Should Buyers Factor in Climate Change?

Should Buyers Factor in Climate Change?

From floods to hurricanes, the weather could wreak havoc on a person’s home, and climate change may largely influence who is at risk, recent housing reports indicate. Given that homes are the most expensive asset to many people, “it’s foolish not to consider the long-term implications of owning one in a growing number of increasingly damage-prone places,” notes an article at The New York Times.

How can you help home buyers make a smart climate-related decision about their home purchase? Here are a few tips:

Learn about any special insurance requirements. Sasha Krigsvold told The New York Times that she didn’t find out until the closing table in 2006 that her home in Norfolk, Va., would need a special flood insurance policy. Your home buyers may want to establish a relationship with a local insurance agent before they even start shopping for homes to know what extra may be required. Homeowners insurance typically does not cover floods. Lenders may require buyers purchase flood insurance depending on where they live. Even if it isn’t a requirement, buyers may be smart to read the Federal Emergency Management Agency’s website on the flood insurance program before they purchase home. FEMA flood maps can also help show which homes may fall within an area where coverage is required.

Learn about the home’s past. Many home buyers are unaware that such information about the home’s past is available to them. But they need to ask for it. Reports called CLUE (Comprehensive Loss Underwriting Exchange) and A-PLUS can give an overview of any insurance claims made on the house in the past. Buyers may need to request the report from the current homeowner or an insurance agent. A site called home disclosure.com also may offer more insight into a home’s past. The free report details weather and environmental risks, as well as information about former meth labs and the local sex offender population.

Look for clues when touring a home. Spencer M. Houldin, president of Ericson Insurance Advisors in Washington Depot, Conn., suggests home buyers look carefully at the home’s windows, for example, which also may serve as indication of any weather-related issues. For example, look for special impact-resistant glass in the windows or hurricane shutters. Real estate pro Ellen Chamberlain with Nancy Chandler Associates in Norfolk told The New York Times she looks for clues through a home’s basement. She says an indication that water may have been in the basement may be by how many cinder blocks high people have stored their belongings. Some buyers may even want separate inspections, beyond the home inspection to flag any potential issues. For instance, Christopher W. Heidrick, who runs an insurance agency in Sanibel, Fla., says in Florida, he suggests a wind mitigation inspection. Heidrick also recommends using specs listed on smarthomeamerica.org as a guide. Also, watch for the proximity of trees near a home. Nearby trees can potentially cause thousands of dollars in damage if they fall onto a home.

Source: “You’re Buying a Home. Have You Considered Climate Change?” The New York Times (Dec. 2, 2016)

Stop Mispronouncing These Real Estate Words!

Stop Mispronouncing These Real Estate Words!

Several real estate words – particularly surrounding design and architecture – are frequently mispronounced or misused. Make sure you don’t look like an amateur by saying them incorrectly too.

Linguists say when selling pricier homes, you may be even more likely to say a word incorrectly because of the more sophisticated descriptions and less familiar terms that are often required.

“A house is about elegance,” says Geoffrey Nunberg, a linguist who teaches at the School of Information at the University of California, Berkeley. “It’s as much about prestige as it is about need.” As such, he says it’s “never a bad idea” to use words that flatter the taste of clients, but just make sure you use them correctly.

Many words in architecture and design derive from other languages like Italian, French, German, and Latin. The Wall Street Journal recently broke down the proper pronunciation of some of the most commonly misused words in real estate, including:

• Dais: DAY-is, not DIE-is … it’s a low platform or stage.
• Chattel: CHAT-el, not SHAT-tel …  a personal possession.
• Cachet: Cash-AY, not cash or cash-et … it’s respected, prestigious.
• Feng shui: fung shway, not feng shwee … Chinese philosophy of organization.
• Porte cochère: port-co-CHER, not port coach-er … a covered entrance that allows cars to pass through.
• Banquette: bang-KET … an upholstered bench.
• Bona fide: bone-uh fide or sometimes bone-ah-FEE-dey … genuine.
• Chaise longue: shezz lawng, not chase lounge … a chair with lengthened legrest.
• Clerestory: CLAIR-stor-ee, not clear-story … a raised section of roof with small windows.
• Foyer: FOY-yer, or sometimes fwa-yay … the entry area of a home.
• Ipe: EE-pay … a type of hardwood.
• Realtor: REEL-tor … a member of the National Association of REALTORS®.
• Wainscoting: WAYNE-scot-ing or WAYNE-skutting … wood paneling on the lower part of a wall.

See more commonly mispronounced or misused real estate words at The Wall Street Journal.

Source: “You’re Saying It Wrong: Design Words That Will Trip You Up,” The Wall Street Journal (Nov. 23, 2016)

Homelessness Continues to Decline in U.S.

Homelessness Continues to Decline in U.S.

Fewer people are homeless in the U.S., especially among families with children, veterans, and individuals who have long-term disabilities, according to HUD’s 2016 Annual Homeless Assessment Report to Congress.

The report says that 549,928 people were homeless on a single night recorded in 2016, a 14 percent drop since 2010. HUD credits some of the drop to the Obama Administration’s launch in 2010 of Opening Doors, a road map for 19 federal member agencies to help prevent and eliminate homelessness in the country. Over the past 7 years, HUD says the country has seen a 23 percent drop in families who are homeless, a 47 percent decrease in veteran homelessness, and a 27 percent decline in individuals experiencing chronic homelessness.

The number of people who are homeless dropped in 37 states between 2015 and 2016. The largest decreases were in Florida (2,341 fewer people were homeless), New York (1,898 fewer people), Illinois (1,587), Massachusetts (1,527), and Nevada (1,345). Meanwhile, the largest percentage decreases were in North Dakota (29%), Vermont (27%), West Virginia (24%), Montana (17%), and Nevada (15%).

The following chart shows estimates of the number of homeless people by state.

While homelessness is improving in the nation, HUD Secretary Julian Castro noted that the number of “doubled up” or rent-burdened families remains a top concern.

“While our continued progress reinforces that we are on the right path, the data also makes clear that we must increase the pace of that progress,” adds Matthew Doherty, executive director of the U.S. Interagency Council on Homelessness. “To do so, we must be unwavering in our commitment to strategies and investments that are working. Our communities and our citizens deserve nothing less.”

Source: U.S. Department of Housing and Urban Development

Wage Growth Is Giving a Boost to Affordability

Wage Growth Is Giving a Boost to Affordability

Recent increases in mortgage rates aren’t — yet at least — dampening home buyers’ purchasing power. In fact, housing affordability is at its best in a quarter-century, says Mark Fleming, chief economist for First American Financial Corp. Recent wage growth is helping to offset rising rates and home prices.

The firm’s September house price index shows that real house prices rose 1 percent month-over-month. The First American Real House Price Index measures the price changes of single-family properties and adjusts for the impact of income and interest rate changes across the country. Real house prices currently are 40.4 percent below their housing boom peak in July 2006, and nearly 20 percent below the level of prices in January 2000, according to the index.

“While a small uptick in rates in September caused an increase in real house prices compared to August, it is important to remember that mortgage rates remain at historically low levels,” says Fleming. “The low rates, combined with recent meaningful income gains, fueled an increase in consumer house-buying power, meaning affordability is at a quarter-century best. Even as interest rates increase above 4 percent post-election, housing, on a purchasing-power adjusted basis, will continue to be more affordable than it was in the early 1990s.”

Mortgage rates rose from 3.4 percent to 3.6 percent between August and September.

Affordability continues to increase in more markets, including markets considered by many to be overvalued, such as San Francisco and New York, Fleming notes. In fact, San Francisco, Virginia Beach, Va., Oklahoma City, and San Jose, Calif. topped First American’s list for improved affordability. Each metro saw year-over-year declines of 3 percent or more.

Rising incomes are having a big impact on consumer’s buying power. The median household income rose an estimated 2 percent year-over-year.

“Long-awaited increases in income levels are contributing to falling real house prices in many markets,” says Fleming. “Nominally, the price recovery is officially complete, but in real purchasing-power adjusted terms, house prices are still far below the pre-decline peak. The underlying story is consumer house-buying power is better than it has been in a generation.”

Source: First American Financial Corp.

Plants Can Improve a Home’s Air Quality

A study 30 years ago by NASA revealed that certain houseplants can help clean the air inside space stations, and studies since then have confirmed they may be able to do that for a home or office too. Further, studies have linked certain houseplants to an increase in productivity, calmness, creativity, and even a better night’s sleep.

Plants Can Improve a Home’s Air Quality

NASA recommends placing up to 18 plants in an 1,800 square foot house to help purify the air.

The best plants to purify the air around you? Studies highlight these:

• Philodendron
• Aloe
• Snake plant
• Peace lily
• English Ivy
• Spider plant
• Gerbera Daisy
• Dragon tree
• Bamboo

Source: “NASA’s Top Houseplants for Improving Your Wellbeing and Removing Air Pollution,” inhabitat.com (Nov. 15, 2016)