Americans build larger, more costly homes

construction_home

Newly built single-family homes in the United States are getting bigger, costlier to build and more expensive, according to the National Association of Homebuilders. This news comes on the heels of news that home prices climbed 11.8% between November 2012 and November 2013.

In fact the only thing shrinking for new construction is the size of the lot they’re built upon, according to NAHB’s most recent construction cost survey of 3,019 builders. The survey was conducted in August and September of 2013.

The survey shows that this trend is happening across all levels of homebuilding. That is to say, the increase in the average price, cost and size is not a result of high-end homes gains pulling the average up or lower-cost and mid-level homes gains pushing upward.

“It’s an across the board gain,” says Heather Taylor at the economics and housing policy department at NAHB. “In fact we factor out the high end market since it can skew the results.”

The cost to build a single-family home was $246,453 in 2013, which is the highest cost since 1998. Newly constructed home prices jumped 25% to $399,532. That is below the peak of $454,906 in 2007.

While the cost of building a new single-family home in 2013 represented a 34% increase from the cost, profits jumped to 9.3% from their 2011 all-time low of 6.8%.

The average size of the home in the 2013 construction cost survey was 2,607 square feet, which is about 300 square feet more than the average size of the homes reported in the 2011 construction cost survey, but still about 100 square feet less than the peak reported in the 2009 survey.

The average home in the NAHB survey was built on a one-third acre lot, as opposed to a half-acre lot average found in the 2011 NAHB survey.

By type and percentage of construction costs, interior finishes accounted for 29.3% of construction cost, with the balance spread among framing (19.1%), exterior finishes (14.4%) and the combination of plumbing, electrical and heating, ventilation and air conditioning (13.4%).

The average share of the home’s sales price which goes to construction cost jumped from 59% in both 2009 and 2011 to 61.7% in 2013. Finished lot costs, accounting for the second largest share of the sales price, dropped from 22% in 2011 to 19% in 2013.

Although the cost of construction per square foot remained relatively stable in 2009 and 2011 ($82 per square foot, and $80 per square foot, respectively), it jumped to $95 per square foot in 2013.

These results, NAHB reiterate, are national averages; the survey sample is not large enough for a geographic breakdown. Building practices, the cost of labor, the cost of land, and to some extent the cost of the materials can vary from place to place and depend on the nature of the particular home being built.

If you’re looking for real estate assistance, both commercial and residential, please contact me directly at (310)402-8181 begin_of_the_skype_highlighting (310)402-8181 FREE  end_of_the_skype_highlighting or jkryukova@gmail.com

www.juliekproperties.com
www.laluxegroup.com

Source: housingwire

New Listing: Great Location Near “The Grove”

127 N. Gardner St. Los Angeles, CA 90036

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008A

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026A

Offered at $1,279,000

3 Bedrooms

2 Bathrooms

2,312 Sq. Ft.

5,984 Sq. Ft. Lot

THIS AUTHENTIC 1926 TWO-STORY 3-BEDROOM/2-BATHROOM SPANISH HOME IS LOCATED IN ONE OF LA’S HOTTEST NEIGHBORHOODS: IT’S AROUND THE CORNER PAN PACIFIC PARK AND JUST DOWN THE STREET (BETWEEN BEVERLY OR 3RD)FROM THE GROVE

SET ON A KNOLL WITH A GATED DRIVEWAY BACKYARD, THIS GORGEOUS HOME CONTAINS ENVIABLE DESIGNER FINISHES INCLUDING IMPORTED ANTIQUE FRENCH TERRACOTTA TILES, TURKISH TRAVERTINE, & HAND-PAINTED FLOURISHES. THE HOUSE’S DRAMATIC ENTRY FOYER OPENS TO AN IMPRESSIVE STEP-DOWN LIVING ROOM WITH A TWO-STORY WOOD BEAMED CEILING, REFINISHED ORIGINAL WOOD FLOORS, STONE FIREPLACE, AND CLASSIC SPANISH PICTURE WINDOW LOOKING OUT OVER THE GRASSY FRONT YARD.

THE RESIDENCE’S FORMAL DINING ROOM IS LIGHT, BRIGHT, AND EXQUISITELY ELEGANT. A LARGE CHEF’S KITCHEN SPORTS A VERSAILLES-PATTERNED TRAVERTINE FLOOR, FARM SINK, JERUSALEM GOLD LIMESTONE COUNTERTOPS, AMPLE CUSTOM CABINETS (WITH SELF-CLOSING DRAWERS), PREP SINK (PERFECT FOR FEEDING THE PUPS, TOO), AND TOP-OF-THE-LINE APPLIANCES (INCLUDING FISHER & PAYKEL DUAL-DRAWER DISHWASHER).

THE HOME’S FAMILY ROOM FEATURES A BUILT-IN ENTERTAINMENT CENTER AND SLIDING FRENCH DOORS TO THE BACK YARD.

THERE ARE 2 LARGE BEDROOMS UPSTAIRS (THAT SHARE ONE BATH), ONE OF WHICH HAS A CHARMING BALCONY AND WALK-IN CLOSET. THERE IS ONE BEDROOM (WITH DIRECT ACCESS TO A BATH ON THE GROUND LEVEL.

IT’S AN ENTERTAINER’S PARADISE OUTSIDE IN BACK: A PERGOLA-COVERED PATIO, LOUNGING & DINING AREAS, POOL AND SPA, AND OUTDOOR SHOWER.

WITH A WALK SCORE OF 97 (OUT OF 100), HEAD OUT ON FOOT TO THE FARMER S MARKET, SHOPPING ON BEVERLY, SOME OF L.A.’S BEST RESTAURANTS ON 3RD, AND THE EXPANSIVENESS OF PAN PACIFIC PARK. EVEN LACMA IS A STROLL AWAY!

Please contact me at (310)402-8181 begin_of_the_skype_highlighting (310)402-8181 FREE  end_of_the_skype_highlighting or Jkryukova@gmail.com for more information, questions, showings.

U.S. postpones 2014 hike in mortgage fees

West hollywood real estate

It’s a Christmas miracle!

Planned fee increases that would have added to the cost of millions of mortgages will be postponed. Currently, borrowers seeking loans backed by Fannie Mae and Freddie Mac are set to pay higher upfront fees starting April 1.

The fees, ordered by the Federal Housing Finance Agency earlier this month, are meant to help safeguard banks against risky borrowers who might default.
But housing experts say they will add thousands of dollars to the cost of all mortgages insured by Fannie and Freddie, with the biggest hits taken by borrowers with less than perfect credit histories.

On Friday, the incoming chief of the FHFA, Mel Watt, said he intends to postpone the fees — and perhaps even cancel them — until more analysis is done. The FHFA oversees Fannie Mae and Freddie Mac.

Watt, a former Democratic member of Congress, has been confirmed to his post by the Senate and takes office on January 6.

In a statement, Watt said he intends to “evaluate fully the rationale” for the fees and their impact on Fannie and Freddie and the “availability of credit.”

The mortgage industry has been bracing for substantial increases in the price of loans in 2014.
“If these [policies] had been implemented, it would have increased borrowing costs dramatically,” said David Stevens, CEO of the Mortgage Bankers Association.

The hit for individual borrowers would depend on the amount of the home purchase being financed, according to Brian Koss, executive vice president at Massachusetts-based lender Mortgage Network.
Borrowers would have paid a fee when they took out the loan, or they could have effectively rolled the higher fees into their interest rate, raising monthly mortgage payments by as much as a quarter percentage point.

Even with the reversal, however, mortgages will probably get more expensive over the next few months anyway as the Federal Reserve cuts back on its purchases of mortgage backed securities, a program designed to keep interest rates low.

Stevens, the mortgage industry representative, said the proposed increases made little sense. Defaults on mortgages made in recent years have been much lower than on those made before the housing crash.

As a result, Fannie and Freddie are flush with profits, so much so that they have already returned almost all of their $187 billion taxpayer-funded bailout.

“The GSEs are making a lot of money,” said Stevens. “There’s no rationale for the increases.”

If you’re looking for commercial or residential real estate assistance, please contact me at
jkryukova@gmail.com or (310)402-8181 begin_of_the_skype_highlighting (310)402-8181 FREE  end_of_the_skype_highlighting.

Source: http://money.cnn.com

Recovering Housing Market to Spur Economic Recovery in New Year

WeHo

Next year will likely be the first year since 2000 that home purchases outpace refinances, according to Freddie Mac’s expectations. Furthermore, the rallying housing market should set the broader economy on a brighter path, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for November.

“Led by a resurgent housing sector, 2014 should shape up to be better than 2013,” Freddie Mac stated in its outlook.

Housing starts, which have been slow, should rise to a pace of about 1.15 million in 2014, according to Freddie Mac.

This is more in line with the historical average of 1.1 million per year reported by the Census Bureau. In comparison, the Census Bureau recently reported household formation over the first three quarters of this year at just 380,000.

Freddie Mac expects home sales to increase 5 or 6 percent in the new year, but tight inventory will prevent further increases.

Home values will continue to increase, albeit at a slower pace. Freddie Mac expects home price growth to be about the same as home sales growth—5 or 6 percent.

Rental prices will also continue to rise, but like housing prices, their pace will moderate. Freddie Mac expects rents to rise at a pace of about 5.3 percent next year.

Mortgage rates will reach about 5 percent for 30-year, fixed-rate mortgages by the end of 2014, according to Freddie Mac. While this will not threaten affordability in most markets, it may dampen affordability in a few higher-priced markets, according to the outlook.

Also, Freddie Mac noted there may be “some volatility in the short-term” resulting from uncertainty surrounding fiscal policies, such as the debt ceiling and the Federal Reserve’s tapering of its MBS purchases.

The overall good news for the housing market translates to good news for the broader economy, according to Freddie Mac.

The rise in housing starts should translate to 700,000 new jobs, according to economists at Freddie Mac.

These new jobs will help bring the unemployment rate below 7 percent “perhaps by mid-2014,” Freddie Mac stated.

Economic growth is expected at 2.5 to 3 percent for the year, which is “more than 0.5 percentage points better than is projected for 2013,” according to Freddie Mac.

If you’re looking for real estate assistance, commercial or residential, please contact me directly at (310)402-8181 begin_of_the_skype_highlighting (310)402-8181 FREE  end_of_the_skype_highlighting or jkryukova@gmail.com.

Source: DSNews

Home Prices Continue Rising, Sales Steady

West Hollywood Properties

Home sales continue to seesaw—while levels increased from the previous year, they dipped from previous month. Following historic seasonal trends, October home sales edged 2.8 percent lower than September, but still pushed 2.2 percent higher than sales in October 2012. Median home prices were 11.9 percent above prices seen last October.

“What we’re seeing now are predictable seasonal cycles, which is just another sign that the housing recovery is bringing us back to a more normal market,” said Margaret Kelly, CEO of RE/MAX. “Home sales are expected to slow down during the holidays and winter months before returning to the next growth cycle in the spring.”

Home sales have experienced year-over-year increases in both sales and prices for 21 months now. The median price of all homes sold in October was $179,950. Inventories of homes for sale were 12.2 percent lower than the levels in October last year. For the last 29 months in a row, inventories have declined at a slower rate.

The October inventory drop is half of the annual loss seen as recently as June. At the current rate of sales, the number of months required to sell the entire inventory of homes on the market was 4.9. A 6-month supply is recognized as a balanced market with an equal number of buyers and sellers.

For the most part, normal seasonal trends are responsible for slowing month-to-month changes in home sales. Of the 52 metro areas surveyed in October, 35 reported higher sales than in October 2012, with 19 reporting double-digit gains. New York, New York experienced gains of 32.6 percent; Trenton, New Jersey experienced gains of 32.5 percent; Anchorage, Alaska experienced gains of 24.2 percent; Philadelphia, Pennsylvania experienced gains of 18.2 percent; Wilmington, Delaware experienced gains of 18.1 percent; and Manchester, New Hampshire experienced gains of 17.1 percent.

In the month of October, homes stayed on the market for an average of 66 days. This is one day higher than the average seen in September, but is 16 days lower than the average seen in October 2012. An average this low is the direct result of continued high demand and a reduced inventory of homes for sale, according to RE/MAX.

The housing market has been plagued by a low inventory environment, but for seven consecutive months, inventory has declined at a slower rate than during the same month of the previous year. While not yet adding inventory, the situation is improving. In October, there were 5.1 percent fewer homes for sale than in September, and 12.2 percent fewer than in October 2012. At the rate of home sales in October, the Months Supply of inventory was 4.9.

If you’re looking to purchase, sell, or lease commercial or residential real estate please contact me at (310)402-8181 or Jkryukova@gmail.com

Please visit my website for my information and properties: www.juliekproperties.com

source: dsnews

WeHo

WeHo

West Hollywood offers a gorgeous living experience

West Hollywood (WeHo) offers a unique living experience with a variety of famous restaurants and shops as well as eccentric nightlife. The rich history of WeHo characterizes it as one of the best places to live in the Los Angeles Area.

Chateau Marmont

Chateau Marmont

The suburban community has a population of over 34,000 people located in Los Angeles and is nearby cities like Beverly Hills, Hollywood Hills, Los Feliz, Westwood, and Santa Monica.

WeHo

Sunset Blvd. in WeHo

With household sale prices increasing by 3.8 percent compared to the last quarter, and 17.6 percent compared to last year, now is the time to buy. Interest rates are lower than ever, and home prices are starting to rise. The number of home sales is up 6.6 percent. The average listing price for homes for sale  was over $1.1 million for the last week of October. Now is the best time to lock in those interest rates and invest in a WeHo home.

West Hollywood

WeHo offers the best WalkScore in all of California based on its walkability. This is perfect for those of you looking to have a fun night out and who want to leave the car behind or for those of you who love the city life.  With Santa Monica Boulevard, the Sunset Strip, Melrose Avenue and Beverly Boulevard, there is ample supply of art, dining, and nightlife available.

Distinct architecture, famous music venues, elaborate hotels, and a number of celebrity hangouts make WeHo a notable area.

Sunset Plaza

Sunset Plaza

WeHo offers lots of things to do and is a great place to live if you seek entertainment. Comedy clubs like the Laugh Factory can be found throughout the area. The epicenter for designer showrooms and unusual exhibits can be found at the Pacific Design Center. And if that isn’t enough of a wow factor, historic celebrity mansions can be found in the area.

Pacific Design Center

Incredible Downtown LA Restaurant Space for Lease!

Downtown LA Commercial

1036 Grand St. Los Angeles, CA

    OVERVIEW
  • 1036 S Grand Ave has the wow factor that restaurant patrons desire when dining for business and pleasure
  • Located in the heart of South Park, Downtown Los Angeles’s most desirable and fashionable cosmopolitan neighborhood
  • A few blocks from Staples Center and LA Live
  • Built in 1912 and 7,100 sqft large
  • 25 foot (estimated ) truss ceilings, massive skylights, floor to ceiling brick walls, concrete floors
  • Free standing so a restaurant operator can avoid the hurdles often times experienced when located on the first floor of a building with tenants and residents.
  • Parking for five to six cars in the rear of the building and there are many public parking lots in the immediate vicinity.
  • Structural retrofit already completed to accommodate a 194 person occupancy load
  • Conditional Use Permit is in progress for full alcohol as well as off-site sale of beer/wine.

For price, terms, showings – contact me at jkryukova@gmail.com or 310.402.8181

If you’re looking for industrial, retail, creative, or other commercial space for lease or sale please contact me.

Downtown LA Commercial Downtown Los Angeles Commecial Space

Listing Courtesy of Tony Diamond.

Ceiling and Brick Walls