2012 Home Building Trends

Image courtesy of Kookkai_nak

We are not surprised what the experts in the housing industry are saying will be this year’s home building trends.  The biggest factor and influence being the economy.  Although the economy is finally showing some big improvements, learning from past mistakes will be reflective in consumer’s decisions in 2012.

According to National Association of REALTORS latest data shows total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent to a seasonally adjusted annual rate of 4.42 million in November from 4.25 million in October, and are 12.2 percent above the 3.94 million-unit pace in November 2010.

Lawrence Yun, NAR chief economist, said more people are taking advantage of the buyer’s market. “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing,” he said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”

Unemployment numbers are down, building permits are up, housing values are rising and builder confidence is up. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.99 percent in November from 4.07 percent in October; the rate was 4.30 percent in November 2010; records date back to 1971.

NAR President Moe Veissi, broker-owner of a real estate company in Miami, said housing affordability conditions have set a new record high. “With record low mortgage interest rates and bargain home prices, NAR’s housing affordability index shows that a median-income family can easily afford a median-priced home,” he said.

Buyers of new construction in the new year will be looking for sustainable products and materials with the focus on cost savings and energy efficiency.  In Maine and neighboring states, classic New England house design will still be popular, but with more modern touches and high tech gadgets.  The ability to call your vacation home on the way there to turn the heat on is one of many modern amenities that buyers are requesting. 

Image Courtesy of Carlos Porto

Buying American-made products will continue to be a priority, not just for the building industry, but for all Americans that truly care about this great country.  What better way to put Americans back to work and to keep profits in the country than to buy products made in America?

Baby, it’s cold outside.

When I headed off to the office this morning, the temperature inside the car read 16 degrees, so it seemed like a good idea to re-post a previous post about fireplaces.

The first fireplace dates back to the 16th century.  A simple hole in the ground surrounded by local stones and rock and a hole in the roof to vent the smoke.  The fireplace was created out of necessity for heating and cooking.  In the 1800′s, the fireplace became an aesthetic as well as a practical fixture. 

Today’s fireplace ranges from wood to electric with stone or custom mantels.  The appeal of a “real” fire, smell, crackling sound and dancing flames immediately draw you in after being out in the cold, but the messy clean up and lack of uniform heat from wood burning fireplaces usually outweigh the pros. 

Gas stoves are cleaner burning than wood, easier to start, put out more uniform heat, can be used as a supplemental heat source and don’t require clean up.  A pellet stove is clean-burning, easy to store, economical and fuel is renewable, environmentally friendly and domestically grown.

The fireplace surround and mantel is what makes your fireplace a show piece.  Our fireplaces range from custom hand-picked stones chosen from a local quarry to hand-crafted millwork.  From the modern fireplace with a simple mantel to an elaborate stone fireplace that soars to the ceiling, the fireplace is sure to get everyone’s attention. 

It’s no surprise that the room with the fireplace is where friends and family will want to gather, especially if your home is in Maine.  There isn’t anything more tempting than coming in from skiing, snowmobiling or shoveling and seeing the light of the fire and feeling the warmth.  The room beckons you to come in. It doesn’t just warm you on the outside, it warms the soul.

Mainely Speaking

American’s Health Rankings, produced by the United Health Foundation, American Public Health Association and the Partnership for Prevention, has ranked Maine # 8 in the country as the healthiest state. 

The rankings took into account a number of elements that can impact health, ranging from personal health behaviors, to environment and the community, to health policies in the state, to the quality of clinical care.  Maine’s lower than the U.S. unemployment rate (7.6% compared to 8.3%) and the low crime rate (# 1 for the country), helped Maine’s ranking. 

We are not the least bit surprised that all 6 of the New England’s states made the Top 10 with their natural beauty, abundant recreational activities, excellent educational opportunities for both high school and college and lower than average crime rate. 

We have recently received a flurry of inquiries expressing their desire to retire to Maine and want to know if they can afford to build a custom home in our beautiful state.    For many, they’ve been vacationing in Maine since they were a child and have longed to come back, but for others, they’ve only stepped foot in the state once!  That one visit, was enough for them to decide it was where they want to be for the rest of their lives. 

Is Maine for everyone?  No.  If you are looking for a fast-paced lifestyle, lots of traffic, high  rise buildings, billboard signs, the ability to smoke at beaches, State parks, restaurants, or you don’t like lakes, the ocean, skiing, lobsters, hiking, biking, snowmobiling, hunting, fishing or simply relaxing, then Maine is not the state for you.

That’s Maine for ya

On a recent trip to New York, between the St. Lawrence River and the foothills of the Adirondacks, I was relieved that we were not spending the entire time on a busy highway.  We were able to enjoy Maine’s Lakes Region, the White Mountains of New Hampshire, Vermont’s green mountains and upstate New York at the peak of fall foliage.  It’s over a seven hour drive, but it’s a beautiful one and makes the long trip enjoyable.  This particular trip made me appreciate living in New England. 

Living in Maine in the fall means enjoying cool, crisp weather, apple picking, pumpkin carving, New England Patriots football and lots of leaf raking.  Fall in Maine also means having to prepare for Old Man Winter, which isn’t just putting away your summer wardrobe and pulling out the winter boots and mittens, it’s putting on snow tires, planting fall bulbs, cutting and stacking wood if you have a wood stove or a fireplace and pulling out the shovels, snowblower and ice scrapers.

If you are an outdoor enthusiast, a Maine winter can offer an abundance of recreational activities with some of the best skiing this side of the Mississippi, miles and miles of groomed snowmobile trails, ice skating and pond hockey.  Being a “Mainer” means being able to adapt.  Having to put up with the fact that over 13 inches of snow dropped in October on the leaves that you never got around to raking and then a 60 degree day in November after you put away all of your warmer weather clothes.  It’s not uncommon to hear someone say:  “That’s Maine for ya.”

Maine and it’s New England neighbors share a history that makes the region special with it being the oldest clearly defined region of the United States, which is unique among U.S. geographic regions according to Wikipedia.

Homes of New England also have a style of their own with their roots in the residential architecture of early Colonial days.  The cape cod, colonial and federal-style home originated in New England.

Our customers continue to request the classic New England style home without giving up modern touches and amenities.  The majority of our homes we build feature dormers, a farmer’s porch, crown moulding to reflect homes of yester year, pantries, farmer’s sink and wood flooring. 

When we sold our 1850′s farmhouse this summer so that we can build new, I made it clear that the new house needed to feel old.  I want the leaded glass in my front doors again, wide pumpkin pine flooring, wainscoting and a farmer’s sink.  It’s what I grew up with and to me it’s what living in a Maine home is all about.

Portland, Maine Forbes Top 10: “Best Cities for Young Professionals.”

We know how annoying it is to listen to someone boast all the time, but we can’t help ourselves.  Forbes Magazine just posted the “Top 10: Best Cities for Young Professionals” and ranked our Portland as # 6, beating out Massachusetts’ Boston # 12.  Portland Maine boasts the highest number of small businesses per capita of the cities screened. 

This is very encouraging news especially, where so many of Maine’s graduates leave their beloved state to seek their careers elsewhere.  The very same topic was the subject our last gubernatorial election.  Once in office, our new governor proclaimed:  “Maine.  Open for Business,” much to the chagrin of many that preferred “Maine.  The Way Life Should Be.” 

I like to think of Portland as a mini Boston.  It has everything you could want in a city, working waterfront, quaint shops, restaurants, pubs, micro breweries, museums, ball park, its own baseball and basketball teams, art district and so much more. 

The problem with all of these accolades about our great state is that now everyone will want to move to Maine and it will no longer be considered just a vacation destination. 

Heck, maybe we are open for business?

Our house is a very, very fine house.

Although the days of the McMansion don’t seem to be returning any time soon,  home buyers don’t want to sacrifice luxurious amenities.  Some of the traditional luxuries such as a large soaking tub is being replaced with a steam shower, formal dining rooms are now eat-in kitchens, the office or study has become a work area in the kitchen or family room. 

The economy has a lot to do with these changes, but the biggest reason is values and priorities.  It’s more about spending time together, family gatherings and building memories.  Besides, who has time to take a leisurely bath these days? 

The master bedroom has moved from the second floor down to the main level to plan for the future and because of the wish to remain in the home for as long as possible.  The modern kitchen no longer resembles a restaurant kitchen with a line of stainless steel appliances.  Refrigerators have glass doors or are hidden behind matching cabinetry.  It is true that the kitchen really is the heart of the home.  It’s where we entertain, kids do their homework, the bills are paid and where everyone ends up hanging out at a party. 

Because those of us in Maine endure a pretty long winter, any chance to get outside is cherished.  The patio, deck or terrace is an extension of the kitchen.  Outdoor entertaining, lobster bakes, BBQ’s and dining alfresco is part of a Mainer’s lifestyle. 

The popularity of the outdoor kitchen has given us reason to spend even more time outside.  With a gleaming stainless steel outdoor grill, a mini bar, prep sink, refrigerator, cooler, comfortable seating, the stars above and a fire to gather around, why go inside?

Accolades Keep Coming

I previously blogged about all the positive stats about Maine with HousingPredictor.com ranking Portland as “#1 for Best Housing Market” and Inman News rated Portland as # 4 for “Top 10 Real Estate Markets to Watch in 2011″. 

Yesterday Forbes came out with their list of “Best Schools for Your Real Estate Buck” and rated Falmouth Maine # 1.  Done in partnership with GreatSchools, Forbes analyzed 17,589 towns and cities in the 49 states that administer standardized, statewide tests and then compared median house prices and salaries.  Although, the author mistakenly indicated that many Falmouth professionals work in nearby Portsmouth, we assume he meant Portland.  (Portsmouth is in neighboring state of New Hampshire).  The author also indicated that many are employed at Idec, which is actually Idexx.  Be that as it may, Falmouth’s appeal to upper middle class families is obvious; it’s the location and a great school system. 

Maine still fights the ignorant that think we are behind the times, aren’t sophisticated and that we marry our cousins.  (Remember the movie Pete’s Dragon?)  Vacationing in Maine is one way to see what everyone is talking about, but you have to live here to truly experience all that is good. 

I suppose we should be surprised when someone calls us and indicates that they are considering moving to Maine, but have only been here once before and that was 15 years ago for a college buddy’s wedding.    The most common inquiry that we receive about building in Maine is from the person that has vacationed here since they were a child and can’t wait to move here permanently.

Living in Maine does come with a price though.  Southern Maine towns, such as Falmouth, have higher taxes, which in turn means new school buildings, new technology, top-notch athletic facilities, which presumably equals a better education.   A better education means a better job and higher pay.  Which means they can afford to live in Falmouth.