"Single-Family Home Construction Hits 14-Year High, But Overall Starts Drop"
Wall Street Journal (12/17/98) P. A2; Bodipo-Memba, Alejandro

The Commerce Department reports that total housing starts fell 2.7 percent in November after rising 8 percent in October, as gains in single-family home construction were offset by a decline in multi-family housing starts. Single-family home starts rose 5 percent in November to 1.353 million units, the highest number since February 1984, but apartment and townhouse construction fell 26.9 percent. Overall, the housing market remains strong, led by low mortgage rates, warm weather, and increased employment and income, said Paul Taylor, senior economist for America's Community Bankers. Regionally, starts rose 12 percent in the West and fell 6 percent in the Northeast and 7 percent in the South and Midwest.

"Missouri-Based Insurer Granted a Thrift Charter"
American Banker (12/17/98) P. 2; Harrison, David

Shelter Mutual Insurance Co. received approval from the Office of Thrift Supervision on Wednesday to launch a full-service thrift in February 1999. The Shelter Financial Bank will begin operating from a single branch early next year, and plans to market its mortgages, home equity and vehicle loans, and savings accounts through 1,300 insurance agents, spread across 13 Midwestern states. Although Shelter Financial was launched with only $9 million in capital, it is anticipated that the thrift will reach $80 million of assets by 2002. Despite opposition from some independent bankers, Shelter Mutual was the tenth insurance company to receive an approval this year.

"Home-Buying Program Expanded"
Washington Post (12/17/98) P. C7; Shen, Fern

On Wednesday, Prince George's County Executive Wayne K. Curry unveiled an expanded $27.2 million version of the Single Family Bond Program. Focused upon increasing homeownership in 12 specific communities around Washington, the program offers 30-year fixed-rate mortgages as low as 5.9 percent, for qualified applicants who agree to purchase a home in a financially depressed community. First established in 1995, the program was revised this year in order to broaden the range of eligible participants. In previous years, a family of four in P.G. County would not qualify if their annual income exceeded $37,000 annually. Today, however, couples or single home buyers may qualify for the 5.9 percent interest rate with an annual income of $86,760, and can purchase a home for as much as $222,817. A family of three of more could report an annual income of $101,220 annually and purchase a home priced at $220,987. If the buyer does not have enough cash to cover closing costs or the down payment, the interest rate may rise to 6.85 percent. Eligible borrowers are permitted to purchase homes in Bladensburg, Brentwood, Avondale, Fairmount Heights, Capitol Heights, Landover, and other P.G. suburbs. According to Michaele D. Doaks, executive director of the county housing authority, previous bond issues generated between 150 and 180 new buyers. It is hoped that this program will generate more than 300 new buyers.

"November Home Sales Secure Record Year"
PRNewswire (12/16/98)

The Realtor Association of Greater Fort Lauderdale reports that 1998 has been its best year ever for real estate sales. Through the first 11 months of the year, the largest local Realtor association in Florida has recorded 18,112 sales of existing single-family homes and condominiums in metropolitan Fort Lauderdale. Compared to 16,650 units sold a year ago, resales are up 17 percent. Low mortgage rates are one of the major reasons for the record year. Richard W. Barkett, president of the association, said, "This will carry on into the first and second quarters of 1999, meaning we could be in store for another outstanding market for buyers and sellers."

"Statement by Robert I. Toll"
PRNewswire (12/16/98)

The new housing start figures of the Commerce Department are an indication that the strong single-family home market will continue to grow, according to Robert I. Toll, chairman and CEO of Toll Brothers. Toll says that consumers are confident and mortgage rates are low. "Even with market fluctuations we expect continued growth," says Toll. "Luxury real estate remains a hot item for baby boomers entering peak earning years and 50-plus year-old Americans seeking active retirement communities." Toll Brothers, the top luxury home builder in the nation, is having a good year. The Huntingdon Valley, Pa.-based company set a fourth quarter record of $27.9 million in net income. The company also set records for year-end backlog and new sales contracts during fiscal year 1998. Toll Brothers builds luxury homes in Florida, North Carolina, and Tennessee, in addition to 15 other states across the country.

"Designing an Attractive Driveway Can Be a Bumpy Ride"
Washington Post (12/12/98) P. E8; Lerner, Joel M.

Driveways are one of the most difficult exterior elements of a home to design, and there are always regulations that must be followed. These rules are made to protect the safety of homeowners, and they are also based on making the appearance of a home look better. Aside from the actual process of installing or repairing a driveway, applying for a permit can also be difficult. For instance, few homeowners know that the end of their driveway, or the apron, belongs to the local government rather than the homeowner, and any changes to this area must be approved. The layout of the driveway should be designed so that it best conforms to the shape of the house and the rest of the property. Materials can vary, but there are some common sense rules to follow. The driveway should be perpendicular to the street so it is easy to enter, and anything obstructing the view from the end of the driveway should be removed. The slope of the driveway should also be considered, especially if the area has a cold climate which could result in a car slipping on the pavement. To find a driveway installer, homeowners can look in the Yellow Pages under "concrete" or "mason" contractors.

"W.C. & A.N. Miller--Old Fashion Service With a Modern Twist"
Washington Post--Homes (12/11/98) P. 4

Doing things right during a good economy has enabled one of the oldest real estate companies in the Washington, D.C. area to enjoy its best year ever. W.C. & A.N. Miller Realtors is expecting to do more than $500 million in business in 1998, about a 40 percent increase from 1997. Formed in 1912, W.C. & A.N. Miller, a company of five offices and 200 sales associates, is holding true to the old-fashioned value of service, whether it involves its own sales agents or the wider community. Among other things, it has raised $20,000 for Children's Hospital, collected toys and clothing for children, and has helped put homeless mothers into apartments.

"California: Quality of Life..."
Dow Jones News (12/08/98) ; Muto, Sheila

A recent poll commissioned by the San Francisco Bay Area Council and conducted by Field Research Corp. revealed the main concerns of Bay Area residents in terms of their quality of life. Overall, consumer responses reflected strong concerns about growth and its negative effects. In particular, 40 percent of respondents said that traffic and transportation were the biggest problems currently facing the Bay Area. Overpopulation and excessive housing, little of which is affordable housing, were also considered major issues. But one trend that researchers were pleased about was that most respondents favored establishing affordable housing in areas with existing infrastructure, or near large transit and employment hubs, rather than expanding into undeveloped outer areas. "Residents are going in the direction that we feel is the right one," said Bay Area Council president Sunne Wright McPeak.

"Holiday House Hunting"
St. Petersburg Times (11/28/98) P. 1F; Burney, Teresa

Real estate experts view the holiday season as a good time to have a home on the market. Realtors like Annette Bohannon of Coldwell Banker say holiday decorations, a set table, china, and crystal are excellent tools that help sell homes. "When people buy a home, they're not buying brick and mortar and stone," said Lake Grove, N.Y.-based real estate sales trainer Joe Meyer. "They're buying a feeling." The way homes look and feel during the holiday season would indicate that this time of year is excellent for selling a home. For Florida markets like Hernando County, the winter does not slow sales, with visitors from the North who may be thinking about making a move to Florida.

"The 'Decade of Homeownership' Is a Blessing for Builders and Remodelers"
Fine Homebuilding (11/98) No. 119; P. 56

A recent "State of the Nation's Housing" report from Harvard University's Joint Center for Housing Studies indicates that the nation's homeownership rate is at an all-time high of 65.7 percent. The growing trend of homeownership in recent years has been fueled by low unemployment and mortgage rates, as well as a surge in minority homebuyers. But minority homeownership rates are still far behind overall rates, and most of the growth in homeownership has taken place in the suburbs, causing a lack of affordable housing. Baby boomers have had a large effect on the housing industry as well, with many of them purchasing trade-up homes. This growth in homeownership will help the building and remodeling industry in the next few years. Construction rates are expected to remain strong, and as the homes of baby boomers continue to age, the remodeling industry could grow at least 5 percent over the next five years. The only problem may be a lack of qualified remodelers, according to Kirk McLaughlin, editor of Qualified Remodeler.

"Condo Craze"
Builder (12/98) Vol. 21, No. 16; P. 24; O'Malley, Sharon

During the third quarter of 1998, 600,000 condos were sold and most of them were bought by first-time buyers and baby boomers looking for a second home. Part of the increase is due to the decrease in mortgage rates, making it cheaper for those who normally rent to buy. Condo sales are expected to maintain their momentum on into 1999.

"Key FHA Change Gains Recognition"
Florida Realtor (12/98) Vol. 73, No. 11; P. 4

Congress has approved an increase in the limit of single-family home loans that are backed by the Federal Housing Administration (FHA). The move means that the FHA now will insure home loans that range in value from $109,032 to $197,620. The county with the highest limit on the loans in a metropolitan area gets to determine the prevailing limit for the other counties in the local market. According to the National Association of Realtors, the increase in the limit on FHA loans will help put another 175,000 people in homes over the next five years.

"Bringing It on Home"
Rural Electrification (12/98) Vol. 57, No. 3; P. 28; Lowrey, John

Fuel cell technology and other distributed generation sources are promising to be an option that electric co-ops can soon offer to the residential sector. Fuel cells--which, unlike batteries, will not lose power as long as they are being supplied with natural gas or another fuel--are at the forefront of this movement. The shift to distributed generation among homes and businesses will soon account for as much as 20 percent of new power generating capacity, experts predict, due to the risks involved in building large fossil-fueled and nuclear power plants. Co-ops hope to take advantage of the improved power quality and the 40 percent to 50 percent fuel efficiency rate that fuel cells can offer by learning more about their capacity and the opportunities they can provide. Even General Electric's GE Power Systems plans to join the market by selling a 7-kilowatt (kw) residential fuel cell, beginning with test units early in 1999 and commercial units by the following year. GE will sell the fuel cells for between $3,000 to $5,000.

"Security Systems"
House Beautiful Home Remodeling & Decorating (12/98) Vol. 35, No. 3; P. 28; Montgomery, Lisa

Homeowners may be able to find security systems that are priced for under $100, but consumers should look more closely at the package that is being offered because there is a good chance that the units include only the most basic features. A simple home security system for homeowners who have tight budgets should cost consumers about $200. Homeowners can expect the package to include a main control panel, which is from where the system can be armed or disarmed. It will also boast an array of sensors, such as those for motion, doors, and windows. Additional sensors can cost anywhere from $20 to $40. Such budget-conscious systems are designed for do-it-yourselfers to install the units themselves. Systems that must be installed by professionals are priced higher. The advantages of having a mid-range system include: a greater level of security, easier to operate, the capability to arm certain areas of the house, and the convenience of being able to run and arm the system from a phone. Homeowners have the option of a wired or wireless product in the mid-range category. With these security systems, "a command to arm the system can not only alert all of the sensors but can lower the thermostats and switch off the lights as well," writes journalist Lisa Montgomery.