Monday, October 31, 2011

Architecture Directory

Architecture Directory

Cost-effective Small Prefab Functional-House by Sett Studio

Posted: 31 Oct 2011 03:29 AM PDT

Sometimes, it is fun to have an additional space around your home environment that can functionate as a home office, art studio, yoga space, kids room, game room, guest room or the space fits your needs. Especially if you are a people who are interested in an attractive, eco-friendly alternative, so you definitely will love [...]

Top Box Design

Top Box Design

Busstop Park+Ride Citybus in Hoogkerk, Netherlands

Posted: 30 Oct 2011 05:34 PM PDT

Located in Hoogkerk, Netherlands, the Busstop Park Ride Citybus was designed by Lysbeth de Groot-de Vries, LYVR which offers space for 600 cars, bicycles and offers various options for transfer from county and city buses. Located on the edge of the parking and the bus lane, the waiting room at the brightly coloured Busstop directly [...]

Irvine Housing Blog

Irvine Housing Blog

Link to Irvine Housing Blog

No equity, no move-up buyer; no move-up buyer, you get a slow market

Posted: 31 Oct 2011 03:30 AM PDT

Sales rates are 25% below normal, and with low household formation and a lack of equity in potential move-up households, transaction volumes will remain low for the foreseeable future.

Irvine Home Address ... 65 SAPPHIRE Irvine, CA 92602
Resale Home Price ......  $429,900

Just move on up
and keep on wishing
Remember your dreams
are your only schemes

Curtis Mayfield -- Move On Up

Everyone want to move up to better housing accommodations. Years ago I toured the Tijuana subdivisions of URBI. One of the homes was a 288 SF single family detached home. When I asked one of our guides who bought such a place, he beamed with pride and said they were generally people moving out of shanties. They were thankful to have working plumbing, solid walls, and climate control. That tiny home was a huge improvement over what they moved out of.

My wife recently had a conversation with a woman who was lamenting her plight. Her family was outgrowing their Shady Canyon home. With three children, their 4.000 SF 5 bedroom house no longer met their needs. She wasn't bragging or being pretentious, she was relaying the truth of her situation as she saw it.

No matter your station in life, it's human nature to want more. Thus, a move-up buyer is a large component of any healthy real estate market.

Move-up markets need equity and wage growth

A move-up market requires two things in order to function: equity and increasing incomes. Neither is present in today's housing market, and there are few glimmers of hope on the horizon.

In the real world, most first-time homebuyers use an FHA loan and buy a low-cost property. The reason for this is simple: it takes too long to save 20% for a down payment on a conventional loan. First-time homebuyers use FHA loans because the 3.5% down payment is within reach. Further, once these buyers are in a property, they simple wait five or ten years for the wage-based appreciation to magically give them 20% to 30% equity in a property to use on their move-up purchase.

Once the owner has enough equity to get a closing check large enough to fund a 20% down payment on a move-up property, they go shopping. Since this is usually quite some time after buying their FHA financed property, it's likely the household wage earners are making more money. They take their larger family income and their 20% down payment and buy a move up property. At least that's how it used to work.

Notice the scenario above requires both appreciation to create equity and increasing income to finance a larger loan balance. If either of those conditions is missing, the move-up market suffers because fewer buyers are active.

So think about today's market. We are creeping out of a deep and prolonged recession characterized by persistently high unemployment. Incomes are down, not up. Even if buyers had the equity, they don't have the income growth also necessary to push buyers up the property ladder. If not for historically low interest rates, loan balances would be contracting with the declining wages experienced by many during the recession, particularly those in real estate related fields.

Also, prices have crashed, particularly for low-end properties typically purchased by FHA buyers. Nobody purchasing low-end properties with FHA loans over the last decade has accumulated any move up equity, and prices are still going down. That problem alone explains much of the ongoing weakness in the move-up market. In fact, I argue that the lack of equity at the bottom of the housing ladder is largely responsible for the weakness in pricing and volume at higher price points.

The future of move-up markets

Many housing pundits believe the market will strengthen from the top down. This view is not correct. The high end of the market will bottom last because it will experience a persistent lack of available buyers. If there are fewer move-up buyers, there will be less buying pressure, and since we know there are plenty of distressed properties from the plethora of overextended borrowers struggling or squatting in high-end homes, there will be no shortage of supply.

Lenders have been successful so far at slowly releasing high end homes to the market to keep the decline orderly. Let's assume that practice will continue. Due to the low demand, there will be an ongoing imbalance with supply and demand, and prices will slowly creep downward as banks are forced to take slightly lower prices than recent comps in order to liquidate. Like slowly removing a band-aid, the pain gets stretched out over a much longer period of time -- but it is still painful.

Banks will release product slowly because they need to get their cash back out of these properties. If a big bank like BofA gets really desperate, they might increase the pace of their liquidations and push prices lower quicker, but if they don't, prices will drift lower slowly as the inevitable liquidations run their course.

Lenders have this fantasy that they can slowly release product into a rising market and obtain a better recovery. It isn't going to happen because there is simply too much product. For example, the Irvine Company and other new home builders generally account for about 15% of sales. At that rate, they can obtain higher prices and not disrupt the market. Right now, distressed sales by lenders account for 30% to 40% of the monthly sales volumes, and they have a backlog which will take a decade to clear out. If they try to reduce their sales volumes to be only 15% of sales, they will be selling REO forever.

In my opinion, we will see the low end of the market bottom in the next year or two. There will be a multi-year gap between when the low end bottoms and when the high end bottoms due to the lack of a move up market. It isn't until those who bought near the bottom at the low end have enough equity to move up to the next rung on the property ladder that each subsequent rung will bottom out. In other words, the bottom process will take a long time, and the high end will be the last to experience it.

Home price index edges up

The 0.2% bump in August in the Standard & Poor's/Case-Shiller index of 20 metropolitan areas is the fifth straight monthly increase. But a sustained improvement in housing may be hard to achieve in the months to come.

By Alejandro Lazo, Los Angeles Times -- October 25, 2011, 9:20 p.m.

Providing a ray of hope for the beleaguered housing market, a closely watched index of home prices in major U.S. cities nudged upward in August, marking the end of what is typically the busiest sales season of the year.

Home prices have risen for five months in a row, but whether the spring and summer gains will prove lasting is an open question. Sustained improvement in housing may be hard to achieve in the months to come, experts said, if the nation's foreclosure machinery picks up momentum and employers remain reluctant to hire.

"We will probably see a reemergence of the seasonal dip in most markets, quite frankly, including California," said Thomas A. Lawler, founder of research firm Lawler Economic & Housing Consulting.

Yes, the seasonal pattern will spell then end of rising index prices. I have repeatedly predicted a welcome decline this fall and winter.

The Standard & Poor's/Case-Shiller index of 20 metropolitan areas rose a meager 0.2% from July to August, an uptick many analysts noted as probably seasonal in nature and influenced by the decline in foreclosed properties as a share of the total number of homes sold.

Comparing the August reading with the same month a year earlier, the index fell 3.8%, a drop economists viewed positively because it was one of the slowest rates of year-over-year decline registered by the index all year.

Prices falling 3.8% is a positive? Well, I think so, but not because I want to see prices go back up. It's positive because it's a sign houses are becoming more affordable to the average person.

Christopher Thornberg, principal of Beacon Economics, said other home price indicators point to two trends developing in the nation's housing market: Values are declining for homes in distress — those properties that are either foreclosures or cases where the homeowners are delinquent on their mortgages — but other homes are fetching higher prices.

These two divergent forces are flattening out overall market values, he said. The main source of sales sluggishness is the scarcity of potential move-up buyers with equity in their homes.

"The biggest problem is not credit, it is not confidence, it is equity," Thornberg said. "No equity, no move-up buyer; no move-up buyer, you get a slow market."

Chris Thornberg is correct. The lack of equity is weighing down the market by reducing the number of move-up transactions.

But David M. Blitzer, chairman of the index committee at S&P Indices, said he sees "a modest glimmer of hope" in improvements in some aspects of the data.

I do get tired of every comment by every person in every news story being slanted to the point of view of loan owners. I find more than a modest glimmer of hope that prices will get even more affordable when I see how far prices have already come down, the downward price momentum, and the lack of demand at current price points.

Prices rose in August for 10 of the index's 20 metro areas compared with July, and prices fell in the other 10 cities.

California cities stumbled. Home prices in Los Angeles fell 0.4% over the previous month, San Diego prices declined 0.2% and San Francisco saw a 0.1% drop.

Atlanta experienced the biggest decline, down 2.4%. Las Vegas fell 0.3% and Phoenix was down 0.1%.

Prices fell more in Las Angeles than they did in Las Vegas last month. Which market do you think is closer to the bottom?

The Midwest has made gains in home prices in recent months, and Chicago and Detroit were both up 1.4% over July. Washington has fared better than other regions and gained 1.6%.

Earlier this year, the 20-city index dropped below its previous bottom, hit in April 2009, confirming a double dip in prices, but has come up above that level since. Some economists predict a renewed decline in prices in fall and winter, typically slower periods for the market.

Economists have had trouble pinpointing the source of the recent rise in prices.

Home values often rise in the spring and summer months because families more actively shop for houses so they can complete moves before the start of the new school year. But the number of foreclosed homes for sale also has been dwindling because foreclosure processing by the big banks has slowed down as a result of investigations into their practices.

"Prices just stabilized earlier in the year because of foreclosure-gate last year, where the lenders stopped foreclosing on so many homes to get their books back in order," said Patrick Newport, an economist with IHS Global Insight. "Now they are ramping up."

Yes, lenders are ramping up. Reports about the declines in foreclosures usually omit the reason foreclosures declined. The implication is that lenders must have run out of people to foreclose on, so the foreclosure cleansing must be nearly over. That was never the case. The price pressure from distressed properties will not be relieved until delinquency rates are back down to historic norms and the shadow inventory is cleaned out. That process will take years.

But Lawler disagreed, saying that the recent increase in the number of notices of default, the first formal stage of the foreclosure process, was mostly due to activity by Bank of America. There has yet to be a significant uptick in home repossessions by banks.

"We have seen that a few banks have started to accelerate the foreclosure process somewhat, but we haven't really seen it translate into actual repossession of homes," he said. "I don't think we have seen immense signs that banks have re-accelerated the process."

What does Mr. Lawler think BofA is doing then? Are they issuing all these NODs just for giggles? Just because the NODs have not been seasoned for 90 days so they can become Notices of trustee sale (NOTs) and ultimately foreclosure does not mean that they won't. BofA and other banks are clearly setting out to liquidate their shadow inventory. Once these properties are REO, they may have second thoughts about how quickly they dispose of these properties, but their recent actions show they are intent on repossessing these properties.

20% down the drain

In any market crash, the weakest hands give up their positions first, and the strongest hands give up last. During 2007 and 2008, many of my property profiles were borrowers who used 100% financing, Option ARMs, or were dependant upon Ponzi borrowing to survive. When conditions became even slightly adverse, they walked away. Over time, we saw fewer and fewer of those borrowers, and we started to see the people who put 5% or 10% down.

Now that the decline has dragged on for 5 years and prices are over 30% down from the peak and still falling, we are starting to see the people who put 20% down give up and walk away. The former owner of today's featured property paid $598,000, and he put $119,400 down. It went back to the bank on 3/11/2011. The former owner's substantial down payment is lost.

Larry Roberts and Shevy Akason are hosting an OC housing market presentation at JT Schmids at the District on November 9, 2011. Please RSVP at Register online here: OC Housing Market - JT Schmid's.

This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707 

Irvine House Address ...  65 SAPPHIRE Irvine, CA 92602
Resale House Price ......  $429,900

Beds:  3
Baths:  2
Sq. Ft.:  1500
Property Type: Residential, Condominium
Style: Two Level
Year Built:  2001
Community:  West Irvine
County:  Orange
MLS#:  P789463
Source:  SoCalMLS
Status:  Active
On Redfin:  95 days
Quiet Two Story Town Home ~~ 3 bedrooms, 2.5 bathrooms, with a 2 car attached garage with direct access. Property features Harwood Laminate flooring throughout, oversize gas burning fireplace, open kitchen with custom cabinets and solid granite countertops, large master suite with room for seating area/office and walk~in closet, upstair laundry room, walk~in pantry, and patio. Property has been rehabbed to include new interior neutral color paint throughout. Property is located near multiple shopping and entertainment opportunites. 
Proprietary IHB commentary and analysis 

Resale Home Price ......  $429,900
House Purchase Price … $598,000
House Purchase Date .... 12/8/2005

Net Gain (Loss) .......... ($193,894)
Percent Change .......... -32.4%
Annual Appreciation … -5.5%

Cost of Home Ownership
$429,900 .......... Asking Price
$15,047 .......... 3.5% Down FHA Financing
4.18% ............... Mortgage Interest Rate
$414,854 .......... 30-Year Mortgage
$127,616 .......... Income Requirement 

$2,024 .......... Monthly Mortgage Payment 
$373 .......... Property Tax (@1.04%)
$67 .......... Special Taxes and Levies (Mello Roos)
$90 .......... Homeowners Insurance (@ 0.25%)
$477 .......... Private Mortgage Insurance
$267 .......... Homeowners Association Fees
$3,297 .......... Monthly Cash Outlays

-$318 .......... Tax Savings (% of Interest and Property Tax)
-$579 .......... Equity Hidden in Payment (Amortization)
$22 .......... Lost Income to Down Payment (net of taxes)
$74 .......... Maintenance and Replacement Reserves
$2,496 .......... Monthly Cost of Ownership 

Cash Acquisition Demands
$4,299 .......... Furnishing and Move In @1%
$4,299 .......... Closing Costs @1%
$4,149 ............ Interest Points @1% of Loan
$15,047 .......... Down Payment
$27,793 .......... Total Cash Costs
$38,200 ............ Emergency Cash Reserves
$65,993 .......... Total Savings Needed

Larry Roberts is hosting a Las Vegas cashflow properties presentation at JT Schmids at the District on November 9, 2011. Please RSVP at Register online here: Las Vegas cashflow property - JT Schmid's.

real estate home sales

Sunday, October 30, 2011

Home Architectural Design

Home Architectural Design

7/20 Turner Avenue New Farm – Luxury Townhouse Property

Posted: 29 Oct 2011 11:30 PM PDT

This multi-level townhouse is an expressive result of a luxurious architecture designed by Bligh Voller Nield in Jasper Lane. It offers that chic inner city lifestyle with style, space and prime position. Open plan living areas span out to a large entertaining terrace. This spacious residence has perfect balance between indoor and outdoor living. Polished [...]

SRR House by Silvestre Navarro Architects

Posted: 29 Oct 2011 09:49 PM PDT

SRR House by Silvestre Navarro Architects in Valencia, Spain: The customer. Carpenter. Someone who comes to us for personal confidence. Someone who does not seek an architecture that has seen or has lived before and where he felt the happiness of the visitor (Alvaro Siza "Living a House"). A customer for whom the house is [...]

Saturday, October 29, 2011

Home Architectural Design

Home Architectural Design

Le Portelet House by MOOARC

Posted: 28 Oct 2011 10:33 PM PDT

Portelet House is an experimental house in Guernsey by MOOHUS, MOOARC's design research lab. Le Portelet is a new family home, which sits within the wooded escarpment overlooking Portelet Harbour. The project was conceived as three timber blocks nestled into the hillside allowing views of the surrounding landscape from all principle rooms. The palette of [...]

Friday, October 28, 2011

Great Home Design, Architecture and Interior

Great Home Design, Architecture and Interior

Luxury Silk Bedding Set Design by Spacify

Posted: 27 Oct 2011 08:07 PM PDT

luxury silk bedding photos

If You ever stayed at the five stars hotel, You must find the luxury bedding at the bedroom. Bedding is the one of the important element to design the luxury bedroom design and decoration. The profesional designer never avoid using the bedding to create modern bedroom. Now, You can design your own bedroom as the five stars hotel by changing the old bedding to the luxury silk bedding. Spacify the online interior store has the collection of the Luxury Silk Bedding Design that might could be your reference to remodel your bedroom. Their collection are elegant and simply refined enriched with jewel tones that will soften your modern bedroom. These all-cotton sheets feel like a soft morning breeze. Discover a comfortable look that goes great with plenty of bedroom decor. This wonderful comforter collection features an inviting pattern and warm rich colors. A must have for the discerning decorator. By using the luxury silk bedding, I am sure You sleep will better and You must feel fresh at the morning.
luxury silk bedding picture

silk bedding collection

silk bedding design

silk bedding images

Irvine Housing Blog

Irvine Housing Blog

Link to Irvine Housing Blog

Mitt Romney: don’t stop foreclosures, let markets hit bottom

Posted: 28 Oct 2011 03:30 AM PDT

Mitt Romney is the first presidential candidate to demonstrate the courage to endorse the right policy for housing.

Irvine Home Address ... 67 HAVENWOOD Irvine, CA 92614
Resale Home Price ......  $444,900

antichrist vanguard advance
spilling the blood of matyrs abd slaves
credo decimatus
machinery of the cleansing

decay and degradation dwell amongst us
machinery of the cleansing
sepsism swells the flock obscene
machinery of the cleansing...

Angelcorpse -- Machinery of the Cleansing

Foreclosure is the machinery of the cleansing. Unfortunately, both lenders and loan owners are loath to take a bath, and politicians are too busy pandering for votes to do the right thing. Perhaps that is about to change.

I am neither left nor right in my political leanings. I am one of the moderate swing voters who votes for either party. I was annoyed by McCain's pandering to loan owners in the 2008 election, so he blew his slim chance at getting my vote (I was probably still too pissed at Bush to vote Republican.) So far, I have seen nothing by clueless pandering or outright avoidance of housing issues by any of the presidential hopefuls. Nothing Obama has done has impressed me so far either.

When I read today's featured article on Mitt Romney's comments, I was pleasantly surprised. He actually seems to display a grasp of the issue and is endorsing a politically unpopular policy. He wants to let markets work which means letting home prices fall.

Foreclosures: Don't slow them, Romney says

Foreclosures need to go forward so the housing market can begin to recovery, GOP presidential hopeful Romney says in Nevada. Nevada leads the nation with the highest rate of foreclosures.

By Kasie Hunt, Associated Press / October 20, 2011

Las Vegas: Mitt Romney came to the state with the highest foreclosure rate in the nation and said he wants to allow home foreclosures to "hit the bottom" to help the housing industry recover.

He picked the right place to make those statements. There are no successful market props working in Las Vegas. Prices have crashed, transaction volumes are high, and the market is bottoming as cashflow investors are moving in to clean up the debris. That's how markets are supposed to work.

In an interview published Tuesday ahead of presidential debate, Romney told Las Vegas Review Journal's editorial board that solving the foreclosure crisis would require letting banks proceed against homeowners who have defaulted on their mortgages. New investors could then rent out the homes until markets adjusted.

"As to what to do for the housing industry specifically and are there things that you can do to encourage housing: One is, don't try to stop the foreclosure process. Let it run its course and hit the bottom," Romney said.

Wow! Romney is right -- completely and totally right. I imagine the "give away free houses" movement on the left will freak out over these comments. Apparently, Mitt Romney either isn't listening to his advisors who want him to pander to loan owners, or he actually has the courage to say what needs to be done. I thought Ron Paul was the only politician with the bravery to do that.

Romney elaborated during the presidential debate Tuesday night. "The idea of the federal government running around and saying, 'We're going to give you some money for trading in your old car...or we're going to keep banks from foreclosing if you can't make your payments," Romney said, "The right course is to let markets work."

This is the first utterance from this campaign that got my attention. He is right on with his comments.

Nevada, where seven of the presidential candidates are debating, has the country's highest foreclosure rate and the nation's highest unemployment rate.

Democrats immediately criticized Romney as out of touch with middle class Americans, many of whom are struggling to hold on to their homes amid high unemployment.

I suppose Romney is out of touch with loan owners who are trying to hold on to the bank's home.

"Mitt Romney's message to Nevada homeowners struggling to pay their mortgage bills is simple: You're on your own, so step aside," President Barack Obama's reelection campaign spokesman, Ben LaBolt, said in a statement.

Yes, that's exactly what he's saying, and it's about time someone did.

"This is just one more indication that while he will bend over backwards to preserve tax breaks for large corporations and tax cuts for millionaires and billionaires, Mitt Romney won't lift a finger to restore economic security for the middle class."

No, it's an indication Romney doesn't want to give free houses to people who aren't making their payments.

Senate Majority Leader Harry Reid of Nevada also went after Romney. "Nevada has the highest foreclosure rate in America, and it has for almost three years. And here's what Mitt Romney said: He would just let them hit rock bottom," Reid said during a press conference in the U.S. Capitol. "I don't know what's more graphic than that, in how we have different views of what the world should be like than our Republican friends."

These bozos may cause me to vote Republican in the next election. I haven't done that for a federal office since 2002. The bottom line is that Democrats are wrong, and they are endorsing the wrong populist pandering policies.

But the home foreclosure issue has been almost entirely absent from the GOP presidential race. While it was mentioned during the presidential debate Tuesday, and Romney addressed it as part of a larger answer, the candidates quickly started talking about bank bailouts instead.

Romney has just scored points with me. My personal view is that he will likely win the nomination but lose the election. Too bad, if he keeps making economic sense, I may vote for him.

Apparently, I am not the only one impressed with what Mitt Romney said:

Romney's Finest Hour

He speaks the truth about housing and foreclosures.

A friend of ours quipped recently that Mitt Romney could do his Presidential candidacy a lot of good if he took even a single position that is unpopular in the polls. Well, we can report that he has done that on housing policy, that he's being pummeled for it, and that it may be his finest campaign hour.

They just couldn't afford it

Today's featured property was sold on 7/30/2004 for the ridiculous price of $619,000. The loaners used a 433,300 first mortgage, a $123,800 second mortgage, and a $61,900 down payment. On 8/22/2006 they obtained a $125,000 HELOC and got access to their down payment plus a little spending money. There is no way to tell if they took out the money.

With no further mortgage equity withdrawals, they still couldn't make the payments on the first mortgage, and the property was foreclosed on in early September. Perhaps it was unemployment, or perhaps they just couldn't afford it to begin with.

This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707 

Irvine House Address ...  67 HAVENWOOD Irvine, CA 92614
Resale House Price ......  $444,900

Beds:  3
Baths:  2
Sq. Ft.:  1578
Property Type: Residential, Condominium
Style: Two Level
Year Built:  1980
Community:  Woodbridge
County:  Orange
MLS#:  U11004456
Source:  SoCalMLS
Status:  Active
On Redfin:  2 days
This home offers three bedrooms, two and a half bathrooms, two car garage and rear patio area with brick accents. Living room boasts wood-type flooring, conversation-area with a cozy fireplace. Kitchen has plenty of storage, ceramic tile flooring, granite countertop and stainless steel appliances. The property requires some cosmetic touches such as new carpet and fresh paint, perfect opportunity to put your personal touch on your new home. 
Proprietary IHB commentary and analysis 

Resale Home Price ......  $444,900
House Purchase Price … $619,000
House Purchase Date .... 7/30/2004

Net Gain (Loss) .......... ($200,794)
Percent Change .......... -32.4%
Annual Appreciation … -4.5%

Cost of Home Ownership
$444,900 .......... Asking Price
$15,572 .......... 3.5% Down FHA Financing
4.18% ............... Mortgage Interest Rate
$429,328 .......... 30-Year Mortgage
$132,425 .......... Income Requirement 

$2,094 .......... Monthly Mortgage Payment 
$386 .......... Property Tax (@1.04%)
$0 .......... Special Taxes and Levies (Mello Roos)
$93 .......... Homeowners Insurance (@ 0.25%)
$494 .......... Private Mortgage Insurance
$354 .......... Homeowners Association Fees
$3,421 .......... Monthly Cash Outlays

-$329 .......... Tax Savings (% of Interest and Property Tax)
-$599 .......... Equity Hidden in Payment (Amortization)
$23 .......... Lost Income to Down Payment (net of taxes)
$76 .......... Maintenance and Replacement Reserves
$2,592 .......... Monthly Cost of Ownership 

Cash Acquisition Demands
$4,449 .......... Furnishing and Move In @1%
$4,449 .......... Closing Costs @1%
$4,293 ............ Interest Points @1% of Loan
$15,572 .......... Down Payment
$28,763 .......... Total Cash Costs
$39,700 ............ Emergency Cash Reserves
$68,463 .......... Total Savings Needed

real estate home sales

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