April housing stats "less worse"?

The stock market rallied in April on news that things were "less worse" than imagined and economic declines were slowing. Those same sentiments were partly reflected in April housing statistics as inventory continued a narrowly downward trend and month to month prices decreased at a slower pace nationally.

Meanwhile, in the local Cincinnati area, showings seem to be up, but the rate of sales and average prices still dropped. Agents in our office indicate that while clients are busy this spring, prospective buyers are looking at more homes and waiting to find the "great" deal. Where the typical buyer may have looked at 8 - 10 houses a few years ago, some are reporting that buyers are looking at 30, 40, or 50 houses before making a decision. (The lesson usually learned - there is no "perfect" house, only where you can accept compromise.)

Some key highlights in the April numbers:

• Looking back to 1990 through 2009 for the month of April, our unit sales levels, dollar volume of sales and average sale price are at the 1993 levels.
• April 2009 unit sales were down about 16% from April 2008. Total dollar volume was down about 24% from April 2008. The average sale price was down 10%.
• The active residential inventory continues to decline, down from 2008 and 2007 and below 2006, headed towards 2005 levels…this is good…very good. Inventory is being reduced not only by sales but also by properties being leased.
• January-April YTD for 2009 show dollar volume of sales and units sold at 1992-94 levels; average sales price at the same level.
• Properties subject to lender approval (i.e. lender-owned, HUD, short sale) continue to have a huge influence on sale prices as they make up about 40% of the sales in April.

For a complete view of monthly stats, see the charts below

• April 2009 sales rate
• April 2009 absorption rate
  

Tech Focus: Solar Screens vs. your old windows

It's hard to avoid all the commercials touting the benefits of new high efficiency windows for your home - especially now that you could be eligible for a tax credit when you replace old windows. But before you lay out big cash for new windows, you may want to consider an option you may not be familiar with: solar screens.

Solar screens fit over your existing windows to help block UV rays and reduce the amount of heat coming into your home. They are typically made of a mesh material in varying levels of "blockage" ranging from 70 - 90% and come in both fixed and roll-up versions. In some ways, these screens act similar to the "glare film" you may have seen at hardware stores, but with significant advantages - and a far better look.

As you might imagine, solar screens appear to be far more common in hot, sunny areas like Texas and Arizona as compared to Cincinnati. Yet that doesn't mean we can't benefit from their use. While the main goal for homeowners in those more sunny areas is to reflect heat and reduce AC usage, some of these screens are meant to be "flipped" in the wintertime so that they act as solar heat collectors. Some of the advantages that are routinely touted by vendors include:

• Achieves energy savings between 30 and 40% in both summer and winter
  
• Reduces sunlight damage/fading of indoor furnishings and artwork
• Provides privacy without losing outdoor views
• Reduces or eliminates air leakage through windows

Yes, surely, they are the best thing since sliced bread! Flip comments aside, when you compare the cost of a new window ($200 and up) vs. the cost of a screen (in the $50 and up range) it's just basic economics to evaluate which one is going let you actually save money.

There are many valid reasons for replacing old windows, but buying them simply for energy-efficiency should probably not be your primary driver. That, however, I leave as a discussion for another day....

Check these vendors to see some of the many options available for solar screens:

• In'Flector Window Insulators
• blindsgalore (retailer)
• North Solar Screen
  

Insurers advance benefits for green building

A recent Wall Street Journal article identified that insurers are beginning to discount premiums for homes built to green standards such as LEED in addition to discounts for drivers of hybrid and fuel-efficient vehicles.

After a bit of digging around, I did find that Fireman's Fund insurance - one of the companies highlighted in the story - does offer discounts in Ohio of 5% on premiums for homes that are LEED or NAHB Green certified. Additionally, they have made provisions for implementing green features in homes that are rebuilt after a fire or other catastrophic event.

Notably, Fireman's Fund focuses on an affluent market, generally of homes in the price range of $600,000 or more. So far, I have been unable to find a "mainstream" insurer (e.g., Allstate, State Farm, etc.) that offers similar discounts. Nevertheless, it's not uncommon for new products to be adopted at the high end then make their way to the mass market. Other insurers are likely to offer incentives in the same way to help distinguish themselves or stay competitive as the products mature.

If you are looking at new construction, or even updating your home to incorporate more energy-efficient features, I recommend checking with your insurance company to see if a discount may be available. I'll also include a list of any insurers I find offering these discounts on the references page of my website at www.EcofficientLiving.com.