That Little Uptick

On March 25, the Commerce Department released a report that showed  sales of newly built, single-family homes rose for the first time in seven months in February. The little uptick you see in the graph on the left stands for a 4.7 percent gain in new-home sales to a seasonally adjusted annual rate of 337,000 units in February.

That little uptick just might be the harbinger of a housing market recovery. And, if you believe that the recovery begins where the bust started, that's great news for the entire economy.

"This is an encouraging sign that the market may finally be reaching a bottom," said Joe Robson, chairman of the National Association of Home Builders. "Consumers are beginning to take advantage of the first-time home buyer tax credit, historically low morgagte rates, very affordable home prices and the great selection of homes they have to choose from in this buyer's market. For those with good credit and job security, the stars are all aligned to buy a home now."

NAHB Chief Economist David Crowe predicts that sales numbers will continue to climb as a ressult of the stimulus package, which includes the $8,000 first time buyer tax credit and higher mortgage ceilings for conforming loans, historically low interest rates, and builders' incentives. All these are working together to reverse the three year housing slide.

The key fact for people who want to buy a home but have been putting it off is that once sales begin to steadily rise, so will prices and, eventually, so will mortgage rates. So, now is the time!

Call or email us today for information about our available homes and incentives, or about custom building the home of your dreams. We're always happy to hear from you and will bend over backwards to help you acquire a beautiful new home. 

Phone: 210-244-3635; Email: bridlebit@gmail.com

Remodeling? Get the Best Bang for the Buck

Your home is your castle, but sometimes that castle may need a face lift. Remodeling is a great way to create a home environment that can meet your family's changing needs and tastes without you having to spend a lot of money.

Before you spend your hard-earned dollars, however, make sure that the changes you make now will have longer-term benefits for you when you look to sell your home in the future.

You should find out what features are standard for homes in your neighborhood. If you only have one bathroom but most of the other homes average two or more, you will want to bring your house up to that standard. On the flip side, do not make changes to your house that are too extravagant or out-of-place for your neighborhood.

Make sure you are not making changes that will turn off prospective buyers. Keep in mind what future home buyers would like to see in their next home. For example, it may be wise to add an additional bathroom or bedroom rather than a sun room or sauna, which are costly and will not necessarily be a priority for anyone else.

The size and cost of your project matter as well. The Joint Center for Housing Studies at Harvard University advises that smaller or midrange jobs overall will tend to recover a higher percentage of their cost than larger, higher-end projects.

For example, replacing old windows will generate a higher payback ratio than adding a high-end kitchen with all of the bells and whistles and costs significantly less, according to Stephen Melman, an economist with the National Association of Home Builders. (www.nahb.org)

Maintenance-related projects, such as siding and window replacement, are especially popular because they are repairs that are seen as needed, but can also help improve curb appeal at fairly low costs in relation to other projects.

The top ten midrange projects, cited in Remodeling magazine's "Cost vs. Value Report", that provide the highest percentage return are:

1. Deck addition (wood) - 81.8%

2. Siding Replacement (vinyl) - 80.7%

3. Minor Kitchen Remodel - 79.5%

4. Window Replacement (wood) - 77.7%

5. Window Replacement (vinyl) - 77.2%

6. Major Kitchen Remodel - 76%

7. Bathroom Remodel - 74.6%

8. Attic Bedroom - 73.8%

9. Deck Addition (composite) - 73.7%

10. Basement Remodel - 72.9%

These numbers represent the national average and percentages may vary in your area. To get information on projects that are the best investments for where you live, check out Remodeling magazine's "2008-2009 Cost vs. Value Report" at www.costvsvalue.com.

Whether you are looking to sell your house soon, or just want to remodel for yourself, it makes sense to keep an eye on how the changes you make now will reflect on your biggest investment down the road.

If you'd like more information, please give us a call at 210-244-3635 or email us at bridlebit@gmail.com.

What About the "What Ifs"?

Given the ongoing turmoil in the housing and financial markets, many people who want to buy homes are sitting on the fence, either waiting for the market to bottom out or fearing that it never will. So what is the chance that the market will continue to decline, prices will continue to drop and a home purchased today will be worth less a year from now?
Of course, no one can know for sure what will happen a month, six months, or a year from now. Housing is predictably cyclical, but the current housing slump has already lasted longer than previous downturns. Moreover, timing the market is a strategy that rarely works; by the time it's clear that a market has turned around, it's too late to take advantage of the conditions at the bottom.
Fortunately, San Antonio has not been affected like so many other areas that we are hearing about. And we should not be basing our decisions on markets that are suffering a great deal more than we are. According to the 2008 and 2009 Multiple Listing Service (MLS) report by the San Antonio Board of Realtors (SABOR), at the end of November 2008, there were 949 pending sales. A month later, the numbers were up -- with a total of 996 pending sales. In January 2009, the numbers were up again -- 12 percent from the December figures -- with a total of 1,112 pending sales.
For most Americans, homeownership is a primary source of net worth and an important step in accumulating personal wealth assuring financial security. Today, even though property values have declined in some markets, Americans have a total of $8.5 trillion in equity in their homes. Home equity represents the largest share of net worth for most families.
It is time to buy! Get off the fence!

--Fred Elsner, President/CEO Bridle Bit Corporation and president, Greater San Antonio Builders Association.