Every Industry has its charlatans and con-men ready to take advantage of an unsuspecting customer; and the Home Improvement Industry is no exception.

Every year homeowners are duped by con-men into paying for home “improvements” that never happen, or are so slipshod they should never have happened.  In one State alone, more than 3,000 cases of home-repair frauds are reported annually. Another state has about 500 complaints filed each month, and they’re not alone.  

So how to know who is a valid Contractor, and who is merely a CON-tractor? It’s really not that hard.

First, avoid the “lone workman” at your door who has “extra materials” and offers a bargain fee for some home improvement or repair. Typically, the materials are inferior and the workmanship is shoddy; so you end up paying even more money to fix and clean up the mess that you would with a reputable company.  

Avoid someone who asks for “money up front” before starting work, without a contract or work proposal/agreement; or ads that say “Free Inspection! Pay ONLY if we find a problem”. The funny thing is; they ALWAYS find a “problem”, and it’s ALWAYS critical and it’s always EXPENSIVE!  

But the good thing is, you can easily avoid these scams by always dealing with an established, licensed and reputable contractor with a known “track record” for quality workmanship and customer satisfaction. 

In the greater Washington, DC/ Baltimore area, that company is Houseworks Unlimited. With 30 years of experience in Home Renovation, and with satisfied repeat business from former clients as a benchmark for their quality and service, there’s no need to worry about getting a fair price and the best quality workmanship.

No need to worry about the “CON” when you have an established PRO like Houseworks Unlimited working for you.   

Renovations are projects that involve improving the property from its original state to increase the property’s value, to lengthen its expected usable “life”, or converting it to a new purpose altogether.

Renovation of a home is an expense that is generally not deductible;  but there are a number of ways that you can use home renovations and improvements to minimize your taxes, including tax deductions and tax credits for renovations and improvements made to your home at the time of purchase or afterwards. Like most capital investments, Home Improvements will deteriorate over time; so the tax code allows deductions to “invisible losses” represented by deterioration and “wear and tear”.

Each property may have different depreciation’s, based on estimates of its useful life. The IRS publishes more details in Publication 946 – How To Depreciate Property. Find the applicable method for calculating annual depreciation, and then fill out IRS Form 4562. These expenditures will pay dividends or and potentially improve your investment income or resale value.

The IRS does not consider these costs to be deductible business expenses. These expenditures are considered by the IRS to be capital investments, meaning you must spread deductions over the projected life of the property — a process called amortization and depreciation.

Renovations used for essential medical needs; such as installing wheelchair ramps, adding handrails in baths, lowering shelves, widening doors and hallways. etc. can be deducted as medical expenses. Renovation that is primarily or purely aesthetic, architectural, or recreational uses are obviously not deductible.

Hiring an experienced professional Home Renovation company such as Houseworks Unlimited can provide professional Home Renovation services, as well as advice on available tax credits and deductions you can take advantage of.

Fortunately, you have options. One is the Section 203(k) mortgage, available through the Federal Housing Administration (FHA). Another is Fannie Mae’s Home Style Renovation Mortgage.  Many private lenders offer mortgages directed to buyers needing repair or renovation. These are designed to allow home buyers to finance both mortgage and renovation together. It offers an opportunity to finance an affordable house and also finance it renovation.

Doing both a mortgage and renovation loan at once may actually save you money, as it eliminates the need for two appraisals and title searches, and interest rates are comparable to rates for standard mortgages.

FHA’s Section 203(k) mortgage combines the cost of the purchase and renovation in one loan and are available nationwide, Interest rates are compatible with standard home loans. You qualify if the property is at least a year old, and the renovation has to total at least $5,000.

The benefit of the 203(k) is that you use the future or expected value after the improvements are made. So a home that costs $100,000 and require $25,000 in improvements, the loan will be for the entire $125,000. The portion of the loan designated for improvements is paid in installments as the work is completed.

Fannie Mae’s Home Style Remodeler is similar.  The borrower finds a licensed contractor who submits detailed work plans and specifications to the lender.

There are two options:  a General Contractor or a Full service design/build Contractor.

A General Contractor is someone who uses subcontractors who are hired to do specific elements of the renovation – a sort of “pick up” team. This may be more “economical” but the product is dependent on the skills of the individual subcontractors.

The best bet is “one-stop shopping”! A Full Service Design/Build Contractor like Houseworks Unlimited, Inc. means a certified and experienced professional team of designers and builders.

A full service contractor is an established team of workers with current permits and knowledge of federal and local ordinances and environmental regulations with a likelihood of being on time, on “spec”, and on budget.

Some Questions (and answers):

Fortunately, you have options. One is the Section 203(k) mortgage, available through the Federal Housing Administration (FHA). Another is Fannie Mae’s HomeStyle Renovation Mortgage.  Many private lenders offer mortgages directed to buyers needing repair or renovation. These are designed to allow home buyers to finance both mortgage and renovation together. It’s offers an opportunity to finance an affordable house and also finance it renovation.

Doing both a mortgage and renovation loan at once may actually save you money, as it eliminates the need for two appraisals and title searches, and, interest rates are comparable to rates for standard mortgages.

FHA’s Section 203(k) mortgage combines the cost of the purchase and renovation in one loan and are available nationwide, Interest rates are compatible with standard home loans. You qualify if the property is at least a year old, and the renovation has to total at least $5,000.

The benefit of the 203(k) is that you use the future or expected value after the improvements are made. So a home that costs $100,000 and require $25,000 in improvements, the loan will be for the entire $125,000. The portion of the loan designated for improvements is paid in installments as the work is completed.

Fannie Mae’s HomeStyle Remodeler is similar.  The borrower finds a licensed contractor who submits detailed work plans and specifications to the lender,

Houseworks Unlimited has over 30 years experience in all aspects of renovation and remodeling, and is familiar and can offer advice and guidance in planning your renovation.

The question is, what can you do with that space? Take some time to consider what you really want and need to make your home “better”.  A professional Home Renovator like Houseworks Unlimited can offer many suggestions – but the real choice is yours.

By converting your basement into a Workout Space, you won’t have to drive to the gym waiting for your turn on the exercise bike or weights.  Or maybe an Entertainment Area with a large screen projector, pool table and tables for movies, board games and poker; maybe a bar for parties and get-togethers.

If your basement has its own entrance to the outside, consider making it into a Separate Apartment, either for rental, or for Mom and Dad to live their retirement years while still having their – and your – privacy and independence. By soundproofing the walls and ceiling of your basement, you are in effect creating an entirely separate area of your home where you or your family can retreat.  If any of the kids play an instrument, this can be a rehearsal/practice space without disturbing you or the neighbors.

There are many other options that an established, recognized renovation contractor such as Houseworks Unlimited can offer, using their years of experience and expertise making “old” homes “new” again.

• Mold and mildew can occur from water leaks or high humidity, causing wood rot, peeling paint, structural damage, and a variety of health problems. In homes with central air conditioners this can often be caused by  improperly installed air conditioners.

• Damp basements are often caused by moisture in the foundation. Evaporation increases humidity and mold growth.

• Insufficient insulation or air infiltration can cause cold floors. Air coming into or out of your house through leaks can cause rooms to feel drafty and uncomfortable.

• Increased dust could mean you need to change the air filter. Also check periodically that your ducts are well sealed.

• High moisture levels can come from old inefficient windows resulting in condensation, frost, or pools of water on windows and sills.

• Peeling or cracked paint on your home’s exterior may be a sign of excess humidity; or a bad paint job.

• Significant temperature changes from one room to another could be caused by inadequate insulation, and/or an outdated Heating, Ventilation, and Air Conditioning (HVAC) system.

These are typical problems with many homes, regardless of age. Some of them may make you consider moving; but an even better choice is Home Renovation. Renovating gives you a new house without having to move; and at the same time improving its efficiency and livability while saving not only the cost of moving, but also saving on utilities and improving the environment as well.

It’s best to hire a professional renovator experienced in Home Improvements. Houseworks Unlimited is an established and recognized professional Home Renovation Company with over thirty years of experience and a list of satisfied, repeat customers.

The following changes can make your house more livable and boost its value as well.

Floors. Replacing dated, scuffed floors can give your house a new look and make small spaces appear larger. Your contractor can give you options: Genuine hardwood flooring is expensive. If your hardwood floors are just scuffed, professional refinishing will cost less than replacement. Laminate is the toughest flooring, ideal for playrooms and kitchens.

The Kitchen. . For utility and investment, the kitchen is the best place to put your money. A redesign can change the look and cost less than a major replacement. Kitchen renovations can pay back up to 80 percent of their cost.

Bathrooms.  At closing, you get about 75 percent return for a minor bathroom remodel. Most bathtubs already have showers built in, so replacing a dated, little-used tub with a spacious shower is a fairly easy job. For resale, a big shower counts as a full bath, and adding a shower to a half-bath makes it much more marketable.

Closets. Roomy, organized closets are big draws for prospective buyers.   A walk-in master closet is a good draw, but can be expensive. Discuss with your contractor what you really need.

 Energy Upgrades.  Energy-saving amenities make a house more attractive to buyers. Keep receipts and careful records for all your energy-saving expenses for potential buyers and the IRS.  Houseworks Unlimited will work closely with you to give the best home renovation at a reasonable cost that suits your needs and budget.

Active designs are familiar home utilities such as air conditioners and furnaces that artificially maintain temperatures within a home. Passive designs take advantage of natural features of  location, climate and environment to cool and warm a home.

When building a new home, a contractor has some control over how the house is positioned on the site. But renovating an existing house doesn’t have that option. But by planning additions and locations for new windows and rooms based on the sun’s position and prevailing wind direction, a home can be warmed or cooled “naturally”. For example, south-facing windows and walls will absorb heat during the day. Shade trees can shield rooms and patios from the sun as can fast-growing ivy on a trellis and add some style as well.

 Adding overhangs to the roof to block the sun can reduce reliance on the AC by blocking harsh summer sunlight. Installing awnings adds to the effect of overhangs. Older walls, floors and roofs may “leak” heat if not properly insulated. Your contractor can replace or upgrade them, and “operable windows” will use prevailing winds for natural ventilation.

For warmth, well- situated masonry or concrete walls can absorb the sun’s heat during the day, keeping the home cooler inside, and then slowly releasing the stored heat at night.

Using “Passive Design” uses “natural logic” to maximize a home’s energy efficiency. An established professional renovator such as Houseworks Unlimited can make your home not only more “modern”, but more efficient and economical.

When homeowners start thinking about remodeling their home, they naturally think about upgrading the living spaces, but if you want to get more space, what about the homes basement.

We tend to think of the basement as just a storage area, a place to put the washing machine, and old furniture, suitcases toys and things we don’t need but can’t seem to get rid of. But instead of the expense of adding an addition to the house, basements can be used instead as an extension to the house; an at-home office for a family business, or as an extra bedroom or two, a den or a family recreation area or even for a home theater in the basement. A fully renovated and furnished basement makes entertaining a lot easier, without worrying about the living room carpet and the furniture upstairs, In short, a well designed basement can be a multi-use addition to your home.  Also, the resale value of a home with a finished basement is much higher, if you eventually sell your home.

Making a basement into a living space is not a simple job.  Certified professional renovators like Houseworks Unlimited can give you the best professional renovation that adds value to your home as both an investment and a living space.  Additionally, a remodeled basement has to meet state regulations in order to be certified as “finished square footage”.  Hiring a contractor saves you the hassle of dealing with building codes and other legalities that a Contractor is familiar with.

Do you want to add a room, or just have more space inside? How will your renovation affect stability and appearance?  Could it be that you have too much furniture, or not enough light and ventilation?  Do you feel cramped and crowded?

Knocking down walls may give you more space, but what’s going to fill that space when you’re done?  And how will these improvements affect your home’s structure as well as its appearance. Adding a room may give you more space, but how does it appear from the outside?  That extra space requires rewiring, additional plumbing and alters the look of the home, and stability as well.

How does that extra room conform to the house in terms of style and symmetry? Does it look like it was just “tacked on”. More importantly, will it improve the house’s value and “saleability”, and will your improvements fit the building codes and regulations regarding materials, wiring and environmental issues?

Tinkering with your car can be a hobby, but for major overhauls and repairs you need a good mechanic.  While small Home Improvement tasks can be a do-it-yourself job, for major changes you need a professional; one that knows both the mechanics of home renovation – Structure, Style, Safety and Saleability.

Houseworks Unlimited is not just carpenters, electricians and painters. They are architects, designers and  custom builders with more than 30 years experience with accredited recognition, awards and testimonials from peers and satisfied repeat customers.

What home improvements projects yield the best return on investment?

Basic upgrades such as painting walls and installing new fixtures offer the largest returns for the price. Homeowners can also add value updating kitchens, bathrooms, and adding extra bedrooms, a den or “multi-use” room.

What home improvements projects yield the worst return on investment?

The biggest mistake is spending money on purely decorative additions: swimming pools, gazebos, etc. They may make a home look “pricey”, but then, they won’t be giving any real “quality of life” benefit for the cost.  It’s best to spend what is needed to make a home more livable, efficient and attractive, regardless whether the goal is selling or just improving.

Are “green” renovations worth it?

It all depends on the improvements. Adding Energy Star appliances and extra insulation are likely to pay the homeowner back in lowered utility costs and are also a draw for potential buyers. But it’s smart to think in terms of personal and family comfort and convenience, not just future profit. The longer a homeowner stays in a property, the greater the opportunity for a return on investment.

As an experienced, established and reputable Home Renovator, Houseworks Unlimited can help assess your needs for both quality of life and also future saleability.

Showers cause Floods.  Installing a shower may sound sensible, but if you don’t do it right water can leak throughout the house. That means hiring someone to do it right; an expense that could be avoided by hiring a professional at the start.

Flushing Failures. Installing a new toilet without proper sealing may mean thousands of extra dollars repairing ceilings and floors. A contractor can do it right the first time.

Wall Worries.  Tearing down walls to achieve more open space is fine if you do it right.  But tearing down walls that support the house means several thousand dollars more to re-support the house

Venting Violations. Tearing out drywall in older homes for more space by may seem a good idea, but if air vents from the furnace and air conditioner are inside that wall there won’t be any cooling and heating upstairs.  Relocating the vents may cost up to $15,000.

Instead, invest in Houseworks Unlimited, an established experienced Home renovator that can improve both the value and the efficiency of your home.

Renovation is not just about paint and woodwork and extra space, but also about style, comfort efficiency and convenience. You want your home to be not just bigger, but better; more functional and more efficient. That’s where a professional Home Renovation company like Houseworks Unlimited can make a difference.  They are not just carpenters and painters, but architects and designers.

“Do-it-yourself” renovations too often fail to make the most of the money and time invested. And do-it-yourself renovation or hired “start-up” renovators don’t always know the current building codes and environmental regulations.  Professional renovators have a track record of satisfied customers, and are certified, experienced, and trained in both design and construction.  Professional renovators are up to date in new home technologies, building codes and environmental regulations that make your home truly modern, safe, efficient and, above all, livable.

When you decide to hire a professional Contractor, how do you know they are competent and professional? Look for a company with an established reputation in your community. Nine out of ten contractors fail in their first 5 years…..9 more of them in the next 10 years!  So a company that has been working for 20 years or more is a good indicator of success, based on competence and quality.

Houseworks Unlimited has been in the construction industry for over 30 years, with the majority of their contracts being repeat customers and referrals from satisfied clients.

What projects will give your home the most value at less cost? Here are some ideas for affordable renovations that could boost your home’s value and appeal:

Reface Kitchen Cabinets. If the cabinets in your kitchen are serviceable but unappealing, refacing them can be a cost-effective alternative. Replacing the hardware, door and drawer fronts, can be just as effective, and cheaper, than installing all-new cabinetry.

Install a New Kitchen Countertop.  If you want the look of a stone countertop, you can achieve the high-end feel of granite or marble without breaking the budget. Your Contractor can find sources of granite or marble at lesser cost, or can install less expensive Laminate made to resemble granite or marble.

Update the Bathroom. Updating a bathroom is a great way to add value to your home. In fact, updating the sink and fixtures will yield more value than replacing the counter-tops, flooring, toilet, or even the tub and shower. Your contractor can install sinks and fixtures with basic finishes that saves money without compromising quality or appearance. Replacing stained grout with stain-resistant grout also make a great difference.

Add a Deck. Adding a deck is the favorite DYI project. It may seem an easy Do-It Yourself project, but if your home improvement skills are a little weak, it’s better to leave this one up to the pros as well.

Houseworks Unlimited is an established leader in affordable renovations that add value and style to a home.

1. Unplug your cell phone and other electronic devices as soon as they’re fully charged, leaving them on uses up power and wastes money.

2. Use Compact Fluorescent Light bulbs (CFLs) to reduce energy expense in those areas where you usually need light longer that 15 minutes, like the kitchen and other work areas,  Use  conventional light bulbs in areas like closets and places where the light is needed infrequently.

3. Use new generation LED bulbs when they become available. They’re more costly but use even less energy than CFLs. They also last longer, and  have a “warmer” color.

4.  Install new windows rated by thermal transmission “U-factor”. Lower numbers — from 0.20 to 0.35 mean more energy savings. Look for high rated “R-values” when replacing wall and ceiling insulation.

5. Don’t buy expensive $150 a cord firewood. Instead, buy scrap wood from the local sawmill and use it as firewood.

6.You can save electricity by reducing the brightness on your HDTV. Many are set to “retail mode” for the showroom which is the highest picture clarity. Use your TV’s setup menu and switch to “home mode” to lowerthe brightness.

7.  When winter comes, switch ceiling fans to reverse its direction. That pushes the warm air that’s near the ceiling down into the living space, cutting heating costs up to 10 percent.

8.  Bathroom and kitchen vent fans blow cooled or heated air outside, which adds to utility costs. Use them sparingly .

Hiring a recognized leader in Home Renovation like Houseworks Unlimited is an investment that will be returned with interest by the value and comfort of a fully modernized home.

To Renovate, according to Webster’s, is:  “to restore to a former or better state”.  To repair is to “restore to sound condition after damage or injury”.

Thus, to “remodel” something, would be changing the use of it. So a floor plan that needed to be changed or altered would be “remodeling”, but taking the existing floor plan and adding new floors, new sheet rock, paint, etc, would be “renovating”.  That is, replacing the old with something new.

There’s sometimes a lot of confusion about theses terms, especially when it comes to houses and homes. Renovating a Home is NOT a “Do-It-Yourself” proposition.  Remodeling or repairing a home may be, depending on the size of the project and the knowledge and skills of the one doing the remodeling or repairing. Regardless of what they advertise, “Home Improvement”, “Home Repair” or “Home Remodeling” stores are aimed at relatively small jobs, not a major redesign of a home’s structure.

Essentially, the difference between “Home Repair/Remodeling” and “Home Renovation” is the difference between applying a Band-Aid and having Surgery:  the former you can do yourself, but you need an expert to do the latter.

Most of us can do simple repairs, paint a room and place furniture, but renovating a home requires a trained professional. Renovation often means replacing or updating structural and environmental elements of a home. Many of these are regulated by building and environmental codes, which are changed or updated periodically. Only a trained professional renovation company like Houseworks Unlimited, an established, award winning professional Home Renovator/Remodeler, would be able to make changes that would be efficient and economical , as well as compliant with current regulations and building codes.

How to choose the right one? You need to find a home renovator/contractor  that is established, recognized, and certified; with a track record of experience, quality workmanship, and customer satisfaction.  How to tell the difference?  Here are some clues:

Listed Address.  If a contractor does not provide an address but just a phone number, that should be a red flag as far as experience and competence. It may mean the person is working from his home or is new to the business. Look for a website or phone number.  Contact your local states licensing department. Also check the Better Business Bureau or the Chamber of Commerce in your area to see if the company is listed with them.

Houseworks Unlimited has been a member of the National Association of the Remodeling Industry (NARI) since1994 .

References.  According to the National Association of the Remodeling Industry (NARI), nearly half of all projects completed by a remodeling contractor are the result of client referrals. Be wary of a contractor that can’t provide you with references.

90% of the clients for Houseworks Unlimited are former customers.

Permit.  Avoid contractors who say they won’t need permits to start repair or remodeling. If there is no permit, most likely they are not certified, and there is no way to verify that the work being done is compliant with existing codes.

A permit can ensure home insurance coverage.  The government requires inspection to make sure everything is up to code; if you don’t have a building permit and damage occurs to the renovation, your insurance may not cover the replacement or liability costs.

Houseworks Unlimited is fully licensed and insured in the State of Maryland and provides a warranty on all workmanship and materials.

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Here are some “color psychology” techniques professionals use as part of home renovation.

Use bright, vibrant colors. To make a home “look larger”, use lighter colors to add to the exterior, but avoid white for the interiors.  Pure white may make a room look larger, but also makes a room feel stark and featureless.  “Tinted” colors in yellow and eggshell tones are more effective, and give each room a unique “personality”.

Use Red in kitchens and dining rooms. Red has the psychological effect of increasing appetite – which is why many restaurants have red motifs in their dining areas. To heighten appetite, accent neutral painted walls with red cabinets and doors in your kitchen and dining areas.

Warm your home with deep tones: In colder climates, using reds, oranges and yellows for your paint decor makes the home more welcoming from the outside and warmer on the inside – especially in winter.

Use cooler colors in warmer climates: Along the same lines, cool colors, especially blue, can make your home seem fresh, cool and clean in warm and humid climates.

Use cooler colors in “family” rooms:  Bedrooms and bathrooms are “escape rooms”, where you go for privacy and relaxation. Shades of blue, green, or lavender in bedrooms and bathrooms create a relaxed atmosphere.

Since 1990 Houseworks Unlimited, Inc. has been an established, award winning leader in Home Renovation and Remodeling.

Home improvement projects have these basic objectives:

• Comfort. Essentially improving or adding to the livability of a  home, such as upgrading heating, ventilation and air conditioning systems, plumbing and electrical systems, basements and rooms,  bedrooms and baths.

• Maintenance and repair. Maintenance projects can include roof repair and replacement. Repairs and upgrades to the foundation, chimney, plumbing, heating & cooling and electrical systems.

• Adding living space.  Renovation can turn marginal areas into livable spaces, turning basements and into recreational areas, home offices or spare bedrooms or extending the house by adding rooms or extra levels to the original home.

• Saving energy.  Renovation can help reduce utility costs by installing energy-efficient thermal insulation, replacing  windows, and install state of the art additions such as solar panels, wind turbines, programmable thermostats, and geothermal exchange heat pumps that reduce heating and air conditioning costs.

• Safety.  Installing fire, carbon monoxide and burglar alarm systems, sprinkler systems, secure doors and windows, storm cellars (in hurricane and tornado prone areas) and backup generators.

The most important and experienced professionals in the home improvement industry are renovation contractors such as Houseworks Unlimited. These are builders and architects that have the credentials, knowledge and experience to perform home renovations at greater savings and efficiency than a “do-it-yourself” project. Home renovators like Houseworks Unlimited belong to reputable professional associations and are accredited professional renovators with a track record for efficiency, workmanship and customer satisfaction. Houseworks Unlimited will ensure your home improvement needs and desires will be accomplished efficiently and economically.

When we feel cramped and confined, we often say “I can’t breathe in this place”, meaning we feel “boxed in”. Home Renovation is not just “redecorating”, but also to provide a  more comfortable living space, that is, to move about without feeling confined or constrained by obstacles such as  small rooms, too much furniture, not enough windows or doors, and poor lighting and ventilation. These conditions can make even relatively large spaces feel cramped and confined.

The real goal of renovation is to improve the living space, so that you can “breathe”, meaning you can live, work and move around comfortably. Too much space makes you feel alienated and isolated; too little space makes you feel cramped and confined. Home Renovation, then, is not just knocking out walls or adding extra rooms, but “planning the space”.  That can be done by adding more space or improving existing space. Most of the time, it’s doing both.

That’s why a professional Home Renovation company like Houseworks Unlimited is your best bet to improve both the “living space” and the “breathing space” in your home.  They know the ins and outs of home renovation, including EPA requirements on common renovation activities like sanding, cutting, and demolition that can create hazardous dust and chips from lead-based paint found in older homes especially, which can be harmful to adults and children.

Houseworks Unlimited can make your home not only more livable, but more “breathable” as well.

The reason was because he thought a new dining room would “add to the value of the house”. In other words, he was more concerned about making the house “valuable”, rather than making it “livable”.  What he forgot is that no matter how “valuable” a house may be in terms of money spent, the real value of a house is its livability.

No one wants to live where they’re not comfortable. You should invest your time and money to improve livability; that will automatically make the house more valuable.

Here are some suggestions to improve the livability of your house:

1. Install walk-in pantries instead of kitchen cabinets. Cabinets are expensive and most are too high to reach easily. Pantries, store more, take less space, are easier to use, and cost less to build. Use the extra space for windows.

2. Replace that bathtub with a shower. Most people today prefer showers; and showers takes up less space, uses less hot water, and are more sanitary than a bathtub.

3. Remove excess windows from bedrooms and bathrooms. Install windows facing the best views. Why pay for bathroom windows when you can have a great view from your bedroom or den instead?

4. Keep ceiling heights reasonable.  Taller rooms are harder to decorate and more expensive to heat and cool. It’s the difference between living in a room and living in a barn.

5. Spend more time planning, and less money building. This is where a professional home renovation contractor like Houseworks Unlimited can give you the benefit of years of experience in home design and renovation.

When renovating your home, choosing the right kind of light is important for efficiency, style and comfort. For example, overhead lighting provides a lot of light and can illuminate the decor and features of a room. But overhead lighting can also be harsh and glaring by itself. Floor lamps alone provide the warmest and most flattering light for a room, but may create dark spots and shadows. Good lighting design helps set the mood, and provide just enough of the “right kind” of light to fit the purpose of the room and the mood and atmosphere of the occasion.

Here are the basic types of lighting used in homes:

Ambient lighting provides overall illumination, comfortable level of brightness, and allows you and your guests to see and move around safely.

Task lighting focuses on concentrating light on a defined area or space to perform a specific activity; such as reading or playing games.

Accent lighting creates mood, and adds interest to a room by highlighting or spotlighting certain areas and objects, such as paintings, walls, and collectibles.

Decorative lighting is when the light itself become an element of the space itself, as with a chandelier or candles.

Multipurpose rooms can be equipped with dimmers that can light up a party or a night of Scrabble with your family and friends, or dimmed for a romantic and intimate evening with your loved one.

A professional home renovator like Houseworks Unlimited has the expertise and experience to design your home so the lighting compliments the space and the purpose of the room.

Low Home Renovation Costs – Hiring a professional can actually save you money. Houseworks Unlimited has industry contacts and discounts with vendors for equipment and products at less cost.. The savings benefits you with a finished home at a much lesser cost than doing it alone.

Better Workmanship –A quality, award-winning home renovation company like Houseworks Unlimited, guarantees the work will be done correctly, the first time and every time.

Licensed and Insured – One of the biggest concerns with home renovations is the special permits you need, and liability insurance to cover any extra workers you may hire. What about mistakes that may damage your house through unskilled or untrained workmanship? What about you or someone working with you gets seriously injured?  A professional Contracting company has the expertise and experience to do a professional job at cost.

Reliable Home Support – What about “follow up”? A reputable home renovation contractor will give you the support and backup to handle emergency repairs and future renovations.

One thing to keep in mind. You should renovate your home because you want a better home. If you want to invest, buy stocks. Homes are an investment, An established and recognized remodeling contractor like Houseworks Unlimited can guarantee the home you want, and the dividend is the pride in your home, and the  comfort and safety of your family.

Local building codes require a certain number of electrical outlets in a room.  When planning a renovation, make sure the contractor knows how you are going to use the room and what appliances you expect to have there.   For example, if you want one room to serve as a combined office and extra bedroom, you will want to have internet cable access for a computer and outlets for a printer and as well as a phone and TV outlet, beside  just light and air-conditioning. Planning this help the renovator know how much space is required so the room won’t end up looking cluttered or cramped.   Also keep in mind what the value of your home will be after when finished. A classic remodeling strategy is to focus on “where the water is”, that is, on kitchens and bathrooms, so don’t neglect them in your planning.

Before a contractor begins work, you need to have your local utility service come to mark the underground utilities.  This will prevent accidental digging where the existing services are, causing extensive damage if you neglect to have the utilities marked.   You could face very large repair bills from your utility suppliers if that happens.

One extra remodeling tip at the finish: ask you contractor to leave some extra cans of paint for touchups and repairs later on.

Most of all, hire a professional and accredited contractor with established credentials and a proven track record.  Houseworks Unlimited Inc. has more than 30 years experience in residential construction with proven results and satisfaction. Unlike most remodeling companies who only provide a one year warranty, Houseworks Unlimited Inc. provides a  5 year warranty on workmanship and materials.

It’s easy to “Do It Yourself” when weeding the garden, cutting the lawn, painting and doing minor repairs and upgrades. But is going the “DIY” (Do It Yourself) route a smart move for bigger projects? With large Home Improvement retail stores providing tools and materials for do-it-yourself projects, It may look tempting; but with more involved projects like home renovation and remodeling, it may be more costly in the long run to do it yourself, rather than hiring a contractor. While tools and materials may be easier to procure than in the past, it still could cost you more money that you anticipated, and a lot more aggravation than you needed.

So before you load up the Station Wagon, ask yourself these questions:

1. 1.       Do I know what I’m doing?
    A mistake can waste a lot of time and money, and you might have to hire a professional to fix the damage. Even if nothing went wrong, the cost of buying or renting tools, equipment and materials could cost more than a professional home renovation.

1. 2.       Could I hurt myself?
   A botched or uncompleted project is bad enough, but an accident can also result in a serious injury and medical bills. The pride in “I’m doing it myself” is not worth a stay in the hospital.

1. 3.       What Is My Time Worth?

Don’t jump into a DIY project just because you may think it’s cheaper and easier to do it yourself.  Make a realistic assessment of your skills and capabilities, and calculate the time and money. You will find that a professional renovator like Houseworks Unlimited, with over 20 years of satisfied customers, is the safest, surest, and most economical way to get the home you wanted.

Some of the home improvements for disabled residents are:

• Widening  doorways and/or adding wheelchair ramps
• Adding elevators
• Installing special handrails in the bathroom
• Lowering kitchen cabinets to accommodate a wheelchair
• Installing air filtration or an air-conditioning system
• Lowering light switches so someone in a wheelchair can reach them
• Swimming and/or whirlpool baths
• Replacing old drywall with new drywall due to mold that affects a chronic condition.

The IRS will look closely at all the itemized entries, so get a statement from your doctor stating in detail why these changes are necessary for the patient. But don’t itemize a new air conditioner if your doctor said you needed to install an air filter. Once the renovation and upgrades are finished, get a new appraisal of your house. Attach the appraisal showing the new value of your house to your taxes so the IRS can justify your figures.

Another way home improvement can work as a write off:  Give whatever materials you have left over to charitable organizations that build homes for the poor. Then you can claim the fair market value of the goods as a deduction. Just, as always, be sure to keep the receipt.

Then don’t do it.

Instead, think of contracting a professional renovating company like Houseworks Unlimited to renovate or update your home. They can give some practical views on making your home not only seem newer, but more efficient.  A professional remodeler has the skills, experience, and tools to provide the renovation you require. But if you want to renovate, why not update too?  There are many state of the art, energy saving appliances that will make you home into an efficient, state-of- the- art showpiece.

New and improved solar skylights, for instance, provide free light inside homes, using the sun’s rays to light and heat your home without adding to your electric and heating bills. Modern skylights can reflect up to 98% of the sunlight falling on your roof, providing you with free and non-polluting lighting. Doors and windows are often overlooked, but they too can be modernized and renovated to add light and better access to a room, making it feel larger and more open. Your renovator can help you choose the windows and doors that not only add style, but make them more energy efficient as well as giving light and access to the room.

A professional renovator can provide guidance about updating you home appliances as well as do a make-over of the furnishings and structures. They do the work, and you get the benefit by getting a “new” home without actually having to move.

To ensure your satisfaction, make sure you hire a qualified, professional remodeler Such as Houseworks Unlimited.  “Do-it-yourself” projects have increased in popularity due to popular home improvement shows and publications.  And, for certain small projects, a Do-it-yourself project can be rewarding and fun – if you are prepared and have the proper skills. But few people have the  those skills, and even fewer have the resources and knowledge to deal with building codes and planning a renovation efficiently  .

It is easy to look at a professional remodeler and think only of the cost of labor and materials; but remember that a professional remodeler offers years of experience, the right tools, a network of suppliers and subcontractors, and knowledge and experience with the legal regulations, cost estimates, price scheduling and management, as well as understanding and experience in the latest construction techniques and materials.

Also, safety is a big factor in any construction and renovation project. Home remodelers are professionals with specialized skills and the best equipment that can quickly and efficiently improve your home renovation or remodeling project. Hiring a home building professional can actually save you money in the long run, and you have the satisfaction of knowing that professionals know the regulations and have technical knowledge to efficiently remodel and renovate. Their experience can quickly determine the needed materials needed for the best prices without over or underestimating the amount, type or cost of materials and labor.

According to the study, construction industry professionals report an even steeper increase in green home remodeling; 34% of remodelers expect to be doing mostly green work by 2016, a 150% increase over 2011 activity levels. Many home builders have shifted to the remodeling market due to the drastic drop in new home construction. In fact, 62% of the builders who do both new and remodeling work verified that the economy has increased their renovation work.

“The housing market is critical to the U.S. economy,” said Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw-Hill Construction, “and the results of our study show that despite the drastic downturn in housing starts since 2008, green has grown significantly as a share of activity— indicating that the green market is becoming an important part of our overall economic landscape.”

The green home building study, produced by McGraw-Hill Construction in conjunction with the NAHB and Waste Management, is designed to provide key insights into market opportunities, backed by proprietary research surveys and the power of the Dodge database. The study reveals business benefits afforded by green building, such as a competitive marketing advantage: 46% of builders and remodelers find that “building green” makes it easier to market themselves in a down economy, and an overwhelming 71% of firms that are dedicated to green home building report the same.

“This study demonstrates phenomenal growth in green building and indicates that we can expect even larger increases in the coming years,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “In a sample of NAHB builder and remodeler members, nearly 90% reported building green at some level. This is a powerful testament to the importance of green home building—and transforms the way we think of homes overall.”

By 2016, many more builders anticipate that they will be dedicated to green building work on over 90% of projects— 33% expect to be dedicated to green work in 2016, up from 17% in 2011. Remodeling will grow even more dramatically— 22% of remodelers report that they anticipate they will be dedicated to green work in 2016, nearly triple the 8% who report being dedicated to green work in 2011. These builders are clued into the revenue opportunity afforded by green building and know that home buyers will pay more for green homes, according to 61% of builders and 66% of remodelers.

“Home buyers and builders increasingly want to do what’s right for the environment,” said Jim Halter, VP for Construction Solutions, Waste Management. “This trend has been taking off within our business as customers look to recycle and divert more materials from landfills. We’re excited to see the results of the study; they validate the services we offer.”

Many factors are driving the green homes market, with “higher quality” and “increases in energy costs” topping the list, indicating that today’s green homebuyer is not just a green consumer. Buyers recognize that green homes have lower bills due to higher building performance. The reported costs of building a green home have also gone down significantly. Builders report that the cost to go green is now 7%, as compared to 10% in 2008 and 11% in 2006.

While green is growing across the U.S., three regions are seeing higher than average growth. The West Coast has seen the highest green growth; the Midwest’s northern region, west of the Mississippi, is second highest; and New England ranks third.

McGraw-Hill Construction will continue analyzing the results of the Green Home Builders and Remodelers Study and release a printed report in April during the NAHB’s National Green Building Conference and Expo in Nashville. Further findings, including remodeling details, green technologies, and green product adoption in green homes, will be included in that report.

Thanks to NAHB.org

“The fact that there are nearly 100 markets now on the improving list shows that the momentum is building for a housing recovery and that more buyers and sellers are starting to feel confident enough to return to the market,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Seven markets dropped from the NAHB/First American Improving Markets Index in February as they experienced softening house prices. These metros include San Jose, Calif.; Washington, D.C.; Kankakee, Ill.; New Orleans; Worcester, Mass.; Jackson, Miss.; and Sherman, Texas.

A complete list of all 98 metropolitan areas currently on the IMI, and a separate breakout of metros newly added to the list in February, is available at: www.nahb.org/imi.

Editor’s Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m., ET, unless that day falls on a Friday – in which case, the index will be released on the following Monday. A full calendar of release dates can be found at www.nahb.org/imi.

Though it is true that newly remodeled kitchens and bathrooms, deck additions and other improvements can add to the value of your home, look closely at the true return on investment before you leap into the project.

These home improvements might pay for themselves

Each year, Remodeling Magazine compares the average cost of the most popular home improvement projects and compares them with the average value the project adds at resale time. If you are thinking about putting your home on the market in the next few years, these home improvement projects could offer the biggest bang for your buck.

1. Minor kitchen remodel

The kitchen is often what sells the home, so it pays to make it as welcoming as possible. A minor kitchen remodel can offer an average return on investment of 72.1 percent. The recoup can be even greater when you turn to money-savers like cabinet refacing and vinyl tile flooring. Think a more expensive remodel is better? Think again. The 2011 average return on investment for a major kitchen remodel was 57.4 percent–much less than you might make back by taking the cheaper route.

2. Siding replacement

At a 78 percent return on investment, adding fiber cement siding is definitely a good idea for a home improvement project. Vinyl siding can also be a good option, giving you back 69.5 percent of what you put into it.

3. Entry door replacement

The front door makes a first impression and provides security for your family. Opting for a steel entry door can provide beauty and safety while giving you a nice 73 percent return on investment. With an average cost of $1,238 per project, it is also one of the most affordable improvements you can make.

4. Creating an attic bedroom

The more bedrooms you have in your home, the more potential home-buyers you will attract. Adding an attic bedroom can give you a 72.5 percent average return on investment. In some cases, since the bones of the room are already in place, an attic bedroom can be substantially cheaper than a new construction addition.

Other upgrades to consider

There are many other common home improvement projects that can bring you a boost when it’s time for resale. Other good options include vinyl replacement windows and the addition of a wooden deck. Replacing your garage door with a new one is one of the most affordable projects at an average cost of $1,512, and it is also one of the nicest returns, giving you back an average of 71.9 percent on investment.

Doing your research pays off

Before you choose to sink money into a remodel, look into what the latest trends are and what potential home-buyers in your area are looking for, then plan your improvements accordingly. If the goal is to enjoy the improvements for a few years and then sell the house for a tidy profit, these four projects can help you make that plan a reality.

Thanks to Shannon Dauphin at Build Direct

December 2011 –

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.

New entrants to the list in December include the following:

Ann Arbor, MI
Athens, GA
Boulder, CO
Burlington, VT
Canton, OH
Charleston, WV
Danville, VA
Fort Wayne, IN
Grand Forks, ND
Jackson, MS
Kingsport, TN
Laredo, TX
Lincoln, NE
Muncie, IN
Muskegon, MI
San Jose, CA
Scranton, PA
Toledo, OH
Washington, DC
Winchester, VA

“The increases we continue to see in the number and geographic diversity of improving metros are quite encouraging, and evidence of the fact that all housing markets are dependent on uniquely local factors,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. He noted that as of December, a total of 21 states and the District of Columbia are represented on the improving markets list — up from14 states represented in November.

“The December IMI results are very much in keeping with the latest government housing data and our own builder surveys, which have shown modest signs of improvement in certain individual markets where employment is gaining and distressed properties are not as numerous,” said NAHB Chief Economist David Crowe. “These gradual improvements are now becoming evident not just in small, energy-producing metros that have previously dominated the IMI, but also in several larger markets and areas with more diverse economies.”

The nine markets that dropped off the IMI in December include Alexandria, La.; Fairbanks, Alaska; Hinesville, Ga.; Houma, La.; Jonesboro, Ark.; Lima, Ohio; Pine Bluff, Ark.; Sumter, S.C. and Waco, Tex. All but two of these metros fell from the list due to softening house prices. The exceptions to the rule were Jonesboro and Waco, where declines were registered in employment and single-family housing permits, respectively.

The total list of improving housing markets in December, as defined by the IMI, includes the following 41 entries (listed alphabetically by state):

Anchorage, AK
San Jose, CA
Boulder, CO
Fort Collins, CO
Washington, DC
Athens, GA
Davenport, IA
Waterloo, IA
Kankakee, IL
Fort Wayne, IN
Muncie, IN
Monroe, LA
New Orleans, LA
Ann Arbor, MI
Muskegon, MI
Jackson, MS
Fayetteville, NC
Winston-Salem, NC
Bismarck, ND
Grand Forks, ND
Lincoln, NE
Canton, OH
Toledo, OH
Pittsburgh, PA
Scranton, PA
Williamsport, PA
Kingsport, TN
Amarillo, TX
Corpus Christi, TX
Laredo, TX
McAllen, TX
Midland, TX
Odessa, TX
Sherman, TX
Tyler, TX
Danville, VA
Winchester, VA
Burlington, VT
Charleston, WV
Casper, WY
Cheyenne, WY

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Please visit www.nahb.org/imi for additional data, tables and a list of future economic release dates.

Editor’s Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday – in which case, the index will be released the following Monday. A full calendar of future release dates can be found at www.nahb.org/imi.

A new report has found that consumers who previously purchased green products have decreased their green purchasing as a result of the recession.

In the study by Massachusetts-based Grail Research, 43% of “light green” consumers—those who buy some green products—said they have reduced their usage of green products or switched to conventional ones. At the same time, the percentage of non-green consumers rose from 15% to 22%.

“Although it’s clear that the market for green products is here to stay, the number of green consumers declined over the past two years,” notes Annica Blake, global head of research services at Grail Research.

Conversely, Blake says, the number of “dark green” consumers—those who select earth-friendly products for most of their purchases—increased by 1% and now make up 9% of the consumer market. Other key findings of the “Green Revolution” report include:

·         Sixty-five percent of respondents changed their purchasing behavior as a result of the recession, with most turning to less expensive green products.

·         Nine percent of consumers said they never consider buying green products, an increase of 4 percentage points since the previous report.

·         Only 11% of consumers reported that they seek information on green companies and their products.

·         Packaging still remains the most important source of information for green products, with more than half of consumers saying it impacts their purchasing decision.

·         Consumers are more likely to find green claims compelling if they provide quantitative information in an easy-to-visualize description that communicates the impact on the environment.

To improve consumer awareness, manufacturers should work to effectively articulate their products’ green attributes, says Blake, adding that the success of the green market will be determined by how well marketing messages resonate with buyers.

“It’s no longer enough to just say you’re green,” she says. “Consumers now expect comparable value and performance.”

Thanks to Jennifer Goodman, Senior Editor for EcoHome.

Arieff is certainly correct that if there was ever a time to re-envision housing and community development, it’s now. Housing starts in 2010 numbered fewer than 600,000—roughly one-fourth of the level in 2005. While the earth-movers are idle, households and policymakers have time to catch their breath and challenge the notion that a single-family unit on a large lot is housing’s best incarnation.

Demographic trends suggest that the demand for large, single-family homes in auto-oriented communities should be on the decline. For decades, households have been getting smaller, and our population has been getting older. Combined with rising gas costs and concerns for the environment, these trends suggest that large homes in auto-dependent neighborhoods may not be the most practical option going forward. A university professor speaking at a recent research and practice forum hosted by HUD claimed that the United States already has enough detached single-family housing to satisfy demand for the next several decades, and that the real unmet demand was for attached or multifamily units in urban, transit-oriented environments.

Consumer preference may not be responding to these trends as expected, however. Survey data collected by the National Association of Realtors and reported by RCLCO show that only 19 percent of respondents want to live in a city, with the remainder split between suburbs and small town or rural areas. The most-preferred setting, appealing to 28 percent, is a suburban environment with a mix of uses, rather than one that is solely residential.

As society struggles with the tension between the type of housing that it wants and the type of housing that it – and the environment – appears to need, it must also come to grips with the type of housing it can afford. Regardless of the form and context of tomorrow’s communities, the majority of households today live in the suburbs. Will future generations want to live in the homes that we’ve already built? More importantly, will they be able to afford to?

Aron Chang wrote recently about ways that today’s suburbs can be transformed to accommodate higher densities, a mix of uses, and more affordable options. His ideas include zoning to allow for the construction of accessory dwelling units and the subdividing of single-family homes into smaller units for extended families, tenants, and even businesses.

These are but a few ideas that communities can use to retrofit their current housing stock to residents’ preferences if and when demand for the suburbs wanes. Will these strategies be effective? Are there others?

Thanks to Keith Wardrip, Center for Housing Policy

President Obama has directed a small team of advisers to develop a proposal that would keep the government playing a major role in the nation’s mortgage market, extending a federal loan subsidy for most home buyers, according to the Washington Post.

The decision follows the advice of his senior economic and housing advisers, who favor maintaining the government’s role as an insurer of mortgages for most borrowers. The approach could even preserve Fannie Mae and Freddie Mac, the mortgage finance giants owned by the government, although under different names and with significant new constraints, said sources knowledgeable about the discussions.

A decision to preserve a major government role would mark a big milestone in the effort to craft a new housing policy from the wreckage of the mortgage meltdown and could mean a larger part for Fannie and Freddie than administration officials had signaled.

In a statement, the White House said it is premature to say that senior officials have agreed on any of the three main options outlined earlier this year in an administration white paper on reforming the housing finance system.

For more information: www.washingtonpost.com/business/economy/on-mortgage-rates-government-should-keep-significant-role-obama-says/2011/08/15/gIQA8wP0HJ_story.html?wpisrc=al_national

Thanks to Mary Beth Nevulis, HousingZone Contributing Editor

Mortgage rates have fallen in recent days because of the debt deal — which averted a feared scenario in which the US Treasury ran out of funds to pay all its bills. That could have sent ripples of unrest through financial markets, pushing up interest rates throughout the economy.

So the good news for potential home-buyers is that the worst didn’t happen, and that mortgage rates have actually fallen a bit as a deal was reached.

Rates may have also come down for other reasons, such as signs of weakness in the US economy, which in turn postpones the day when interest rates will start rising back toward more typical levels. Also, fresh concerns about government debts mean firmer demand for US Treasury bonds as a comparatively safe alternative.

Low mortgage rates, however, are just one building block for a recovery in the US housing market. Many forecasters continue to warn that interest rates could start rising later this year and into next year, perhaps as high as 5.5 or 6 percent on a 30-year loan.

Basic problems in the market include downward pressure on home prices, which has made some would-be buyers hesitant and is also a factor behind cautious appraisal values that are causing many home-sale deals to fall apart at the last minute. A weak job market also contributes to slack demand for homes. Meanwhile, supply of homes is comparatively strong, the result of a high level of foreclosures.

Also, although interest rates are low, many lenders are being stringent when it comes to deciding who can get a loan.

Some housing analysts say a healthier market is starting to appear on the horizon, although slowly. The pace of borrower delinquency and foreclosures has been declining in recent quarters, and even a modest improvement in the job market (which many forecasters expect) could help to end declines in home prices.

Other economists say the recovery process still has a long way to go.

“Our view that the housing recovery, which has yet to begin in earnest, will be bumpy and prolonged,” writes Michelle Meyer, an economist at Bank of America Merrill Lynch. “The path will largely depend on the health of the economy, particularly the labor market.”

Still, for now, attractive mortgage rates have helped to make the typical single-family home very affordable by historic standards.

The Standard & Poor’s/Case-Shiller index showed Tuesday that prices increased in August from July in 10 of the 20 cities tracked. That marked the fifth straight month that at least half of the cities in the survey showed monthly gains.

The biggest price increases were in Washington, Chicago and Detroit. The greatest declines were in Atlanta and Los Angeles.

The August data provides a “modest glimmer of hope” that some areas may have bottomed out and could be turning around, said David M. Blitzer, chairman of S&P’s index committee. He noted that cities in the Midwest — Chicago, Detroit and Minneapolis — have shown some strength since May.

Still, Robert Shiller, the co-founder of the index and a Yale economics professor, said in an interview on CNBC that overall home prices were “flat” and a recovery in the struggling housing market was not on the horizon.

Over the past 12 months, prices have fallen in all but two cities. Detroit and Washington were the only two cities to show year-over-year gains.

The index, which covers half of all U.S. homes, measures prices compared with those in January 2000 and creates a three-month moving average. The August data are the latest available.

“We certainly believe the bulk of the decline in housing is behind us and indeed, one might even say that ‘housing’ is more likely to improve from here,” said Dan Greenhaus, chief global strategist for BTIG. “But given the overwhelming level of inventory that remains on the market … further price declines seem almost assured to help clear the market.”

Prices are certain to fall again once banks resume millions of foreclosures that have been delayed because of a yearlong government investigation into mortgage lending practices.

Those homes at risk of foreclosure promise “to keep pressure on prices for some time,” said Joshua Shapiro, chief U.S. economist at MFR Inc.

Home prices have stabilized in coastal cities over the past six months, helped by a rush of spring buyers and investors. But this year, home prices in many cities, including Cleveland, Detroit, Las Vegas, Phoenix and Tampa, have reached their lowest points since the housing bust more than four years ago.

Many people are reluctant to purchase a home more than two years after the recession officially ended. Even the lowest mortgage rates in history haven’t been enough to lift sales.

Some can’t qualify for loans or meet higher down payment requirements. Many with good credit and stable jobs are holding off because they fear that home prices will keep falling.

Sales of previously occupied home sales are on pace to match last year’s dismal figures — the worst in 13 years. Sales of new homes fell to a six-month low in August and this year could be the worst since the government began keeping records a half century ago.

Foreclosures and short sales — when a lender accepts less for a home than what is owed on a mortgage — makes up about 30 percent of all home sales last month, up from about 10 percent in past years. The large number of unsold homes and foreclosures are sending prices lower and hurting sales.

By Associated Press

Population growth and demographic shifts – particularly the ongoing maturation of a diverse, well-educated Gen Y – will drive improvements in the real estate market over the next 10 years, according to economists with the University of Southern California Lusk Center for Real Estate.

Together, Baby Boomers and Gen Y comprise 50 percent of the population and will soon be part of the largest U.S. wealth transfer ever. About 4.3 million Gen Y residents reached age 22 in 2010. As more of this group enters the workforce over the next 10 years, they will produce a massive increase in housing demand. However, it’s likely that Gen Y will be relatively prudent when it comes to real estate investment.

Gen Y will produce market potential for every residential product except senior housing, an assertion made by the Summer 2010 ULI/Lachman Associates Survey, which found 37 percent are renters; 35 percent are homeowners; 26 percent live with parents/siblings or student housing; and 2 percent live in mobile homes.

For more information, visit: www.usc.edu/lusk

Thanks to Mary Beth Nevulis, HousingZone

There is an extraordinary amount of information about universal design and its application for how we design baths today. Add to that the advancements in products and technology of bath fixtures. By sorting some of that information into three key categories—safety, comfort and sanitation—one can develop best practices for design of any bath.

Safety

Tile remains the top product for flooring in baths. Textured finishes on tile and grout lines create a slip-resistant surface. Polished marble tile is a classic but one of the most dangerous products used in the bath because of its slippery surface when wet. You may consider using a smaller tile size (thereby increasing grout lines) with textured accent tiles to create a slip-resistant surface.

Curb-less showers remove potential tripping hazards at the shower by using a trench, linear channel or tile insert drain. A curb-less shower installation for walk- and roll-in access requires careful planning and installation. When considering tubs, controls should be on the access side regardless of whether it’s a free-standing or platform-style tub. No one should have to reach across or stand in the tub to turn the water on.

Grab-bar products offered today do not have the institutional look they once did. It is possible your client may not want them, so you should anticipate someone who will want grab bars by installing blocking in the shower, tub and toilet area. Leave a diagram of the blocking with the homeowner as reference for future use. Secure a second copy in plastic inside the vanity or linen cabinet. Code may dictate placement of grab bars but you should consider the needs and height of the user.

Lighting provides safety and comfort. With the technology and options available today, there is no excuse for installing a single light bar over the mirror and calling it good design. An illuminated mirror or side lighting at the vanity mirror provides even distribution of light, eliminating shadow lines. Sensor technology with recessed lighting at the toe-kick space on a vanity will provide enough illumination for someone to use the bathroom during the night without shocking the eyes. Several smaller recessed fixtures, rated for damp locations, create better overall illumination than a single wall- or ceiling-mount fixture. In addition, multiple lighting options with dimmers allow the user to meet his or her needs.

Install a 3-foot-wide door. If someone in the home ends up using a walker or wheelchair, a wider door will allow access without obstruction. If enlarging a door is not possible, use swing-clear hinges to increase the door-opening clearance by 11⁄2 to 13⁄4 inches.

Comfort

Radiant floor heat should be part of every project. For a low cost, it offers soft, even, continuous heat for the homeowner. Radiant floor heat works with a variety of flooring types, but tile is most suited for it.

Code dictates the center-line for a toilet should be 15 inches. An 18-inch center-line allows for more comfortable use of the toilet with the installation of grab bars. It also allows more space for assisted use. Seat height should be 16 to 18 inches from the floor to the top of the rim. This may be a little tall for children. There are many aftermarket products that provide a temporary solution for children. A closed, elongated front will accommodate all users regardless of age or physical ability.

Lever-style handles are easier to grasp whether on a door, cabinet or faucet.

Sanitation

In-wall tank and carrier systems for wall-hung toilets allow for continuous uninterrupted flooring at the toilet area. Depending on the toilet size, mounting the toilet can add accessible floor space for a wheelchair in a small bath.

Instead of the typical combo heat/light/vent unit, consider at-the-source ventilation to reduce moisture and odors in the bath. You may want to install one unit at the toilet area and one at the tub or shower area. Ventilation units are best on a timer. Depending on the manufacturer, the vent should run for five to 10 minutes after the user has left the bath.

When you consider the amount of moisture in a bathroom, tile, solid surface and quartz composite make the most sense for wall coverings. Depending on the size of the bathroom, cost can become an issue. Consider finishing the walls at the toilet area with tile or another nonporous product.

The products on the market today give us the opportunity to design baths without an institutionalized look. Our responsibility as design professionals is to enhance the livability of the home and accommodate the occupants at all stages of life. You can change the course of humanity one (kitchen and) bath at a time.

Thanks to Judith Neary, CMKBD

The inventory of new homes for sale recorded another all-time record low (records go back to 1963) at 166,000 homes or a 6.2 months’ supply. The May low breaks the record low established in April, which broke the record in March, which was the lowest since April 1967. The number of new homes for sale that are completed and ready to occupy is at an even lower level of 64,000 or an average of 2 new homes per county.

Median new home prices dropped 3.4% from May 2010 as the share of homes sold over $300,000 continued to fall, which is a likely effect from a larger share of first time home buyers and fewer repeat buyers in the market.

The second half of 2011 new home sales rate should improve slowly as the economy improves, employment grows and prospective home buyers regain confidence in their economic and employment future.

Time savings continues to be a huge trend, so speed cooking functions are in high demand. Likewise, technology that simplifies cooking – from “smart” ovens to induction cooktops – are hot, with the caveat that the technology must be easy to use. At the same time, cooking appliances that offer the ability to create gourmet meals are also in demand as entertaining at home remains a popular trend.

Below are some of the hottest trends in cooking appliances today:

• Technology that enables homeowners to do more with less time, work and clean up is extremely popular right now. That means there’s a growing demand for everything from pre-programmed ovens that simplify cooking to cooktops with easy-clean surfaces.
• For those with a passion for gourmet cooking, commercial style cooking equipment is still hot, with consumers looking for duel fuel ranges and cooking appliances that give them greater control (i.e. going from super high BTUs to ultra low simmer capabilities). From a design standpoint, options run the gamut from the ever-popular stainless steel to warmer, stylish hues to bold primary colors.
• Design flexibility is a key trend in kitchen design today, creating a growing interest in multifunctional products and cooking appliances that offer placement flexibility, such as drawer microwaves, double oven ranges, etc.
• Consumers are more price conscious than in years past, so cooking appliances need to offer real value at every price point.
• Healthy cooking continues to be a hot trend, driving interest in steam ovens and cooktops that offer a healthy grilling option.
• With fewer consumers ready to jump into a full-scale kitchen expansion, there’s a growing interest in maximizing outdoor kitchen spaces, with upscale grills that include a host of bells and whistles.

Thanks to Kitchen & Bath Design News

The BuildFax Remodeling Index for April 2011 shows that remodeling activity for the month was higher than any April since BuildFax started tracking the market in 2004.

The latest BFRI index indicates that residential remodeling activity registered the eighteenth-straight month of year-over-year gains, demonstrating that many Americans are continuing to remodel their current homes, rather than purchasing new homes.

The BFRI is the only source directly reporting residential remodeling activity across the nation with monthly information derived through related building permit activity filed with local building departments across the country.

The April 2011 index rose 15 percent year-over-year—and for the eighteenth straight month—in April to 109.7, the highest April number in the index to date.

That follows year-over-year gains of 17 percent in March, 20 percent in February and 22 percent in January.

“April traditionally sets a baseline for the rest of the year in residential remodeling activity, and April 2011 is the best we’ve seen since the beginning of the index in April 2004,” said Joe Emison, vice president of research and development at BuildFax.  “The BFRI is indexed to start at 100 in April 2004 and here we are seven years later, after significant drops in housing value, and the index is almost 110. That means there were almost 10 percent more residential remodels in April 2011 than in April 2004. Given the relatively pessimistic economic news that we heard about April, including a slowing recovery, this is a nice surprise for the industry.”

In April, all regions posted month-over-month gains, and only the Midwest posted a year-over-year loss. The West was up 16.8 points (18 percent) year-over-year and up 5.3 points (5 percent) month-over-month.  The Midwest was down 16.9 points (19 percent) year-over-year and up 10.7 points (17 percent) month-over-month, recovering slightly from a lower-than-average March. The Northeast was up 3.2 points (5 percent) year-over-year and 9.1 points (14 percent) month-over-month, and the South was up 9.6 points (11 percent) year-over-year and 10 points (12 percent) month-over-month.

A 1911 home in Washington, D.C., for which Lawrence and his partner Elizabeth Emerson designed a multi-functional family activities area, was no exception.

“One of the nice things about the basement was that it had a lot of windows,” Emerson says. “But in front of one of the windows they had put a water heater and air handler. Prime real estate was taken up by things that you want tucked away. We wound up moving them into a smaller mechanical room.”

The client’s desire for a family center where the children could do homework and play and where the family could gather to watch movies was the impetus behind the renovation. Their extensive wish list also included laundry space, room for a home-office “command center,” space to work on crafts, lots of storage and a full bath.

Getting the mechanical equipment out of the way was just a start. Ceiling height was an issue because one member of the family is 6-feet, 5-inches tall. Initially, plans were to compact the mechanical equipment and duct-work into zones and up-light the ceiling to give the appearance of more height. When the final budget came in, however, funds were found to lower the floor, as well, which was an idea that had been debated during planning.

There was a dampness issue at one end of the basement. The stone foundation was re-pointed, and bead-board lining conceals a perimeter drain. A sump pump keeps water from accumulating.

“When it comes to re-purposing basement space, one of the toughest jobs is sorting out the infrastructure.”

Mark Lawrence, AIA, E/L Studio

With these details settled, a completely open space was left, something Lawrence and Emerson wanted to maintain as much as possible while satisfying the clients’ wish list. Instead of partitions to delineate different functions and activity areas, a box-like structure—likened to a Swiss army knife because it can be opened and closed and has multiple functions—was constructed in the center of the space, and custom built-in cabinetry houses and defines special areas within it.

On one side, for example, is a desk for the office area and on the other is a craft area. Sliding doors allow these areas to be closed off and surfaces left as they are if the basement is to be used for entertaining. Drawers were built under the stairs for more storage, and other adaptable cabinetry and seating modules line the perimeter walls. Custom mill-work was done by Tom Miller and Harlan Dodge of Cigar Tree Inc., Herndon, Va.

Lighting is key to the success of the space, gaining the appearance of height. The joist pockets were painted white and up-lit. Up-lights are positioned on the cove on the top of the “box.” On the perimeter of the basement, spotlights throw light into the pockets.

Natural and sustainable materials that also fit stylistically with the period of the house were chosen. A floating cork floor was installed, and copper penny tiles were used around the fireplace to add warmth and texture. Combined with exposed portions of the rubble-stone foundation and the bead-board paneling, these textures contrast with the crisp, clean lines of the box.

The vent-less gas fireplace is a dramatic visual element that dominates the entertainment area and serves a practical purpose, preventing the basement from being damp and cold, a feature much appreciated by the homeowners, who initially expressed concerns about that issue. The fireplace eliminates the traditional gas log, leaving a minimalist flame and simple lines.

Emerson notes the client showed considerable foresight in planning for future renovations upstairs. “They know they’re going to live in this house for a very long time and eventually they want to redo the kitchen. They put in the basics for the kitchen renovation, putting in a gas line for the eventual gas stove. It’s coiled up inside the box right now, waiting to be connected,” she says.

The basement is “really the base of the tree and everything needs to come down cleanly into it,” she adds.

Many contractors are still willing to cut their prices to get new business, it could be a good time to get projects done for a lower price.

For remodeling, it’s a buyer’s market, says Paul Zuch, president of Capital Improvements, a remodeling firm in Dallas, and president of the NARI (National Association of the Remodeling Industry).

During the downturn, Mr. Zuch’s company lowered profit margins in order to stay competitive with not only other established remodelers but also home builders who began to dabble in remodeling when demand almost completely dried up for new homes.

In fact, 80% of the 554 home-improvement contractors who participated in a recent Angie’s List survey said they would slash prices to win a bid — with some saying they’d drop their price by as much as 20%. Angie’s List is a website that collects consumer reviews of local contractors.
Dusting Off Ideas

Today, people feel that perhaps the housing market has hit bottom or is getting close to it, and projects they’ve put off are getting another look, says Abbe Will, research assistant at Harvard University’s Joint Center for Housing Studies.

And as the housing market gets on firmer ground, that will also spur more remodeling: Previous research has shown that a large amount of remodeling spending happens when homes are being prepared for sale and right after homes are purchased, Ms. Will says.

But as demand for remodeling increases, expect those contractor discounts to start disappearing.

Remodeling expenditures are forecast to rise at an inflation-adjusted annual average of 3.5% between 2010 and 2015, according to a recent report from Harvard’s Joint Center.

The estimate includes home-improvement spending, but not money spent on home maintenance and repairs. The report predicts a long-term recovery for an industry that experienced a double-digit decline from its peak in 2007.
Beyond the Basics

Most investment in home improvements over the past couple of years has focused on the necessities, Mr. Zuch says. People replaced an air-conditioning unit if it went out, for example, but put off other more discretionary jobs including painting, he says.

That’s beginning to change, though homeowners remain more cautious about overspending than they once were, he says.

“Clients who we were talking to two years ago have called up and said ‘We’re ready to put this back on the front burner and move forward,’” Mr. Zuch says. Some homeowners are now forging ahead with improvements that include kitchen and bath upgrades, he adds.

Homeowners who are taking on more discretionary projects, including whole-house renovations and the creation of outdoor living spaces that include kitchens and entertaining areas, plan on living in their homes for a long period of time, he says.

When the housing market was stronger, people were more likely to move when their home no longer suited their needs, says Angie Hicks, founder of Angie’s List. But these days, many people are improving the homes they’re in so they don’t have to move.

All that said, remodeling demand will vary significantly depending on the market you’re in. Ms. Will says hard-hit areas where many homeowners are underwater on their mortgages, such as Las Vegas and markets in Florida, won’t likely see much of an increase in remodeling for a while.
Prioritize Your Wish List

If you’re thinking of remodeling in the months ahead, start by prioritizing your projects.

“We really encourage consumers to do an inventory of their houses every year,” taking note of the improvements that are needed, Ms. Hicks says.

From there, it’s a good idea to tackle projects in order of importance. For example, “don’t add a deck when you need to replace the water heater,” she says.

Projects that make a home more energy efficient, such as new windows and doors, will likely end up high on the lists of homeowners, Ms. Will says.

If you are planning on selling your home in the foreseeable future, focus on projects that will make a difference to buyers and will bring a good return on investment, Ms. Hicks says.

Upgrades that improve curb appeal, including new doors and landscaping, could help sell your home, she says. It’s also important that everything in the home is in good repair, so fix leaky faucets or replace a furnace that’s at the end of its life before tackling cosmetic improvements, she adds.

Also, keep your home’s features in line with other homes on your block. That will help at resale, when comparable sales in your neighborhood will help set the price of your home. If every home on the block has two bathrooms, adding a third bathroom in your home likely won’t offer a good return on your investment, Ms. Hicks says.

Thanks to AMY HOAK
Write to her at amy.hoak@dowjones.com

“As both the economy and the housing market stabilize, so too will homeowner improvement spending,” says Abbe Will, a researcher with the Remodeling Futures Program.  Over the coming years, remodeling expenditures are expected to increase at an inflation-adjusted 3.5 percent average annual rate, below the pace during the housing boom, but sharply recovering from the recent downturn.

The industry, which saw a double-digit decline since its peak in 2007, is beginning to return to a more typical pattern of growth.  Market fundamentals—the number of homes in the housing stock, the age of those homes, and the income gains of homeowners making improvements—all point to increases in remodeling spending.  “Metropolitan areas with rising house prices, older housing stocks, higher incomes and home values, and a larger share of upscale remodeling expenditures, such as Boston, San Francisco, and Los Angeles, are well-positioned for an upturn in remodeling activity,” says Eric Belsky, managing director of the Joint Center.

In the next five years, the focus of remodeling spending will shift from upper-end discretionary projects to replacements and systems upgrades.  Remodeling contractors have a number of growth opportunities generated by underinvestment in distressed properties, lower mobility, changing migration patterns, and the rise of environmental awareness.

“Lower household mobility following the housing market crash means that in the coming years homeowners will increasingly focus on improvements with longer paybacks, particularly energy-efficient retrofits,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center.  “Also, a slowing of migration to traditionally fast-growing Sunbelt metro areas means that, at least temporarily, more remodeling spending will remain in older, slower-growing areas in the Rustbelt and in California.”

“Contractors offered big discounts in 2009 and in 2010, but many homeowners held back for economic reasons. But our members say they are ready to spend,” said Angie Hicks, founder of Angie’s List, www.angieslist.com.

Ninety percent of the Angie’s Members responding to a January 2011 survey say they plan to spend, on average, 5 percent of their homes’ value making improvements and repairs. In a separate poll of contractors rated on Angie’s List, also conducted in January, 80 percent of the home improvement specialists said they were willing to drop their prices in 2010 to get a job. Only 43 percent were willing to drop their prices in a similar 2008 survey.

“As demand increases, contractors are going to pull back on those discounts,” Hicks predicted. “If you’re among those planning to remodel this year, don’t put it off. Not only are you risking your discount opportunity, you might find the best contractors in town are too busy to get to you.”

More than half of the companies who offer discounts said they would discount up to 10 percent, but nearly a quarter of others would cut up to 20 percent.

“Consumers should never hire based on price alone,“ Hicks said. “But it’s definitely a factor in the hiring decision, and one worth exploring.”

The economic climate in 2010 caused 37 percent of respondents to postpone remodeling plans. This year, Angie’s List members say they plan to invest an average of $17,500 on home improvements. Specifically:

• 59 percent want to update or improve their home
• 22 percent plan to make repairs
• 9 percent are looking to increase the resale value of their homes

“The best approach to preserving your home’s value is to first address any repairs that can’t wait before taking on improvement projects,” Hicks said. “Adding insulation or doing a kitchen or bathroom remodel are great investments, but they won’t do much good if you have a mold issue in your attic or crawlspace or don’t fix a leaky pipe under your sink. Be sure you have the resources to cover both your desired project and any unforeseen repairs that inevitably will come up throughout the year.”

“October marks the 20th consecutive month where over 300,000 U.S. homeowners received a foreclosure notice,” said James J. Saccacio, chief executive officer at RealtyTrac. “The numbers probably would have been higher except for the fallout from the recent ‘robo-signing’ controversy — which is the most likely reason for the 9 percent monthly drop in REOs we saw from September to October and which may result in further decreases in November.”

Foreclosure Activity by Type

A total of 100,575 U.S. properties received default notices (NOD, LIS) in October, a 2 percent decrease from the previous month and a 19 percent decrease from October 2009 — the ninth straight month where default notices have decreased on a year-over-year basis.

Default notices were still up on a monthly basis in several states: Florida LIS were up 2 percent from the previous month; Ohio LIS were up 10 percent; and Illinois LIS were up 24 percent. Meanwhile, NODs decreased on a monthly basis in California (down 9 percent from the previous month), Nevada (down 17 percent), and Michigan (down 18 percent).

Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 138,361 U.S. properties in October, a 3 percent decrease from the previous month but still a 6 percent increase from October 2009. Scheduled auctions decreased month-over-month in 26 states and the District of Columbia, while 16 states posted year-over-year decreases in scheduled auctions.

Lenders foreclosed on 93,236 U.S. properties in October, down 9 percent from the record high in the previous month but still up 21 percent from October 2009. Bank repossessions (REOs) decreased month-over month in 33 states and the District of Columbia, while 14 states posted year-over-year decreases in REOs. Including October, lenders have foreclosed on an average of more than 91,000 properties each month this year.

Nevada, Florida, Arizona post top state foreclosure rates

Nevada continued to document the nation’s highest state foreclosure rate in October, with one in every 79 housing units receiving a foreclosure filing during the month — nearly five times the national average. A total of 14,205 Nevada properties received a foreclosure filing during the month, a decrease of 13 percent from the previous month but an increase of nearly 3 percent from October 2009 — the first year-over-year increase in Nevada foreclosure activity since September 2009.

Florida foreclosure activity increased on a year-over-year basis for the second straight month following five straight months of annual decreases, helping the state to maintain the nation’s second highest state foreclosure rate for the third month in a row. One in every 155 Florida housing units received a foreclosure filing during the month, 2.5 times the national average.

One in every 165 Arizona housing units received a foreclosure filing in October, the nation’s third highest state foreclosure rate for the third month in a row. A total of 16,538 Arizona properties received a foreclosure filing during the month, a decrease of 3 percent from the previous month but an increase of nearly 24 percent from October 2009 — the second straight month where the state’s foreclosure activity increased on a year-over-year basis following seven straight months of annual decreases in foreclosure activity.

Other states with foreclosure rates ranking among the top 10 in October were California, Michigan, Utah, Georgia, Idaho, Illinois and Colorado.

Five states account for more than 50 percent of national total

California alone accounted for 20 percent of the national total in October, with 66,475 properties receiving a foreclosure filing during the month — a nearly 12 percent decrease from the previous month and a decrease of 22 percent from October 2009.

A total of 56,858 Florida properties received a foreclosure filing in October, the nation’s second highest state total and accounting for 17 percent of the national total.

With 19,288 properties receiving a foreclosure filing in October, Michigan posted the nation’s third highest state foreclosure activity total and accounted for nearly 6 percent of the national total. Michigan foreclosure activity decreased nearly 12 percent from the previous month but was still up 17 percent from October 2009.

Foreclosure filings were reported on 16,969 Illinois properties and 16,538 Arizona properties in October, with each state accounting for roughly 5 percent of the national total.

Other states with foreclosure activity totals among the nation’s 10 highest in October were Georgia (14,850), Nevada (14,205), Ohio (13,233), Texas (13,008), and Washington (6,346).

Top 10 metro foreclosure rates in Nevada, California and Florida

Foreclosure activity in Las Vegas-Paradise, Nev., increased less than 1 percent from October 2009 and the metro area continued to post the highest foreclosure rate among metropolitan areas with a population of 200,000 or more — one in every 70 housing units received a foreclosure filing during the month. Reno-Sparks, Nev., also documented a foreclosure rate in the top 10, at No. 9 with one in every 122 housing units receiving a foreclosure filing in October.

With one in every 96 housing units receiving a foreclosure filing in October, Cape Coral-Fort Myers, Fla., posted the nation’s second highest metro foreclosure rate for the month. Other Florida metro areas with foreclosure rates in the top 10 were Miami-Fort Lauderdale-Pompano Beach at No. 7 and Orlando-Kissimmee at No. 10.

Modesto, Calif., posted the nation’s third highest metro foreclosure rate, with one in every 102 housing units receiving a foreclosure filing in October. Other California metro areas with foreclosure rates in the top 10 were Riverside-San Bernardino-Ontario at No. 4, Stockton at No. 5, Merced at No. 6, and Vallejo-Fairfield at No. 8.

All top 10 metro areas posted month-over-month decreases in foreclosure activity, and seven of the top 10 posted year-over-year decreases in foreclosure activity.

“The fact that new-home sales are finally moving in the right direction – albeit slowly – is definitely good news following an exceptionally quiet summer at builders’ sales offices and model homes,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “The road to recovery will be a long one, however, and a key hurdle that must be surpassed is the lack of available credit for new-home construction so that builders can meet improving demand for new homes moving forward.”

“Beyond the higher sales figure, another positive piece of data provided by today’s report was the number of newly built, unsold homes on the market, which has been steadily declining since spring of 2007 and fell again to a modest 205,000 units in September,” said NAHB Chief Economist David Crowe. “This suggests that builders continue to prudently winnow down their inventories. That said, the concern is that builders’ ongoing difficulty in accessing production credit will keep the razor-thin supply of new homes from being replenished as consumer demand revives, thereby hindering the positive momentum.”

Sales of newly built homes rose in three out of four regions in September, with the Northeast posting a 3.4 percent gain, the South a 3.2 percent gain, and the Midwest a remarkable 60.6 percent gain following a big decline in August. The West posted a 9.9 percent decline in new-home sales for September.

Due to the improved sales pace, the month’s supply of new homes for sale declined from 8.6 in August to 8.0 in September.

http://www.marylandnari.org/Surplus_Sale_2010.htm

The Pending Home Sales Index, a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1 percent below July 2009 when it was 98.1. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, cautioned that there would be a long recovery process. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said. “But the recovery looks to be a long process. Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”

Yun added, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget.”

The PHSI in the Northeast rose 6.3 percent to 62.5 in July but is 21.1 percent below a year ago. In the Midwest the index increased 4.1 percent to 66.7 but remains 25.7 percent below July 2009. Pending home sales in the South rose 1.2 percent to an index of 86.3, but are 15.6 percent lower than a year ago. In the West the index jumped 11.6 percent to 95.0 but is 17.6 percent below July 2009.

Media Contact:

Craig Knott, CR

President

Houseworks Unlimited, Inc.

Telephone: 301-831-5178

E-mail:craig@houseworksunlimited.com

FOR IMMEDIATE RELEASE

HOUSEWORKS UNLIMITED CELEBRATES 20 YEARS OF RICH HISTORY SERVING HOMEOWNERS THOUGH-OUT THE FOUR COUNTY REGION.

Mount Airy, MD –July16, 2010 – Houseworks Unlimited, Inc., an industry-leading residential home improvement contractor is celebrating its 20th year of providing outstanding work to the Washington DC and Baltimore regions. As one of the area’s premier design/build firms offering high quality design, construction and project management, Houseworks Unlimited realizes an unprecedented 90% rate of return from their previous customers.

Owner Craig Knott comments, “It’s always been a goal of mine to share my passion for high quality design and craftsmanship with clients; helping them achieve their dreams of creating a home they’ll love for years to come. It’s clear that our satisfied customers are what help to keep the business growing.”

“From design to finish, Houseworks Unlimited was on time and on budget. Craig’s personal oversight ensured that everything went according to plan and with minimal disruption.” said Dennis and Sally B., who worked with Houseworks Unlimited on a kitchen remodeling project at there home in Historic Frederick City. “We commend you all for your professionalism and dedication to provide a superior product.”

Based in Mt. Airy, MD, Houseworks Unlimited Inc. is an award-winning, full-service remodeling company specializing in home additions and renovations, serving Montgomery, Howard, Frederick and Carroll counties. The company is a member of the National Association of the Remodeling Industry (NARI) and also provides a complete handyman service, including storm doors, windows, drywall repairs, painting and miscellaneous electric and plumbing.

“We are also excited to launch our updated web site, www.houseworksunlimited.com, as an information portal for Washington/Baltimore area home owners,” Knott says. With articles, photographs, helpful planning tips and other information about home remodeling projects updated on the site regularly, Knott expects the site to quickly become one of mid-Maryland’s primary resources for home remodeling and repairs.

About Houseworks Unlimited, Inc.

Houseworks Unlimited provides turnkey projects for valued clients with a focus on residential remodeling and additions. Any size remodeling project is welcomed, from big to small – the attention to quality and craftsmanship remains the same.

Pricing includes a full range of services, such as on-site supervision, warranted work, guaranteed customer satisfaction, complete project development from beginning to end and 20 years of experience. The company provides an unsurpassed five year warranty on workmanship and materials. Most remodeling companies only warrant their work for one year.

Houseworks Unlimited is fully licensed and insured in the state of Maryland. Owner Craig Knott, CR is one of only a select few in the state that is a Certified Remodeler.

Houseworks Unlimited is an EPA Certified Lead-Safe Firm and owner Craig Knott is an EPA Certified Renovator.

For more information about the premier remodeling services provided by Houseworks Unlimited, visit www.houseworksunlimited.com or call (301) 831-5178 and 800-831-5178

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“Absent a reversal of recent economic progress, there should be a healthy upturn in home improvement activity by year-end and into next year,” says Eric S. Belsky, managing director of the Joint Center for Housing Studies.

Homeowner optimism is bolstering a trend toward investing in the home again. “The recovery in home improvement activity appears to be moving beyond simple replacement projects and energy retrofits to broader remodels and upgrades,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies. “A wider activity base would help generate the expected growth in the quarters ahead.”

The Leading Indicator of Remodeling Activity (LIRA) is designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters. The indicator, measured as an annual rate-of-change of its components, provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home improvement industry. The development of the LIRA is detailed in “Developing a Leading Indicator for the Remodeling Industry” (JCHS Research Note N07-1). In July 2008, the LIRA was re-benchmarked due to changes in the underlying reference series. These changes are explained in “Addendum to Research Note N07-1: Re-Benchmarking the Leading Indicator of Remodeling Activity” (JCHS Research Note N08-1). The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is October 21, 2010.

The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. The Program seeks to produce a better understanding of the home improvement industry and its relationship to the broader residential construction industry.

The Joint Center for Housing Studies is Harvard University’s center for information and research on housing in the United States. Established in 1959, it is a collaborative unit affiliated with the Graduate School of Design and the Harvard Kennedy School. The Joint Center analyzes the dynamic relationships between housing markets and economic, demographic, and social trends, providing leaders in government, business, and the non-profit sector with the knowledge needed to develop effective policies and strategies. For more information, please visit www.jchs.harvard.edu.

WASHINGTON–(BUSINESS WIRE)–A coalition of housing industry groups joined the National Association of Home Builders (NAHB) today in announcing plans to file a lawsuit against the federal Environmental Protection Agency (EPA) for removing the “opt-out” provision from its Lead: Renovation, Repair and Painting rule.

“About 79 million homes are affected, even though EPA estimates that only 38 million homes contain lead-based paint. Removing the opt-out provision extends the rule to consumers who need no protection.”

The Lead: Renovation, Repair and Painting rule (LRRP) applies to homes constructed before 1978 when lead paint was banned. Its opt-out provision, which expired July 6, let consumers allow contractors to bypass extra preparation, clean-up and recordkeeping requirements in homes where there were no children under 6 or pregnant women, thus avoiding additional costs.

“Removing the opt-out provision more than doubles the number of homes subject to the regulation,” said NAHB Chairman Bob Jones, a home builder and developer in Bloomfield Hills, Mich. “About 79 million homes are affected, even though EPA estimates that only 38 million homes contain lead-based paint. Removing the opt-out provision extends the rule to consumers who need no protection.”

The Hearth, Patio & Barbecue Association, the National Lumber and Building Material Dealers Association and the Window and Door Manufacturers Association joined NAHB in filing the petition for review in the U.S. Court of Appeals for the D.C. Circuit.

The group will challenge EPA’s action on the grounds that the agency substantially amended its LRRP regulation without any new scientific data and before the regulation was even put into place on April 22, 2010.

“Even under the original rule, the opt-out provision was not available in homes where small children or pregnant women live,” Jones said. “That shows that this change provides no additional protection to the people who are most vulnerable to lead-based paint hazards.”

Remodelers’ and other contractors’ estimates of the additional costs associated with the lead-safe work practices average about $2,400, but vary according to the size and type of job. For example, a complete window replacement requires the contractor to install thick vinyl sheeting to surround the work area both inside the home and outdoors – with prep time and material costs adding an estimated $60 to $170 for each window.

“Consumers trying to use rebates and incentive programs to make their homes more energy efficient will likely find those savings eaten up by the costs of the rule’s requirements. Worse, these costs may drive many consumers – even those with small children – to seek uncertified remodelers and other contractors. Others will likely choose to do the work themselves – or not do it at all – to save money. That does nothing to protect the population this rule was designed to safeguard,” Jones said.

ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 175,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country.

In March 2010, GAO released a report about its experiences submitting 20 made-up products to Energy Star for certification, highlighting weaknesses in the program, which relies primarily on self-policing by manufacturers to maintain the label’s integrity. These products ranged from the truly ridiculous—a gas-powered alarm clock—to those that seemed believable, but all included fake data that showed performance better than anything currently on the market. According to the report, “GAO found that for our bogus products, certification controls were ineffective primarily because Energy Star does not verify energy-savings data reported by manufacturers.” The program did require confirmation of test results for two products, which were then rejected.

The agencies that oversee the Energy Star program—the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA)—responded quickly to the findings, changing the program’s policies and the way it approves products. By April 10, 2010, the agencies had stopped approvals of new products through Energy Star’s self-certification and automated-qualification programs (which did not require staff member reviews). The Energy Star program now requires staff review of all products, as well as testing results backed up by reports from independent laboratories.

DOE and EPA began testing products that have already been certified, starting with the most common appliances such as refrigerators, washers, dishwashers, and water heaters. The agencies have also taken action against 35 manufacturers whose products carried the Energy Star label but did not meet Energy Star standards. Among these was LG Electronics, which had 21 refrigerators carrying the label—some sold under the Sears/Kenmore name—that failed to meet Energy Star standards. LG removed the Energy Star labels from those products and signed a memorandum of understanding with testing and certification firms Underwriters Laboratories, Intertek, and CSA International to have all of its products tested to ensure Energy Star compliance.

Energy Star is also strengthening the standards it uses for its homes label. New guidelines for the homes program, which go into effect in January 2011, will require that Energy Star homes exceed the 2009 International Energy Conservation Code by 20%. New requirements include enhanced air sealing and envelope insulation, higher-efficiency heating and cooling systems, and moisture control in the envelope.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.

Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009.

Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply2 at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008.

According to an April 15 report from the Joint Center for Housing Studies at Harvard University, annual spending on remodeling is expected to accelerate this year, with nearly 5% growth over 2009. “This year could produce the first annual spending increase for the industry since 2006,” the peak of the housing boom, says center director Nicolas P. Retsinas.

But the forces driving today’s action couldn’t be more different from those during the boom. Back then, people wanted to renovate their places so that they could trade up to bigger homes, or because their home equity was soaring and they wanted to reinvest some of the spoils.

Now, the opposite is happening: Many people who bought during the boom years are accepting the reality that they won’t soon be swapping up for a sybaritic spread. Their mortgages may remain above water, but after years of falling home prices, their equity is so low that the transaction costs of buying a new house would leave little for a down payment.

In short, they are stuck.

“People have seen their down payments kind of wiped out,” says Harvard economist Jeremy Stein. “They are locked into their house. They can’t really move, even if they thought the other house was cheap and a good deal.”

So these people are making their homes more comfortable for a longer-than-expected stay. Setting aside old calculations of how much a particular improvement will add to resale value, they are making smaller tweaks that can make a big difference in livability. You might call it “psychological return on investment.”

Nowadays, say real-estate agents and contractors, smaller projects like updating kitchens and baths and humble attic-bedroom conversions are more popular, while two-story master suites and $100,000 kitchen blowouts are decidedly out of fashion. Hidden improvements like insulation also are on the rise, as people realize they won’t be able to pass on their drafts, leaks and other problems to the next guy. Tax credits that expire in 2010 are enticing people to make energy improvements, too.

One of the most cost-effective improvements, say contractors, is removing a wall to create an open kitchen-dining area. The project “makes the kitchen feel bigger and the kitchen and dining room more usable,” says Sarah Susanka, an architect and author of “The Not So Big House” book series. “It’s such a simple thing to do.” It can cost as little as a couple of thousand dollars, according to David Merrick, a home remodeler in Kensington, Md., but can run much higher if plumbing and electrical work are involved.

A surprising number of people fall into the category of being above water on their mortgage but anchored to their property. According to First American Core Logic, at least 24.5 million borrowers in the U.S. have home equity of less than 25%, and of those, 13.2 million are above water. Considering the 9% in commissions and fees that typically come with buying and selling a house, as well as the typical 20% down payment on the new one, it is easy to see why people aren’t house-hopping like before.

This applies even to affluent professionals . Paul Sorbera, an executive recruiter in Greenwich, Conn., is seeing it firsthand among his clients. He says many financial-services executives “bought $2 million homes in the good times and have $1.3 million houses now because of the price decline. They have some money in the bank and can afford their current living standard, but moving is very impractical for them.”

Economists, whose models often assume the rationality of hypothetical consumers, say remodeling makes sense for such people. “If they don’t have a lot of equity in their houses and can’t move, they should have a propensity to improve rather than move,” says Richard K. Green, director of the University of Southern California’s Lusk Center for Real Estate. “When you renovate, you save a lot of transaction costs.”

Web sites such as Remodelormove.com offer calculators to help consumers make the decision.

Kate Anderson, 42 years old, of Sunnyvale, Calif., a technical writer and homemaker, and her husband, Scott, 43, a vice president at Hewlett-Packard, say they considered buying a larger place to accommodate their growing children, a daughter, 10, and son, 8. But they surmised that buying and selling now would be too expensive. “We didn’t think it was worth the whole sale purchase expense … just to get a few extra square feet,” Mrs. Anderson says.

Instead, they opted to fix up their 1950s-era tract home, worth an estimated $750,000. Most houses in their neighborhood with new kitchens and baths sell for up to $850,000, she says. While their home “is a little squished,” they chose to “gradually improve it,” she says.

In December, the Andersons remodeled their kitchen, putting in hardwood floors, cherry cabinets and stainless-steel appliances, ripping out a closet and expanding a doorway to improve the flow. They also installed new incandescent ceiling lights and under-cabinet fixtures, which Mrs. Anderson says she especially loves.

Because they made no major structural changes, they kept the cost to about $50,000, a bargain in the pricey Silicon Valley market. It wasn’t easy to hew to that budget, though; the couple decided to ditch a garden window over the sink and self-closing drawers, which would have added several thousand dollars to the cost.

Even in the ever-grander suburbs outside Washington, people are thinking smaller. A few years ago, Mr. Merrick, the contractor, says, more people were doing two-story additions, and most people who remodeled kitchens made them larger. Now, “four of the last six kitchens I did, the footprint stayed exactly the same,” he says.

Home-improvement retailers are seeing a clear trend toward smaller renovations. Craig Menear, executive vice president of merchandising at Home Depot, says there has been strength recently in projects involving simple décor updates such as ceramic tile, interior paint, faucets and bath fixtures. At Lowe’s, customers were drawn to products to update flooring, cabinetry and countertops during the last few months of 2009, the most recent period for which data are available, spokeswoman Maureen Rich says.

Part of the reason, of course, is money. With home prices slumping, there is less equity for homeowners to tap. An April 20 survey by American Express, the first of its kind, found that 72% of affluent homeowners planned to make improvements to their houses in 2010. But they expected to spend an average of just $11,500. And most respondents planned to pay for their projects with cash; just 16% planned to use debt.

Banks also are making credit less available than they used to. Keith T. Gumbinger, vice president of HSH.com, a mortgage-data firm, says that before the housing bust, banks would often lend for projects based on the value of the house after completion of the project, but they are less likely to do so now because “there’s no guarantee the improvement or the market will lead to price appreciation.” The result: even affluent homeowners aren’t able to borrow as much as they used to.

With little reason to expect huge price gains in the housing market in the next few years, some homeowners are thinking especially long-term. Diane Ausavich, a remodeling contractor in Milwaukee, says a pair of physicians, as part of a bathroom renovation, recently installed a barrier-free, walk-in shower and higher countertops in their three-story lakefront home built in the 1890s. They did it “so that as they get older they can wheel in and out with a wheelchair if they should have to,” Ms. Ausavich says. The homeowners are in their mid-40s and, “being doctors, I’m sure they see the gamut,” she says.

Likewise, Marge Kumaki, 57, a marketing and public-relations consultant who resides in Silver Spring, Md., says she and her husband decided to do some basic upgrades on the post-World War II split-level home they have owned for 21 years after their two children left the nest for good in 2007.

She says she would prefer to move to a new high-rise condominium in downtown Bethesda, but that they decided to stay and renovate because it is more cost-effective and they like where they live now. Last summer’s severe thunderstorms, which flooded their finished basement and required repairs, spurred them to get started.

Ms. Kumaki says they are planning to spend in the low $30,000s to update the upstairs bathroom, kitchen and family room.

But the couple have decided to hold off on another dream. “I’ve always wanted an addition, since it is a split level and you can go up or down,” she says. “I’d like another level on top, but that’s the future.”

Thanks to M.P. Queen from the Wall Street Journal

http://www.remodeling.hw.net/2009/costvsvalue/national.aspx