WSJ Wednesdays - Newly Built Homes Climb to Highest Level in Two Years

More good news for the housing market. In Alan Ziebel and Dawn Wotapka's article on Tuesday, June 26, 2012, it is stated that newly built homes climbed to the highest level in two years. The reason: limited supply of previously owned homes and record-low mortgage rates.

I can't say I haven't considered building again. As a first time home buyer, I wasn't quite sure of what I liked or wanted in a home. Now, I can look back and see the mistakes we made. I would do a few things differently, but overall I'm happy with our home. A larger kitchen, an entrance to the deck from the kitchen instead of from the family room, a smaller half bathroom in order to create a larger laundry area, and a slightly larger master bedroom and bath would make a huge difference.

Last week we talked about how bigger homes are making a comeback. This new Wall Street Journal article states the housing sector seems to have hit rock bottom this spring. With a weak monthly growth rate in May and worries over Europe's fiscal health, the authors feel the road to recovery will be bumpy. Still, it looks like things are improving. I sure hope so. While low interest rates allowed us to refinance, selling a home has become tougher. One of our neighbors was hoping to move this year, but the bids aren't coming in. Maybe buyers aren't eager to settle for a home that doesn't have everything they are looking for. That's one of the reasons we ended up building in 1999. Our house only cost us a few thousand more built to our specifications than the houses we were looking at that didn't have what we wanted. We came close a couple of times with previously owned home, but renovations would have costs thousands more. I'm glad we decided to build.

Did you build your home or did you buy a previously owned home? Would you do the same again?

WSJ Wednesdays: Big Home are Back!

According to Dawn Wotapka's Friday, June 8, 2012 article in The Wall Street Journal, larger homes are making a comeback. Steve Ruffner, president of the Southern California division of KB Home, one of the nation's largest builders, says the average square footage of homes being built is 2,079, which is an increase of 13% from last year. He also says that more of his buyers are selecting models that exceed 3,500 square feet.

Along with this trend, some builders are seeing increased sales prices. Are you surprised? I was a bit, but the rational behind buying a larger home now while interest rates are low makes sense. We did it. In 1999, we had a 4-bedroom home built when it was only my husband, our son and me. We knew we were planning to have more kids, and this way, they wouldn't need to share bedrooms like I did when I was younger. The extra space allowed us to have a guest room and for me to have a craft room/office until we turned the smallest bedroom into a nursery. Once my son moved out and got married, I gained my office back. Not much crafting going on these days, but facing the windows is a nice inspiration to write.

Wotapka's article also states some families who were stuck in smaller homes are now trading up because they feel more confident. Ruffner says, though, that buyers are being more practical instead of adding bling to their new homes. He says oversized sunrooms (my dream), vaulted ceilings and soaring entry halls are out right now. Our family room has a 19 foot high ceiling. I don't think I would do that again if we built another home. The entry way is also open to the upstairs, with a balcony that looks over the living room on one side and the entry way on the other. It looks lovely, it makes cleaning a nasty job. It's almost impossible for me to clean the chandelier in the entry way. Equally difficult to clean are the large windows over the fireplace and the ceiling fan on the living room ceiling.

Even with the room we have here, the hubby and I have toyed with buying a larger home so that we can provide ample play space for the girls and their friends without taking away from family living areas. If we didn't buy/build a new home, we would like to add on to the kitchen, perhaps add an outdoor kitchen, and finish off the basement. That final item would allow us to move the play room downstairs and the bonus room would be turned into a media room--which is what he had always intended it for.

Does news of people building bigger homes and trading up give you more confidence that the economy is improving? Are you considering such a move?

Hope you enjoyed this edition of WSJ Wednesdays.