Cottage Industry: Small, Well Designed New Homes Are in Demand

A recent article in Builder Magazine stated that "small, modestly priced new homes are gaining popularity points." The article cites the following reasons:

- Tighter lender standards have left buyers able to afford less

- The threat of higher energy prices and global warming have tempered buyers' willingness to pay for conditioned space they don't use

- The average American household is shrinking as more homeowners enter their retirement years, get divorced, delay having kids, or choose not to marry

Additionally, particularly in urban areas, we believe that buyers pay attention to - and appreciate - spaces that are efficiently and well designed.

Does this mean that as the housing market climbs out of its current recession, a premium will be placed on small, efficiently-designed new homes? According to Builder Magazine, this is perhaps the case, as long as the home is also priced right, and offers the kind of amenities that buyers are seeking.

In the long term, this kind of consumer trend could result in a renaissance for cottage-style/smaller homes, which would be a boon for builders and real estate agents that have long focused on the efficiencies found in urban living.

Progressive Urban Real Estate has always focused upon selling efficiently-designed new homes in the urban communities of Northesat Ohio. Visit our website to view the new construction and rehabbed home opportunities that are available in Cleveland as well as the inner ring suburbs.

Home Loan Rates as Low as Five Percent

It’s amazing what a few good days on the bond market can do! On Wednesday, rates dropped briefly below five percent on a 30 year home loan for a borrower with solid credit. Today, rates are still hovering around 5%.

These rates are lower than we’ve seen in years, and they suggest that savvy buyers will be able to take advantage of a competitively priced housing market in addition to these competitive rates.

The result? Those homebuyers that are savvy enough to buy in these turbulent times will not only get a great deal on their new home, but also a great rate on their mortgage.

New York Times: "Golden Age for First Time Homebuyers"

Last week, we shared with you that interest rates had plummeted to an average of about 5.5%, a rate that will save new homebuyers hundreds of dollars in monthly interest payments, and help them build equity more quickly in their homes.

What we didn't say is that NCHAMP, a special financing mortgage product that is available from National City Bank on select new construction properties, is now at 3.875%. Key Bank offers a similar mortgage product, discounted by 1.5%, on other new construction properties.

This means that buyers that purchase at Rockport Square in Lakewood, Stonebridge Plaza in the Flats, or Fries and Schuele in Ohio City, to cite a few examples, will benefit from an interest rate saving them literally tens of thousands of dollars over the life of the loan. These savings are on top of already attractive pricing options.

As a recent article in the New York Times stated: "Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers."

It may be a good time to think about buying a house.

A Yes Vote for Equality: Cleveland Votes to Establish Domestic Partner Registry

This past Monday, December 8th, Cleveland City Council voted to create a domestic partner registry for same- and opposite-sex couples. The registry, although nonbinding, could prompt employers, hospitals and other organizations to grant privileges typically reserved for married couples. The registry is also a symbolic gesture stating that Cleveland is a gay-friendly city.

In the past decade, numerous studies have been completed that show that domestic partner registries help to create a more equal society, allowing non-married heterosexual couples as well as same-sex couples to register and potentially obtain benefits. A domestic partner registry does not allow same-sex couples to marry. Studies have also shown that cities deemed to be gay-friendly may also enjoy an economic development advantage. A city's gay-friendly status may help to attract new residents, and also to retain current residents, thus having a direct impact on the quality of life that exists in the neighborhoods of cities such as Cleveland.

Despite intense pressure from some local pastors, who oppose domestic partner benefits on religious grounds, thirteen council members voted to support the registry. The final vote was 13-7.

The legislation was sponsored by Ward 13 Councilman Joe Cimperman. If you live in the city of Cleveland, or care about this issue, please take the time to let your councilperson know how you feel about this legislation. If you support it, please thank those councilpersons that helped to pass this historic legislation.

Cleveland Violins Moves to the Heights

"Patience is a virtue in the development business," writes Kim Steigerwald in the Heights Observer this week, "and patience paid off ten fold in the case of 2917 Mayfield Road, just west of Honda Motorcars in Cleveland Heights."

This building, vacated by In House Furniture a few years ago, sat vacant until Heights resident Yanbing Chen purchased it in January 2008. Chen is the president of Cleveland Violins. This full service violin shop specializes in the sales, rental and repair of violin family instruments and their bows, including many handmade instruments. The shop also offers instruction space for budding and experienced musicians, and carries a wide range of cases and accessories.

Chen is currently redeveloping the building, and his plans include adding special signage and awnings that will highlight this unique business. A window film with solar control will help to protect the instruments while retaining the storefront glass. The city of Cleveland Heights provided Chen with a storefront grant and a zero percent loan for the significant investment on the exterior.

Cleveland Violins' hours are 9:30 am to 5:30 pm Monday through Friday, and 10 am to 4 pm on Saturday. Visit them online at www.clevelandviolins.com.