First-Time Home Buyers

Cold weather makes us long for the warmth of hearth and home. The desire for a cozy spot in front of the fireplace works to the advantage of the real estate market. Cold weather and the real estate market seem to be the perfect match.

Longing for Home

For most people, the thought of curling up by the fireplace with a good book and a warm drink is a comforting image. Do we have a positive reaction to that scene just because of the human need for comfort and warmth? Or are we influenced somewhat by advertising campaigns of savvy entrepreneurs and eager realtors promoting that association?

Make no mistake; realtors are aware of the 'longing for home' syndrome that can set in during cold weather. Renters in tiny apartments might be more inclined to wish for that home with a welcoming and warm kitchen. Maybe homeowners would consider upgrading to a house with a better heating system or the golden glow of a fireplace or two. All 'golden' opportunities for a waiting realtor!

Leaving Home

On the other hand, cold weather can be the impetus to get sun worshippers to think about leaving home. Actually, realtors in warm climates bank on that reality. Winter-weary home owners will want to leave the snow banks in search of hotter temperatures. Therefore, a hot real estate market materializes in warmer locations.

With almost all U.S. states now covered in snow, Florida realtors are optimistic about home sales. Joseph Santini, a Florida realtor, explains the logic behind their reasoning.

"What it really comes down to is would you rather shovel two feet of snow or go to the beach to shovel sand? The cold weather is good for us,” says Joseph Santini, Boca Raton broker.

Florida realtors have their sights on homeowners in colder cities such as New York, Massachusetts, and New Jersey. According to Santini, their marketing yields results and freezing home owners reach out for a little warmth.

Florida realtors know, however, that they must market aggressively while temperatures are at their lowest points. The same urgency about a move to sunny climates will not exist if a homeowner's thoughts start shifting to the approaching wonders of spring. Santini details the general marketing approach to attract homeowners in colder climates.

"The trick is to be aggressive in selling while the weather is frigid elsewhere and meteorologists talk about weather events like “snow bombs,” explains Joseph Santini, Florida realtor.

Hot Bargains

Of course, Florida realtors are also willing to sweeten the pot and throw a few bargains into the mix. According to the Florida Association of Realtors, the average sale price of an existing home in Brevard was $105,600 in November, 2010. Consider that the price of the same home was $184,000 in 2007.

Cool Perks

Other factors in Florida also play into the realtors' hands. They can offer homeowners extra perks such as affordable short sale properties and no state income tax.

Nation's cold snap may heat up Florida's real estate market

Are You Ready To Leave The Cold Weather For A Hot Real Estate Market?

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Many U.S. home sellers saw dollars vanish in front of their eyes during the past year. Although the vanishing act was really an illusion as the money never existed – except in an over-zealous home seller's mind. Pricing homes outside the realm of reality holds no magic; it just ends with disappointed sellers. All the dollars disappear because home buyers move on to another dream (and price) within their reach.

During the past year, no home sellers (upscale residence or small house) were exempt from price reductions. According to the Washington Post, Former Treasury Secretary Henry Paulson had to reduce the asking price for his Washington, DC home. In 2010, the property sold for almost one-third less than the original asking price. The buyer paid $3.25 billion. During 2006, Paulsen had paid $4.3 million for the property.

Chicago Home Sellers

Between March-December 2010, Chicago home sellers saw a widening divide between their preferred price and the actual amount of the home sale. The Chicago Agent magazine examined monthly data for Cook, DuPage, Kane, Lake, McHenry, and Will counties. The price reductions endured by sellers were calculated at $459 million a month.

Despite the size of the area, Cook County sellers led other counties in their average number of reductions (17,335) per month. As well, this county had the biggest cuts (percentage-wise) – almost 6% ($16,000) every time they lowered asking prices. Du Page County ranked second with 3,583 reductions (4.4%).

Chicago Home Buyers

Of course, Chicago home buyers were pleased with the reduced prices. Yet a few home buyers still paid a fine sum for their dream homes.

Chicago's Most Expensive Houses

            • $7.75 million - Barrington Hills (McHenry County)

            • $5.99 million - Lake Forest (Lake County)

            • $4.1 million - Hinsdale (DuPage County)

            • $2.99 million - St. Charles (Kane County)

Chicago's Most Expensive Condos

11 E. Walton Street

Three Condos

            •$7.4 million

            •$6.88 million

            •$6.28 million

Real estate mantra in 2010: How low can you go?

UK Home Sales

The current state of home sale prices varies from market to market. The average price of a home in England and Wales fell 0.2% to 222,827 pounds ($354,000) from November-December, 2010. Many UK home sellers do not want to be involved in transactions in this market. Many UK home buyers cannot get a mortgage. An Acadametrics report showed the number of transactions dropped by 53,000 (approx) in December 2010 – a 33% decline from the same period in 2009.

U.K. House Prices Decline for Third Month as Lenders Restrict Mortgages

What Do Consumers Predict For Home Prices In 2011?

The Chicago Agent magazine asked its readers for their predictions. At least 54% said that housing prices would remain the same as in the past year. Thirty one per cent of responses expected a decline of home sale prices in the coming months.

No doubt, within Chicago and elsewhere, home buyers are hoping for continued price reductions. Of course, home sellers always wish for higher prices. At least 15% of respondents to the magazine survey expected home sellers in 2011 would be getting better prices.

What Are Your Predictions For Home Prices In 2011?

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The beginning of the New Year revolves around the 'annual' resolutions – at least according to the media. Whether people choose to follow a set plan or just play it by air, you can bet that they will be bombarded by all kinds of advice - on television, in print, and at online sites. The professional (or other) advice will cover every topic from routine to resorts to real estate.

You have to separate the great advice from the inaccurate, silly, or even foolhardy suggestions. Real estate is one area where it pays to resolve to learn more during the coming year. Even if you are not buying or selling now, chances are that you will at some point. As well, renters need to know the score. It pays to get a feel for the topic and arm yourself with knowledge.

As you delve through the mounds of real estate advice, you can find 'real' golden nuggets of information from reputable sources. Often the best pieces of advice are simple suggestions that make the most sense. Yet often, consumers overlook the simple solution because they perceive real estate as a complicated matter. Truthfully, real estate is a complex issue, but knowing the basics makes it less of a challenge.

Rounding Up the Best Real Estate Advice

"Get your home into selling shape." ~ Ilyce Glink, Real Estate Matters, Chicago Tribune

Ilyce Glink, author of Real Estate Matters, emphasizes preparing to sell your home. Part of her wise advice – get rid of items - unless you need or use them. Interior and exterior cleaning, repairs, and touch-ups are also suggestions as well as the possibility of hiring a stager.

Read More...

"Make a sensible valuation." ~ Tanya Ashreena, Financial Times

This sensible statement was written for London readers but it is relevant on a global level. Sellers have to be certain that their asking prices reflect the present market – not yesterday's value or tomorrow's prediction. The Financial Times focuses on the reality of what will happen if you ignore this piece of advice. Failure to do so will lower your chances of selling a home.

"Always get a home inspection." ~ US News

Now this bit of advice might seem boring if you've just found the perfect house – or so you think at the time. Potential buyers need to complete a 'checklist' before they decide on that dream home. The state of the foundation and the electrical system as well as water damage – all these matters (and more) have to be explored before you buy a home. Keep in mind that potential buyers can keep an eye out for types of damage and disrepair but they still need the professional help of a home inspector.

Read more...

Federal Reserve issues tips for mortgage loan shopping

Money Saving Tips for Your Apartment

What Is The Best Real Estate Advice For First-Time Buyers?

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Tempting incentives for home buyers – especially first-timers – seem to be the 'in' thing. At one point or another, governments, builders, and property groups will offer enticing incentives to encourage home purchases. This practice is widespread in a troubled or recovering economy. Yet these offers are around to a certain degree in every real estate market.

Government initiatives have been shown to benefit home buyers. These programs assist buyers who meet the qualifications. The plans might offer a credit (as the expired Federal First-Time Homebuyers' Credit) or access to RRSP savings (Canada's 2009 Expansion of the Home Buyers' Plan).

Yet numerous builders and property groups also make offers to home buyers. Should potential buyers take the bait or resist the temptation? What types of incentives are being put on the table?

Huge Incentives

Australia

Home buyers can find all kinds of offers out there in the marketplace. Sometimes builders and a property group combine to offer huge incentives. The Satterley Property Group and 17 builders in Australia are making a concerted effort to provide affordable housing in specific estates.

With their campaign named "The Lot," offers of cash rebates, bonuses, and incentives can add up to $30,000 savings per home. Satterley provides cash rebates up to $10,000 plus landscaping, fencing, and other attractions. Builders’ bonuses include free pools, kitchen and bathroom upgrades, as well as home entertainment packages, and reverse cycle air-conditioning. Nigel Satterley, spokesman for The Lot, explained the reasoning behind the offers.

“People have been wary of interest rates and in retail, as well as in land and housing, buyers have become cautious. And research shows that a large percentage of young people are pessimistic about 2011," says Nigel Satterly, spokesman for Satterly Property Group.

$30,000 incentives to first-home buyers

US

Of course, Australia builders are not the only ones adding on incentives. U.S. home buyers can also receive offers of new pools with a home purchase. In fact, home buyers might be enticed with free vacations, free entertainment centers, or even free cars (leases). Check out a current incentive in Fort Myers, Florida.

The Background of Builders' Incentives

Before buyers accept builders' incentives, they should inform themselves about the practice. The most important point to remember is that builders are in business to make a profit. An incentive should make sense for a home buyer in the long term. Usually, offers come in with a catch.

What could the free vacation cost the home buyer? Is a quick purchase required to claim the vacation? Does the buyer have to make a substantial non-refundable "earnest money deposit"? This deposit is not to be confused with a down payment. When buyers execute a purchase contract, the agreement specifies an amount to secure the contract or "show good faith."

The free vacation or the free product sounds great but the builder will be getting it at a discount. It might make more sense for buyers to shop later for affordable holidays or special sales on products. When buyers factor in required conditions, the 'free' stuff might not seem like such a good deal.

Good Deal or Bad Plan

Indeed, accepting the incentives might be a bad plan. Home buyers do not have to stay away from all builders offering incentives. Yet buyers must understand the builders' goal.

The home purchase – a long-term commitment – must be the buyer's priority. The thrill of a tropical vacation cannot compare to finding the perfect home at the best price. Skip the incentives - if it means that you sacrifice your dream.

Incentives for Home Buyers

Would You Accept Home Buying Incentives?

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According to the results of the 19th Annual Survey released by the Association of Foreign Investment in Real Estate (AFIRE), international buyers favor US property. As foreign investors notice a recovering economy, they are expressing a renewed interest in U.S. real estate. In the latter part of 2010, this real estate survey was conducted among association members. The James A. Graaskamp Center for Real Estate at the Wisconsin School of Business handled the project.

19th AFIRE Survey

Industry leaders are bound to pay close attention to this latest survey by AFIRE with its 180 members representing 21 countries. The survey received responses from members holding more than $627 billion in global real estate and $265 billion in U.S. property. More than 60% of responses named the US as the best potential for capital appreciation. At least 72% of foreign buyers revealed that they plan to increase their US investments in 2011 compared to 2010 transactions.

AFIRE's 19th Annual Survey holds significant weight. The numbers reflect the opinions and plans of an influential group holding a considerable stake in global and regional assets. The 2010 results are far more encouraging than previous dismal numbers.

In 2006, only 26% of international investors saw potential in US property. Now more foreign buyers recognize the chance for capital appreciation in this country. Actually, the 2010 survey showed the strongest faith in this nation's real estate in the past decade.

Leading U.S. Cities

Two US cities – New York City and Washington – outshone other global cities in this recent AFIRE survey. In fact, New York City replaced London as the number one choice for foreign investors in real estate during 2011. Since 2001, London has held either first or second place. With the latest AFIRE results, London dropped to third place – behind the Big Apple and Washington – just before Paris in fourth position. Ian Hawksworth, AFIRE chairman, is not surprised by London's drop in rank.

"...In the last downturn, London was the first market to recover, and whilst investment in the UK Capital is still very active, it is not surprising that London has dropped to third place as investors expand their search to higher yielding markets such as U.S. gateway cities that offer attractive risk adjusted returns," says Ian Hawksworth, chairman of Foreign Investment in Real Estate.

NYC tops London for real estate investors

The popularity of NYC and Washington real estate is not a big surprise. Check out our 2010 articles – Inside New York Hotels – and - Moving To Washington. NYC, Washington, and Boston came in as the top three U.S. cities for foreign investment. New York City and Washington received four times more votes than third-place Boston. Yet in 2010, Boston has moved up from its fourth place position in the previous year. Take a look back at our 2010 analysis of Boston Real Estate – Better & Brighter Market.

U.S. Cities Lead Way for Global Foreign Real Estate Investment

Surprising statistics came to light about preferred U.S. property types for investment in 2011. Multi-family homes, apartments, retail, and hotels are the top four favorites among foreign investors. Offices ranked lower and industrial spaces showed up as the least favorite. Usually, offices are the top pick of institutional investors.

The drop in popularity of office space might be tied to high unemployment rates. Although there is growth in employment numbers, buyers could be feeling somewhat uncertain about investing in offices and industrial property. Yet foreign investors have overall confidence in the U.S. real estate market. Investors interested in U.S. cities quadruple the number of foreign buyers wanting to invest in the UK.

Are You Feeling Confident About The U.S. Real Estate Market?

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Home buyers and sellers, as well as investors, are trying to figure out the future of real estate in the coming year. Depending on their position, interested parties are exploring different areas of real estate. Individuals and organizations focus on everything from property value levels to interest rates to REIT (Real Estate Investment Trust) debt levels.

Commercial Real Estate

Real-estate fund managers have expressed confidence in the future of commercial real estate. According to portfolio managers, recovery is underway in the current market. The improvement is spurred on by low interest rates, favorable cash flows, and increased demand.

This group analyzes national and regional trends. Using this data, they decide on the most promising property sections and regions. Sectors such as apartments with short leases suffered in the economic downturn but they are expected to rebound in this recovery stage. As corporate travelers return to the road, hotels are attracting the attention of investors.

REIT Debt Level

With regards to REITs, industry experts pay attention to debt level compared to their earnings before taxes, interest, depreciation, and amortization.

Up, Up And Away

UK Business Property

In 2011, UK business property is also expected to be supported by low interest rates. Industry leaders believe that the Bank of England will not change the base rate until later in the year. On December 9th, the Monetary Policy Committee voted to maintain current levels.

Business property boosted by low interest rates in 2011?

Residential Property Value Levels

During 2011, home owners (and potential buyers) will be keeping an eye to property value levels. Within the past week, home owners in Victoria, British Columbia, Canada, were told about a slight increase in their property value assessments. During 2010, B.C. Assessment had frozen property values at 2007/2008 levels.

Of course, home owners are concerned about higher taxes associated with increased assessments. According to Cameron Muir, chief economist for the B.C. Real Estate Board, the increase in property values, however, may not result in a significant tax increase. Muir points out the positive aspect of higher property value assessments in a region.

"The increase would reflect stronger economic conditions and a healthier real estate market," said Cameron Muir, chief economist for the B.C. Real Estate Board, representing 12 real estate boards and almost 18,000 Realtors.

Residential housing sales in British Columbia should rise slightly in 2011. The province's economy is showing improvement with more employment and a larger population. Metro Vancouver is one popular area where home buyers can find affordable houses. Most likely, property prices will continue to rise in the coming year. Yet Metro Vancouver is still expected to be popular with home buyers especially with first-timers.

Greater Victoria property values buoyed by economic recovery

Will The Real Estate Market Level Out In 2011?

If people have an interest in real estate on any level, they should track market statistics. At present, the industry is experiencing a recovery. Yet there will be continued speculation about whether the market will level out or climb to new heights. Real estate predictions – even on a local scale - are not an exact science. A regional market can be affected by varied factors including external influences.

What Are Your Predictions For The Real Estate Market In 2011?

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As the current year winds down and 2011 approaches, readers can expect reports and articles about real estate trends to pop up everywhere. With so much trend-related content out there, our eyes can sometimes glaze over and we tend to ignore the latest list. Yet we should rethink our reaction to the barrage of year-end statistics.

Tracking Trends

Examining trends helps us to zone in on where we've been, gives us an idea of where we're going, and arms us with the knowledge to navigate the system. Real estate revolves around statistics. It is worth consumers' time and effort to examine the numbers and keep up-to-date about real estate trends.

Global Real Estate Trends

The Global Real Estate Trends report released by Canada's Scotiabank tracks housing markets in 12 major economies. The December report states that global residential property markets in 2010 experienced a modest but uneven recovery.

Australia

Australia fared the best with its housing demand and low unemployment. Slower sales and price appreciation, however, are expected for this thriving market in the coming months.

Japan

Meanwhile, Japan’s twenty-year property slump continued in the past year. In 2011, Japan's economy is expected to experience a further slowdown.

US

Stability is returning to U.S. markets. Housing demand is expected to rise with increasing employment numbers and continued low interest rates. Yet the Global Real Estate Trends report warns that housing demand might not translate into home sales. Within a recovering economy with a high unemployment rate (although shrinking), individuals and lenders are feeling uncertain and cautious about major financial commitments.

Canada

Despite a volatile market in 2010, Canada ranked high in the Global Real Estate Trends report.

Read about all 12 housing markets in the Global Real Estate Trends report.

Local Real Estate Trends

Potential home buyers and sellers should keep informed about state and local trends. Varied media (print or online) across the US and elsewhere publish information regularly about the latest real estate trends. The Washington Post tracks housing sales and prices in the Washington area. Each Saturday, the results are posted in their 'Real Estate' section. Information is collected for every residential zip code and the data is compared to the numbers during the corresponding period in the previous year.

Green Building Trends

'Green building' trends will make a noticeable difference to the real estate industry in the coming year. Regardless of uncertain economies, 'green building' is expected to rebound in 2011. New commercial start-ups will opt for green alternatives. Existing businesses will be making energy-efficient improvements.

This decision makes sense on many levels for businesses. Besides being environmentally-friendly choices, green businesses impress the modern customer. As well, residential buildings will follow this trend. Home owners want to live in a safe and healthy environment.

Parents and educators will also be advocating for 'green' schools. As part of the LEED system, the number of Certified Green Schools should increase as more people embrace the health and educational benefits of these buildings. By the middle of 2010, certified schools made up almost 40% of all new LEED projects in the US. In 2011 and beyond, the real estate industry will be seeing more 'green' buildings in all areas - commercial, educational, and residential buildings.

Green Building’s Top Ten Trends for 2011

What Do You Think Will Be The Top Real Estate Trends in 2011?

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After Christmas, shoppers follow Boxing Day sales and all the other reduced prices to be found at year's end. Meanwhile, the real industry is reflecting on the more memorable deals of 2010. Of course, new home owners will be remembering their own private real estate transactions. As well, more than one commercial transaction during this year made a powerful impression.

Commercial Real Estate

The National Association of Realtors (NAR) predicts a more stabilized market in 2011 as well as a decrease in commercial vacancies. When commercial assets reach stabilization, owners are pleased with the outcome. The properties are generating profits rather than eating away at an owner's assets.

Denver, Colorado

This thriving Colorado city saw commercial real estate investments double year-over-year in 2010. In fact, Denver made the top ten list of preferred markets for investment during the past twelve months. Since many Denver commercial assets are stabilized, investors are targeting these properties.

Within this market, buyers cannot expect to find a good deal in terms of low prices. Yet investors are willing to pay a higher price for a stabilized asset. The purchase still adds up to a wise investment in the long term. During the coming year, Denver's commercial market is expected to see more big deals. The anticipated early 2011 sale of the 1800 Larimer building for $400 per square foot will be a record breaker (the 'per-square-foot record' for the sale of an office building in Denver).

Denver Commercial Real Estate Closes 2010 with a Bang

Hartford, Connecticut

In July 2010, Connecticut River Plaza, a well-known office property in downtown Hartford, was sold for $6,666,667 to a limited liability corporation in New York. This sale was one of the most anticipated transactions in the recent history of downtown Hartford’s commercial office market.

Winnipeg, Manitoba

During the past year, commercial property sales and leasing broke records in Winnipeg, Manitoba. This Canadian city can boast about $544.7 million of property sales between January-October, 2010. Winnipeg's yearly average for commercial sales is $300 million. One of the year's biggest sales transactions was the purchase of GEM Equities/B&M Land Co. property (three high-rise apartment blocks) by Toronto-based Timbercreek Asset Management for a reported $100 million.

Banner year for property purchases

Luxury Markets

New York City, New York

Throughout 2010, the NYC hotel industry was a vibrant market – the site of tons of transactions and substantial deals. In September, JRK Hotel Group sold the Hotel Roger Williams for $90 million (and $4.5 million in additional costs) to LaSalle Hotel Properties. The luxury hotel market is rebounding and investors have confidence in the Manhattan hotel scene.

Montreal, Quebec

Montreal has a smaller luxury market than New York City. Yet there is a growing demand for high-end condos. The sale of the penthouse at the Ritz Carlton Montreal Hotel and Residences brought in $13 million plus taxes – the highest price ever for a residential property in Quebec.

Distressed Properties

Of course, most real estate deals in 2010 were outside the luxury market. Interested buyers had abundant opportunities to pick up affordable properties. Even investors wanting to buy into the New York City hospitality industry were able to pick up distressed hotels at bargain prices. As well, home buyers across the country were paying discount prices for foreclosures.

Did You Find A Good Real Estate Deal In The Past Year?

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Only a minority of gift-givers have sufficient financial resources to give the gift of a home during this holiday season. An increasing number of family and friends, however, are helping first-time home buyers (and other potential home owners) with financing. People who step in to help loved ones with financing for homes are known as "angel investors." This term seems especially appropriate for investors who help relatives get into a home for the holidays. The expiry of the Federal First-Time Home Buyers' Credit, as well as the recent economic downturn, has caused more people to become "angel investors."

Habitat for Humanity

Yet in addition to affluent gift-givers and angel investors, a large percentage of the population are helping families receive the gift of a home. Internationally, people are supporting Habitat for Humanity – either through donations or with physical labor. Habitat For Humanity International (HFHI) (referred to usually as Habitat for Humanity or Habitat) has offices in five major areas around the world. They operate in the US and Canada, Europe and Central Asia (Bratislava, Slovakia); Latin America and the Caribbean (San Jose, Costa Rica), Africa and the Middle East (in Pretoria, South Africa), as well as Asia-Pacific (Bangkok, Thailand).

The operations of the organization in each main area are managed by a national office. Community Habitat offices act as partners with Habitat for Humanity International. The national and local offices handle the selection of the building site and partner family, fundraising, house construction, and mortgage servicing.

Habitat is a non-governmental and non-profit organization devoted to building affordable housing for people who need a helping hand. The homes are built with volunteer labor and are not sold for profit. Guidelines for the program may vary slightly around the world. For example, certain locations outside the US charge interest as a measure of protection against inflation.

Habitat for Humanity is a prestigious organization. In 1984, former U.S. President Jimmy Carter, and his wife Rosalynn Carter, got involved in Habitat and greatly raised the organization's profile. In 1996, U.S. President Bill Clinton awarded its founder, Millard Fuller, the nation’s highest civilian honor.

By 2010, Habitat for Humanity had built more than 350,000 houses providing shelter for over 1.75 million people in more than 5 continents and 3,000 communities worldwide. The organization does not just provide a handout. The program offers assistance but allows recipients to maintain their dignity and play an active part in the process.

Usually, new homeowners are expected to put 'sweat equity' into their own or other Habitat homes .Any mortgage payments from homeowners are deposited into a locally-administered "Fund for Humanity." The proceeds go towards future construction.

Holiday Homes

Nothing could be better than giving or receiving a holiday home. Remember that you can donate your money, time, or effort to a local project .Read about a few of the latest new Habitat home owners during this 2010 holiday season.

Habitat finishes two homes just in time for Christmas

Habitat delivers holiday home

Family gets new home for holiday

Have You Ever Helped Or Benefited From The Habitat Program?

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Within the US and Canada, sales of townhouses are 'going to town' (moving ahead in a vigorous manner). The term 'townhouse' has varied meanings in different countries. Historically in the UK and Ireland, 'townhouse' referred to the residence of a member of the aristocracy in a capital or major city. Famous townhouses are 10 Downing Street, residence of Prime Minister David Cameron, or Clarence House, home of the late Queen Elizabeth, the Queen Mother, and now the residence of Charles, Prince of Wales.

What are Townhouses?

Today in North America, this type of housing (either single-family or multiple-family dwellings) has a small "footprint." Usually, a townhouse is within minutes (either walking or with public transportation) of a city's business and industrial areas. Townhouses have been compared to a compromise between a condo and a regular home.

This housing category can include homes in the luxury market as well as more affordable houses. Superb examples of luxurious townhouses can be found in New York, Boston, Chicago, Toronto, Philadelphia, and San Francisco.

Why do People Buy Townhouses?

Part of the current appeal of townhouses is the wide range of prices. There is a townhouse for every budget and all age groups. Townhouses interest everyone from first-time buyers to empty-nesters who are downsizing to a smaller home. A first-time home buyer views a townhouse as an affordable alternative to a detached house. Building fees can cover issues such as snow removal, landscaping, or maintenance of the building's exterior.

Sometimes there is more demand for townhouses than can be supplied by the market. Wendy Jabusch, general manager of Hawthorne Homes, speaks about Canadian real estate and townhouses.

"Recent research shows that available townhome product -- homes started or available for pre-sale -- is only 14 per cent of the new construction market. The remaining 86 per cent of multi-family product is apartments," says Wendy Jabusch of Hawthorne Homes.

What does the Future Hold for Townhouses?

There has been a recent increase in townhouse developments. Construction starts of townhouses counted in at 250 in Calgary, Alberta during October, 2010. According to Canada Mortgage and Housing Corporation, that statistic showed the strongest month in 21 years for townhouse starts. Of course, there were fewer new townhouse constructions in 2009 because builders were working though units already in production.

Home buyers gravitate to townhouses for several reasons. Townhouses offer good value, attractive design, and lifestyle benefits. President and partner Tim Logel of Cardel Lifestyles says that he has found that townhouses have maintained their popularity since Cardel's first development in 2002. Logel is optimistic about townhouse sales in the coming year.

"I expect 2011 to be a strong year for townhome sales as affordability and the job market improves in Calgary," says Tim Logel of Cardel Lifestyles.

City homebuyers go to town

Manhattan Townhouses

New York City townhouses never lose their appeal. It is easier to get financing for a city townhouse than a NYC co-op. Generally, lenders look upon a Manhattan townhouse purchase as a wise investment. If you buy a townhouse as an investment, rental income can take care of the monthly mortgage payment.

Financing A Manhattan Townhouse

Are You Planning To Buy A Townhouse?

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