Homes Sales Dip, Prices Down Sharply
The National Association of Realtors reported that sales by homeowners dipped in April to an annual pace of 4.89 million, down 1% from the revised March reading of 4.94 million.
The existing home sales rate - including single-family, townhomes, condominiums and co-ops - is 17.5% below the 5.93 million units sold in April 2007.
The median price of a home sold during the month fell to $202,300, down 8% from $219,900 a year ago. Prices are being pushed down by the growing number of existing homes on the market.
Before the start of the current housing slump, it had been 11 years since prices had fallen compared to a year earlier.
Homes available for sale at the end of April rose 10.5% to 4.55 million, which represents an 11.2-month supply at the current sales pace, up from a 10.0-month supply in March.
House Trends Leaning to Smaller Homes
Over the years, many a forecaster has predicted the mass downsizing of the American home. Instead, the average size of newly built houses has continued to rise from just over 1,600 square feet in the late 1970s to nearly 2,300 now.
But a number of trends now suggest Americans really might be leaning towards smaller homes now.
For starters, baby boomers, whose eldest members turned 62 this year, are increasingly becoming empty-nesters; with children gone, they need less space. Between 1970 and 2000, the percentage of nuclear families - married couples with kids - declined from 40% of households to 24%, according to the Census Bureau. And childless families are expected to increase. For them, the supersize house may no longer be the ideal.
In a February survey of potential home buyers by the National Association of Home Builders, 60% said they would rather have a smaller house with more amenities than the other way around.
If the trend toward smaller homes does take root, it could trigger a seismic shift in home values. A recent study by online house-pricing service Zillow.com found that less expensive houses appreciate more than costlier and presumably larger homes. If that continues, the large home may turn out to be the real estate bubble's biggest booby prize.
What are your feelings about this trend? Do you find yourself wanting (or needing) less space than you have now? If you don't own a home now, are you thinking smaller than you once were in looking for that first home? We'd love to hear your feedback on this. Just click the "comment" link below and tell us where you send house trends going when it comes to size. We'd love to hear from you.
Home Energy Audits
Everyone seems to be looking for ways to cut down on gasoline consumption to save money, but cutting down on energy consumption in your home is critical too. Free energy audits from your utility company are a popular way to save up to 30% on your energy bill… but you can always do it yourself! Stacy Johnson explains in this short video (1:22)…
Have other suggestions for ways to save energy? Post your comment below by using the "Comment" link. Your email address is needed to post a comment, but it will not be published here.
Homeowner Mortgage Bailout Poll
Americans remain split on whether homeowners about to default on their mortgages should receive special treatment to help them keep their houses, according to a new research poll.
The poll finds 49% of Americans believe such homeowners should receive special treatment, while 48% feel homeowners should not get assistance. Three percent of those polled had no opinion.
Congress also appears split on the issue. The House is debating Democrat-sponsored legislation that would let the government back loans for homeowners facing foreclosure and would reduce the principal owed on those mortgages. Many Republicans oppose the bill, and President Bush has threatened to veto it.
What's your opinion? Do you think homeowners in danger of losing their homes should get government assistance to keep them from losing that home? Use the comment link below to give us your thoughts on this touchy subject. Your email address, although required to post a comment, will not be published here for your privacy and protection from unwanted email. We'd love to hear how you feel about the home bailout issue.
House Swapping
With summer vacations just over the horizon, here's an idea you may not have thought of to increase the value of your next vacation.
One of the most expensive parts of travel is a hotel. But what if you could stay in a full-sized home for no money at all? Thousands of people do it every year. It's called house-swapping.
Stacy Johnson explains in this video, which runs only 1:30…
Have you ever "house swapped" before? If you have.. please share your experience with us. Was it a good idea? Did you get what you were expecting? Was your house in tact when you got back home? Tell us about any experience you've had with house swapping. Just use the comment link below to sound off about this.
