November 14, 2017
Housing Update: Market Strong, Says Realtor.com
cause the housing crash. It was rising prices stoked by subprime and low documentation mortgages, as well as people looking for short term gains – versus today’s truer market vitality – that created the environment for the crash.” Today’s home buyers are vetted to a much higher standard than in 2006.
A typical buyer has a credit score of 650, up from only 600 pre-recession. Zero-money down mortgages have all but disappeared from the market with small exceptions for Veterans and people who qualify for selection special programs.
“Lending standards are critical to the health of market,” says Hale. “Unlike today, the booms, under regulated lending environment allowed borrowing beyond repayable amounts and atypical mortgage products, which pushed up home prices without the backing of income and equity.”
In addition to the lending reforms that have taken shape of the past decade, factors like record low unemployment and low inventory also boost the health of the market. In October 2017, the unemployment rate was listed at 4.1% which is a 17 year low and in many cities, less than half of 2010 levels. Strong employment rates are boosting sales while limited inventory provides the ground work for competitive pricing.
Economists do not expect these housing prices to continue to dramatically increase. Lack of inventory will drive the market to levels where many buyers are priced out. This could lead to people looking for less expensive options like living with roommates or renting over buying. Experts do not expect a crash or sharp market correction but rather a gradual tapering off and easing of demand. New home builders are more prepared for this than they were in 2006. In today’s market, new home construction is driven by demand and not availability of funds. This has curbed over building and protects builders and owners in the event of a downturn in the market.
Where the market goes over the next decade depends a lot on the actions of Millennials. While they are experiencing record job growth and currently make up over 52% of the home buying population, many Millennials have a different philosophy on owning home than their parents did. Flexibility and function are important to this new generation of home owner. Modern careers can require more relocation leading to housing to be a more temporary concept where renting or owning a smaller space may make more sense.
Regardless of the millennial response, there is no denying that today’s home buying market is stronger and healthier that it’s pre-recession iteration. Coming off of a decade of lending reforms and economic growth combined with an inventory at a 22-year historic low has all but ensured continued price escalations for 2018.
It has taken more than 10 years but housing prices are starting to return to the thriving levels of the early 2006 housing market. Realtor.com is quick to point out that while the trend in price increases across the board might be similar to those of 2006, there is one major difference that sets this market apart. Today’s market is much steadier than that of the pre-recession years. Conditions vary greatly from those leading up to the real estate collapse of only a little over a decade ago. Tighter lending standards and a stronger economic core make this market more solvent and stable. In addition, the current rise in housing prices is fueled by strong and ever-growing supply and demand rather than inflated values fed by a culture of subprime lending and predatory mortgage practices.
In 2016, the median home price in the U.S. was $236,000.00 which is almost a full 2% higher than it was in 2006. Of the 50 largest cities in the country, 31 reported that they were back to pre-recession housing price levels or higher. Cities reporting the highest levels of growth include Denver, Austin and Dallas. In these cities and many others national data shows a continued growth of almost double digits in the first half of 2017.
Danielle Hale is the chief economist for realtor.com. When asked about the comparison between today’s market and that of 2006 she said, “As we compare today’s market
dynamics to those of a decade ago, it’s important to remember rising prices didn’t
*Table Source – Builder Magazine “Realtor.com Proclaims Housing Market Healthy”
November 9, 2017
Latest Trends in Home Construction contractor and Renovation
The Kitchen Conversation:
Every builder and realtor will tell you that kitchen and baths sell homes. Kitchens especially are seen as the heart of the home and entire homes are often built around them. The main problem with this design tactic is that kitchens are EXPENSIVE! Granite counter tops and stainless steel appliances used to be a must in top design but now they are everywhere. Experts say the modern homeowner will start to move away from these features and more toward new lines of all black appliances and counter tops made from man-made materials. Residential builders and home improvement contractors can expect to see the current trend of white cabinets turn into a new emphasis on light grained wood or bold colored matte lacquers. And the must have kitchen appliance of 2018 will be the built in coffee/espresso machine with latte feature so that you can avoid the lines at Starbucks!
2018 is going to be the year of the backyard. We have already seen a trend toward utilizing the backyard as extra living space but in 2018 that is going to be taken a step further. Popular additions to the backyard will include patios with pizza ovens and fire pits, full outdoor kitchens with covered dining areas and cabana-like open air structures complete with elaborate lighting and custom landscaping overlooking a designer salt-water pool.
It was not unusual for a home built in 2017 to have a tv mounted in every room. In some homes that even includes the bathroom! Over the last decade, home theaters have become all the rage. Experts see that trend fading out in 2018 only to be replaced by “media” rooms which will be in a more open and central part of the home. Media rooms will include tvs, of course, but the will also have custom gaming stations, mounted computer monitors and pull down movie screens for option movie nights! Like all things 2018 this is a move toward opening up the experience to the most amount of people possible while still allowing for things to be put away or concealed when not being used.
Perhaps the biggest trend in new home construction is 2018 will be the shift toward “healthy homes.” These new homes will feature state of the art total home air filtration systems along with cutting edge water treatment systems that reduce contaminants and imbalances in tap water. The home of the future is all about health and wellness.
Kiely Home is a premium and custom residential builder located in Monmouth County. For more information please call 732-222-0900.
*Source – D Magazine “The Latest Trends in Home Construction and Renovation”
2018 looks to be an exciting year for new home construction contractor and renovations. Construction and design are always evolving and the coming year bring new trends and concepts to the custom and residential home builder landscape. Here are six big ideas that are coming to a building site near you.
2018 will see a shift in flooring as designers start to move away from the super-dark natural wood floors that have become a mainstay in many homes over the past ten years. Experts suggest considering an engineered wood with a lighter finish like white, gray or washed out wood grain. Engineered wood is not necessarily cheaper than hardwood but it does provide the ability to achieve a more exotic look than standard wood. In addition to the engineered flooring, experts are also moving toward wood grained porcelain tiles. Many tile lines now feature products with a natural wood look. Stone floors are also becoming popular in spaces like master bedrooms.
Clean Line and Open Spaces:
In 2018, construction is going more contemporary. The houses of tomorrow have cleaner lines and less focus on dramatic design features like turrets or shutters. Interiors are also getting a sleeker makeover with more open floor plans and fewer hallways or waster rooms. Kitchens that open up to a den or dining space are a must and more use of glass with provide an open feeling to even a smaller house. The modern homeowner wants to maximize 100% of the space available.
November 5, 2017
Coming Soon: 75 Oakland Street
Kiely Home broke ground this week on an exciting new project in Red Bank, New Jersey. 75 Oakland Street will be a new single family home on a beautiful tree lined street just blocks from the city center and steps away from the transportation hub of the Red Bank train station. At Kiely Home, we pride ourselves on being residential home builders who build in our own community. With our headquarters located in Long Branch, NJ, Kiely Home knows that to be one of the best new home builders in Monmouth County you have to know about the community and the people who live there in order to build the best home for each neighborhood.
With 75 Oakland Street, we hope to tap into some of Red Bank’s transitional modern style and build a home that is both stylish and authentically welcoming, just like the people and businesses of this great town. Red Bank is a town full of first-class restaurants, locally owned shops and access to premium arts and culture. The Count Basie Theater first opened in 1926 and has hosted performances by legends such as James Brown, Tony Bennett and featured surprise guest appearances by Bruce Springsteen and Jon Bon Jovi.
The New Jersey Symphony Orchestra performs regularly In Red Bank and the town hosts numerous exciting events throughout the year including the popular Red Bank Food and Wine Walk, the Indie Street Film Festival, art walks, fashion shows and an award winning farmer’s market held weekly in the arts and antiques district from May to November.
75 Oakland Street is a 4 bedroom 2 ½ bath modern colonial built in the spirit of Red Bank. It will feature a covered wrap-around porch perfect for immersing yourself in the neighborhood. The oversized living room is anchored by a cozy gas fireplace, an ideal space to bring family and friends together. The second floor features four spacious bedrooms along with a walk-in master closet and laundry room. The detached garage offers numerous storage solutions and the backyard is perfect for entertaining.
Kiely Home is proud to be building our first home in Red Bank and we look forward to building many more. It is our goal to marry our custom home builders and home remodeling services with the unique and vibrant spirit of this city and to build homes that our clients will be proud to come home to.
Kiely Home is a premium and custom residential builder in Monmouth County. For more information please call 732-222-0900.
November 1, 2017
What is Zillow?
Before Kiely Home became the owner of 49 Poplar Avenue, it was an older house listed for sale on Zillow.com. Before Kiely Home could purchase the property to sale they needed to research comps in the area which meant utilizing Zillow to find out what comparable homes in the area have been selling at and what the Zestimates are for the neighboring properties. We also use Zillow to find out information on property tax rates, school districts and average lot sizes.
Once this information is completed and the property is purchased, a builder like Kiely Home will turn to Zillow once again. This time we will use Zillow to list the proposed new home for sale. At this point, prospective customers can search towns, neighborhoods and streets that they are interested in and Zillow can point them in the direction of our new home. According to Zillow, more than 24 million people visit their website each year and of those, 90% own homes and half of them are looking to buy, sell or rent a home in the next year. This kind of exposure is invaluable to residential builders during the sales process.
Zillow has been criticized for its current estimating procedures that generate the “Zestimates” that Zillow applies to each property on its site. They have been accused of misleading sellers and buyers alike by inflating or depreciating Zestimates based on arbitrary factors while not taking more nuanced data into account. Despite these criticisms, it cannot be denied that Zillow is the number one website for real estate in the United States.
Kiely Home currently has five homes listed on Zillow.com that can be found here:
If you are interested in any of our homes for sale, contact us today!
Chances are good that if you own a home, or have ever looked into buying or renting one, you have used Zillow. Founded in 2006, the real estate database was created by Rich Barton and Lloyd Frink, former Microsoft executives and previous founders of Expedia. In the ten years since its initial launch, Zillow.com has grown to contain data on over 110 million homes across the United States. This includes data on ALL homes, not just those that are up for sale. One of the hallmarks of Zillow is the “Zestimate” which is a product of Zillow’s home appraisal algorithm which utilizes public records on property values and previous sale data to come up with a figure of estimated worth in the present market.
Zillow can be a powerful tool for residential building construction and custom builders because it allows for a quick analysis of the current market in a certain town, neighborhood or even on a specific street. Building a custom home in a new area requires a lot of research into current sales and property value in order to determine estimated contract or sales pricing. Kiely Home uses Zillow in almost every state of new home construction.
Let’s use one of our current builds as an example. 49 Poplar Avenue in Fair Haven, NJ is currently under construction and it set to be a new 2200 square feet single family home with 4 bedrooms and 3.5 bathrooms.