6 Ways to 'Green' a Home

More home owners and buyers are ranking energy-efficient and environmentally friendly home features high in surveys.

AOL Real Estate recently highlighted a few easy steps home owners can take to make their homes more “green”:

•Swap out the light bulbs: LED light bulbs are known as being 80 percent more energy efficient and lasting as much as 25 times longer than incandescent bulbs.
•Have a programmable thermostat: These devices that allow you more easily to adjust the temperature can save a home owner about $180 a year in energy costs, according to Energy Star.
•Trade in the old water heater: A heat pump hot water heater is known to be more than twice as efficient as standard electric resistance tanks, according to the AOL Real Estate article.
•Add aerators to faucets and showerheads: These devices can limit the amount of water that is used.
•Add ceiling fans: “Energy Star-qualified fans are 50 percent more efficient than conventional units and can save up to $15 per year on utility bills,” according to AOL Real Estate.
•Use Energy Star appliances: For example, replacing a dishwasher that was made before 1994 with an Energy Star-certified one can save $40 on utility bills by using less water. Energy Star-rated refrigerators can save home owners from $200 to $1,100 over the life of the appliance.
Source: “10 Eco-Friendly Things to Do for Your Home,” AOL Real Estate (April 22, 2013)

Home Remodeling Business Posts Big Turnaround

“Home owners are tired of waiting to make improvements,” according to a remodeling trade association, which released its latest data showing the home remodeling business is reaching “new heights.”

Current business conditions in remodeling have seen steady rises since March 2012 and now stand at a 5.97 rating -- compared to 5.59 one year prior, according to the National Association of the Remodeling Industry’s first-quarter index. NARI also notes that sharp increases in the number of inquiries and requests for bids reflects an increase in consumer confidence in the housing market.

“Remodelers nationwide are not only experiencing increased activity right now, but many have a backlog of projects well into the fall,” says Tom O’Grady, chairman of NARI’s Strategic Planning & Research Committee. “This current condition is worlds away from March of last year and suggests that the recovery is beginning to gain speed.”

The main drivers of remodeling activity cited in its index among respondents was the need for improvements due to postponement of projects and due to improving home prices.

“We knew that several things had to turn around in order for business to get better, and NARI members are finally feeling a holistic economic recovery outside and inside the housing market,” O’Grady says. Source: National Association of the Remodeling Industry

Are Home Prices Rising Too Fast?

Some housing analysts are concerned that the sudden rise in home prices could make homes more unaffordable again if the price increases outpace income growth, The Wall Street Journal reports.

Average housing costs for home buyers who took out a mortgage were around 22.5 percent of average incomes, according to John Burns Real Estate Consulting. That is down from 38.5 percent in 2006, the peak of the housing bubble. The historical average is about 33 percent.

But with home prices rising in many markets and, in some, rising at a faster pace than income levels, will more people soon be priced out of the market?

Housing analysts say that, for now at least, lower mortgage rates are offsetting the higher prices of homes.

Borrowers have seen their purchasing power rise by around 33 percent over the past four years due to the low interest rates, The Wall Street Journal reports. For example, a borrower can make a $1,000 monthly mortgage payment and qualify for a $222,000 mortgage at today’s low interest rates, compared to 2008 when they’d likely qualify for $165,000 when mortgage rates were around 6.1 percent -- nearly double what they are today.

Borrowers are able to withstand home-price increases because of the low rates, n

ot because household incomes are growing, The Wall Street Journal reports. If mortgage rates tick back up to the 6 percent or 8 percent range, homes may look overpriced relative to incomes, according to housing analysts. Source: “Why Rising Interest Rates Could Eventually Curb Price Gains,” The Wall Street Journal (April 10, 2013)

More Home Owners Look to Remodel

More home owners are planning to renovate their houses this year, according to Houzz, a remodeling Web site. The company recently surveyed approximately 100,000 home owners, and 53 percent of them reported that now is a good time to remodel.

More home owners getting motivated to increasing the values of their houses by improving the “look, flow, and layout” of these residences.

The most popular renovation projects were centered around bathrooms and kitchens. Twenty-eight percent said they were planning a bathroom remodel or addition, while 23 percent of those surveyed said they were planning a kitchen remodel or addition in the next two years. Over the last five years, home owners have spent $28,030 on average to remodel their kitchens, according to the Houzz survey. Source: “Interest in building, remodeling homes picks up,” Inman News (March 28, 2013)