Urban Living Center

Home construction rose slightly last month on the strength of single-family homes, but the market was still too weak to propel growth in the battered industry.

Construction of new homes and apartments unexpectedly rose 0.3 percent in September from a month earlier to a seasonally adjusted annual rate of 610,000, the Commerce Department said Tuesday. It was the strongest report on home construction since April.

Housing starts are up 28 percent from their bottom in April 2009. Still, they are down 73 percent from their peak in January 2006 and 40 percent below the 1 million annual rate that analysts say is consistent with healthy housing markets.

The industry is “showing signs of stabilization and perhaps even a faint pulse,” wrote Joshua Shapiro, chief U.S. economist at MFR Inc. in New York.

August’s figure was revised upward to an annual rate of 608,000 from an earlier estimate of 598,000.

Construction was driven by a 4.4 percent monthly increase in single-family homes, the second consecutive increase for this category which represents about 80 percent of the market. Construction of condominiums and apartments fell by nearly 10 percent.

The number of building permits issued to build new homes, a sign of future activity, fell 5.6 percent from a month earlier to a seasonally adjusted annual rate of 539,000. That drop, however, was driven by a 20 percent decline in those for condominiums and apartments. Permits for single-family homes rose 0.5 percent.

That small increase, however, suggests that “meaningful strength in the immediate future will not be forthcoming,” wrote Dan Greenhaus, chief economic strategist at Miller Tabak, in a note to clients.

High unemployment, slow job growth, and tight credit have kept people from buying homes. The housing market suffered its worst summer in more than 10 years, despite the lowest mortgage rates in five decades.

Weak sales mean fewer jobs in the construction industry, which normally helps power economic recoveries. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the builders’ trade group.

Builders remain pessimistic about the housing market, although their mood has improved slightly from this summer. The National Association of Home Builders said Monday its monthly index of builders’ sentiment rose in October to 16, the first increase in five months. Still, a reading below 50 indicates negative sentiment about the market.

This fall’s home sales may improve, but not by much. A huge backlog of foreclosed properties is dominating the market and providing competition for builders.

Construction activity rose 5 percent in the South and 3 percent in the Northeast. It was down by 8 percent in the Midwest and 4 percent in the West.

Article Courtesy of MSNBC and the Associated Press

Rates on 30-year mortgages fell to the lowest level in decades for the ninth time in 12 weeks, pushed down by traders anticipating a move by the Federal Reserve to pump more money into the economy. Consumers can always check rates daily at Coldwell Banker Mortgage.

The average rate for 30-year fixed loans dropped to 4.27 percent, mortgage buyer Freddie Mac said Thursday. That’s the lowest on records dating back to 1971, and down from 4.32 percent the previous week.

The average rate on 15-year fixed loans, a popular choice for refinancing, dropped to 3.72 percent from 3.75 percent. That was lowest on records dating back to 1991.

Rates have mostly fallen since spring as investors shifted money into the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields.

The 30-year rate was 5.08 percent at the beginning of April, while the 15-year rate was 4.39 percent.

In recent weeks, Treasury yields have dropped as investors predict that the Federal Reserve will soon boost its Treasury purchases to help boost the economy. That has pushed down rates.

The yield on the closely watched 10-year yield reached its lowest point this year at 2.39 percent Wednesday following a surprisingly weak employment report.

However, historically low rates haven’t helped the struggling housing market, which recorded its worst summer in more than a decade.

Sales this fall are not expected to improve that much. Job concerns have kept many people from buying homes. Tighter credit standards have also dissuaded many would-be buyers from purchasing. Experts also expect the worst-hit cities to face more foreclosures and other distressed sales.

To calculate average mortgage rates, Freddie Mac collects rates from lenders around the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a given day.

Rates on five-year adjustable-rate mortgages averaged 3.47 percent, down from 3.52 percent a week earlier. Rates on one-year adjustable-rate mortgages fell to an average of 3.40 percent from 3.48 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac’s survey averaged 0.8 a point for 30-year mortgages. It averaged 0.7 of a point for 15-year and 1-year mortgages and 0.6 of a point for 5-year mortgages.

Article is courtesy of MSNBC and The Associates Press.

Enough with the doom and gloom about homeownership.

Sure, maybe there’s more pain to come in the housing market. But when Time magazine starts running covers that declare “Owning a home may no longer make economic sense,” it’s time to say: Enough is enough. This is what “capitulation” looks like. Everyone has given up.

But it’s not enough just to be contrarian. So here are 10 reasons why it’s good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer’s market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We’re four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor’s Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it’s mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You’ll never catch the bottom. It doesn’t really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What’s not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won’t see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You’ll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you’ll get a tax break on capital gains–if any–when you sell. Sure, you’ll need to do your math. You’ll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It’ll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You’ll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. “You can tell the ones that have been bought,” said my local guide. “They’ve painted the front door. It’s the first thing people do when they buy.” It was a small sign that said something big.

5. You’ll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you’re better off buying.

6. It offers some inflation protection. No, it’s not perfect. But studies by Professor Karl “Chip” Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That’s valuable inflation insurance, especially if you’re young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It’s risk capital. No, your home isn’t the stock market and you shouldn’t view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It’s forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won’t. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn’t a cost. You’re just paying yourself by building equity. As a forced monthly saving, it’s a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That’s below last year’s peak, but well above typical levels, and enough for about a year’s worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the “glut” simply won’t matter: It’s concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won’t have any long-term impact on housing supply in your town.

Experts say that at least 90 percent of homebuyers rely on real estate agents for advice and guidance. But with more than 8,000 Kansas City area residents holding real estate licenses, how do you find someone who
knows the market, represents your interests and operates with an emphasis on integrity and service?

KC Magazine can help. The magazine formed a partnership with Crescendo Business Services to find out which real estate agents have most consistently wowed their clients. The Selection Process Crescendo surveyed, by mail and phone, all Kansas City area residents who purchased a home over $100,000 within a 36 month period (July 2006 to August 2009) and 5,000 subscribers of KC Magazine. An additional 245 surveys were sent to mortgage and title companies who are often best able to judge a real estate agent’s technical skills and knowledge.

On the surveys, recipients were asked to evaluate only real estate agents whom they knew through personal experience. They were asked to evaluate them based upon ninecriteria: customer service, communication, finding the right home, integrity, negotiation, marketing the home, market knowledge, closing preparation, and overall satisfaction. Only original surveys—no copies— returned in their specially designed envelopes
were accepted as valid. Crescendo carefully scored and screened each qualified agent with the Kansas and Missouri State Real Estate Commissions databases to make certain that licenses were up-to-date and that no
disciplinary actions were pending.

Then, before finalizing the list, the real estateagents were reviewed by a blue ribbon panel of local industry experts. The panel consisted of realty company executives, professional and trade association officers and others directly involved in housing-related businesses.

The resulting list of Five Star Real EstateAgents is an elite group, representing less than 7 percent of licensed agents in the Kansas City area.

Coldwell Banker John Moffitt & Associates and the Urban Living Center are proud to announce that Jason Sharpsteen, Matt Zammar, Joe Woods & Jodie Iams have all been named to this prestigious list. Congratulations to our outstanding associates for receiving this honor!

Second Saturday is a monthly education & enrichment program meant to create a link between experiencing the Crossroads and KNOWING the Crossroads.

Participants will partake in an ever variable walking tour, stopping for presentations at several venues.

Saturday, June 19th from 10:45 am – 3:00 pm

Tour begins at the Urban Living Center [1705 Baltimore]

Tickets are $15 per person ($10 for Crossroads Friends members), but you must RSVP to reserve your spot!

——

10:15 – 10:45 am – Gather at the Urban Living Center
[1705 Baltimore] for a cup of coffee and introductions.
We will depart on our walking tour promptly at 10:45.
Hope you brought your comfortable shoes!

Hudson Home & Retro Inferno – Enjoy a tour of the Hudson Home showroom while learning about independent furniture design in the United States. Rod Parks, owner of Retro Inferno, will talk about the origins of the modern furniture movement and why it has experienced such renewed popularity.

Leedy-Voulkos Art Center – View the work of local artist David Gant featuring 150 hand-painted portraits of individuals who live, work and have contributed to the Crossroads. Tour Amy Kligman’s exhibit Thoughts Before Sleeping and hear the artists speak about their work.

Lidia’s – Enjoy warm hospitality, delicious food and a lively demonstration by one of Lidia’s chefs on how to cook Risotto. Wine and cocktails may be purchased by those in a celebratory mood!

Vahalla Studios – Join Dan Padavic and Tad Carpenter for an upbeat tour of their Mastermind Award winning studio. Revel in the design, art and illustration work of this impressive team whose products include art prints, posters, cards and t-shirts.

Email to RSVP: 2ndsaturdays@kccrossroads.org

The New York Times truly enjoyed their experience in Kansas City — The article from the Travel section is below in it’s entirety.

36 Hours in Kansas City, Mo.

KANSAS CITY is known for its barbecue, bebop and easy-does-it Midwestern charm. But a decade-long effort to revitalize the city’s downtown has transformed this former jazz mecca, which straddles the Kansas-Missouri border, back into a culturally rich metropolis. The city’s standing will be further bolstered next year when the much-anticipated Kauffman Center for the Performing Arts opens, giving a sleek new home to the symphony, opera and ballet. True, Kansas City is no backwater, but don’t expect high polish. In fact, it’s the city’s unvarnished grit that may be its best asset.

Friday

4 p.m.
1) CROSSROADS REDEFINED

Industrial stagnation and suburban exodus in the 1960s left the Crossroads neighborhood nearly deserted. But thanks to the recent efforts of arts advocates and city tax breaks, the Crossroads Arts District (kccrossroads.org) is now home to some 70 galleries. Two pioneering mainstays are Sherry Leedy Contemporary Art (2004 Baltimore Avenue; 816-221-2626; sherryleedy.com), which specializes in midcareer artists like Jun Kaneko, and the Byron C. Cohen Gallery (2020 Baltimore Avenue, Suite 1N; 816-421-5665; byroncohengallery.com), representing several artists from China, including the photo-artist Huang Yan. If it’s the first Friday of the month, many galleries hold open houses until about 9 p.m.

7 p.m.
2) SAUCE IT UP

Debates over the best barbecue rouse as much passion here as religion or politics. Some swear by the old guard like Gates Bar-B-Q (gatesbbq.com) and Arthur Bryant’s (arthurbryantsbbq.com), both of which have multiple branches. Others cross the state line into the Kansas side, to a relative newcomer, Oklahoma Joe’s (3002 West 47th Avenue; 913-782-6858; oklahomajoesbbq.com), which opened a second location in 2005. It serves up pulled pork and beef brisket piled high on white bread, in a sauce that may just be the perfect amalgam of sweet, smoke and vinegar. At a little under $19, a full slab serves two or three people.

11 p.m.
3) BEYOND BLUES AND JAZZ

If the city’s indie music scene hasn’t garnered the same hype as those in other Midwestern cities like Minneapolis or Omaha, it’s not for lack of guts or artistry. Homegrown bands like Ssion, a gender-bending art-punk music collective that has built a following with over-the-top live shows, cut their teeth in downtown galleries and dives. Hear up-and-comers at the Record Bar (1020 Westport Road; 816-753-5207; therecordbar.com) and the Brick (1727 McGee Street; 816-421-1634; thebrickkcmo.com). One of the newest spots is the Czar Bar (1531 Grand Boulevard; 816-221-2244; czarbar.com); it’s owned by John Hulston, who also runs Anodyne Records, which counts the Meat Puppets, the BellRays and Architects among its better-known acts.

Saturday

10 a.m.
4) PARK LIFE

Kansas City is said to have more fountains than any other city except Rome. One of the loveliest can be found at Jacob L. Loose Park (51st Street and Wornall Road), a Civil War site, where the Laura Conyers Smith Fountain, made of Italian stone, is encircled by thousands of roses in some 150 varieties. The park is popular with picnicking families and bongo-playing teenagers on furlough from the suburbs.

Noon
5) CONTEMPORARY GREENS

If last night’s barbecue has you yearning for a salad, head to Café Sebastienne, an airy, glass-covered restaurant at the Kemper Museum of Contemporary Art (4420 Warwick Boulevard; 816-753-5784; kemperart.org/cafe). A dish of seasonal greens with cucumber, red onion, grape tomatoes, sheep’s milk cheese and grilled pita is $11. After lunch, pop inside for a quick look at the Kemper’s small but diverse collection of modern and contemporary works by artists like Dale Chihuly and Louise Bourgeois, whose gigantic iron spider sculpture looms over the front lawn.

1:30 p.m.
6) MUSEUM POW-WOW

In 2007, the Nelson-Atkins Museum of Art (4525 Oak Street; 816-751-1278; nelson-atkins.org) was thrust into the national spotlight when it opened a new wing designed by Steven Holl. The Bloch Building — which holds contemporary art, photography and special exhibitions — consists of five translucent glass blocks that create what Nicolai Ouroussoff, the architecture critic of The New York Times, described as “a work of haunting power.” The museum, which is free to the public, also unveiled a suite of American Indian galleries in November. It’s an assemblage of about 200 works from more than 68 tribes, considered one of the most important collections of its kind.

4 p.m.
7) 18TH STREET COUTURE

The Crossroads cultural awakening extends beyond art and into fashion. Three boutiques carrying the work of up-and-coming designers occupy a former film storage unit on West 18th Street. Peregrine Honig and Danielle Meister handpick lingerie and swimwear to carry at their shop, Birdies (116 West 18th Street; 816-842-2473; birdiespanties.com). Kelly Allen selects a quirky cross-section of locally designed clothing and accessories at Spool (122 West 18th Street; 816-842-0228). And Peggy Noland (124 West 18th Street; 816-221-7652; peggynoland.com) sells Day-Glo spandex bodysuits in a space covered floor-to-ceiling with stuffed animals.

7 p.m.
8) MIDWEST TAPAS

Stay in the Crossroads to sample modern Mediterranean-style tapas at Extra Virgin (1900 Main Street; 816-842-2205; extravirginkc.com), the latest restaurant from Kansas City’s culinary titan, Michael Smith. The fare is more playful and adventurous than that of his formal restaurant next door. And if the loud, euro-chic décor, replete with a floor-to-ceiling “La Dolce Vita” mural, seems to be trying a little too hard, the crowd of unbuttoned professionals enjoying inspired dishes like crispy pork belly with green romesco and chick pea fries doesn’t seem to mind. The menu is diverse, as is the wine list. Single plates range from $3 to $25.

10 p.m.
9) ’ROUND MIDNIGHT

Love it or hate it, the flashy new Kansas City Power and Light District (1100 Walnut Street; 816-842-1045; powerandlightdistrict.com) offers a wide range of bars, restaurants and clubs that can feel like an open-air fraternity party. A smarter alternative can be found in the West Bottoms, an industrial neighborhood that draws a more urbane crowd. The R Bar (1617 Genessee Street; 816-471-1777; rbarkc.com), which opened in September, features live jazz and bluegrass, as well as old-time cocktails like Moscow mules and mint juleps. When midnight strikes, head to the Mutual Musicians Foundation (1823 Highland Avenue; 816-471-5212; thefoundationjamson.org). The legendary haunt opened in 1917 and public jam sessions are held every Saturday until around 6 a.m. For $8, you can catch impromptu sets by some of the city’s undiscovered musicians in the same room where Charlie Parker had a cymbal thrown at him in 1937.

Sunday

11 a.m.
10) VIVA BRUNCH

As any resident will tell you, Mexican food is a big deal here. One of the most authentic spots is Ortega’s Restaurant (2646 Belleview Avenue; 816-531-5415; ortegas.synthasite.com), tucked in the back of a mom-and-pop grocery store in midtown. On Sundays, Ortega’s draws a lively mix of churchgoing families and hung-over art students with its $6 huevos rancheros.

Noon
11) VINTAGE FINDS

Kansas City has great secondhand shopping. Bargains are easy to find, and flea markets have yet to be ransacked by collectors from the coasts. Grab a copy of The Kansas City Star (kansascity.com) or search Craigslist (kansascity.craigslist.org) for current listings of auctions and estate sales. Better yet, take a drive through the sprawl of surrounding suburbs on the lookout for garage sales. Even if you don’t find that perfect antique, an afternoon spent chatting with the friendly residents of this changing city will remind you that some things don’t need making over.

IF YOU GO

Continental, Delta and Midwest Airlines fly nonstop from New York City to Kansas City International Airport. According to a recent Web search, round-trip fares start at about $325 for travel this month. A car is recommended for getting around, though to paraphrase an old song, if you have to walk, you’ll get there just the same.

The Raphael(325 Ward Parkway; 816-756-3800; raphaelkc.com), a 126-room hotel in a neo-Renaissance manor overlooking the Country Club Plaza, recently finished a major renovation, with black marble bathrooms, flat-screen televisions and two spacious conference rooms. And with standard rooms going for as little as $139, it’s one of the city’s best bargains.

The 120-room Q Hotel + Spa (560 Westport Road; 816-931-0001; theqhotel.com) opened in 2007 in the historic Westport district and bills itself as the city’s first green hotel, offering eco-friendly hand soap, energy-efficient lamps and in-room recycling service (unused paper is given to a school next door). Standard rooms start at $107, if booked 23 days in advance; otherwise $137.