Wednesday, February 14, 2007

RECON February 14, 2007

RECON
Real Estate Center Online News
February 14, 2007
Copyright 2007. All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.

100,000 BUILDERS FLOCK TO ORLANDO

Editor's Note: This special edition of RECON provides a wrap-up of last week's International Builders Show in Orlando, Fla.

ORLANDO, Fla. (NAHB) – Any way you look at it, the International Builders Show (IBS) is big. In fact, the show has grown so large that many cities cannot host it any more. Not many warm-weather cities have 50,000 hotel rooms and one million square feet of exhibit space. Some 100,000 attended this year's show — the equivalent of all residents of Boulder, Colo., coming to town.

Those wanting to see all 1,900 exhibitors needed to wear comfortable shoes and walk 11.5 miles up and down the aisles of the exhibit hall. That is equivalent of walking every square foot of the landmark Chrysler Building, a 77-story New York City skyscraper. This year’s show had 450 new exhibitors. Products spanned 300 categories ranging from residential and light commercial to construction.

Here is a quick look at some of the new products coming to a home near you.

  • The GE Profile double oven freestanding range can cook two different dishes at two different temperatures at the same time. The 2.1-cubic-foot capacity upper oven easily handles pizzas thanks to an exclusive pizza mode.
  • Brondell Inc. unveiled the new BreezaTM, a first-of-its-kind automatic deodorizing toilet seat. There is also a version with an adjustable heated seat.
  • FAFCO introduced Hot20 and Revolution, the first-ever, lightweight, affordable, do-it-yourself solar hot water system. Company officials said it reduces water heating bills by as much as 50 percent.
  • Fire Stone Home Products was showing its Chat Fire Set, a new outdoor fire pit that instantly turns into a sturdy coffee table with an English granite top.
  • Jacuzzi Whirlpool Bath unveiled a new Home Spa Towel Warming Drawer that heats four towels in 15 minutes.
  • KOHLER attracted lots of attention with its DTV Custom Shower. Similar to an MP3 player for the shower, the DTV offers digital touch-screen pads that control all showerheads, body sprays and temperatures, all saved as favorite settings.
  • Sears Kenmore introduced its Drawer Dishwasher with hidden electronic controls. Each drawer accommodates five full place-settings of dishes.
  • TurboChef demonstrated its new 30-inch Double Wall Speedcook Oven, which cooks 15 times faster than conventional ovens.
  • DECRA Roofing Systems displayed its stone-coated steel roofing systems that are lightweight but extremely durable. The products have 50-year limited warranties and can withstand winds of 120 mph.
  • Kreuz Construction Products introduced its Easy-Set Mortarless Glass Block System, which allows anyone to build a professional looking glass-block panel.
  • Gorell Windows & Doors introduced a new line of vinyl hurricane windows. Armor Impact Max is designed to protect homes and homeowners from airborne debris during violent weather. They are approved for use in hurricane-prone areas.
  • Royal Concrete Concepts opened the doors to its new Safe Room. While it looks like any walk-in closet, the safe room can withstand winds of more than 250 mph.
  • Byers Products Group debuted the Versa-Lift attic storage lift, which installs alongside the attic ladder and provides power lifting and access to attic storage space.
  • Schlage presented new electronic keypad locks and deadbolts that use four-digit access codes.
  • Kwikset showed a residential biometric keyless entry system activated by a fingerprint.
  • Delta Faucet Co. exhibited its “disappearing” Illusions Concept Faucet. The Jetsons-like device appears and disappears when water is activated and deactivated. When a control joystick is moved, the spout automatically rises up and out of the counter top. Delta Faucet also had the Smart Concept Custom Shower, which comes with a remote control to allow users to warm up the shower to a designated temperature before they get out of bed.
  • Sharp Electronics opened its Insight Pro Microwave Drawers, which allow builders to incorporate microwave technology into more places in the kitchen and elsewhere in the home.

AN IBS FIRST: TWO OFFICIAL SHOW HOMES

ORLANDO, Fla. (NAHB) – For the first time in 24 years, two official showcase homes were unveiled at the International Builders Show (IBS). In addition to The New American Home, which has been a traditional showpiece since 1984, the 2007 show also had The Renewed American Home. The homes were built on adjacent lots in a historic district near downtown.

The New American Home is designed as a real-world laboratory with the latest theories and concepts in architectural design, product development, construction techniques and lifestyle trends. The National Council of the Housing Industry/Supplier 100 co-sponsors construction of the show homes along with Builder Magazine.

This year’s home illustrates how builders could revitalize an older neighborhood. Both homes are built on urban infill sites. While the New American Home was built to add a contemporary flair to the historic neighborhood, the Renewed American Home demonstrates how today’s technologies and building advances can update older homes.

Both homes have the latest in universal design, energy efficiency and cutting-edge technology, including extensive use of low-voltage systems such as home-run structured wiring and whole-house lighting control, entertainment and security. Both homes have been certified “green” by the Florida Green Building Coalition and are Energy Star rated. The New American home includes a photovoltaic system, impact-resistant windows, a generator and a cistern that collects rainwater for landscape irrigation.

The 2007 New American Home is a three-story urban loft boasting 5,800 square feet of living area and a 576-square-foot suite above the two-car garage. There is a roof plaza, courtyard and swimming pool. The home was inspired by the national trend of homeowners leaving the suburbs to live in urban areas to be within walking distance of restaurants, parks and entertainment venues.

Originally built in 1909, the Renewed American Home is a blend of Victorian, coastal design and bungalow. The renovation more than doubled the home’s size. The historic home has modern luxuries, four bedrooms, five and a half baths, structured wiring, security, multizone audio, lighting control and flat panel displays. A basement was added with a wine cellar, exercise room, laundry suite, gift-wrapping station and game room.

HOME FOR A LIFETIME?

ORLANDO, Fla. (NAHB) – Nothing lasts forever, including our homes. However, some parts of our homes last longer than others. A recent study by the National Association of Home Builders (NAHB) and Bank of America Home Equity provides insight into the life expectancies of certain home products.

According to the study, properly installed insulation can last a lifetime as long as it is kept dry and not damaged. A coat of paint can be good for upwards of 20 years, depending on the quality of paint and its exposure to the elements. Aluminum windows can last 15 to 20 years, while wood windows can last up to 30 years.

The longevity of roofs also depends partly on materials used. Slate, copper, clay or concrete roofs can last more than 50 years, asphalt roofs more than 20 years, fiber cement shingle roofs about 25 years, and wood shakes about 30 years.

Of course, the life expectancies for materials in this study are just averages.

“Usage, weather and a number of other factors can influence life expectancy,” said NAHB Staff Vice President for Research Gopal Ahluwalia at this year's International Builders Show. “Moreover, homeowners often replace materials long before the end of their expected life span due to personal preferences and changing trends.”

55-PLUS POPULATION ON THE RISE

ORLANDO, Fla. (NAHB) – A new report from the National Association of Home Builders' (NAHB) 50+ Housing Council, presented at this year's International Builders Show, predicts that 40 percent of all households will be headed by someone 55 or older by 2012.

The number of people age 55 or older is expected to hit 85 million by 2014. The number of households in the 65–74 age bracket by itself will grow by 4.5 million between 2005 and 2014, an increase of more than 38 percent in only ten years.

The annual 55+ estimates are generated by applying the American Housing Survey percentages to NAHB’s forecast of housing activity for calendar year 2007.

WHAT'S IN THE CARDS FOR CONDOS?

ORLANDO, Fla (NAHB) – Is the condominium market here to stay or is the current slowdown in some markets signaling the end?

Condominium starts accounted for almost half of the more than 350,000 multifamily starts in 2005, an increase of about 30 percent from 2003. Speculators have driven demand for the past three years, creating excess inventory in markets such as Florida and Las Vegas.

According to Bill Donges, CEO of the Lane Company, demand for condos will continue driving the market because today’s buyers want to live close to work, transportation, entertainment and retail.

“Condominiums won’t go away,” he said, “because people like them.”

Bernie Markstein, National Association of Home Builders’ (NAHB) senior economist, said the long-term forecast looks for condominium starts to account for about 30 percent of the overall multifamily starts, a sustainable figure.

NAHB 2007 Multifamily Condo Buyers Survey results show that two-thirds of condominium dwellers own their units, with over half of owners being repeat purchasers. The typical condo dweller’s median age is 49 and earns around $40,000. Single females occupy most condos (32 percent), single males are a distant second (20 percent) and married without children are next (17 percent). The average unit is over 30 years old, has two bedrooms and one bath, is part of ten or more units built together, and is considered a primary residence.

“Condominiums remain an active, viable segment to the housing market. A great location, a distinct product, and a good price point for your market are critical to a condominium community’s success,” Donges said.

'GREEN' ALL THE RAGE

ORLANDO, Fla. (NAHB) – Three members of the National Association of Home Builders (NAHB) are helping lead the home-building industry toward a greener tomorrow, and their resource-efficient homes have features all homebuyers can incorporate.

Ferrier Custom Homes of Fort Worth made green affordable with Heather’s Home. Comfortable yet cutting-edge — and with a monthly utility bill of only $15 — the home includes low-flow faucets, dual-flush toilets, compact fluorescent lighting, structural insulated panel walls and the latest heating and air-conditioning systems. It was also built using passive solar design techniques, including overhangs to block the sun.

In 2005, the Home Builders Association of St. Louis and Eastern Missouri launched a green building program based on NAHB’s Model Green Home Building Guidelines. Since the program’s inception, more than 20 homes have been built according to the guidelines, and another 70 are either under construction or on the drawing board.

Pardee Homes of Los Angeles is enjoying increasing success with its “Living Smart” program, which incorporates features that are environmentally sensitive as well as energy conscious into new home developments. The company also has model homes that demonstrate the benefits of green homes and show what the homes will look like.

“Consumers want to go green, but they also want choices, and they want to make sure that any additional costs are paid back in a reasonable amount of time through energy bill savings,” said NAHB Green Building Subcommittee Chair Ray Tonjes at the International Builders Show. “These builders show that NAHB members are taking the lead, and that voluntary programs are the most cost-effective, yet innovative way to go.”

THE FUTURE IS NOW

ORLANDO, Fla. (NAHB) – What’s in store for home design in 2015? Thanks to a recent study conducted by the National Association of Home Builders' (NAHB) Economics Group, visitors at the International Homebuilders Show did not need a crystal ball to find out.

Average home size is likely to stay in the range of today’s 2,400 square feet, and homes are likely to be two-story rather than one-story. They will be greener and more resource-efficient, and there will be a stronger emphasis on universal design and handicap access.

Kitchens and bathrooms will continue featuring upgraded materials and appliances, and more consumers will prefer recessed lighting and wood floors. Three-car garages with larger garage door openings will also become more popular.

Finally, there will be a definite trend toward outdoor living. An increasing number of high-end homes will come with outdoor kitchens, outdoor fireplaces, pools and spas, and outdoor home entertainment equipment.

@ THE CENTER
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