Home Builder’s Sales Bring Optimism Down

Posted by Homebuilder on May 11, 2012
Housing Market, National Home Builders, New Housing Information / No Comments

KB townhomes for sale in California
One of the nation’s largest home builders reported weaker than expected quarterly results and orders for future home sales, tempering the budding optimism that the housing market has been experiencing.

KB Home’s sales were down more than 8%, their shares are down too, with competitors’ shares slipping as well. The results for KB Home are partly due to strategic decisions that didn’t pan out for the builder. Recent data collected by the Commerce Department showed that sales of all new homes were weaker than expected in February. The data demonstrates a key difference between the markets for new homes compared to existing homes.

The market for existing homes has been boosted by investors who are purchasing distressed homes at bargain prices and renovating with the purpose of resale or renting. The new-home market, on the other hand, continues to struggle to compete on price against foreclosures and short sales. The market for new homes is way off from its peak, much more so than the existing-home market. The difference is investors.

KB Home, which is based in Los Angeles, reported a fiscal, first-quarter loss of over $45 million. Although this was an improvement from the more than $110 million loss it posted the year before, many industry watchers had expected much more progress toward profitability from the company.

The area of most concern, however, centers on orders. Instead of an increase in orders, which analysts see as an indicator of a builder’s future performance, they fell 8%, with the steepest declines seen in the Southwest.

We see that consumers are not in pace with builders. While builders are out purchasing land and preparing to sell homes, buyers are reluctant to close on homes. It’s this lack of consumer confidence that is negatively impacting builders.

Perhaps, some say, that KB’s issues are theirs only. Some of the decisions the company has made have kept them from making more progress toward returning to profitability. Some builders have made significant strides toward rebounding.

See Also:
KB Home’s Sales Slump 8%, Shares Drop

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The Case for Home Builders, A Market Analysis

Posted by Amitesh on February 17, 2012
Housing Market, National Home Builders, New Housing Information / No Comments

People have been looking for signs that home builders were going to turn things around for the last five years. Unfortunately, this has not been the case.

Home Builder News and Market Analysis

Home builders are still stuck trying to compete with foreclosures and existing inventory.

Perhaps this will be the year, however. Last year, only about a quarter of a million homes were sold in the country. This is down from over one million six years ago. Builders continued to hold back on constructing single-family homes and stocks haven’t fared very well.

Underneath it all, however, there have been positive signs. Households formed in the U.S. has picked up with slight economic recovery, and with a large inventory of homes falling to disaster and demolition yearly, the housing backlog that has been harming the new-home market is gradually easing up.

This does not mean that there isn’t a large inventory of housing to speak of, but the bulk of it remains in busted bubble markets. Most home builders have begun to reduce their exposure to these areas and look to do well in markets that have improved in many areas of the country.

According to one home model that measures population, income, financing, construction costs, and other factors – home prices are approaching equilibrium. In many metropolitan areas, prices are undervalued by at least 5%.

Home builders’ stocks are inexpensive and most are trading at about one and a half times book value. The one with the best geography, however, is difficult to determine.

Home builders that do most of their business in areas with tighter lending regulations is advisable because where standards were more stringent, the housing market was shielded from the bubble and bust. Also, take note of places that were bolstered economically by the strength of the energy sector.

For information on Texas home builder LGI Homes, including their new homes for sale in Austin, San Antonio, Dallas-Ft. Worth, Houston, and Phoenix, visit them online.

See also:
Homebuilders Profits Adversely Affected By Housing Market
Signs Pointing To Buy Time?
Mortgage Payments Are Now Lower Than Rent Payments

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Mortgage Payments Are Now Lower Than Rent Payments

Posted by Amitesh on February 09, 2012
Housing Market / No Comments

Mortgage rates and home prices have fallen so much that the current cost of owning a home is now cheaper than it has been at any point in time in the last 15 years. Now mortgage payments are becoming more affordable than renting an apartment or home in many of the major metropolitan areas across the United States.

Don't Rent Buy a Home

Home prices have dropped so low, that in many markets it's cheaper to buy than rent.

The third quarter survey of housing market conditions conducted by the Wall Street Journal evaluating data comprised from 28 of the nation’s largest metropolitan areas discovered that home values fell in all but 5 of the areas when compared to the second quarter of 2011, according to figures obtained from Zillow Inc. While home values declined in most areas across the U.S., rent levels have risen rapidly.

Mortgage rates have been hovering around 4% for months. That rate is the lowest seen in nearly six decades. Consequently, payments on a monthly mortgage for a median prices home are now lower than the average rent levels in 12 metropolitan areas tracked out of 27 by Marcus & Millchap, a real-estate brokerage that compiled data for The Wall Street Journal. According to the data, it is more affordable to rent than it is to buy in 15 of the metropolitan areas tracked, but that ratio could change quickly.

Mortgages do carry other costs that are not associated with renting. Home ownership carries costs such as property taxes, insurance, home owners association fees and maintenance. These additional costs are why many individuals choose to rent. Other potential buyers are unable to purchase a home, despite the favorable home prices and mortgage rates, because lending conditions are much more strict now than they were a few years ago.

With mortgage rates and home prices so affordable, owning a home is more appealing than ever considering that rent is expected to rise by 4% this year. Even in cities where it is still cheaper to rent than to purchase a home, the cost of buying a home has become so affordable that it almost seems like a bad idea not to try to qualify for the home loan and take the plunge into home ownership.

See also:
Homebuilders Profits Adversely Affected By Housing Market
Strict Lending Standards Hamper Housing

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Houston New Home Communities Under 200K

Posted by Amitesh on February 03, 2012
Home Builders in Texas / No Comments

Houston, Texas is a place to live, work and play. The communities are outstanding, employment opportunities are high, and entertainment is abundant. The area is a desirable area for young professionals, families and retired couples alike.

New home communities in Houston are affordable, the homes energy efficient, and the communities beautifully designed with many amenities such as community pools and greenbelts. New homes can be purchased from the low $100s on up, and most are an exceptional value. Houston is a rapidly growing city, and one that is looked upon in admiration by millions around the world.

Houston Texas New Home Community Chateau Woods

Chateau Woods, an LGI Homes' community in North Houston featuring affordable, quality-built new homes.

Chateau Woods: Chateau Woods, from LGI Homes, is a reasonably-priced community that offers an outstanding lifestyle. The community is a close-knit one, and is considered the best of Montgomery County living. Homes within the Chateau Woods community are stylish and offer some of the best values in Houston.

The community is considered a once-in-a-lifetime opportunity thanks to its ideal location—close to the big city, yet offering a serene and peaceful lifestyle. Homes are built on oversized lots and residents enjoy walking trails that wrap throughout the neighborhood. Homebuyers and investors can expect to pay from the low $100s to the high $100s for a new home in Chateau Woods.

Bayou Oaks at West Orem: Bayou Oaks at West Orem is another fine Houston new home community which is gated, offering its residents peace of mind. Bayou Oaks at West Orem can be found just off of Highway 288, and it offers convenient access to everything Houston has to offer. The homes in the community are stylish, the community charming and it is situated close to many highlights of the city, such as the vibrant downtown and Houston Galleria. Homes in the community begin in the $100Ks.

Rancho Verde: Rancho Verde is a charming community that is wonderful for young families and is considered a good investment. The community offers areas for the children that include parks and a community playground. Children and adults will both enjoy the community swimming pool and Rancho Verde’s community center. Residents of the community can take advantage of nearby shopping, dining and entertainment. Children will attend school within the Channelview Independent School District. Rancho Verde offers stylish homes that start from just under $100K.

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Dallas New Homes Under $200K

Posted by Amitesh on January 23, 2012
Home Builders in Texas / No Comments
Affordable New Homes in Dallas

With a new home in Dallas, Texas under $200k, your mortgage payment would cost less than your rent.

Dallas has some of the most outstanding Texas new homes, which offer an above-average lifestyle rich in community amenities and involvement, all at exceptional prices.

Deer Creek: Deer Creek is an exceptional community that offers some of the finest and best-priced homes available in Fort Worth, Texas, all from noted builder LGI Homes. The community is family-oriented, and offers a peaceful escape from the city, with the luxury of all the city has to offer just minutes away. The community is spacious, with homes built on oversized lots. Residents enjoy wonderful community amenities that include a neighborhood playground and a residents-only pool.

Each home built by LGI Homes features thousands of dollars worth of upgrades, like rounded corners, brushed nickel hardware and fixtures, vaulted ceilings and custom built cabinets. LGI Homes features five floor plans at Deer Creek, including the Rio Grande, which is a three bedroom, two bath, single family home that features 1,130 sq. ft. of living space, and starts at just $117,900. The home includes a utility room, dining room, family room, large walk-in closet in the master and a master walk-in shower and garden tub. All homes in the community also feature quality appliances that include a refrigerator and front yard landscaping, a fully-fenced backyard, and a generous homeowner’s warranty.

Falcons Lair: Falcons Lair features homes priced from $157,000 to $217,000, all of which are built by Standard Pacific Homes. The community is master-planned, and is located just minutes from Mesquite Municipal Golf Course, Mesquite Rodeo, and two city parks. Residents enjoy two lush greenbelts. Families with children will enjoy the Mesquite Independent School District which is known for its quality education.

Standard Pacific Homes offers eleven floor plans in the neighborhood. Their Hamilton plan is a three bedroom, two and a half bath, two car garage home, that features 2,902 sq. ft. of living space. The home features a game room, study, family room and dining areas.

Paloma Creek: Paloma Creek is another outstanding community that offers affordable homes and a quality lifestyle. Ashton Woods is the builder and they offer new homes from $130,000 to $211,000. The community is conveniently located just east of Denton on Highway 380 and is in close proximity to entertainment, shopping and dining. Ashton Woods offers 15 new home floor plans which include their Dover plan, a four bedroom, two and a half bath, two story single family home with 2,984 sq. ft. and priced from $179,990. The home features an upstairs game room, a master suite with large walk-in closets and a separate family room.

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Top Reasons to Move to New Jersey and Buy a New Home

Posted by Amitesh on January 12, 2012
Housing Market / No Comments

If you’re looking to relocate, you might as well look at New Jersey new homes. There are so many affordable, quality communities to choose from, and there are so many reasons for you to move to New Jersey—not the least of which is its many wonderful beaches, beautiful natural settings, and its proximity to New York.

Top Reasons to Move to New Jersey

There are tons of new housing opportunities in New Jersey, you just have to know where to look!

New Jersey has four regions. The most populated—and where millions of immigrants entered the US, is the Gateway Region. From here, it’s a very easy commute to New York City or Jersey City.

The Jersey Shore is most popular because it has some of the most beautiful beaches in the US. There are numerous family-friendly beaches, but the nightlife in Atlantic City is the best in the state, too. If you’re looking for New Jersey new homes here, be aware that as a beach community, it can get pretty crowded during the summer months.

The Delaware River region in Western NJ, on the other hand, has the most undeveloped areas in the Garden State while having easy access to neighboring large metropolitan areas like Philadelphia. The Skylands Region is one of the most rural areas, filled with lakes and river, as well as farming communities and country roads.

Why move to New Jersey? Here are some of the reasons:

All the counties in New Jersey are classified as metropolitan areas. If you’re a certified urban dweller, you will enjoy living in this state a lot. The percentage of urban population here is very high; almost 90 percent of residents can be found in living in a city. It means that no matter where you choose to live, you’ll enjoy the amenities of urban living.

There are New Jersey new homes that are very affordable. You don’t need to be a millionaire to own a home in the Garden State. You can have a starter house, for example, for less than $250,000. If you wish to have a summer home, you can buy one as well!

There are many high-paying jobs here. If you live in New Jersey, you won’t need to go out of state to find work. There are a number of high-paying jobs here, especially those in the pharmaceutical and research and development areas. In the last ten years, the job growth rate was more than 16 percent.

We have made our move and are enjoying our life in our New Jersey new home. NJ is love; once you decide to move here, you’ll feel the same too!

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6 Ways to Make the Perfect Patio that Can Help Sell Your Houston Home

Posted by Amitesh on December 01, 2011
Existing Home Selling, Home Builders in Texas / No Comments

If you’re in the market to buy a new home in Houston, you likely have to find a buyer for your existing home before you can upgrade. But with home inventories at all time highs, making your home stand out can become troublesome. One way you can attract buyers is to create the perfect patio setting, one that attracts people to want to take advantage of the outdoors.

Perfect Patio: Outdoor Firepit with Flagstone

This outdoor patio features a firepit built around the existing pool.
Image source: sonoranlandesign.com

Fire pits and water features are the trending upgrades to outdoors this season. More and more homeowners are redesigning their patios with year-round comfort in mind. Here a few improvements to make your patio a favorite.

  1. Fire pits and fireplaces are very popular now, as temperatures get cooler, for their ambiance and warmth in the evenings. Installing a pre-fabricated version of an outdoor fireplace or barbecue will save you the expensive of having one built. Some kits only require a couple of hours for installation for outdoor ovens and stone-look fireplaces.
  2. A grill is a must-have for your space. A custom-built version is nice, but you can save money with a portable barbecue that you can find at a store for as low as $100 (if you opt for a charcoal grill) or as high as $4,000 for a high-end gas grill.
  3. Houston’s evenings are certainly nice enough to enjoy eating and entertaining outdoors. You’ll need more than a table and chairs to seat everyone, so you might consider adding benches or even an outdoor living room set. Be sure that whatever you choose is durable enough to withstand the elements.
  4. Choosing low-maintenance landscaping such as native plants that require minimal watering, is a good idea so that you need not spend the bulk of your free time working in your yard as opposed to enjoying it. You can avoid the need to seal your patio floor by choosing pavers, which will save you time and money, For a deck, composite boards never require painting.
  5. Adding an awning to provide shade so that you can enjoy your space even in the warmest of days in the summer. You may consider putting up a pergola or planting leafy trees to shade you outdoor room from the sun.
  6. Enclosing your new favorite room with a fence will make the spot feel more comfortable; just be sure not to make your wall so high that it blocks the beautiful view from your favorite easy chair.

See also:
Great Homes for Sale in Houston
The Housing Collapse has Affected Appraisals
Is Now the Time to Buy a New Home? Yes!

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Cool Off Your Energy Bill

Posted by Amitesh on September 20, 2011
Energy Saving / No Comments

If your energy bills are high, you might be inclined to blame your air conditioning system. Keep in mind, however, that other factors of a high home cooling bill are your home’s attic insulation, air, air ducts and air flow.

Cool Off Your Energy Bill

A home energy usage audit can help to identify excess power usage and help you to cut back.

Don’t be too eager to replace your air conditioning system. The problem may be a leaking air duct, an AC filter that is so thick or dirty doesn’t allow air to move through, or improperly installed attic insulation.

You may take advantage of opportunities offered by you local utility company to foot the majority of your bill for a professional to evaluate any problems in your home causing a waste of energy. Any issues that your AC system to be overworked in order to compensate for inefficiencies can be found and corrected.

An energy audit is used to check your home’s envelope, identifying areas such as gaps in walls, around windows and doors, and cracks that are allowing your cool air to escape. You will be notified of quick fixes that can slash your energy bill. These include installing shade screen to high sun-exposed areas and switching from incandescent lights to more energy-efficient alternatives.

The audit goes so far assessing the potential value of changes in your home. Although a room may be too warm because of a window’s sun exposure, attempting to compensate for this by ramping up the AC is more expensive than simply installing as exterior shade screen; the auditor can tell you if this is the case.

The auditor should provide you with a list of recommendations for your home once he has wrapped up his assessment. The repairs and upgrades are optional, with the most common recommendations being replacing or fixing attic insulation, sealing leaky AC ducts, replacing ductkwork and AC filters.

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Great Homes for Sale in Houston, Texas

Posted by Amitesh on September 08, 2011
Home Builders in Texas / No Comments

Houston is the fourth largest city in the U.S, with a city population of about 2.2 million and a metro population of about 5.6 million. It should come as no surprise then, that the area boasts so many Houston homes for sale. The Houston Association of Realtors recently reported that the average home price in the local market gained 2.2 percent in January 2011, reaching its highest-ever level for that month.

Houston New Homes for Sale: Sterling Lakes

Sterling Lakes is a new home community by LGI Homes located in the Houston suburb of Pearland.

Maybe the gain can be attributed to the city’s low cost of living or maybe it is because Houston is a major energy capital, home to many oil and gas companies. Everything is bigger in Texas including big businesses! In fact, Houston is second only to the Big Apple for the number of Fortune 500 companies headquartered within their city limits. The city is also the site of the Texas Medical Center, the largest medical center in the world, and Johnson Space Center, NASA’s principal control and training center for manned spaceflight.

While moving to Houston comes as an easy decision for many people, selecting the right neighborhood into which to move to can be a hard decision. If you are a recent graduate or a young and upcoming professional you might consider West University Place, located just 15 minutes from downtown Houston. This is also a great place to move to if you are in the healthcare field, as this community is situated just one short mile from the Texas Medical Center. It’s also very close to Rice University.

For a young urbanite that craves to be in the center of the action, consider Eastwood. This Houston neighborhood is filled with bungalows, Craftsman, and Mission-style architectural homes perfect for the young professional, whether single or with a young family. Located just three miles from the skyscrapers of downtown and the Theater District, this urban oasis is a hop and a skip from all the entertainment Houston has to offer. A new line of Houston’s Metro Rail connecting Eastwood to downtown will be complete in 2012, making this area even more convenient and “user-friendly.” Best of all, houses in Eastwood cost 50 percent less than comparable ones in Montrose or the Heights.

If you are married with a family you may want to purchase a home in The Woodlands. This planned community is located just 27 miles north of Houston. The neighborhood has upscale malls, large business parks, corporate campuses, an outdoor music pavilion, hotels, a convention center, and a hospital. And if you want to leave behind the hustle and bustle of the city, The Woodlands boasts 6,000 acres of protected green space; the commercial districts are completely separated from the residential areas to help protect the rural feel. There are also 200 miles of walking and bike paths, and 125 large and small parks.

So, if you are looking at the many homes for sale in Houston, Texas rejoice in this fact: whatever you want, whatever you need, Houston has the right neighborhood for you.

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Homebuilders Profits Adversely Affected By Housing Market

Posted by Amitesh on August 10, 2011
Housing Market / No Comments

Homebuilders Profits Adversely Affected By Housing MarketIt’s no secret that housing has been a difficult area in the nation’s economic recovery. Home prices continue to be affected by high supply and foreclosures. April experienced new record low in sales of new homes.

Homebuilder Lennar Corporation saw a concerning 65% drop in profit in the second quarter of the fiscal year. Yet, despite declining home deliveries and orders, Lennar still did better than expected by helping itself in areas outside of homebuilding. Rialto, a Lennar division that invests in distressed real-estate, has done extremely well and is a major part of the reason Lennar expects to be profitable this year.

Here are some of Lennar Corp.’s numbers: For the quarter ending at the conclusion of May, the firm had a profit of almost $14 million down from near $40 million – this represents a drop of fourteen cents a share, from 21 to 7. Lennar’s revenue fell just over 6.1%.

Gross margin on home sales declined to under 20%, but this still remains among the top in the sector. Orders were less than hoped for and new-home deliveries fell to slightly under 8%.

The housing market is, no doubt, a very challenging one. There was no sign of a spring selling season; yet, Lennar Corp, was still able to perform well and experience a fifth consecutive profitable quarter. The results Lennar turned in were better than most could expect during the slowing housing climate.

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