providing the latest information on RESPA reform .

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov .

Houston's existing home sales were up 10 percent in 2004 with 72,015 homes sold, compared to 65,423 sales in 2003, according to the Houston Association of Realtors.

It represented the best year ever for Houston real estate. New annual records were set for total dollar volume of transactions, number of properties sold and average sales price.

More than 72,000 properties, or an average of 6,000 per month, changed hands through the MLS during 2004, which was an increase of 10.1 percent versus last year. The Houston housing market outpaced the overall 2004 national average increase in existing home sales of 8.9 percent, according to estimates by the National Association of REALTORS. Additionally, more than $12 billion worth of property, or an average of $1 billion per month, was transacted in the Houston area in 2004, which was an increase of 7.6 percent from 2003 levels.

“This has been the best year in Houston that residential real estate has ever seen and current economic indicators project 2005 to be just as strong,” said Toni Nelson, HAR Chair and a Division Vice President for Coldwell Banker United, REALTORS. "We are fortunate to live in a city that has experienced stable growth over a number of years with no economic indicators that point to either a boom or a bust, as in some areas of the country. We can have confidence in the retention of our homes’ values.”

While the overall median price of single-family homes reached $138,000 in December, which was an increase of 1.5 percent compared to the prior year, the median price for existing homes in 2004 was up 4.5 percent versus the previous 12 months. These figures signal sustained pricing strength in Houston, particularly in the home resale market. The median is a typical market price where half of the homes sold for more and half sold for less that that figure.

Houston’s current median price of $138,000 is 26.7 percent less than the national median price, which reached $188,200 in November, according to statistics released by the National Association of REALTORS®. These data continue to show the tremendous value and lower cost of living afforded to Houstonians.

Last Updated: June 4, 2008