Home Builders Up After Construction Gains

(Businessweek) Shares of major homebuilders rose with the broader markets Wednesday, helped by a government report that showed an uptick in spending on home construction in September and the Federal Reserve's decision to keep interest rates at historic lows.

While the broader markets gained more than 1 percent following Tuesday's rout on concerns about Europe, investors bought up homebuilder stocks.

Among the winners was PulteGroup Inc., a builder based in Bloomfield Hills, Mich. Shares rose 21 cents, or 4.2 percent, to $5.21. Shares of Miami-based Lennar Corp. added 63 cents, or 4 percent, rising to $16.42.

Earlier Wednesday, the Fed said it would keep a key short-term interest rate at the record low it's been since December 2008. The rate, which banks charge each other for overnight loans, is a key benchmark for many consumer loans. It has helped keep mortgage interest rates down, a key factor for the weak housing market.

The Fed also offered a rosier outlook for the economy. In a statement, the officials said the economy has strengthened and consumers stepped up spending over the summer. The job market remains weak and the debt crisis in Europe could have spillover effects here, but the recent growth appears to have stemmed fears that the U.S. would slide into a double-dip recession.

Separately, the Commerce Department on Tuesday said U.S. builders spent slightly more last month on home building. Private residential construction spending edged up 0.9 percent, the report said, while public construction project spending fell.

Homebuilders started projects in September at the fastest pace in 17 months, a hopeful sign for the economy. Most of the increase was driven by an increase in apartment construction, however, which shows that more people are renting rather than buying homes.

Nevertheless, while existing home sales for the year have been the worst in decades, sales of new homes rose in September after four straight monthly declines.

Also gaining in Wednesday trading were shares of luxury builder Toll Brothers Inc. of Horsham, Pa., which added 41 cents, or 2.4 percent, to $17.46. Red Bank, N.J.-based Hovnanian Enterprises Inc. gained 9 cents, or 6.9 percent, to $1.41. And Meritage Homes Corp. of Scottsdale, Ariz., rose 52 cents to $17.73.

http://www.businessweek.com/ap/financialnews/D9QOP49O0.htm

Beyond Sprawl: Rethinking The Residential Cul-De-Sac Of The Future

Arizona State Universtiy graduate students are studying today's housing to reimagine tomorrow's construction.

PHOENIX — Pigs will probably fly in the Southwest before homebuilders stop constructing new homes here. But the types of homes people will need in the next 20 years might look very different.

We’re staying single longer. We’re having fewer children. We’re paying more for gas and utilities. Is it time to re-think the all-American suburb? Arizona State University graduate students in design and architecture think so.

(Fronteras)The cul-de-sac the team of ASU grad students picked to study has seven houses on it. They're new. They're huge. They have sort-of hard-to-make-out front doors, but really big garages, very center stage.

One of the grad students on the project, Whitney Warman and I are here one morning about an hour before we see anyone.

When we finally do, Warman is shocked.

"OK, this is interesting," she said.

"I see a person," I said back to her.

"Oh my God, there's someone out," Warman said. "Wow, this is really promising that there are actually people on this cul-de-sac. Cause the first time we were here there were two families and we got yelled at. We were shooed off the street."

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(KPHO) Valley foreclosures at lowest level since Spring '09

TEMPE, AZ (KPHO) - A new report shows that the Phoenix-area housingmarket experienced a slight letup in foreclosures in October.

The W.P. Carey School of Business at Arizona State University released the report that shows foreclosures in October at their lowest level since April 2009.

The foreclosure rate fell to 26 percent in October, well below the 43 percent rate of the area's single-family existing-home transactions in January and February, according to the report.

The rate in September was 29 percent. August was the only month in 2011 when the foreclosure rate went up in the Phoenix area. But Professor Emeritus Jay Butler warns that the downturn does not signal the end.

"Though the local housing market is beginning to produce some positive movement, the surrounding economic environment and anemic growth are still inhibiting consumer confidence," says Butler. "Just because we're seeing a drop in foreclosures, that doesn't mean we have a healthy housing market. Other types of activity and purchases are not increasing, in order to push us forward."

Butler said he doesn't expect the downward trend to continue straight through next year.

"The numbers are deceiving because they only look at recorded foreclosures," explains Butler. "Many more foreclosures may be lingering in the pipeline just because more paperwork and rules are being followed in the process now."

The market had 1,900 foreclosures in October, down from almost 2,300 in September, according to the report. There were almost 3,400 foreclosures last October. The last time the number of foreclosures dipped below 2,000 in a single month was back in February 2008.

The median price for a single-family home resold (not new foreclosures) in the Phoenix market in October was $125,000, the same as in September. That's significantly down from last October's median of $135,000.

Zillow reports real estate market stabilizing: JKD Building Group Scottsdale Arizona

How to inspect your roof?

(Hometime.com) Over the course of a season, roofing materials   are exposed to tremendous temperature changes that cause shingles and flashing to expand and contract. Eventually, this process causes roofing materials to wear out (20 to 30 years for most shingles). Therefore, a roof should be thoroughly inspected at least once a year. And a roof approaching 15 years of age becomes a candidate for re-roofing.

From the ground, you can get a pretty good idea of what shape the roof is in by visually inspecting it with binoculars and checking downspouts for shingle granules that have washed down. However, the most accurate way to inspect the roof is by accessing it, or at least climbing a ladder to get a closer look.

The basic indicators of a deteriorating roof are cupping, buckling, loose or missing shingles, and loss of granules. Tar/patching marks or sections of different colored shingles indicate past repairs and the roofing cement used to patch them may only last a few years. Check these areas from inside the attic, too.

You can tell a lot about a roof by how it looks. Normally, a good indicator of a well laid roof is straight lines. If shingles were set and fastened properly, they should form straight lines all the way up and across the roof. This tends to indicate that the roof is well built and as a result, will last longer.

Look for any unevenness or sagging in the roof (check inside the attic, too). If the ridge or whole sections of the roof sag, there could be insufficient framing support—contact a pro.

Warning Signs

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