Real Estate News: Home Resales Rise 4%

By Sushil Cheema Kiawah Island Real Estate House of the Day: A ‘Lips Room’ On Kiawah Island: This South Carolina house has a great room featuring bamboo floors and a guest room with white lacquer walls and limited-edition wallpaper. Here is a look at real-estate news in today’s WSJ: Home Resales Rise 4%: Sales of previously occupied homes in the U.S. rose 4.0% in November to a seasonally adjusted annual rate of 4.42 million. Demand for Rentals Drives Big Rise in Home Building: Residential construction surged in November, sparking cautious hope that the U.S. housing market is gaining traction. California Suing Fannie and Freddie: California’s attorney general sued Fannie Mae and Freddie Mac, seeking to force the firms to answer a detailed list of questions after the firms’ federal regulator sought to block an open-ended inquiry by the state. Big Developers Dabble in Apartment Market: Some of the leading U.S. developers of malls and office properties are moving into the apartment business, where demand for new projects is stronger than any other commercial-real-estate sector. Russians Are Coming: Russian billionaire Mikhail Fridman is launching a real-estate fund that will focus on distressed properties from Boston to Miami, in the latest example of a deep-pocketed foreigner placing some chips on the U.S. real-estate market. Skanska Searches for Home Buyers: Swedish construction company Skanska seeks to break into the U.K. housing market. Its first project is a 128-unit development on the edge of Cambridge. Shanghai’s Pudong, Once Soulless, Rises Up: Pundits once mocked Shanghai’s Pudong district, a purpose-built version of Manhattan, as overdesigned and underoccupied. Today, as worries of a Chinese property crash are back in force, Pudong is an unlikely bright spot. Deal of the Week: Mile-High Aspirations: An investment group led by Brookfield Office Properties is making a big bet on the energy sector by buying the second-tallest office building in Denver, which is about to become 70% vacant. Plots & Ploys: More Promos, More Sales? With an eye toward boosting sales in shopping-heavy season, mall owners are stepping up special promotions. Macerich Co.’s Queens Center mall in Long Island, N.Y., will host a contest Wednesday in which teams of shoppers can compete by wrapping a person in holiday paper. Property Pulse: Positive Reading: The Architecture Billings Index moved into positive territory last month for the first time since August. The index was 52.0 in November, up from 49.4 in October. Any score above 50 indicates a rise in billings while scores below 50 mean that demand for design services declined. Read more at www.wallstreetjournal.com

REALTORS® Identify Exterior Replacement Projects as Best Investment for Homeowners Washington, December 16, 2011 When it comes to remodeling, exterior replacement projects have routinely rewarded homeowners with more bang for their buck. This year is no different, as Realtors® recently rated many exterior improvements as among the most valuable home investment projects as part of the 2011-12 Remodeling Cost vs. Value Report. “This year’s Remodeling Cost vs. Value Report shows the value of putting your home’s best façade forward, so to speak,” said National Association of Realtors® President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Inexpensive exterior replacement projects are not only crucial to a home’s regular upkeep, but are also expected to recoup close to 70 percent of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal.” HouseLogic.com, NAR’s consumer website, includes dozens of remodeling projects, from kitchens and baths to siding replacements, which indicate the recouped value of the project based on a national average. According to the Cost vs. Value, seven of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. Realtors® judged an upscale fiber-cement siding replacement as the project expected to return the most money, with an estimated 78 percent of costs recouped upon resale. Two additional siding replacement projects were in the top 10, including foam-backed vinyl siding, expected to return 69.6 percent of costs, and upscale vinyl siding, expected to recoup 69.5 percent of costs. Three door replacements were also among the top exterior replacement projects. The steel entry door replacement is the least expensive project in the report, costing little more than $1,200 on average and expected to recoup 73 percent of costs. Realtors® Identify Exterior Replacement Projects as Best Investment for Homeowners – add 1 The upscale garage door replacement jumped seven spots to number six this year, primarily due to the average cost of the project declining more than 15 percent nationally. The upscale and midrange garage door replacement projects are expected to return more than 71 percent of costs. One window replacement project – upscale vinyl – rounded out the last exterior replacement project in the top 10, expected to recoup 69.1 percent of costs. The 2011-12 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 14th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR. Realtors® provided their insight into local markets and buyer home preferences within those markets. Overall, Realtors® estimated that homeowners would recoup an average of 57.7 percent of their investment in 35 different improvement projects, down from an average of 60 percent last year. Due to a weak economy, high unemployment in the construction industry and the increasing cost of materials, the price of remodeling projects have risen, leaving many homeowners hesitant to tackle projects or encouraging them to scale back on their plans. Three interior remodeling projects are also considered worthwhile investments. A midrange attic bedroom is expected to return 72.5 percent of costs upon resale; of all the projects in the report, it is the least expensive way to add a bedroom and bathroom within a home’s existing footprint. A minor kitchen remodel, expected to return 72.1 percent of costs, is fourth overall, ranking two places higher than last year. Nationally, the average cost for the project is just under $20,000 and is the least expensive way to give an existing kitchen a complete facelift. A wood deck addition, landing at number seven overall, is expected to recoup 70.1 percent of costs. Improvement projects that are expected to return the least are a sunroom addition and a home office remodel, both estimated to recoup less than 46 percent of costs. “Resale value is just one factor among many that homeowners need to take into account when making a decision to remodel,” said Veissi. “The desirability and resale value of particular remodeling projects also varies by region and metropolitan area. A Realtor® can help homeowners decide what low-cost improvement projects will provide the most upon resale in a particular market.” Most regions followed the national trends; however the Pacific region, consisting of Alaska, Hawaii, California, Oregon and Washington has the highest average cost-value ratio in the country, at 71.3 percent. This is largely because the high cost of remodeling in the region is more than offset by high values at resale. The next best performing regions were West South Central (67.7 percent) and South Atlantic (67.3 percent), mainly due to the low construction costs in the areas and relatively strong resale values. Realtors® Identify Exterior Replacement Projects as Best Investment for Homeowners – add 2 The regions in which the cost-value ratio is slightly above the national average are New England (60.5 percent), East South Central (59.8 percent) and Mountain (58.5 percent). Three remaining regions performed slightly below the national average. These are the Middle Atlantic (56.8 percent), East North Central (55.3 percent) and West North Central (49.5 percent). Results of the report are summarized on HouseLogic.com. The website includes a wide variety of ideas and projects to help homeowners maintain, enhance and improve the value of their homes. To read the full project descriptions and access national and regional project data, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC. Founded in 1976, Hanley Wood, LLC, is the premier media and information company serving the housing, commercial design and construction industries. Through its operating platforms, the company produces award-winning magazines and websites, marquee trade shows and events, market intelligence data, and custom marketing solutions. The company is also North America’s leading publisher of home plans. Read more at www.realtor.org

HouseLogic Poll Finds Voters Driven by Jobs, Housing in 2012 Election Washington, DC, December 09, 2011 A recent survey by Houselogic.com, the consumer website from the National Association of Realtors®, finds that jobs and the housing market will be two of the most important issues for voters in the 2012 election. Nearly one-third of respondents said housing will be the top issue on their mind when they head to the polls next November. “We need to keep housing first on the nation’s public policy agenda, because housing and home ownership issues affect all Americans,” said NAR President Moe Veissi, Veissi, broker-owner of Veissi & Associates Inc., in Miami. “The results of this survey show that many Americans understand that.” Respondents were asked “What issue area will have the greatest impact on your vote in 2012?” National security, healthcare, and energy/environment trailed housing and unemployment by wide margins: Jobs/unemployment – 54 percent Housing – 27 percent National security – 8 percent Healthcare – 4 percent Energy/Environment – 2 percent Other – 4 percent With unemployment still high, it is easy to see why so many Americans are concerned about the job market. However, employment and the housing market are inextricably linked because economic growth and job creation cannot occur without a housing recovery. Housing accounts for more than 15 percent of the U.S. Gross Domestic Product – it’s a key driver of the national economy. Home sales generate jobs. NAR estimates that for every two homes sold, one job is created. New spending on homebuilding products, furniture, and other residential investments also have a significant economic impact. Some recent indicators show that the economy might be starting to rebound, with pending home sales rising strongly in October, according to NAR’s Pending Home Sales Index. However, any changes to current programs or incentives must not jeopardize a housing and economic recovery. Unemployment, consumer confidence and consumer spending will not rebound until a number of issues are addressed. “NAR actively advocates public policies that promote responsible, sustainable homeownership, which will in turn support overall economic recovery,” said Veissi. “We want to ensure affordable, accessible financing; support tax policies that encourage homeownership; and help more people stay in their homes or avoid foreclosure through streamlined short sales.” This HouseLogic survey shows Americans understand that a housing recovery is essential to the nation’s economic recovery, and many of those housing-related issues will be on the minds of voters in 2012. HouseLogic is a free source of information and tools for homeowners from the National Association of Realtors® that helps homeowners make smart decisions and take responsible actions to maintain, protect and enhance the value of their home. HouseLogic helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance. For more information on official contest rules and tips on how to make smart decisions and take responsible actions to maintain, protect and enhance the value of your home, visit www.houselogic.com. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries. Read more at www.realtor.org

REALTORS® Offer Solutions for Workforce Housing Crisis Washington, December 01, 2011 Public and private sector workers in the northwestern U.S. have limited access for affordable housing. In response, the National Association of Realtors®, in partnership with the National Housing Conference, will host a forum today in Portland, Ore., to address this crisis and encourage efforts to make housing more affordable to working class families. Bring Workers Home, the daylong forum, is part of a series of three regional forums hosted by NAR and NHC to develop solutions to the country’s workforce housing shortage. The Portland forum will focus on a core set of issues in the Northwest region including identifying steps to create and sustain a workforce housing program; reinforcing the importance of advancing workforce housing through local and state partnerships; exploring workforce housing issues from the perspective of employers; and studying current examples of the area’s successful housing programs and best practice efforts. “There is a crisis in affordable housing opportunities for low- and moderate-income families,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Realtors® have been leaders on this critical housing issue, dedicating themselves to building stable communities with access to affordable housing opportunities for everyone. The Bring Workers Home forum today will bring together Realtors® and community leaders, local employers and organizations, and officials who focus on workforce housing. This group of dedicated people will address the challenges we see today in our communities, as well as offer solutions to this critical issue.” In many communities across the country the people who provide vital services such as teachers, firefighters and police officers often cannot afford homes near their workplaces. This is due in part to home costs outpacing wages, as well as communities lacking affordable housing opportunities. The lack of affordable housing leads to longer commutes, sprawl and traffic congestion, which ultimately lessens the quality of life for all residents. “There is an essential link between workforce housing and a community’s economic and social well-being,” said Veissi. “Many cities are recognizing the value in making a community a good place to live and work. Some businesses have also acknowledged the link between housing costs and their bottom lines as those costs continue to hinder employers’ ability to seek and retain workers. Today’s forum will dig deeper into these challenges, as well as examine practices that have been successful in the Northwest region.” A morning panel session at today’s forum will make the case for workforce housing by underscoring it as a critical factor in improving a community’s economy, and outlining strategies to address the housing needs of the region’s working families. Keynote speaker Bryn Sopko, director of Human Resources at the University of Portland, will provide an employer’s point of view on workforce housing and how it benefits employees. Afternoon panels will share case studies of successful workforce housing programs from across the region, and participants will discuss the importance of advancing workforce housing through local and regional partnerships. The following day, participants have the option to participate in NAR’s Employer-Assisted Housing class. The four-hour course helps real estate professionals better understand employer-assisted housing benefits and gives them strategies to work with local nonprofit and lender partners to help local employers implement housing benefits for their employees. More than 100 attendees are expected at the forum, including Realtor® associations and Realtors®, employers and human resource professionals, urban and regional planners, housing and community development leaders and local officials, as well as those involved in local housing issues. The series of Bring Workers Home forums took place throughout this year in Boston; Washington D.C.; and Portland, Ore. This is the final forum for 2011. For more information, visit www.realtor.org/housingforums. For 80 years, the nonprofit National Housing Conference has been the nation’s premier housing policy and advocacy organization. To learn more about the National Housing Conference and its research affiliate, the Center for Housing Policy, go to www.nhc.org. Read more at www.realtor.org

NAR Awards Realtor® Associations Grants to Promote and Expand Affordable Housing Washington, DC, November 22, 2011 The Housing Opportunity Program Grants, a National Association of Realtors® grant program, has presented $62,500 to 19 local and state Realtor® associations. Those associations will use the funds to promote and expand affordable housing opportunities in their communities. “Realtors® work hard to help raise awareness and identify and promote solutions that address affordable housing opportunities,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Without affordable housing opportunities, communities across the country suffer. The Realtor® associations awarded these grants recognize that and are making a tremendous effort to educate both Realtors® and consumers on the importance of affordable housing.” NAR’s Housing Opportunity Program Grants program was established in 2006. Individual grants of up to $5,000 are awarded twice per year, in April and October. Since the program’s inception, more than 170 grants totaling over $600,000 have been awarded. The grants support a wide range of housing initiatives, including housing symposia; home buyer education or housing fairs; counseling and financial literacy efforts; down payment or closing cost financial assistance programs; public opinion surveys; and Realtor® affordable housing education. To be considered, programs should support the Housing Opportunity Program’s mission of positioning Realtors® as leaders in creating housing opportunities. The following Realtor® associations received Housing Opportunity Program Grants in this round: Charlotte Regional Realtor® Association (Charlotte, N.C.): $5,000 to support the development of a formalized Housing Advisory Council to promote affordable workforce housing advocacy and education. Contra Costa Association of Realtors® (Walnut Creek, Calif.): $3,000 toward a community outreach event that will provide resources on topics such as purchasing real estate-owned properties, completing short sales, relocating, moving-up/down and more. Eastern Connecticut Association of Realtors® (North Franklin, Conn.): $2,000 to help create “how-to” videos for home buyers, which will be placed on the association’s website. Gulf Coast Association of Realtors® (Gulfport, Miss.): $3,000 toward an awareness campaign to inform Realtors® of a retrofit program that provides grants to homeowners to strengthen their property against natural disasters. Hawaii Association of Realtors® (Honolulu, Hawaii): $3,000 for a public event that will include workshops on various home buying topics taught by Realtors® and industry partners. Lawrence Board of Realtors® (Lawrence, Kan.): $5,000 to support a local public awareness campaign specific to housing opportunities in two counties served by the association. Maryland Association of Realtors® (Annapolis, Md.): $3,000 to conduct a training and networking event for key stakeholders to present the issues, benefits, and concerns about establishing employer-assisted housing programs. Metro Tex Association of Realtors® (Dallas, Texas): $3,000 to hold a workshop for Realtors®, public officials, and affordable housing organizations to examine negative attitudes surrounding affordable housing and develop strategies to combat those attitudes. Nevada Association of Realtors® (Reno, Nev.): $5,000 to support an employer-assisted housing forum to bring together Realtors®, business owners, community leaders and others to identify ways to use EAH to strengthen the housing sector. Northwest Montana Association of Realtors® (Kalispell, Mont.): $4,000 for multiple activities to educate the public and promote homeownership, including printed materials for consumers, participation in a home and garden show, workshops, and more. Pinellas Realtor® Organization (Clearwater, Fla.): $2,500 to support a program in partnership with other organizations to match vacant apartments with families in need and to provide the families with financial assistance for security and utility deposits. Portage County Association of Realtors® (Ravenna, Ohio): $2,500 toward a collaborative effort to restore a fire-damaged, abandoned home to provide housing for homeless, female veterans. Realtor® Association of Greater Fort Lauderdale (Fort Lauderdale, Fla.): $2,500 to hold a housing symposium to educate Realtors® and prospective home buyers about affordable housing programs and opportunities. Richmond Association of Realtors® (Richmond, Va.): $2,500 to conduct a workshop, “Revitalization, Reinvention and Return on Investment,” which will explore the local region’s current revitalization efforts and plans. Rogue Valley Association of Realtors® (Medford, Ore.): $2,500 to support participation in a community event to benefit the Oregon Association of Realtors® HOME Foundation. San Diego Association of Realtors® (San Diego, Calif.): $3,000 to support involvement in a free, mobile workshop designed to assist distressed homeowners; and $2,000 to conduct home buyer education seminars throughout the city. Staten Island Board of Realtors® (Staten Island, N.Y.): $2,000 to help sponsor a housing fair for first-time buyers to educate them on issues related to the purchase of their first home. Tacoma-Pierce County Association of Realtors® (Tacoma, Wash.): $2,000 toward a foreclosure prevention workshop that will be open to the public, providing access to local housing counselors. The Greater Waterbury Board of Realtors® (Waterbury, Conn.): $5,000 to form a politically neutral initiative to review the demographics of the city and study the issues of blight, tax liens, and brownfields to find ways to redevelop the properties into affordable housing units. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries. Read more at www.realtor.org