Archive for January, 2008

THE LAW OF PHYSICS APPLIES TO HOUSING: What goes up must come down and now is still a good time to buy

We’ve all seen, heard and read about the sluggish, declining housing market. The unsold surplus inventory of homes, limited funds in the form of tighter lending options, mortgage crises, stock market plunge….

When I sat down at my computer this morning, mulling over the housing downturn and the latest media coverage surrounding the recessive nature of this volatile, cyclical market, I had every intention of listing the ways the market would return to normalcy, and in time, record-breaking highs as we saw in 2005.

“2008 is going to be a year of everyone rolling up their sleeves and working together,” said Jim Hughes Jr., executive vice president of Wheaton-based developer Wiseman-Hughes Enterprises, in a recent article I read in the Sun-Times. I was inspired by his statement, and thought it an uplifting outlook; quite the opposite from the negative and pessimistic position we’ve been seeing from today’s media.

I began to list ways we could “all work together” in order to turn things around: changes in mortgages and underwriting practices, the government taking steps to head off a crisis with the adjustable mortgages that are still out there, a “cleansing of the markets” to migrate back to the traditional asset classes, rebound of the stock market, in addition to highlighting the industry analysts’ forecasts of growth, although moderate, throughout the next few years.

Succumbed by a slight case of writer’s block, I checked my email and received numerous RSS feeds from Advertising Age; bold headlines discussing the latest National Association of Realtors’ (NAR) advertisements filled my inbox. And to my surprise, they were shockingly critical of the association, heeding a totally new take for this blog.

What’s all the fuss about?According to the NAR’s new $40 million advertising campaign, “Interest rates are low, and buyer opportunities have never been better.” Directing its viewers to http://www.housingmarketfacts.com/, the new NAR ads claim that on average, home prices double every 10 years and 60 percent of the average homeowner’s wealth comes from home equity. Seems like pretty straightforward messaging, right? Wrong.The pieces I’m referring to appeared in Advertising Age and are titled “What Housing Crisis? Realtors’ Ads Defy Reality” and “Pay Heed to What Realtors Don’t Say in Their Latest Pitch”. (You can also view the new NAR ads by checking out this article.) In my opinion, they are overwhelmingly critical. Just read the titles; obviously not fans of the new NAR ad campaign.

What the critics are sayingHere’s some of the cynicism as included in the above articles, “It’s [housing] a risky investment — unless borrowers recognize that, they could be misled.” “Were the ads trying to lead you down a road with blinders on? I thought so. I found it objectionable and a little offensive.” And the [NAR] ads “are misleading and not especially forthright and, in a way, the way we got into this situation [the subprime-mortgage crisis] in the first place.”What really caught my attention was Bob Garfield’s article where he stated “so if a slick TV commercial directs you to housingmarketfacts.com, caveat caveat caveat freakin’ emptor. For facts you can really bet the house on, you might also check out rottenlyingsleazyrealtors.com.” He also states that the NAR ad campaign “is a perfect miniature of the inherent conflict of interest Realtors wallow in, like pigs in the sty, all the time. They have no incentive to perform due diligence for buyers. They don’t even have incentive to protect their clients, the sellers. Their only interest is in closing the sale.”

Wow. One reader comment addressed my thoughts exactly: “Bob, you sure seem to have it in for realtors. FYI, I am working with one to sell a condo now in CT and the standard commission there is 5%, not 7%. And, I think you paint with a very broad brush – the realtor I am working with has been very forthright and ethical in his dealings with me. Even though the place has been on the market 4 months and we’ve dropped the price several times, I’m not ready to rip apart a whole profession as you are.”

Other quoted sources didn’t quite come out so abruptly but revealed they did think the ads should come with a disclaimer, “similar to those for pharmaceuticals or financial-investment companies, or a responsibility message similar to those from beer and alcoholic-beverage companies.”

The NAR defends its adsThe NAR isn’t going to put up without a fight. An NAR spokeswoman commented that the ads don’t need any disclaimers. They emphasize the growth will come “over time” and advise consumers to consider local markets and seek advice from a real-estate agent. “They’re there to help,” she said, adding the organization also can find houses to rent. So, is 2008 really a good time to buy?Yes; I wouldn’t describe housing as a “get-rich-quick” opportunity, but let’s face it, no matter what the market status, housing still remains an excellent long-term investment. Is renting really perceived as a better investment? Get serious. I’ve been involved in the housing industry for over 20 years, and it has always been cyclical. After a high, will follow a low. It’s the way of the world.

At least I had a good laugh when I read one of the comments following Bob Garfield’s article: Pretty harsh. Did you buy at the height of the market or something?”

What are your thoughts? I’m interested in hearing your perspective. Click below to make a comment.

Looking for more home-related news and trends?

Share

JUMPSTART THE NEW YEAR BY HELPING TO DE-CLUTTER THE WORLD: Top Seven Reasons Why Organization is among the Nation’s Top Priorities

It’s time once again to actually implement our New Year’s resolutions. Did you know that getting organized is one of the top five of all time? As January is Get Organized MonthSM, it’s the perfect opportunity for those of you in the home industry to capitalize on consumer desire (and just maybe your own) to shed some pounds off of home and office waistlines.   Below are the top reasons that home and office organization is a high priority: 

1.       Brings order, calm, and control to our lives

2.       Saves hard-earned money with organized bill paying and systems for getting key daily activities complete

3.       Saves valuable time; allows us to get things done in less time

4.       Enables us to find what we need in shorter time. 

5.       Provides opportunities for increased productivity and reduced stress  

6.       Allows us to better prioritize and maximize the effectiveness of each day 

Remember that the most common causes of disorganization are simple things such as not having a place where everything belongs, things being stored in inconvenient places, messy cupboards and desk drawers, having more “stuff” than the space can effectively maintain.  The National Association of Professional Organizers (NAPO) formed Get Organized Month in an effort to elevate consumer awareness of the benefits of being organized. And, after all, we are all consumers. There are over 4,000

NAPO members you can align with to capitalize on consumers’ New Year organization goals.
 Want examples of how K&A leveraged Get Organized Month to get its “house” in order and to increase brand exposure for its clients? Contact Steve Kleber at sk@kleberandassociates.com or call 770.518.1000. 

Looking for additional marketing insight?

Share

SHRINK YOUR CARBON FOOTPRINT WHILE ENHANCING THE AIR YOU BREATHE : Tips to Improve Your Indoor Air Quality

 

 

 

 

 

 

 

While global warming, energy and water conservation and are hot buttons among today’s green homeowners, surprisingly, awareness of the importance of pollutant-free indoor air is not as prevalent among those embracing their green side. Even more ironic, the World Health Organization (WHO)  found that deaths related to indoor air pollution are much higher than those linked to outdoor air pollution, even in the most contaminated cities. And, recent research conducted by the Environmental Protection Agency (EPA)  found that the majority of Americans spend 90 percent of their time indoors, meaning polluted indoor air is a common health hazard and is vitally important to the health of you and your family.

How harmful is polluted indoor air? Well, it’s known to cause asthma, sore throats, headaches, fatigue, dizziness, nausea, among other health problems. The WHO assessed the contribution of a range of risk factors to the burden of disease and revealed indoor air pollution as the eighth most significant risk factor.

Wondering what you can do to ensure you’re protected from the health dangers associated with contaminated indoor air? Both the EPA and WHO Web sites provide steps to safeguard your home from the adverse effects of poor indoor air quality. Check some of them out below.

Know what’s going on in your home
At-home test kits can be purchased at a variety of popular home retailers at an inexpensive price. These tests will help determine the average temperature of your home, carbon monoxide levels, humidity and air movement. According to the Centers for Disease Control and Prevention, carbon monoxide sends at least 15,000 Americans to the emergency room annually. Moreover, at least 439 people die of unintentional, non-fire related carbon monoxide poisoning every year. Purchasing a carbon monoxide detector is the best way to make certain you’re protected from the invisible killer. Many of today’s leading home security systems also come equipped with these easy-to-install detectors.

Maintain a spot free, sanitary home
Dust and dirt are the most widespread origins of poor indoor air quality. That means you must frequently clean all areas of your home, especially windows, air ducts and ceiling fans. And, if you smoke, do it outside. The less toxic chemicals floating in your air the better.

Circulate your home’s air
Keep your indoor air moving. Stagnant air means that harmful pollutants can also get caught and embedded in clothing, carpeting and furniture. Installing a ventilation system helps improve air flow, subsequently enhancing indoor air quality. But remember, allowing mold and mildew to grow within your in-duct HVAC systems will increase pollutants if not kept clean and well-maintained.
Keep away wetness
Mold and mildew growing from excessive moisture will decrease the air quality within your home and are most prominent in bathrooms, kitchens and basements because these rooms are easily heated and collect the most moisture. Ensure bathrooms, kitchens, attics and crawl spaces are properly ventilated by incorporating a fan or ventilation system. Consider also purchasing a dehumidifier for the basement and attic to keep relative humidity levels between 30-50 percent.

Purchase an air purifier
These will eliminate both odors and chemicals from the air. Just like a ventilation system, an air purifier must be frequently cleaned and well maintained to maximize effectiveness and not cause reverse effects on the quality of the air you breathe.

Choose reduced VOC products
Volatile organic chemicals (VOCs) can often be found in household products such as paint, wax, varnish and cleaning products. Researching alternative products that have low or no VOCs is the best way to limit the amount in your home. Adhesives are also a building category frequently overlooked, yet are a key aspect of today’s healthy homes as they have a considerable effect on the conditions of your indoor air. With such a great amount of adhesives used throughout the home, they are the main source of volatile organic compound emissions, especially short term.

The green movement has encouraged adhesive manufacturers to reduce solvent levels and today many offer a calculated VOC level of zero, along with products made without formaldehyde. Water-based adhesives also emit far less VOCs than their conventional counterparts. Some manufacturers like the W.F. Taylor Company and the Henry Company only provide low or no VOC products. In terms of the environment, solvent-based adhesives are also considered hazardous waste, so those made to be eco-smart are obvious benefits to Mother Earth.

Become knowledgeable about your indoor air
Playing an active role and becoming educated about what you can do to improve your indoor air quality will pay dividends in the future. Implementing some of the suggested tips above will allow for immediate health benefits for you and your family. Think greater energy levels and the potential disappearance of headaches, asthma and sore throats. Long term benefits include putting you and loved ones at a lower risk for respiratory disease and cancer. I’d say it’s worth it.

Looking for more green info? Click here.
 

Share