Homes Get Smaller, More Energy Efficient

What features do buyers want today and in the future? The answer: smaller, more energy efficient homes.

The average size of a new single-family home in 2010 was 2,377 square feet, down from 2,438 square feet in 2009 and down from the peak of 2,520 square feet in 2007 and 2008, according to U.S. Census Bureau data presented by Rose Quint, assistant vice president of survey research for NAHB at the International Builders' Show in Orlando Thursday, Jan. 13.

And the trend will only continue, Quint said, with the 2015 new home size currently projected at 2,150 square feet with fewer bathrooms and smaller garages.

It's hard to say whether home sizes will decline to 1970 levels of 1,500 square feet. But Quint says she believes smaller sizes are here to stay based on demographics.

The U.S. population was 310 million as of April 2010. That's expected to rise to 322 million in 2015 and continue to climb up to 422 million by 2050. The population is also getting older and more diverse. In 2010, 25 percent were over the age of 55, which is expected to grow to 31 percent by 3050.

This rising segment of older home owners will not want to care for huge spaces, Quint said. Then you have Generation Y buyers who are very energy conscious. "People are coming to realize, 'Let's buy what we need,'" said Quint.

The Census Bureau data is congruent with NAHB's findings that builders expect to build smaller homes with more green features in the next five years. Low energy windows, water efficient features, engineered wood beams, joints, or trusses, and energy star ratings are expected to be more revenant.

Builders also expect an increase in living room size as well as more planning for universal design features with homes more easily adaptable for future improvements, said Quint.

Jill Waage, executive editor with Better Homes and Gardens, also presented her magazine's 2011 consumer preferences survey, which was taken the first week of December. According to Waage, the top three improvement priorities for home owners are a laundry room, additional storage, and a home office. "The connection to outdoor living space is also really important," Waage said.

Other trends included in the Better Homes and Gardens study: built-ins, media space for flat screen TVs and gaming systems, and areas of the home wired for technology. Buyers also want combined kitchen, family room, and living room open space. Universal design features, she said, will be incorporated in much more subtle ways.

- Erica Christoffer, REALTOR®Magazine

You can reach me at 615-777-4663 or via email at George.Margrave@MIGOnline.com

Grown Children Still at Home?

I heard today that there are more men and women ages 25 to 34 living at home with their parents than at any time since 1981. This number is now 30% of that age group and the number is historically at 28%. So that means that I have a bunch of readers who are affected by this situation. I know it is nice to be with the family, but I also know this can be very awkward. We at MIG can help. Our first time buyer program gives us the ability to get these potential homeowners into a new home or condo in many cases with no cash out of pocket required. And the payment is usually cheaper than renting a comparable place since the interest rates are so low. And if this plan doesn't work, we could put you parents on the loan with the younger person and get them packing their bags. Please call (615-777-4663) or e-mail me for details, email address is george.margrave@migonline.com  

Have You Heard?

You probably haven't heard, but Fannie Mae and Freddie Mac have done it again. The are making it way more expensive for 75% of your clients and mine to buy or refinance with conventional loans. They have taken risk based pricing to new lows. For example if your client has an 800 score and has a higher loan to value than 75% they will pay a quarter point more (that doesn't sound like much by it adds up to a thousand dollars on a $400,000 loan). If they have a 679 score and a 79% LTV it is 2.75 points. I have trouble even counting that high.


These agencies are bleeding red ink with all the foreclosures, but guess what, if you don't have income you will never reverse the losses. And the loans of the last couple of years have to be performing well. The whole idea of risk based pricing is supposed to charge those with the higher risk more and reward those with low risk. It is not supposed to penalize almost everyone. Almost every conventional loan with a loan to value over 70% had the hit go up, some as much as a half point.


At a time when our industries need all the help we can get we get this. It just delayed our recovery some more. It is bound to push some folks into renting instead of buying. I say lets look at FHA every time we can, because these hits combined with the higher PMI rates are not pretty. Let me help you with the best loan type for your client. Also, contact your represenatives. They have said they want to get the government out of mortgage financing, but their actions are pushing us in the wrong direction.


You can reach me at 615-777-4663 or text me at 615-481-5626 or via email at George.Margrave@MIGonline.com

What Is The Rate Today?

People call every day and say “what is the rate”? They just don’t realize what they are asking. Here are a few of the things I need to know before I can quote it.

1. Price or value if a refinance
2. Length of time to lock the rate in
3. Borrowers middle credit score
4. How much down payment (or equity if a refinance)
5. Type of property (such as condo, PUD, Manufactured home, single family or duplex)
6. Term desired
7. Loan type such as VA, FHA, THDA, Rural Housing or conventional.

And this isn’t all. When I have this info, I will probably say let me call you back in a few minutes. Just thought you might want to know why you need to deal with someone you trust.

Give me a call at 615-777-4663 or shoot me an email at George.Margrave@migonline.com if I can be of any help or if you have questions. 

Is Now the Time to Sell?

Is now the time to sell? I am going to mention mostly financial angles to consider when making this decision. And certainly, these are not the only considerations.

Many of you may have put off a move that you wanted to make. One reason may be that you have no equity in your home or may even be upside down. In that case you might not have a choice. However, if you have some money set aside, you may be able to pull it off.

That means you will have to put some money into the transaction to get to the closing table. We’re seeing this in many cases and are even refinancing some homes where borrowers are having to put some money into the deal to get a great interest rate. A short sale can be considered, but in most cases that means you will not be able to buy again for several years.

Again you have to consider the cash required to buy the new house. You will probably be able to move to the next house at a great price and at a great interest rate. If you are a Veteran or buy in a rural area you may be able to buy with no cash. If you don’t fit one of those categories you may want to go FHA which is 3.5% down. The cost on any of these can be paid by the seller or by the lender. (Ask me how)

If you would like to take a look at some numbers for yourself, give me a call at 615-777-4663 and we can take a look at it for you.