Published: December 9, 1998

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"OC Housing Sales Jump to a 9-Year High"
Los Angeles Times (12/09/98) P. C2; Reckard, E. Scott

Home sales in Orange County, Calif., rose sharply in November after an October decline caused by higher interest rates and stock market volatility. Existing home sales increased 13 percent to their highest November levels since 1989, and the median price of an existing home rose 9 percent to $229,000 from a year ago, according to Acxiom/DataQuick Information Services. The median price would have been even higher if not for the large surge in condominium sales, which rose 59 percent, dragging down the median price. A number of local home buyers were drawn to condominiums because of rising prices of single-family homes throughout the county. This growing market of affordable homes kept the county's median price in the $230,000 range for the fifth consecutive month. November's rise in home sales was also attributed to lower interest rates, which reduced monthly payments and allowed buyers to put more money toward a down payment.

"Utility Dominion Resources Is Learning to Play Real-Estate Development Game"
Wall Street Journal (12/09/98) P. B5; Yost, Mark

In an move that is atypical of utilities--which own plenty of idle property--Virginia's Dominion Resources Inc. is turning some of its excess acreage into profitable real-estate developments. Dominion Land Management Co. lords over three primary assets--one in Alexandria, Va.; one in Williamsburg, Va.; and one near Charlotte, N.C.--all of which are graced with posh marinas and championship golf courses. Indeed, the first residents are just now moving into the 5,700-acre community located north of Williamsburg. While the real-estate unit currently contributes only a minute amount to the parent company's bottom line, the success of its ventures is so great that Dominion Resources plans to invest more in this area. Due to new projects such as Stonehouse--Dominion's first digital community, in which every home will be wired with fiber-optic cable to give homeowners everything from digital satellite TV signals to Internet access--revenue from this segment should climb by more than 30 percent this year.

"Florida Journal: Tracking Florida"
Dow Jones News (12/08/98)

Construction is believed to be the main force behind the 4.3 percent increase in the Florida Index of Leading Indicators in November, compared to a year ago. Residential construction is benefiting from low mortgage rates and consumer confidence, which has been influenced by the gains in the stock market. In all five regions of Florida, residential construction is up.

"4000th Broker Joins LION's Internet-Based Mortgage Rate Service"
PRNewswire (12/07/98)

Lenders Interactive Online Network (LION) recently announced the introduction of its 4000th member to online service, which provides mortgage information and search programs through the Web site at www.lioninc.com. The service connects mortgage originators with lenders and provides fast access to the latest mortgage rates and fees. The newest member is an Oregon branch of Capital Mortgage Banking. According to company president Tom Coyle, the agreement with LION allows his company to provide quick mortgage information to lenders and consumers. LION has grown 33 percent since adding its 3000th member in June, and has established relationships with a number of mortgage software companies.

"Association Names Bozzuto Builder of the Year"
Baltimore Sun (12/06/98) P. 4N

The Suburban Maryland Building Industry Association recently named the Bozzuto Group of Greenbelt the 1998 Builder of the Year in the large volume category. As a developer, home builder, and property manager, the company was recognized for its excellence in "scheduling, supervision, engineering, quality control, and ethics." The company also won the 1998 Finest in Family Living Award and a Rental Apartment award of merit for separate projects.

"New-Home Sales Rise 22.3 Percent"
Baltimore Sun (12/06/98) P. 1N; Nusgart, Robert

New home sales in the Baltimore metropolitan area increased 22.3 percent in the first nine months of 1998 from the previous year, according to Meyers Housing Data Reports. The increase occurred across the board, and low mortgage rates and increased consumer confidence mean the market should remain strong through the rest of the year, stated Jim Joyce, president of the Ryland Group's Baltimore division. Howard County was the leader in single-family detached home sales, with an almost 27 percent market share and a 35 percent increase in sales from last year. Anne Arundel County had the highest percentage of townhouse sales, and Baltimore County led in condominiums. The market for home sales in Baltimore was strong enough that it surpassed Northern Virginia, which is often viewed as the model for new home sales. Third quarter home sales were up 15 percent from last year, and in some areas the supply of available new homes is falling. The average price of a single-family detached home rose 2.8 percent in the first nine months of 1998, with the highest increase in Baltimore County, where prices rose 6.5 percent to $213,288. Townhouse and condominium prices also rose in the area, and many home buyers are also spending more on options for their homes.

"D.C. Aura Lures Home Buyers"
Washington Times (12/06/98) P. A1; Montgomery, Christine

Since February of 1998, home sales in Washington, D.C., have gone on such a tear that the market now leads the nation in growth of residential real estate transactions. According to the National Association of Realtors, home sales are up 33.8 percent in the city in the third quarter of 1998 from a year ago. Many of the people who are buying homes in the nation's capital are yuppies and empty-nesters who are moving from the surrounding suburbs in Maryland and Virginia. Tax breaks, low interest rates, shorter commutes, and easy access to the Mall and museums are among the reasons why more people are moving into Washington, D.C. However, a sense of community, more diversity, and an atmosphere that a new development cannot duplicate are said to be the real reasons behind the trend. "Tax breaks are nice, but that's not the reason," says Brian Hanlon, who is looking to move to the city. "The central reason is we like to talk to our neighbors and we like that community feel."

"Craftsmen Honored for Workmanship"
Miami Herald (12/06/98) P. 4H

JWR Construction Service built the home that the Construction Association of South Florida named this year's Best Overall Craftsmanship Performed on a Residential Project. The custom home is located in Pompano Beach, Fla. Now in its 40th year, the Craftsmanship Awards included projects from Monroe County, even though they have traditionally been a tri-county competition. Some 44 craftsmen were honored for their excellence in 33 categories, involving custom home and commercial building projects that extended from the Keys through Palm Beach County.

"On Guard"
Chicago Tribune (12/05/98) P. 4-4; Lipinski, Edward R.

While burglars maintain their own preferences, consumers can protect their home and belongings by making it more difficult to identify when they are away. Typically, thieves will target homes that are convenient to major traffic thoroughfares and are within five to 10 miles of their own home. Properties that are located on dead end streets, cul-de-sacs or circles are less likely to be burglarized. Since most break-ins occur during the day, it is important to make your home appear occupied. Some homeowners set out props, such as a snow shovel in winter or a garden rake during the summer, to suggest that someone may be inside. Asking a housesitter to drop by periodically during the day to raise or lower blinds is another defensive tactic. If you are planning to stay away from home for more than a single day, be sure to have a neighbor pick up your newspaper, mail, and any packages that may arrive. Never leave your home totally dark at night. Although street lighting has not been indicated to be a deciding factor, setting timers on interior and exterior lights is a very effective deterrent, since it suggests the house is occupied. Finally, professional security systems are not certain to scare away would-be thieves, but those connected to law enforcement agencies are more effective than systems that simply feature sirens.

"Slip Slidin' Away (Out of the Admitted Market)"
InsuranceWeek (11/23/98) Vol. 65, No. 36; P. 12; Peden, Stephanie

The demand for catastrophe coverage is expected to increase as Americans prepare for La Nina, but residents of California, Washington, and Oregon will not have an easy time finding such coverage. Past disasters have caused insurance companies to drop or diminish comprehensive natural disaster coverage or to price it above what most consumers can afford. Lloyd's is one company that still offers tailor-made catastrophe insurance through some agencies, including Puget Sound Underwriters. The large number of Californians who are relocating to Washington has fueled growth for Puget Sound, as former Californians are all too aware of the perils of being uninsured. Puget Sound has also seen significant new business come from customers of other insurers, who are dissatisfied with admitted carriers that will not offer comprehensive coverage. Puget Sound offers specialty catastrophe coverage, however, consumers are confronted with the soft insurance market in California, the paucity of willing insurers, and the prevalence of natural disasters. For consumers who live in landslide-prone areas, insurance is almost unattainable, and even Puget Sound admits that their landslide policy is prohibitively priced for many consumers.

"Denver Market Flying High"
Unique Homes (11/98) Vol. 27, No. 6; P. 6; Quinby, Douglas

The quick sale of 81 custom homesites at the decommissioned Lowry Air Force Base is a good indication that there is a demand for new luxury homes in Denver. Even though the lots were only 10,000 square feet each and were priced at $100,000, prospective homebuyers snapped up the sites because the only other opportunity they have to buy a new home in the market is to move outside of Denver. "I have never seen a response to a new development like this," says Jennifer Gore, who is handling the sales and marketing of the custom homes and lots at Lowry. She adds that the location of Lowry makes for a good buy, stating, "Lowry is within immediate access to anyone who works in downtown Denver, and it's near shopping and the Denver International Airport." Plans for the 1,800-acre base also include commercial and civil development.

"Look for the Label"
Builder (11/98) Vol. 21, No. 14; P. 34; Binsacca, Rich

The federal Energy Star program now covers windows, doors, and skylights. The products of window manufacturers must meet the criteria of the Energy Star program in order to carry the logo and label of the energy-efficiency initiative. "Homeowners can reduce their heating and cooling costs by 15 percent by using Energy Star windows and doors," according to Gary Curtis, program manager for D&R International, the consultant to the Department of Energy (DOE) on the Energy Star program. The DOE and the EPA have co-sponsored a study that estimates that homes using energy-efficient products that have been approved will use 40 percent less energy than homes that use code-minimum products.

"The Home Stretch"
Smart Money (11/98) Vol. 7, No. 11; P. 154; Lauricella, Tom

Many homeowners in the United States are considering purchasing a second home that can be used for retirement or other purposes. Low interest rates are one factor in the trend; another is the growing demand for rental housing, leading some families to purchase a second home and rent it out until they are ready to move into the home. The overall housing market is strong enough, but the rental market has improved greatly from a few years ago, when second homes would go unused for long periods of time. For homeowners making the decision to purchase a second home, there are a number of factors to consider, including buying the house, hiring a property manager, and working out tax issues. Today's low mortgage rates make 30-year and 15-year loans very appealing, and many lenders offer these loans with lower downpayment requirements than in the past. When determining the size of the loan, lenders will consider the price of the home as well as the buyer's income and debt levels. But if the home will be rented out, there may be fewer borrowing options for buyers. Hiring a property manager, who will supervise the maintenance and the rental agreement of the home, is also important. The manager or management company should have a strong reputation and should be prepared to monitor the renters. In addition to rental income, owners of second homes can benefit from new tax laws when selling their old home by keeping as much as $500,000 in profit tax-free. There are certain rules concerning how long the homeowner lives in the home or rents it out, but the hassle may be worth it.

"Property Tax Timing"
Minneapolis Star Tribune (11/21/98) P. H1; Klott, Gary

Homeowners who mail their property tax payments directly to the collector may earn extra deductions on their 1998 income tax return it they complete and pay their property tax bill by December 31. Homeowners who pay their property taxes as a segment of their monthly mortgage installment are not eligible for the same deductions, since most lenders prohibit borrowers from taking money out of escrow until the taxes must be paid. Upper-income homeowners are also unlikely to benefit from completing their property taxes early, since most are ineligible for such deductions under the "alternative minimum tax."

"Wine and Road Buffs Live Among the Grapevine"
Where to Retire (12/98) Vol. 7, No. 4; P. 20; Dunn Jr., Jerry Camarillo

Sonoma Valley, Calif., is a market that should appeal to retirees who are serious about their wines. The valley is home to three dozen wineries. But the market has more to offer than free wine tasting. Cooks should be attracted to Sonoma Valley as well because cheeses, French bread, sausage, vegetables, fruits, and nuts are all locally produced. What's more, the old adobe buildings and Spanish mission of the town plaza may delight those who would love to live in a historic setting. Sonoma Valley, a picturesque country between two mountain ranges, is located about 45 miles north of San Francisco. Five retirement communities are located in Sonoma Valley, offering consumers an easygoing lifestyle outside of San Francisco. For more information, point a Web browser to www.sonomavalley.com.

"A High-Tech Edge for Home Offices"
Nation's Business (12/98) Vol. 86, No. 12; P. 52; McCollum, Tim

There are about 24 million home businesses in the United States and about 11 million telecommuters, according to the IDC/Link research firm. The main reason for this growth in home-based business is advanced technology, which makes it easy to make the transition from working in an office to working at home says Jeffrey Zbar, author of Home Business Know-How. There are a number of technology options available for homeowners to create their own home office. Home offices should have a minimum of a phone and a fax machine with separate lines, says Zbar. The phones should include a speaker and speed dialing, and they should cost at least $50, while fax machines range from $150 to $1,000. Optional features for phones include voice mail, call waiting, caller ID, and conference calling; fax machines can also include copiers. Another essential feature for a home office is a computer, many of which are now available at lower prices than in the past. Some computers are equipped to be able to link with phones and fax machines, but the most important element is an Internet connection. This includes e-mail, possibly the most efficient method of communication; and the Web, with a wide variety of information. Internet subscriptions are generally inexpensive, and they can result in huge marketing potential for a home-based business.