Published: December 4, 1998

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"A Smoke-Filled Room of One's Own"
Wall Street Journal (12/04/98) P. W1; Fletcher, June

A growing number of homeowners are installing smoking rooms. Popular during this decade in restaurants, clubs, and offices, the smoking room is now appearing in homes. In order to construct one of these rooms, homeowners must be willing to spend between $10,000 and $200,000. Some individuals even design smoking rooms in new homes. In the last year, Naples, Fla., builder Mark Wilson says five buyers have asked him to include smoking rooms of walk-in humidors in their custom home floor plans. Joel Sherman, president and CEO of the New York tobacconist Nat Sherman International Inc., states he has designed several smoking rooms for builders in the last few years, ranging from a $7,000 walk-in humidor to a $150,000 room that has a similar appearance to an old English hunt club. A good number of the modern smoking rooms have decor that resembles traditional all-men club rooms. In 1997, Birmingham, Ala., direct marketing entrepreneur Ray Pate Jr. spent $200,000 to transform an 800-square-foot space on the fourth floor of his house into a smoking room with mahogany panels. The room includes a full par, pool table, a stone fireplace, and a projection TV.

"The Wright Stuff"
Wall Street Journal (12/04/98) P. W14; Paik, Felicia

One of Frank Lloyd Wright's largest homes is on the market for $6.5 million in Dallas, and it could be one of the largest sums ever paid for a Wright home. Dean and Jo Guerin bought the house in 1975 from John Gillin for $1 million after living two doors down and admiring it for more than 10 years. The house is 10,000 square feet, with four bedrooms, and features a hexagonal-shaped living room with marble floors and built-in teak furniture; the dining room sports a table designed by Wright in the shape of a parallelogram. The house is listed in Dallas with Adleta & Poston's Dave Perry-Miller as broker, who reports that the house is in its original state. According to the Frank Lloyd Wright Building Conservancy in Chicago, 17 Wright homes are now on the market. The least expensive is in Oskaloosa, Iowa, for $159,000, while the second most expensive is located in Los Angeles for $5.5 million--owned by movie producer Joel Silver.

"Mortgage Rate at 6.71 Percent"
New York Times (12/04/98) P. C23

Average rates on 30-year fixed-rate mortgages fell to 6.71 percent this week, the lowest level in nearly two months, from 6.78 percent the previous week, according to Freddie Mac. Rates on 15-year, fixed-rate mortgages also fell from 6.44 percent last week to 6.37 percent this week. One-year adjustable-rate mortgage rates fell to 5.52 percent this week from 5.54 percent the previous week.

"Biggest Third Quarter Ever for Single-Family Permits"
American Banker (12/04/98) P. 7; Habal, Hala

The number of housing permits issued in the third quarter reached a new record of 315,000 permits, according to U.S. Housing Markets, topping the previous third quarter record of 307,500 set last year. Brian Bragg, editor of the report, attributed the market's success to low mortgage rates and job security, which has made it easier for first-time homebuyers to qualify for mortgages. Permit volume also reached new records in the first quarter and the first half of the year, but setting a record for the entire year is unlikely. But the market should remain strong, at least until interest rates rise again. The Atlanta area will likely set a new permit record for the year, as permits through September have risen 16 percent from last year. But this may not be a good thing for Atlanta, as some people fear the city is being overbuilt. Mortgage activity has been especially strong in Atlanta, but Mike P. Leddy, senior vice president of Crestar Mortgage in Atlanta, said this is due as much to refinancing activity as it is to new home sales.

"An Office Made for Homework"
Wall Street Journal (12/04/98) P. W15A; Paul, Donna

For children today, the home work environment has become more important than ever before. As youngsters have increased their use of the computer, whether for homework or play, they have also become more vulnerable to computer-related ailments, such as Repetitive-Stress Injury. In an effort to protect against these potential side-effects and to improve the quality of their work space, manufacturers are branching into home office furniture for children. Adjustable desks and chairs, capable of growing with your child, are now available in a range of styles, including ergonomic pieces marketed by the German company Moll Rovo. Other companies are producing systems that are compatible with grown-up office pieces. Techline of Wisconsin manufactures a number of child-sized desks, bookcases and mobile file pedestals that are easily incorporated with an adult system. Parents interested in more affordable options may build a desk for their child using 12-inch storage cubes and an interior slab door, which may be purchased for around $20.

"Million-Dollar Home Sale Record"
Business Wire (12/03/98)

Sales of million-dollar homes in California reached a new record of 1,555 homes in the third quarter, according to Acxiom Corporation's DataQuick Products Division. Million-dollar home sales were up 5.1 percent from the second quarter, and they were also up 41.2 percent from last year's third quarter. Mike Ela, head of the DataQuick Products Division, attributed the increase in luxury home sales to economic growth and housing market appreciation that has made many homes worth six figures last year, worth over a million dollars this year. The pace of million dollar home sales is well ahead of the pace in the late 1980s, but buyers in this price range are always more vulnerable to economic fluctuations than other home buyers. Eighteen homes in California sold for over $5 million, and the communities of Atherton and Rancho Santa Fe had the highest proportion of million dollar sales in comparison to overall sales.

"...and your home: Better interior painting"
Bottom Line/Personal (11/15/98) Vol. 19, No. 22; P. 15

Dylan Landis, contributing editor of Metropolitan Home magazine and author of "Elegant and Easy Rooms: 250 Trade Secrets for Decorating Your Home," is a big fan of primer tinting for interior paint jobs. "When using a color other than white, have the paint store tint the primer or base coat to nearly the same shade as the paint," according to Bottom Line/Personal. "The primer should not match perfectly because you need to see where there is only primer." Although homeowners can expect the primer to cost several hundred dollars per gallon, interior painting done this way likely will require one less coat of paint.

"Fannie Mae Announced That $1.8 Billion of Flexible 97..."
Real Estate Finance Today (11/16/98) Vol. 15, No. 26; P. 12

Fannie Mae recently announced it has approved $1.8 billion nationally in Flexible 97 funds to lenders in the last five months. The Flexible 97 product is targeted at borrowers with strong credit histories who lack funds for a downpayment. The loan includes a 3 percent downpayment, and almost two-thirds of its borrowers have been first-time homebuyers, according to Frank Demarais, vice president of product development at Fannie. He added that the loan is one of Fannie Mae's most popular options.

"Refi Fever"
Montgomery Business Gazette (11/98) Vol. 3, No. 12; P. 7; Baker, Chris

With mortgage rates at their lowest level in 30 years, mortgage industry observers in the Washington, D.C., metropolitan area say mortgage bankers are being swamped by consumers who want to apply for home loans. According to Freddie Mac, 30-year fixed-rate mortgages have been around 6.8 percent since September. And for the week ending Oct. 16, mortgage applications were up 123.8 percent from the same week in 1997. The previous week mortgage applications were up 192.5 percent from a year ago. Before that, mortgage applications were up 153.3 percent. Rockville, Md.-based mortgage banker Harris Rosenblatt believes the refinancing boom will have a positive impact on the housing market next year. According to Rosenblatt, the low rates ultimately could mean consumers will have some extra money to purchase new homes or renovate existing homes. "For borrowers, it will mean a lot of new homes are built, and for consumers who refinance, it will mean the extra savings are used to rebuild and renovate [their homes]," said Rosenblatt.

"Burning Controversy"
Consumer Reports (11/98) Vol. 63, No. 11; P. 46

Many homeowners desiring a fireplace are turning to gas models that can simply be turned on and off and don't require wood burning. But unvented gas fireplaces can also emit dangerous chemicals, leading to debates between manufacturers and safety experts over their use. There are no national air quality standards for contractors installing gas fireplaces, but contractors will consider emissions and size guidelines. Tests performed by Consumer Reports on two different fireplaces indicated that neither exceeded Gas Research Institute guidelines in emission levels of carbon monoxide. It also took both fireplaces a long time to emit enough nitrogen dioxide to be considered dangerous. Unvented gas fireplaces still cause some indoor pollution, so the best choice for homeowners is vented fireplaces, which don't cost any more to buy and install. If the fireplaces are unvented, the homeowners should provide extra ventilation and make sure the contractor follows GRI guidelines. They should also limit the use of the fireplace and should install a battery-powered carbon monoxide detector.

"Mortgages by Modem"
Today's Homeowner (11/98) Vol. 94, No. 830; P. 12; Romano, Jay

Homeowners looking to refinance their current mortgage can find many helpful resources on the Internet. There are many sites that allow homeowners to shop for, apply for, and purchase a loan online, according to Keith T. Gumbinger, vice president of HSH Associates. Two of the largest and most popular sites are QuickenMortgage (www.quickenmortgage.com) from Intuit and Microsoft's Home Advisor (www.homeadvisor.com). These sites allow users to list important information, which will then be categorized by criteria and sent to a lender after informing the borrower if they are qualified. iQualify.com (www.iqualify.com) is another major site that allows mortgage borrowers to receive loans from Fannie Mae-approved lenders in minutes. The borrower applies following Fannie Mae guidelines, and the application is forwarded to a lender. Most of these sites require a great deal of financial information, so borrowers should prepare all their necessary paperwork before starting the process.

"What Goes in a House"
Today's Homeowner (11/98) Vol. 94, No. 830; P. 14

Lumber costs account for about one-third of the total cost of materials for the average home, according to the National Association of Home Builders. These lumber and structural panel costs add up to just under $9,000 for a typical house.

"Expert Says Home Ownership Still Key to Wealth"
Today's Buyer Rep (11/98) Vol. 7, No. 11; P. 7

People may typically view stocks and bonds as the main causes of a person's wealth, but the best measure of wealth in the United States is actually homeownership, according to John Weicher, senior fellow of the Hudson Institute. Weicher said that only about 25 percent of Americans own stock, but homeownership is the third most popular investment for American families behind cars and checking accounts. In addition, home equity accounts for one-third of a household's wealth, and homeownership has helped narrow the gap between the nation's wealthiest and poorest families, according to Weicher.

"First Aid for Natural Disasters"
Costco Connection (11/98) Vol. 13, No. 11; P. 20; Fehr, Jack

The right risk management strategy can help offset the tremendous hardships individuals and companies face after a natural disaster strikes. This strategy should include provisions to avoid as much loss as possible--and to insure the rest. The question of insurance coverage is particularly prickly in locales prone to natural disasters. Some people believe they are covered only to learn too late that their homeowners insurance excludes hurricanes, for example. Sometimes, insurance providers eliminate coverage in high-risk areas, or charge prohibitive rates. In Florida, insurance companies have increased premiums by upwards of 100 percent as well as raising deductibles. Quake-stricken Californians must purchase separate earthquake policies. Damage from floods, which are responsible for 90 percent of Mother Nature's ravages, can be alleviated by purchasing insurance that should cost most people around $300 a year. Greed on the part of insurance agencies does not accurately explain the difficulty in finding appropriate coverage. Insurance companies are hit hard by natural disasters; for example, Allstate made $1.9 billion in payments to its Florida customers after Hurricane Andrew, which is a higher amount than the total premiums that the company had collected in that state over the course of more than 50 years. Index Terms: