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Jan. 26, 2006 - Is Remodeling for Resale Worth the Cost? Survey says ...

Realtors® Help Consumers Remodel With An Eye Toward Resale

WASHINGTON (December 21, 2005) – Kitchen and bathroom remodeling projects are returning more of a homeowners investment than ever before, according to the 2005 Cost vs. Value Report published by the National Association of Realtors in REALTOR® Magazine and by Hanley Wood LLC in Remodeling magazine.

Many homeowners who complete midrange bathroom remodels can expect to make money; the cost on a national average for this project is $10,499, and the return is $10,727, or 102.2 percent, compared with 87.5 percent in 2002. On average, major midrange kitchen remodels cost $43,862 and return $39,920, or 91 percent of the costs to remodel, up from 66 percent in 2002.

Nationally, homeowners who add an attic bedroom spend an average of $39,188, and on resale, they recoup 93.5 percent of the cost. Master suites, however, do not fare as well; an upscale addition, which costs $137,891 on average, returns only $110,512 on resale, or approximately 80.1 percent of the remodeling expense.

The Cost vs. Value Report includes information provided by NAR members about the resale value of common remodeling projects in 58 U.S. housing markets. The report includes cost data, resale value and percentage recouped at sale for 18 projects, including a first this year: a home office remodel. Given that Americas homeowners spent more than $139 billion on home improvements and repairs over the past year, according to data from Harvards Joint Center for Housing Studies, the report contains valuable information for anyone who is considering embarking upon a remodeling project.

Realtors® have industry expertise that goes beyond the initial real estate transaction, said 2006 NAR President Thomas M. Stevens, senior vice president of NRT Inc., from Vienna, Va. Our members experience and familiarity with the communities in which they work make them valuable resources. They understand what makes a good home investment, whether their clients are buying, selling or remodeling. Realtors® not only sell housing; we also build communities.

The desirability of different remodeling projects varies by region and metropolitan area. In the West, window replacements are highly valued, perhaps due in part to insulation and cooling concerns in desert regions, with nearly 103 percent of costs recouped on sale. Westerners also prefer remodeled kitchens and basements; in this region, for example, a minor midrange kitchen remodel may return 112.3 percent, and a basement remodel is estimated to return 108 percent.

In the Midwest, however, the same kitchen and basement projects return only 85 and 73 percent, respectively. Midwest buyers appreciate homes with updated siding; midrange and upscale siding replacements return 96 and 98 percent of the project costs, respectively. Siding replacement projects fared well at resale in all four regions, likely because new siding is a relatively inexpensive way to update and refresh a homes curb appeal.

Buyers in the South are partial to upscale bathrooms, which return an average of 98.5 percent of project costs. When considering resale value, however, Southerners may want to think twice about midrange window replacements; this improvement, which is so popular in the West, only returns an average of 83.7 percent of project costs in the South.

In the East, a midrange attic bedroom addition returns an average of 98.1 percent at resale, but a home office remodel only returns 75 percent. In fact, remodeling projects that involved home offices were among the lowest returns on investment across all four regions.

Local and regional differences in the resale value of remodeling projects are not surprising – the desirability of certain home features varies by neighborhood and is heavily influenced by buyers expectations in a given area, said Stevens. For example, adding a bathroom to a one-bathroom house in a neighborhood where most homes already have two may not return as much as remodeling an outdated bathroom in that same community.

In the final analysis, however, homeowners who are thinking about a remodeling project should consider their own needs and desires as well as those of the homes future inhabitants. Keeping up with the Joneses can be a savvy investment move, said Stacey Moncrieff, editor, REALTOR Magazine. But ultimately, the best reason for a remodel is to enjoy it.

Article courtesy of Realtor.Org.

For more information about the Phoenix Arizona Real Estate market, visit me at www.DaltonsAzHomes.com!

Jan. 26, 2006 - National Existing Home Sales Set Record in 2005

Existing-Home Sales Down in December But 2005 Sets a Record

WASHINGTON (January 25, 2006) – Existing-home sales declined in December but easily set an annual record, according to the National Association of Realtors^®.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 5.7 percent to a seasonally adjusted annual rate1 of 6.60 million units in December from an upwardly revised pace of 7.00 million in November. Sales were 3.1 percent lower than a 6.81 million-unit level in December 2004.

There were 7,072,000 existing-home sales in all of 2005, up 4.2 percent from 6,784,000 in 2004. This is the fifth consecutive annual record; NAR began tracking the sales series in 1968.

David Lereah, NARs chief economist, expected the monthly sales decline. This is part of the market adjustment weve been discussing, with a soft landing in sight for the housing sector, he said. The level of home sales activity is now at a sustainable level, and is likely to pick up a bit in the months ahead. Overall fundamentals remain solid, driven by population and employment growth as well as favorable affordability conditions in most of the country, so we expect the housing market to remain historically high but lower than last years record.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.27 percent in December, down from 6.33 percent in November; the rate was 5.75 percent in December 2004. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.10 percent.

Mortgage interest rates have been trending down from a peak in November, and are lower than expected – if lower interest rates are sustained, the housing market could see some unexpected lift, Lereah said.

The national median existing-home price2 for all housing types was $211,000 in December, up 10.5 percent from December 2004 when the median was $191,000. The median is a typical market price where half of the homes sold for more and half sold for less.

For all of 2005, the median price was $208,700, up 12.7 percent from a median of $185,200 in 2004.
NAR President Thomas M. Stevens from Vienna, Va., said it may take a while for home price growth to cool. Were coming off of five years of tight supply, and many sellers are accustomed to expecting very strong price gains and exceptional returns on their investment, said Stevens, senior vice president of NRT Inc. With the supply of homes improving and buyers having more choices, the rate of price growth should come down to more normal levels this year.

Article courtesy of Realtor.Org.

For more information about the Phoenix Arizona Real Estate market, visit me at www.DaltonsAzHomes.com!

Jan. 24, 2006 - Imagine that ... analyst predicts solid 2006 for Phoenix real estate

Reading the local newspaper truly is an amazing experience. On Saturday, the real estate bubble has burst and prices are about to plummet. Two days later, another analyst predicts yet another strong performance in 2006, albeit one with milder prices.

Of course, given the hyperappreciation of a year ago, saying the market will be milder is like saying the high temperature in Phoenix in July will only reach 102, not 112.

In any event, read on for information about the latest prediction for Phoenix real estate 2006:

http://www.azcentral.com/business/articles/0124housingforecast24.html

For more information about the Phoenix Arizona Real Estate market, visit me at www.DaltonsAzHomes.com!

Jan. 23, 2006 - All of Surprise's Amenities - but Without Surprise's Price!

Surprise has become the destination of choice in the Northwest Valley. But with property values appreciating exponentially in Surprise through the first three quarters of 2005, El Mirage has become a more viable option for many home buyers.

Enter this spacious 3-bedroom, 2-bathroom home in Dysart Park, just over a mile from the Surprise city limits in El Mirage. Start with the tiled entryway and vaulted ceilings overhead. Move into the spacious kitchen with double islands, the second containing the sink and doing double-duty as a breakfast bar. An open floorplan allows someone in the kitchen to remain in contact with the rest of the family in the living room, located in the home's northeast corner.

Just off the family room is an oversized den/office, which also could serve as a fourth bedroom. Back in the main hallway, you can turn right into the large master suite complete with a bathroom with double sinks and upgraded countertops, or turn left to the three oversized secondary bedrooms.

From the extra bay windows to the countertops to the cabinets and tile, this home was beautifully updated and immaculately maintained.

And it's available for only $264,900 -- an extremely affordable price for nearly 1,900 square feet in the Northwest Valley.

For more information or to schedule a showing, either e-mail me at Info@DaltonsAzHomes.com or call me at 602-502-9693.

For more information about the Phoenix Arizona Real Estate market, visit me at www.DaltonsAzHomes.com!

Jan. 23, 2006 - The Buckeye Boom

Once upon a time, Buckeye Arizona was known as the place Interstate 10 ended. And even until the last couple of years, it was known more for the presence of one of the state's penitentiaries and a rest stop on the way from Phoenix to San Diego than for anything else.

But times are changing. Aggressive annexation has extended Buckeye's borders from its roots south of Interstate 10 about 35 miles west of Phoenix all the way up to the west side of the White Tank Mountains in northwest Maricopa County. Buckeye is the home of Verrado, Sundance and soon will have Sun City Festival, Del Webb's latest active adult community, within its borders.

The Arizona Republic today featured Buckeye's town planners, who envision a city rivaling the East Valley meccas of Mesa, Gilbert and Chandler in the not-so-distant future.

http://www.azcentral.com/community/swvalley/articles/0123buckplanners23.html

For more information about the Phoenix Arizona Real Estate market, visit me at www.DaltonsAzHomes.com!