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Pending Home Sales Index Slated to Increase 7% in 2013

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Pending home sales increased in March 2013 and continue to remain above levels from a year ago in 2012, according to the National Association of Realtors® in its latest Pending Home Sales Index (PHSI). This analysis is based on contract signings, which rose 1.5 percent to 105.7 in March. Overall numbers are up by 7.0 percent above March 2012 when it was 98.8. So it just may be time for you to make your house plans a reality!

HousePlans_01 What’s exciting is that the total existing-home sales are projected to increase more than 6.5 to 7 percent over 2012 to nearly 5 million sales in 2013. What’s more, the national median existing-home price has been forecast to increase by around 7.5 percent. That means many folks will either be in need of home plans for building or they will buy a previously owned house.

The PHSI is a leading indicator for the housing sector, and it is based on pending sales of existing homes. A home sale is usually listed as pending when the contract has been signed, and although the transaction has not yet closed, sales are almost always finalized in no more than two months from signing.

What the United States needs economically are additional jobs, but increasing household wealth will continue to support housing demands and that’s good for the overall economy.

Note: This data reflect contracts and not closings, and the index is based on a large national sample which typically representing about 20 percent of transactions for existing-home sales.

Popular Outdoor Living Spaces Include Kitchens

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Outdoor Living - Outdoor Kitchen
Outdoor Living - Outdoor Kitchen

Today Americans are increasingly seeking a more urban lifestyle and with this comes an interest in outdoor living spaces. Exciting house plans today include outdoor living spaces with BBQ porches or outdoor kitchens.

Outside living spaces show a demand for screened porches, which are gaining traditional indoor accoutrements — a fireplace, built-in cook’s stations with a sink, storage areas and in some cases a pizza oven, a little refrigerator, even beer taps! Hybrid grills enable gas and wood cooking. Summer never tasted so good.

In a recent report from the National Association of Home Builders (NAHB) entitled, “What Home Buyers Really Want, “just eight percent of those surveyed want to live in a city center, 36 percent prefer the outer suburbs, 30 percent the close-in suburbs and 27 percent still want the old-fashioned, rural American living.”

We are seeing home plans that include chef quality BBQ porches for greater privacy, along with high-efficiency glass windows and doors. This makes a home energy-smart.

OutdoorLiving Here is one really nice design. This modern house design (Plan #107-1015), features a covered outdoor patio with a gourmet BBQ grilling area in its outdoor kitchen. The fireplace acts as a stunning focal point and its use of rough stone creates a more casual look. At 5,555 square feet, this four-bedroom home is ideal for both family and entertaining. This plan photo shows The Plan Collection’s house plan 107-1015 featuring a gourmet outdoor kitchen which also has a nice BBQ grilling area.

Notice how the BBQ area connects to the home’s indoor kitchen with a windowed pass-through, convenient for food preparation and clean-up. What’s more, the family room opens up onto covered patio through a wall of glass doors. This plan from The Plan Collection allows for plenty of light making it seem like a larger space.

http://www.theplancollection.com/Upload/Designers/107/1015/FLR_LR55550405ASJPG_600.JPG

The Evolution of Housing Recovery Means Good News for House Plan Providers

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The really good news is that both single-family and multifamily housing starts are supposed to post double-digit gains in 2013 over last year.  This news is aided, of course, by the rising home prices throughout most of the U.S.  But, we are not completely out of the water, according to economists at the NAHB’s Spring 2013 Construction Forecast Conference. The NAHB’s Multifamily Production Index has jumped 38 points in the last four years and now stands at 54. This is excellent news for architects, providers, and all related industries.

The NAHB/First American Improving Markets Index shows this expansion.  The index lists 273 metros areas out of 361 — about three-quarters of the U.S. metropolitan areas. The surge is because of improvements in house prices across a broader number of markets. Home price increases became more consistent in 2012, and the latest data shows about a six percent annual rate of home price appreciation nationwide. This housing sector growth is rising faster pace than the overall economy.

Following are some key industry points:

— Residential fixed investment component of GDP was up 17.5 percent in the fourth quarter of 2012

— A demand for housing also means business for supply chains — the building materials, skilled workers, etc. — and this will take some re-establishment time since “The Great Recession.”

— Residential builders are feeling pinched by rising costs of  gypsum, concrete and softwood lumber are 90 percent above their housing boom peak.  For this reason home construction costs have risen at a faster pace than appraised values.

— Challenges obtaining construction credit, plus restrictive mortgage lending rules and uncertainty in Washington regarding the future of housing financial regulations and housing tax incentives, including the mortgage interest deduction and Low Income Housing Tax Credit, threaten consumer confidence and future housing demand.

— Residential remodeling has returned to previously normal levels of the early 2000s and that remodeling activity is expected to register a 2.2 percent gain this year over 2012.

— For the past three quarters the index has been above a critical tipping point of 50; a reading of 50 means that an equal number of builders believe conditions in the multifamily market as good and bad.

— Multifamily housing starts should increase to 334,000 units in the year 2013, which is up 35 percent from  247,000 units in 2012, and  they are also predicted to rise five percent more to around 349,000 units next year in 2014.

— The single-family market continues to make steady gains, which must make up the most ground to return to its 2000-2003  normal production levels at around 1.3 million units.

–The NAHB forecasts 672,000 single-family housing starts in 2013, which is up 23 percent or 534,000 units from last year.

— Single-family production is expected to rise an additional 28 percent in 2014, to 858,000 units.

This is great news for anyone who wants to build a new home.  But with caution in the wind, many consumers are looking to use new home building strategies to save some money in the future – such as reducing the costs  by going online and investing one of the thousands of fabulous plans available at online venues.

Source:  The National Association of Home Builders. http://www.nahb.org/.

 

Innovation for Disaster Proof House Plans

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Shoichi Sakamoto's earthquake proof floating glass walls.

It is no secret that we are all worried about the number of natural disasters in today’s environment – from tornados, to floods to earthquakes – it does not matter why these disasters are happening with more frequency than in days gone by, but what does matter is how we can make our homes safer to weather the storm.

What have today’s engineers done to help design for today’s home owners? In natural disasters such as earthquake, the biggest danger to a house plan doesn’t come only from the shaking – but from the falling debris, as do most of the inhabitant’s injuries or fatalities. Many engineers and architects continue to work hard to design safer buildings. Their goals include coming up with solutions for humans to be better able to withstand Mother Nature’s temper.
Pennsylvania State University’s architectural engineers are investigating the behavior of glass and walls during earthquakes in order to come up with better strategies for building windows and walls to withstand earthquakes and other natural disasters. The engineers have been studying historical earthquakes on a mini-scale, for example, and then they designed glass panels that will not touch the frame corners. When the glass corners are rounded with polished edges, the researchers found these glass curtain walls had fifty-percent more capacity to drift. What this means is that the frame could move almost fifty percent more before the glass would break.

During an earthquake, a building’s frame or skeleton will sway with the tremors. The frames that hold the glass window planes in place change shape as they shift along their joints. Yet the glass remains rigid. Pressure builds on the corners of the glass, and chips and cracks begin to form. Penn State researchers built a model wall and window frame and used an actuator to simulate the effects of an earthquake, noting points of failure. They concluded that if the corners of a sheet of glass are rounded, and the edges processed, this shifts the point of stress concentration so the window frame can move without breaking the glass.

Shoichi Sakamoto's earthquake proof floating glass walls.
Shoichi Sakamoto’s earthquake proof floating glass walls.

It sounds pretty far out, but researchers in Japan have even figured out a different way to prevent damages to a house plan during an earthquake – the levitating house, developed by inventor Shoichi Sakamoto, at Air Danshin. The house sits on a deflated air bag. When the sensors feel a tremor from an earthquake, they switch on a compressor which pumps air into an airbag within seconds, inflating it and ultimately lifting the home approximately three centimeters off its concrete foundation. There the structure will hover, during the earthquake then the airbag deflates and the house settles back down. Approximately 88 Japanese homes are retrofit with this airbag, which will offer some data after the next quake. These cost three million Yen a pop (over $37,000).

But, this method only deals with side-to-side motion and most earthquakes are not limited to just a two-dimensional plane. Three centimeters of levitation will only protect a house from earthquakes that don’t rise higher than three centimeters. Plus, the floating house would probably slide off its foundation if hit by a tall wave of a quake. Additionally the first tremors are usually the most destructive tremors and if the airbag, were it to inflate, could be pushed up against the rubble of an already damaged house.

There is a different system to help prevent the collapse of the walls of a house during an earthquake. Usually masonry infill walls are used with beams and columns to form the skeleton of a wall. One solution would be to add steel reinforcement into the infill wall and tie that wall to the building’s frame. Another would be to add a gap between the wall and the frame, preventing interaction during earthquakes.

Sources: The American Geophysical Union, the American Society of Civil Engineers, the IEEE-USA, the Incorporated Research Institutions for Seismology, Inc., and the Materials Research Society.

Age of Home Buyer Designates Size of House

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As the U.S. housing market continues to make gains, it seems that the median desired home size today is approximately 2,226 square feet, says new research that came out of the National Association of Home Buyer’s (NAHB). More than 3,600 home buyers were approached regarding a variety of new home characteristics. The survey, “What Home Buyers Really Want” was conduced in 2012, and its data summarizes some significant differences in home design size preferences.

Age plays a big role in a home buyer’s preferences: the amount of space requirements drop steadily as the buyer’s age increases.

Research from the 2012 National Association of Realtors® Profile of Home Buyers and Sellers shows that today’s first-time buyers have an income of $61,800, and are a median age of 31 years old.  And it would appear that age plays a big role in a home buyer’s preferences.  What’s more, the amount of space requirements drop steadily as the buyer’s age increases. For instance, the desired home size is 2,494 square feet for those younger than 35, but people 65 plus, want a home with at least 2,065 square feet.The real reason has more to do with a buyers’ ability to access credit. Harshly stringent mortgage lending requirements since the economic downturn has created a situation where those people who are still able to obtain credit and put down a larger down payment – typically wealthier buyers – can afford larger homes.  On the other hand, the less financially-solid buyer tends to get shut out.

The typical age of home buyers remained at 39 years of age  from the year 2007 until 2010, while the age of first-time home buyers fluctuated with household affordability. In 2007, first-time home buyers’ ages fell to 31 and from 2008 to 2010 the typical age remained at 30.

Today’s  size preferences are also affected by race and ethnicity, and data shows that   minority buyers desire more space than white, non-Hispanic home buyers. Specifically white, non-Hispanic buyers appear to want about 2,197 square feet.  African-American buyers prefer 2,664 square feet. On the other hand, Asian home buyers desire 2,280 square feet, while Hispanic buyers want 2,347 square feet.  In materials from the U.S. Census Bureau, median home sizes peaked in 2006, and then began to fall in 2007, 2008 and 2009. Then this trend reversed and median home sizes have risen for the past three years. Specifically, estimates indicate that in 2012 the median size of all single-family homes was 2,309 square feet, and the average was 2,521 square feet.

To choose from thousands of house plans that are age appropriate, go to http://www.theplancollection.com

 

(Sources: The survey was conducted by NAHB’s Economics and Housing Policy Group in 2012;  2012 National Association of Realtors® Profile of Home Buyers and Sellers).

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