"Lending Tree Puts Down Roots on Net, Matching Lenders to Borrowers"
American Banker (11/23/98) P. 16; Habal, Hala

The Lending Tree has introduced an online mortgage service that enables smaller companies to compete with larger companies. Prospective borrowers can fill out an application online, and the Charlotte, N.C.-based consumer direct company will match the prospective homeowner with a compatible lender. Within two business days, lenders will post their bids on the mortgage application online for the borrower to review. Bank One, Finance One Group, and Advanta Mortgage are among the 18 lenders that have submitted their criteria to the Lending Tree on applications they will accept. "This is cost-effective for lenders because they don't have the cost of processing people they're not going to approve--it's not the sifting through and finding a needle-in-the-haystack scenario anymore," said Douglas R. Lebda, CEO of the Lending Tree.

"Home Values Have Skyrocketed Nearly 10 Percent in Year"
American Banker (11/23/98) P. 17; Habal, Hala

Anaheim, Calif.-based American Real Estate Solutions reports that home values are up 9.7 percent in the third quarter from a year ago. According to Nima Nattagh, research director at First American, low unemployment, higher average income, and low interest rates have propelled home values to their largest increase of the decade. "These economic factors are leading to increased demand on the housing supply," said Nattagh. Home values are currently 21 percent higher than they were in 1990.

"Economy Shines on Home Sales"
USA Today (11/23/98) P. 10B/1; Hannon, Kerry

The National Association of Realtors confirms that home prices rose 5 percent on average during this year's third quarter, compared to the same period a year ago. During this year's three-month reporting period, the national median existing-home price was $132,700, up from $126,500 recorded in 1997. Mark Zandi, chief economist at Regional Financial Associates, states, "Overall, this is the most robust market we have seen in more than a decade." Fred Flick, NAR's vice president of economic research, cites such factors as low inflation, a strong domestic economy, and low unemployment for pushing up home prices.

"Fannie Mae Foundation and Hornets Begin Rehab"
PRNewswire (11/20/98)

The Home Team Program of Charlotte has brought together volunteers from the Fannie Mae Foundation and the Charlotte Hornets to rehabilitate four homes in the Reid Park neighborhood. The rehabilitation effort is being funded by an $85,000 grant from the Fannie Mae Foundation and $15,000 from the Charlotte Hornets. The funds will help the Reid Park Community Development Corporation build and rehabilitate 23 homes, which will then be sold to low- to moderate-income families.

"Developers Play to Area's Natural Charms"
Washington Times (11/20/98) P. F28; Lerner, Michele

Residential development in Prince William County, Va., has predominately grown alongside the Interstate 95 corridor and near Interstate 66 and Manassas. These new communities have also benefited from their proximity to such natural attractions as the Occoquan River and Prince William Forest Park. Belmont Bay is one community situated very close to a local wildlife refuge and the Occoquan River. Featuring a golf course, a planned harbor and town center, Belmont Bay offers much in the way of local charm and history. While the community is currently sold out, a new group of properties are expected to open for sale in January. Another popular residential home project is Lakeside. This development features swimming pools, a lake, tennis courts and is very close to Prince William Parkway. Townhouses in Lakeside range from the $100,000s to the $140,000s. Attractive single-family homes and townhouses are also available in the nearby community of Dale City. This development is very family-oriented and offers residents access to tennis courts, ball fields, an ice-skating rink and a water park. In this area, single-family homes range from $139,000 to $170,000. Positioned on more than 1,000 acres of wooded land, the community of Braemar offers residents access to a 48-acre park, a village center, swimming pools and clubhouses. In this development, three- or four-bedroom houses are priced beginning at $148,000.

"Starts of Housing and Building Permits Climb"
New York Times (11/20/98) P. C5

The Commerce Department reported that housing starts rose 7.3 percent in October after a September decline, while new construction permits rose 9.9 percent to their highest level since January 1990. The increase was attributed to low mortgage rates and weather improvements in the South, although markets across the country were also strong, according to Andy Hannigan, president and chief operating officer of Centex Homes. But the number of first-time jobless claims rose in October, and the Federal Reserve Bank of Philadelphia reported that regional manufacturing reached its lowest level in almost three years. "Weakness in the factory sector will eventually cause consumer spending and home sales to slow," said Mark Vitner, economist for First Union. Regionally, housing starts rose 14.5 percent in the South and 16. 5 percent in the Northeast, but were down 11.1 percent in the West. Single-family home starts rose 3 percent, and multi-family housing starts rose 23.6 percent.

"Masked Media"
Washington Times (11/19/98) P. E1; White Austin, Lana

A growing number of homeowners are attempting to incorporate technology into different rooms in the home, including home offices, theaters, and media centers. But the challenge for these people is to make the room technologically savvy while at the same time creating a comfortable and unobtrusive environment. For many homeowners, the answer to this problem is to hire an interior designer who can find a way to use the technology while keeping it hidden. Using this approach, home theater and media components are hidden in cabinets or are operated from the ceiling. When designing a media room, the most important thing is to consider the ambiance and how the room makes you feel, according to Joan Polk of Joan Polk Interiors. Technological components can be installed in a separate room, or they can be incorporated into an existing room such as a den, but the design approach is still the same. Polk recommends that homeowners designing a media room hire an interior designer because they can be more creative and may know more options and solutions than the homeowner does.

"Location Is Still Everything"
Forbes (11/16/98) Vol. 162, No. 11; P. 258; Granfield, Anne

Housing starts declined only 2 percent in September from a year ago, yet the Standard & Poor's home building index was down 17 percent, compared to a 9 percent increase in the S&P 500. This is due to the fact that mortgage rates may be lower, but the overall economy is still uncertain and could have an affect on home purchases, according to Michael Jaffe, an S&P home building analyst. Despite this prediction, the Asian financial crisis won't have as significant of an effect on the market as people believe, says Robert Curran, home building stock analyst at Merrill Lynch. Curran said employment is the key to the industry, and national employment was up 2.3 percent between August 1997 and August 1998. The increase was even greater in the Mountain, Pacific, and South Atlantic regions, emphasizing the importance of location. Two home building companies that are rated very favorably by Curran are Kaufman & Broad Home and Lennar Corp., each of which have a strong market presence in California. There are a number of home building companies with high average job growth that could see their earnings increase at least 10 percent next year, including Beazer Homes, Del Webb, and Standard Pacific.

"Bedroom Wraps Around House to Add, Save Space"
Detroit Free-Press (11/08/98) P. 1J; Lyon, Marcia

Marcia Lyons, in her Remodeling column in the Detroit Free-Press, has found a house in which the owners took the wrap-around approach to adding a bedroom. The owners were limited in space because the city has a rule that allows only 10 feet to be added to one side of a house. This would not be enough space for a master bedroom, and the owners of the home were not too enthusiastic about adding the new bedroom to the back of the house because it would block the only kitchen window. By choosing to wrap the addition around the home, the owners made use of the 10-foot-wide space on the side of the home for an expanded hall bathroom, laundry room, and a U-shaped closet. The master bedroom is part of the 15-by-15 foot addition in the back of the home. The room only overlaps the kitchen wall by five feet, so the kitchen window is not blocked.

"Warren Considers Plan for 200-300 Homes"
Crain's Detroit Business (11/09/98) Vol. 14, No. 45; P. 25; Mercer, Tenisha

Within the next 30 to 60 days, the Michigan Regional Council of Carpenters (MRCC) will finalize a plan to build anywhere from 200 homes to 300 homes in the Detroit suburb of Wayne. The union is still hammering out financing for the project. According to Ralph Mabry, executive secretary and treasurer of the MRCC, a portion of the union members' $1 billion Carpenters' Pension Trust Fund is a possible source. Also, plans to build the homes in southern Wayne would depend on how much land can be acquired. The homes would be priced in the $80,000 to $100,000 range. Steve Morris, executive director of the Warren, Center Line, Sterling Heights Chamber of Commerce, says the plan could produce the largest homebuilding project in Warren in 20 years.

"ULI Says California's Boomin'"
California Real Estate (10/98) Vol. 78, No. 9; P. 8

The annual mid-year Real Estate Forecast of the Urban Land Institute (ULI) presents a number of findings that suggests that California will have one of the hottest housing markets in the country through the middle of 1999. The market can expect improvements in profits, property values, investment opportunities, and rents. Among the 61 markets that the ULI surveyed, the group found that most investment opportunities will be available in Los Angeles, and San Francisco will be next. The market that will experience the greatest growth in the value of property in the country will be Orange County. And Oakland/East Bay will be third in the growth rate of metropolitan areas. The ULI study also found that single-family lots will rise the most in property value, followed by high and middle income detached single-family units.

"Buyer Preferences for Groups of Features"
Housing Economics (10/98) Vol. 36, No. 10; P. 10; Emrath, Paul

The home office was among the features that the National Association of Home Builders (NAHB) studied in its 1995 Home Preference Survey. According to the survey, 21 percent of all buyers indicated that they must have a home office in their new home. And among this group of home buyers with a preference for such a specialty room, 69 percent added that they must have an exercise room as well. The NAHB survey also indicated that 60 percent of these buyers must have a media room, 57 percent must have a den or a library, and another 57 percent indicated that they also need a sun room.

"Get Organized"
Home (10/98) Vol. 44, No. 8; P. 54

The National Kitchen and Bath Association has come up with a number of questions that consumers can ask themselves as they try to determine their needs for a remodeling project that involves a bathroom. Homeowners must consider: "Who will use this bathroom," "How many will use it at one time," and "What activities will take place in the bathroom (bathing, makeup application, dressing)?" Other question to consider include: "What budget range have you established for your bathroom project," "How long will you own this home," "Is return on investment a primary concern," and "What features do you like about your present bathroom?" Home magazine has also come up with a needs vs. wants list of bathroom items. The list includes items such as new vanity, separate shower, sinks for two, ventilation, exercise area, whirlpool tub, and linen storage.

"An Office Can Be ..."
Better Homes and Gardens (11/98) Vol. 76, No. 11; P. 92; Hufnagel, James A.

Homeowners who have their own home office are free to design the office they way they want in order to fit their needs, as opposed to being confined to the design of a corporate office. Better Homes and Gardens recently found three home offices that demonstrate different styles from which homeowners can choose. The first office was set apart from the rest of the home to create a sense of privacy. This style is important if the homeowner wants solitude while working. The second office has open windows, which provide access to the surrounding landscape. This type of office is best if the employee will be meeting with a lot of clients. The third office is made to handle a lot of storage and office supplies. It features desks with many drawers that can be tucked away, as well as open space for shelves and files.

"Ten Things Your Home Security Firm Won't Tell You"
SmartMoney (11/98) Vol. 7, No. 11; P. 169; Herman, Eric

The preoccupation with the latest technology to secure homes appears to be taking off at a time when crime, including burglaries, are on the decline. Americans spent some $9.7 billion on electronic security systems in 1991, according to Security Sales magazine. That amount would soar to $13.9 billion in 1997. The typical system is likely to cost about $1,200 to $1,300 for equipment and installation, with another $20 to $25 each month to monitor. However, market observers say homeowners don't necessarily have to spend that much money to make burglars think twice about breaking into their homes. For example, homeowners can spend less than $100 on a motion-sensor light to keep the perimeters of their homes well lit in the evening. Trimmed hedges give burglars less places to hide, and strong locks on every door will give them fits. Having a dog, though, may be best of all. "A good barking dog--most burglars aren't going to screw with that," says private investigator Steve Kirby of Kirby & Associates.

Published: November 23, 1998

Use of this article without permission is a violation of federal copyright laws.