Trends That’ll Influence Homes in 2016

Design changes, as does architecture. Trends don’t emerge as rapidly here as they do in say, food or fashion, but the economy, the environment, and demographics all spur shifts in the choices of materials, designs, layouts, and construction methods for single- and multifamily dwellings.

These 12 trends reflect ways to cope with environmental challenges, incorporate new building materials and methods, and alter the looks and functionality of our homes. Hear top designers and architects explain why these emerging trends are important and how they’ll influence real estate choices in the near future.

1. More Resilient, Sustainable Homes

Why it’s important: Mounting climate change pressures mean buildings need to better withstand natural disasters. Similarly, because our natural resources are dwindling, it’s increasingly important that structures be designed and built sustainably. Industry professionals are finding materials and construction techniques to meet both challenges. The Fortified Home Certification standard—created by the Insurance Institute for Business & Home Safety and Architectural Testing Inc.—represents engineering and building levels that provide sturdier structural envelopes that are more resilient against the worst weather conditions than those found in most current building codes. And the trends of making better use of natural resources and generating energy on site—for a double win of more energy and less money spent—will continue into 2016.

How this will impact real estate: Increased durability means more lives and buildings will be saved, costs to rebuild will be pared, and insurance premiums will be lowered. The trend is happening nationwide, not just in hurricane-prone locales like Florida, says Jacqueline Nunez, founder of WonderGroup LLC in Boston. Her Allendale Residences project, designed by Merge Architects in Boston, will be among the first residential developments in New England to be receive Net-Zero and LEED Platinum certifications. It will include 16 townhomes and four condos on a two-acre site in West Roxbury, Mass. “It’s responsible to build environmentally correct,” Nunez says. Such projects have the potential to change real estate offerings as home buyers ask professionals not just about square footage and amenities but also about materials and methods, especially in areas where climate change is most destructive— “where sea levels are rising and strong hurricane winds are blowing,” Nunez says.

2. Classics, Made More Affordable

Why it’s important: More home owners want quality, luxurious materials, but the finest choices aren’t always in the budget, says architect Michael Prifti, principal with BLT Architects in Philadelphia. “Home owners seem to prefer stone, for example, over brick, over clapboard, and over vinyl, but not everyone can afford stone,” he says. With construction and material costs increasing, the need has emerged for less expensive options that still look luxe and hold up well. For example, instead of solid stone facades, architects may opt for stone veneer on studs and drywall instead of plaster inside. Or, rather than go with terra-cotta, a timeless but expensive material, they can select a handsome thin terra-cotta veneer applied to manufactured panels, Prifti says. Both examples are less costly and reflect modern building methods, particularly for constructing multiunit developments.

How this will impact real estate: Smart real estate professionals should explain to cost-conscious fixer-upper clients that there are new materials out there that might better fit a tight budget. After all, architects and builders are constantly being challenged to find value for clients in both residential and commercial development, says Prifti. “We research to find new products and new ways to use existing materials, so they’re durable, affordable, and offer more colors and textures,” he says. According to colleague and BLT Senior Project Architect Jennifer Burnside, “Many of the new products, materials, and methods lend themselves to fabrication in large modular configurations in weather-controlled factories, are shipped on trucks to a site, and are erected with a crane, which saves time and labor.” Working this way also saves your clients money.

3. Drought Awareness

Why it’s important: Droughts continue to affect large areas of the U.S., making water more expensive and decreasing its availability, especially in the Southwest and California. Water-saving fixtures such as low-flow toilets and showerheads have become standard—even mandated—in many areas, but architect Gita Nandan, with architectural firm thread collective in Brooklyn, N.Y., says buyers are looking for more. In the backyard and rooftop of a four-unit Brooklyn building her firm designed, there’s a rainwater harvesting system with modular vertical tanks connected to a drain from the rooftop. The rainwater is used to irrigate the roof gardens and the yard. The building also features low-flow fixtures. Since these features were added, the building has seen a 30 percent drop in water consumption.

How this will impact real estate: Water conservation will become as important as energy conservation, and homes that collect as much water as they consume will be as popular with buyers as Net-Zero–energy homes now are, Nandan predicts. She expects that real estate professionals will see more demand for water-saving measures such as water-smart irrigation sensors, composting toilets, gray-water recycling systems, and rainwater harvesting.

4. Digitized Manufacturing

Why it’s important: Sustainable materials such as glass, in conjunction with new manufacturing technologies, are expanding the choice of colors, textures, and sizes of materials available for home design. At the same time, 3-D manufacturing, what some call the third industrial revolution, has created a new panoply of readily available, prefabricated materials as an alternative to more expensive custom choices, says architect Cecil Baker, founding partner of Cecil Baker + Partners in Philadelphia. One example Baker cites is a new manufactured technology for glass, which makes it possible to incorporate patterns and etched surfaces directly into the glass. This new process means that glass can also be manufactured with LED lighting built in, which adds sophistication and also illumination, a double win, Baker says.

How this will impact real estate: The glass-and-LED combination is just one new technique that can result in a product that incorporates a sustainable material into a sturdy, practical, energy-efficient, and glamorous new surface for kitchen and bathroom countertops. Such choices greatly personalize rooms much more than another granite, laminate, or Corian top might do, and help to distinguish listings in a crowded market.

5. Reclaimed Wood Floors

Why they’re important: Many home owners crave authenticity, no matter how durable, affordable, and convincing the imitations may be. A case in point: the increased demand for reclaimed wood boards, which wear well, show the patina of age, and reveal visual character, says Jamie Hammel whose The Hudson Co. custom mills and finishes flooring, paneling, and beams at its mill in Pine Plains, N.Y. “People like knowing the history of their materials and products — the provenance — and these materials tell a story,” Hammel says. He adds that consumers are drawn to the sustainability of reuse as well as the health benefits of choosing older materials that don’t off-gas. “There’s a parallel with what’s happening in the food industry,” Hammel says.

How this will impact real estate: The type of wood flooring found in many homes will take on greater importance for many segments of the homebuying population, and it may be that soon not just any wood will do. The crème de la crème of wood flooring —reclaimed boards—may become the equivalent of once sought after granite and now quartz or marble. You may also see more home owners favor this option when they replace existing floors. Finally, be aware that the latest generation of reclaimed boards displays a lighter, Scandinavian matte finish that looks better with contemporary furnishings that are becoming more in vogue than traditional furniture.

6. Softening Modern Severity

Why it’s important: With so many home owners now favoring modern design, yet not wanting a harsh, laboratory look, designers search for alternatives. Architects Ada I. Corral and Camille Jobe, of Jobe Corral Architects in Austin, Texas, are among those with a solution: Select materials that offer a handcrafted, warmer style rather than an “off-the-shelf,” cold, mass-produced look for their modern settings. “We’re trying to bring craftsmanship back while maintaining a clean, crisp overall look,” Corral says. One favorite choice is burnt wood, a Japanese technique that works well with cypress and cedar and makes the wood look older, yet also strengthens its resilience against rot, pests, and fire. Another favorite is metal that’s shaped into thin, elegant veneers for shelving, beams, drawer handles, around doorframes.

How this will impact real estate: Keep this trend in mind while staging modern-styled properties or alerting buyers and sellers to new decor ideas. These types of materials and new applications add surprising touches and warmth in modern dwellings — a feeling of a more lived-in, loved setting. And their appeal will only grow, pundits predict. “So many people have tired of having their houses look like spare hotels. These choices differentiate — and warm — rooms and homes,” Jobe says.

7. The Tiny House Movement on Wheels

Why it’s important: Downsizing is big, reflected in part by the growth of the tiny house movement. But flexibility and mobility are also sought after, and many desire a hipper method of attaining this than RVs can offer. Enter the “Escape Sport”, an 8 1/2-foot-by-20-foot, 170-square-foot house on wheels that meets these challenges and more. It can comfortably sleep up to four people and can withstand bad weather with its steel frame, aluminum siding, and weather-resistant wood. It’s also environmentally friendly with a solar power system, composting feature, incinerating toilet, gray water irrigation hook-up, rainwater integration, advanced electric fireplace, and energy-efficient induction cooktop. And its toilet and sink are full sized, which is not always the case with RVs. Developer Dan Dobrowolski says this option will appeal to home owners who want to travel in smaller spaces, but don’t want to feel claustrophobic or give up the comforts of a bigger home.

How this will impact real estate: The design profession keeps looking for options beyond traditional, stick-built houses, hence the uptick in prefabricated, manufactured housing. This brand-new example offers shelter to those who are keen on smaller houses, but don’t like the idea of always staying put, Dobrowolski says. It also offers other possibilities for the real estate industry. It allows some home owners to “test drive” small-scale living. And if the trend continues to expand, landowners may find empty lots in vacation areas to be the perfect spot to rent out to these home owners on wheels.

8. Walk-In, Universal Design Pantries

Why it’s important: Currently there are 78 million baby boomers and the aging population is increasing — in fact, it’s expected to rise by 50 percent between 2010 and 2020, according to Aging in Place, a state survey of livability policies and practices. A deep, wide walk-in pantry allows a walker or wheelchair to maneuver through easily. If the pantry also has a flexible shelving system that can be lowered through special hardware that’s another boon for home owners seeking to remain independent, says Rosemarie Rossetti, an expert in universal design who constructed a demonstration home and garden with her husband in Columbus, Ohio, after she had a spinal cord injury at age 44, 11 years ago. “A pantry with proper shelving has a lot of benefits for seniors lacking mobility and not able to open folding doors or reach high items,” she says.

How this will impact real estate: Walk-in pantries and pocket doors, which are easier to open and close than traditional doors and save 10 square feet of floor space, are just two of many universal design features becoming more desired and even edging into the mainstream. “Children and those who are shorter also will be able to reach shelves easier, and when outfitted with better lighting, pantries are safer,” Rossetti says. Homes that have universal design features will be in greater demand by both the senior market and younger informed home buyers, says Joseph Mezera, a Seniors Real Estate Specialist who focuses on this niche through his Seniors First Realty in Columbus, Ohio. “Some may not want big doorways and high toilets that they associate with nursing homes, but those who are smart will listen to trained salespeople explain that it’s better to take preventive measures.”

9. Better Integration of Indoors and Outdoors

Why it’s important: Screened porches once were the prime quasi-outdoor space in a home that could protect occupants from bad weather yet offer a feeling of the outdoors. But many porches block daylight and views, and they can only be used part of the year in some climates. Now, well-designed, large-scale door panels that fold up like garage doors or open into a home’s walls via big pocket doors are becoming more readily available at affordable prices, says architect Elizabeth Demetriades of Demetriades + Walker in Lakeville, Conn. Some have highly functional, retractable insect screens, too.

How this will impact real estate: These new bigger openings permit better views of the outdoors, greater enjoyment, and easier access between indoors and outdoors. “Blurring the distinction seems to be a leitmotif for many of our clients these days,” says Demetriades. And the trend may further increase interest in landscape design since the greater connection will make yards more a part of homes rather than separate entities, only to be enjoyed in prime weather.

10. Softer, Layered Color Palettes

Why they’re important: Color trendsetter Pantone typically debuts only one superstar color of the year. But in 2016, two are taking center stage: “rose quartz” and “serenity.” Both reflect the rise of softer colors, along with the continued use of whites and creams. Some designers think this color direction and its layered palettes lead to a more personalized, sophisticated design. Cheryl Kees Clendenon of In Detail Interiors in Pensacola, Fla., is a fan. “I like the layered approach since it evokes a more emotional response and doesn’t read as a single, stark color,” she says. Clendenon attributes the situation to current affairs as much as to design. “When people get more nervous, which many are because of what’s happening in the world and [it being] an election year, they want colors that aren’t wild and crazy but calming, which these are,” she says. Time will tell if a non-election year and fewer terrorism threats may inspire a return to bolder hues.

How this will impact real estate: These new colors are already turning up inside homes in countertops and backsplashes, as seen by Prexury by Cosentino’s “rose quartz,” a durable, easy-maintenance manmade aggregate of semi-precious stones. Elsewhere in homes, the more complex color palettes will inspire buyers and sellers when making selections for everything from paint to fabrics and furnishings. But pairings are key. Clendenon suggests using Prexury’s rose quartz with off-white or cream cabinets. Along with this approach will come more textures and patterns, but again in subtle combinations, she says.

11. Copper Chic Surges (Even More)

Why it’s important: The old standby of copper—think of those pots your parents, grandparents, or Julia Child used—started its re-emergence last year. And the reason that it’s becoming a more widespread alternative to stainless steel, wood, and other materials isn’t all surface. Yes, copper can add sheen, sparkle, and a 1940s Hollywood glamour. But an equally big impetus is that it reduces more than 99.9 percent of bacteria in between routine cleanings, important because antibiotic-resistant superbugs are on the rise, according to The Copper Development Association, based in New York.

How this will impact real estate: This shiny, goldlike hue will become more prevalent in homes as concern grows about buying healthy houses without mold, toxins, and bacteria. To help, U.S. manufacturers are producing more options in copper than just refrigerator, oven, and other appliance fronts, the developments that initially helped revive the trend. Throughout homes, buyers can add copper sinks, door handles, light switches, and trim. To enhance its appeal, manufacturers are also expanding the types of hues available. Already, there’s a copper-penny color, brushed nickel, yellow brassiness, and bronze on the market.

12. Enhancing Entertainment Space With Niches and “Back Kitchens”

Why it’s important: Living keeps getting more casual, and this is certainly the case in the kitchen. “Everything happens in the kitchen, and people don’t want to be closed away from interaction with their families,” says Chicago kitchen designer Mick De Giulio of de Giulio Kitchen Design, author of Kitchen (Pointed Leaf Press, 2015). Consequently, they’re willing to put more into their kitchens — more space (500 square feet is not uncommon, he says), bigger budgets, better design, more windows and light, and the types of detailing, like moldings and beams, once reserved for more formal spaces.

How this will impact real estate: As open plans that incorporate more important kitchen space become commonplace, finding ways to keep the workspace neat becomes key, too. This may mean more niches and elements that hide small appliances built into the main kitchen. Home owners with more room and a bigger budget might consider adding a “back kitchen,” where preparations take place and small appliances like toasters and coffee makers are stored. To maintain the interflowing social feel, the spaces remain open to one another. A growing number of home buyers may be willing to forgo a dining room, says De Giulio.

Be on the lookout for these trends in 2016. You’ll be in better tune with buyers who are searching for these features in their new homes or want to add them as space and budgets permit. And staying aware of the latest trends can help you guide sellers to differentiate their listings beyond location, size, and amenities.

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‘Remarkable Improvement’ in Foreclosures

 

The foreclosure crisis is becoming a fading memory for the housing market. Foreclosure inventory nationwide plunged 21.8 percent in November 2015 year over year, while completed foreclosures dropped by 18.8 percent during that period, according to CoreLogic’s November 2015 National Foreclosure Report, released this week. Foreclosure inventory represents the number of homes at some stage of the foreclosure process. Completed foreclosures are the total homes actually lost to foreclosure.

“After peaking at 3.6 percent in January 2011, the foreclosure rate currently stands at 1.2 percent — a remarkable improvement,” says Frank Nothaft, chief economist for CoreLogic. “While there are still pockets of areas with high foreclosure activity, 30 states have foreclosure rates below the national average, which is evidence of the solid improvement.”

Indeed, tight post-crash underwriting standards coupled with much improved economic and housing market fundamentals have combined to push new mortgage delinquencies to 15-year-lows, adds Anand Nallathambi, president and CEO of CoreLogic. “Although judicial states will likely continue to lag, given current trends, it is reasonable to expect a continued and significant drop in the rate of serious delinquencies and foreclosure starts in 2016,” Nallathambi says.

The five areas with the lowest number of completed foreclosures for the 12 months ending in November 2015 were the District of Columbia (78), North Dakota (225), Wyoming (543), West Virginia (565), and Hawaii (686).

On the other hand, five states alone accounted for nearly half of all completed foreclosures nationally: Florida (83,000 completed foreclosures for the 12 months ending November 2015), Michigan (51,000), Texas (29,000), California (24,000), and Georgia (24,000).

Source: CoreLogic

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What Americans Say Would Make Them Move

 

What states are the top picks for Americans looking to move? Florida, California, Hawaii, Colorado, and New York, according to a new survey by Harris Poll of more than 2,200 U.S. adults.

Besides looking at the most desired moving locations, the survey asked respondents to name their top reasons for wanting to move. The number one moving motivation for respondents was wanting to live in a better climate. In fact, the survey found that more than six in ten residents who live on the East Coast – 64 percent – and 61 percent of Midwesterners say they’d consider moving in order to live in an area with a better climate and weather.

These are the top moving motivations for survey respondents:

  • 52% said they’d consider moving to another state to live in for a better climate or better weather.
  • 41% said they’d consider moving for a job opportunity.
  • 35% said they’d factor in proximity to family.
  • 25% said they’d consider a move for health reasons
  • 18% said they’d move to be closer to friends.
  • 16% said they’d relocate to be closer to a significant other.
  • 14% said they’d move for greater educational opportunities.
  • 13% wanted to live in an area with a more accepting lifestyle.
  • 11% said they wanted to move to a place with political views that are more accepting.
  • 11% wanted to move to an area where recreational marijuana is legal.
  • 7% said they’d consider moving to a place where their religious views are more accepted.

Source: “Moving Motivations: What Would Make Americans Consider Uprooting?” RISMedia (Jan. 7, 2016)

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How Did Housing Really Do in 2015?

The housing market improved in 2015, but how close is it to finally to being back to normal? Jonathan Smoke, chief economist at realtor.com®, weighs in on how the housing market fared last year.

Existing home sales: Existing-home sales were up 7 percent in 2015, buoyed by strong household formation (at about 1.4 million households formed in the past four quarters ending in September) and strong job growth. Distressed sales fell in 2015, as did sales to investors, international buyers, and second-home buyers, Smoke notes.

Home prices: Home prices edged up 5 percent to 7 percent nationwide in 2015. “Such appreciation helped owners see substantial gains in equity,” Smoke writes. “Home values are close to being fully recovered nationally.”

But the level of price appreciation is above a normal rate, mostly due to an imbalance in the number of homes for-sale and high demand.

New-home construction: New-home sales were up 13 percent in 2015. Most of the growth in new-home construction in 2015, however, was centered in apartment building rather than single-family homes.

“Even with more than 20% growth in total new construction, we will have created only a net new 900,000 housing units, which is less than 65 percent of the new households we created,” Smoke notes.

Rental market: Many of the new households forming are renters. Apartment vacancies are at multi-year lows, and rents are rising sharply. That is worrisome, Smoke says, because “when renting households are so burdened by making rent payments, they’re less able to save up to own.”

Nevertheless, affordability, overall, remained strong by the end of 2015, despite the higher home prices.

“Looking across the national housing landscape, the housing market has stronger fundamentals now than one year ago,” Smoke says. “However, we need new construction to keep up with the household formations driven by demographics and healthy job creation. We need more affordable housing to decrease the impact of burdensome rents. And we need expanded, risk-appropriate access to credit to help households that can afford to buy.”

Source: “The Housing State of the Union: We’re Back, Baby!” realtor.com® (Jan. 7, 2016)

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How to Assess the Real Cost of a Fixer-Upper House

When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix.

Trying to decide whether to buy a fixer-upper house? Follow these seven steps, and you’ll know how much you can afford, how much to offer, and whether a fixer-upper house is right for you.

1.  Decide what you can do yourself.

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house.

  • Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.
  • Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2.  Price the cost of repairs and remodeling before you make an offer.

  • Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do.
  • If you’re doing the work yourself, price the supplies.
  • Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.

3.  Check permit costs.

  • Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it’ll cause problems when you resell your home.
  • Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.
  • Factor the time and aggravation of permits into your plans.

4.  Doublecheck pricing on structural work.

If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems.

Get written estimates for repairs before you commit to buying a home with structural issues.

Don’t purchase a home that needs major structural work unless:

  • You’re getting it at a steep discount
  • You’re sure you’ve uncovered the extent of the problem
  • You know the problem can be fixed
  • You have a binding written estimate for the repairs

5.  Check the cost of financing.

Be sure you have enough money for a downpayment, closing costs, and repairs without draining your savings.

If you’re planning to fund the repairs with a home equity or home improvement loan:

  • Get yourself pre-approved for both loans before you make an offer.
  • Make the deal contingent on getting both the purchase money loan and the renovation money loan, so you’re not forced to close the sale when you have no loan to fix the house.
  • Consider the Federal Housing Administration’s Section 203(k) program, which is designed to help home owners who are purchasing or refinancing a home that needs rehabilitation. The program wraps the purchase/refinance and rehabilitation costs into a single mortgage. To qualify for the loan, the total value of the property must fall within the FHA mortgage limit for your area, as with other FHA loans. A streamlined 203(k) program provides an additional amount for rehabilitation, up to $35,000, on top of an existing mortgage. It’s a simpler process than obtaining the standard 203(k).

6.  Calculate your fair purchase offer.

Take the fair market value of the property (what it would be worth if it were in good condition and remodeled to current tastes) and subtract the upgrade and repair costs.

For example: Your target fixer-upper house has a 1960s kitchen, metallic wallpaper, shag carpet, and high levels of radon in the basement.

Your comparison house, in the same subdivision, sold last month for $200,000. That house had a newer kitchen, no wallpaper, was recently recarpeted, and has a radon mitigation system in its basement.

The cost to remodel the kitchen, remove the wallpaper, carpet the house, and put in a radon mitigation system is $40,000. Your bid for the house should be $160,000.

Ask your real estate agent if it’s a good idea to share your cost estimates with the sellers, to prove your offer is fair.

7.  Include inspection contingencies in your offer.

Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections like:

  • Home inspection. This is key in a fixer-upper assessment. The home inspector will uncover hidden issues in need of replacement or repair. You may know you want to replace those 1970s kitchen cabinets, but the home inspector has a meter that will detect the water leak behind them.
  • Radon, mold, lead-based paint
  • Septic and well
  • Pest

Most home inspection contingencies let you go back to the sellers and ask them to do the repairs, or give you cash at closing to pay for the repairs. The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don’t want to deal with.

If that happens, this isn’t the right fixer-upper house for you. Go back to the top of this list and start again.

More from HouseLogic

What you need to know about foundation repairs

Budgeting for a home remodel

Tips on hiring a contractor

G.M. Filisko is an attorney and award-winning writer whose parents bought and renovated a fixer-upper when she was a teen. A regular contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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Letting in Some Light

This time of year, even the brightest of listings can easily come off as dark and uninviting. With shorter days in mind, design site PureWow offers a guide to window treatment pick-me-ups that will help your sellers choose the right options for their home style, maintenance concerns, and budget.

Cost conscious: Venetian blinds

This practical, affordable choice offers a lot of customizable options. However, unless you really dress them up, they tend to look sterile. Plus, the cheaper varieties are prone to chipping and breakage.

Comfy, low-ceilinged helper: Roman shades

Easy to open and close, these shades have an elongating effect on windows and tend to feel cozier than other options. The string mechanisms can break and get tangled easily, though.

If you’re blessed with a beautiful view: Valances

This option feels more like a picture frame for your windows, and they give off a classy, elegant flair. However, they are tough to clean, expensive, and require more work than a simple curtain rod.

For the darkest corners of a staged pad: Swags

This stylized option lets in plenty of light. But it’s not a great choice if your sellers wants functionality or privacy.

In a classic, spacious room: Curtains on rings

This choice is easy to install, offers tons of varieties to choose from, and they lend a catalog-like polish. But the large amount of fabric makes for a major dust trap, meaning frequent, often professional, cleaning.

For an open space needing subtle styling: Tab-top curtains

These add a softness, fullness, and casual elegance to a room. Plus, they’re great for insulation and noise control. However, they are pricey. And like ringed panels, they require full cleanings every few months.

For the room that brings the light: Sheer panels

Save these breezy, bright, and generally more affordable options for a treeless, south-facing view to give your listing a sunnier feel. Remember though that they don’t offer a ton of privacy or insulation.

In front of poorly-insulated windows: Cellular shades

The cells trap air, keeping it warm in the winter and cool in the summer. They’re a practical option, but still bring a softer look than regular blinds. Outside of regular dusting duties though, they’re tough to clean.

Source: “The Ultimate Guide to Window Treatments,” (PureWow, Dec. 17, 2015) 

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5 Real Estate Trends That Will Dominate 2016

This year may have marked the best for housing since 2007, but the market will likely get even rosier in 2016, according to a recent real estate forecast by realtor.com®. One of the main drivers behind the brighter 2016 is the projection that employment will continue to grow, which will add to consumers’ wallets and allow them to purchase their first home or upgrade to a new one.

Realtor.com® highlights the following housing predictions for 2016:

1. ‘Normal’ is coming.

Expect a healthy growth in home sales and prices – at a slower pace than in 2015. “This slowdown is not an indication of a problem—it’s just a return to normalcy,” writes Jonathan Smoke, realtor.com®’s chief economist. “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” New construction and distressed sales are expected to return to more historical levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”

Read more: Alas, Inventory Shortages Likely to Stay in 2016

2. Generational buying trends shape up.

Young adults’ presence on the housing market has been largely predicted for years, but 2016 may finally be the year they make a move in a larger way. Millennials represented nearly 2 billion sales in 2015 – one-third of home buyers. They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time home buyers next year. But two other generations will also have a big presence in 2016: financially recovering GenXers and older baby boomers who are entering retirement, realtor.com® notes. “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,” Smoke notes. “Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

3. New-home construction focuses more on affordability.

Builders have been faced with higher land costs, limited labor, and concerns about the demand of the entry-level market. As such, they have shifted to constructing more higher-priced homes, which has caused new-home prices to rise significantly faster than existing-home prices. In 2016, they likely will shift to more affordable product to cater to the entry-level buyers. “We are already seeing a decline in new-home prices for new contracts signed this fall,” notes Smoke. “In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders.”

4. Higher mortgage rates.

Mortgage rates will likely be volatile in 2016. But the recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher in the new year than the historical lows they have been at for years. The 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level. “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says. “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” The markets with the highest home prices will see the effects from the higher rates the most.

5. Rents to go up even higher.

Rental costs are skyrocketing, and the costs are likely to only go up in the new year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. “Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today.”

Source: “The 5 Real Estate Trends That Will Shape 2016,” realtor.com® (Dec. 16, 2015)

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2016 Cars: Bigger Is Better Again

 

Oh, what a difference a year makes. This time last year, the new-car market in the U.S. was still recovering from one of its worst-ever downturns, and motorists were focused on downsizing in a bid for better fuel economy. These days, car sales seem to be heading for an all-time record, and with fuel prices lower than we’ve seen in a decade, the focus is shifting back towards larger cars, utility vehicles, and pickup trucks.

The good news is that even the biggest, most powerful vehicles on the market are delivering better mileage than ever. The new Ram 1500 diesel pickup gets as much as 29 miles per gallon. And the latest Chevrolet Corvette can top 30 mpg.

Manufacturers are pulling off the seemingly impossible: delivering more power, lower emissions, and better mileage. The 2016 models also tend to be roomier and much more lavishly equipped. How are they doing it? Several factors come into play.

There’s more focus than ever on design. In today’s intensely crowded marketplace, automakers know that styling matters. But it’s more than just eye appeal. A good design also translates into better aerodynamics. And cheating the wind is one of the best ways to improve fuel economy.

Today’s cars are also going on a diet. The new 2016 Chevy Malibu, for example, is slightly larger yet several hundred pounds lighter than the sedan it replaces, thanks to creative engineering and the use of super-light aluminum and advanced, high-strength steels. The little BMW i3 battery-electric vehicle makes extensive use of carbon fiber, a material traditionally reserved for exotic supercars and Formula One racers. But as the price of the material falls, it’s moving into the mainstream.

People aren’t downsizing. At the beginning of the decade, pundits were predicting Americans would be trading in their big cars and SUVs for microcars like the newly redesigned Smart ForTwo. That largely hasn’t happened, as the surge in SUV and pickup sales will attest to. Instead, manufacturers have been downsizing what’s under the hood. Today, Ford offers a turbocharged, 2.7-liter V-6 for its full-size F-150 pickup that matches the towing capacity of its biggest V-8 while getting at least 20 percent better mileage.

Digital technology has also made a world of difference. In the R&D labs, it helps engineers bring new cars to market faster than ever. On the road, electronic control systems make your new car more fuel-efficient, more powerful, and safer than ever.

Until recently, the industry adage was that safety doesn’t sell. Don’t tell that to today’s buyers, who are demanding the latest in high-tech safety features. Even some of the lowest-priced models on the road now offer such features as blind-spot detection, backup cameras, and forward collision warning. But the 2016 BMW 7-Series gives us a hint of what’s to come.

The new BMW 750i is a technological tour de force. There are grille shutters that automatically open and close to improve fuel economy. Stereo cameras spot potholes and bumps to automatically adjust the suspension. And the big Beemer even accesses navigation data to automatically adjust its steering boost and transmission shifts. You can take your hands off the wheel on a well-marked roadway for up to 15 seconds; the collision avoidance system will even help steer itself around an obstacle if necessary.

You can even do things like adjust volume and take or reject incoming phone calls with the auto industry’s first-ever gesture-control system. Program a gesture of your own using two fingers — not just the one you might be tempted to use in frustration if all this gets the better of you.

There is a potential downside to all this technology: growing concerns about hackers who might try to take control of your car instead of your desktop computer. A pair of security experts recently demonstrated this by hacking into a Jeep and sending it spinning into a ditch. Look for automotive cybersecurity to become a hot topic over the next few years, but don’t expect it to slow the move towards assisted and autonomous vehicles.

Nissan CEO Carlos Ghosn recently announced his company is on track to put its first fully self-driving vehicle into production by 2020. And the new Tesla Model X battery SUV is coming to market with a semi-autonomous AutoPilot system capable of hands-free operation on well-marked, limited-access highways. The stuff of science fiction is rapidly becoming part of our automotive reality.

But what does that mean for someone looking to buy a new car sometime during the 2016 model year? Here’s our guide to some of the most intriguing vehicles coming to market, along with a look at some of the market’s hottest trends.

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3 Ways to Buy Remotely With Confidence

It may seem impractical to purchase a home sight unseen, but one in five buyers have made an offer on a property without ever visiting it, according to a recent BusinessWire survey of 2,134 Americans. It’s a risky way to buy, so for those who can’t be there for an in-person showing and need to rely on the Internet to come to a purchase decision, here are a few tips to help them feel more confident that they’re making the right choice:

  1. Get a bird’s eye view. Buyers should not only look at the home but also the neighborhood and surrounding area. “I recommend [buyers] look at Google Earth and do Street View to get a good feel for their area,” says Benjamin Beaver, an agent in San Angelo, Texas. Beaver says that he’ll do a video tour of the neighborhood for his clients to pinpoint any possible noise issues, such as from a nearby highway, that wouldn’t be identified through online listing photos. Video tours also allow buyers to see every angle of the home itself — not just the most flattering ones depicted in listing photos. “I think it gives buyers that confidence of OK, I know what I’m getting here,” he says.
  2. Hire an inspector. A home inspector can uncover any potential problems, but they are usually hired after an offer is made. For remote buyers, however, you could ask an inspector to skim the home’s online photos, and they may be able to spot glaring issues sellers are trying to hide, says Frank Lesh, executive director of the American Society of Home Inspectors. Also remote buyers should ask an inspector once they are able to do an in-person evaluation about any odor issues, such as from a dank basement. Those are issues remote buyers can’t identify for themselves online.
  3. Request a walk-through contingency. Negotiate a walk-through contingency into a contract, which will provide a safeguard if the home doesn’t measure up to expectations in person. The buyer will then be able to walk through the property before signing papers at closing. But as is the case with any contingency, sellers don’t have to agree to it and may demand a higher purchase price in order to comply.

Source: “How to Size Up a Home, Sight Unseen,” realtor.com® (Dec. 15, 2015)

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