IN THE NEWS!

New Homes Get Bigger, Yards Get Smaller

Apparently, bigger is better when it comes to new single-family homes.

Despite the dwindling size of households, new homes are getting bigger and bigger - averaging 2,400 square feet in 2005, according to the National Association of Home Builders. That's a 50 percent increase over the typical 1,600 square foot new home built in 1973.

Among other facts and trends revealed in the association's report on new homes:
One-fourth of new homes have at least three bathrooms.
Ceilings are at least 9 to 10 feet on the first floor and upscale houses have a standard ceiling height of 10 to 12 feet on the first floor and 9 feet on the second floor.
Front doors are single and wider.
The living room in homes with less than 3,000 square feet are being replaced by a room known as a den, parlor, retreat, library or music room. In homes larger than 3,000 square feet, living rooms are remaining.
Stairs are moving from the front of the house to the middle or the rear.
Master baths have shower stalls and a compartmentalized toilet. Mid-to-upscale homes have multiple shower heads and a tub. Upscale homes will continue to have whirlpool tubs even though nobody ever actually uses them.
Yards are shrinking. The American yard is expected to decline to 7,000 square feet from today's 9,000 square feet in the next few years. The first article, Builder expects 25-40% sales dip, from the Arizona Republic, reports that Engle Homes is the latest builder to announce sales are falling because of weakened demand and more buyers cancelling deals. The are expecting a 25-40% dip in second quarter sales from the same quarter last year. "We are experiencing a more challenging housing market, characterized by higher inventory levels, softening demand and increased competition," said Chief Executive Antonio Mon. "We expect these conditions to impact most of our markets for at least the remainder of 2006." Several other builders also recently announced lower sales projections, including Standard Pacific and Pulte.

http://www.azcentral.com/php-bin/clicktrack/print.php?referer=http://www.azcentral.com/arizonarepublic/business/articles/0606homesales0606.html


The second article, Vegas housing: not too hot anymore, from the USA TODAY, reports that a record 20,515 homes and condos are on the market in Las Vegas, up from 10,555 last May and 4,553 in 2004. Sellers are lowering prices as a result of the slowdown. Builders in Las Vegas are also dropping prices to move unsold inventory. Sound familiar? But as in Phoenix, builders are convinced that the dynamics of Las Vegas will help the market stabilize. Every month, 4,000 to 6,000 people move to Las Vegas. The city's fast growth is what helped spur the construction boom in the first place. As the population grew, real estate prices skyrocketed 45% between 2004 and 2005. Two years ago, new housing developments sold out six months in advance. Now, signs are up around town for those who need to sell their homes in a hurry to avoid foreclosure. The article states that Las Vegas, like Phoenix, Miami, San Diego and Washington, have become much friendlier to buyers as the housing supply increases and appreciation levels off to a rate that is at least a little closer to the national average.

http://www.usatoday.com/money/economy/housing/2006-06-04-las-vegas-housing_x.htm