CURRENT TRENDS IN REAL ESTATE AND THE RICHMOND REGIONA PUBLICATION OF THE RICHMOND ASSOCIATION OF REALTORS®

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IN THIS ISSUE:

• 2013 ECONOMIC FORECAST: AN OUTLOOK FROM

RICHMOND HOMEBUILDERS

• PICK YOUR COLOR, NOT YOUR POISON—

RIVER CITY PAINTERS BANISHES VOCs

• HISTORIC GARDEN WEEK’S80 th ANNIVERSARY

• NEW GREEN HOUSING FOR SENIORS IN RICHMOND

WeAreTheR.com

THE

ISSUEGREEN

InterpreteRHousingMARCH 2013

Home Building Association of Richmond

2013 Local ForecastRecap

with special guest speakers: Dr. David Crowe, National Association of Home Builders

Lloyd Mason Poe, Lifestyle Builders & Developers, Inc.

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On February 7, 2013, the Home Building Association of Richmond held a local forecast seminar, featuring speakers Dr. David Crowe, Chief Economist for the National Association of Home Builders, and Lloyd Poe, of Lifestyle Builders & Developers, Inc.

Dr. Crowe offered a look back at the recent past state of the national and local housing market, an update on what it looks like today, and predictions on how it will shape up in the near future.

A look at the past2012 marked the beginning of a consistent trend of home price increases. The latest figures report nearly a 6% annual rate of national growth. The house price-to-income ratio in Richmond rose back to a more historically normal level of 3.8. As housing prices increased, buyer demand increased and construction responded to the demand. Both single-family and multifamily construction increased total production by more than 36% in the Richmond area last year. At the end of 2012, the unemployment rate in Virginia was among the lower end of the national spectrum, at 5.5%. Mortgage rates reached a historically low level in December 2012, and according to the Wells Fargo Housing Opportunity Index, affordability is close to record highs. Buyers in Richmond at median income levels can afford 84% of homes recently sold in the area.

What the industry looks like todayThe population growth in Virginia is currently outpacing the overall U.S. population growth, and the population growth in Richmond began to accelerate last year. The remodeling

Home Building Association of Richmond

2013 Local ForecastRecap

market index (RMI) has been up since the housing market decline. During the downturn, remodeling accounted for half of the overall building industry production. It is now back to the normal level seen in early 2005. Builders’ use of sales incentives, including price discounts and upgrades, has substantially fallen. Housing’s contribution to the economy revived in 2012 and continues to grow. It contributed over 10% to growth in the last two quarters last year.

Mortgage interest rates remain at historical lows, providing some stimulation to the market. Tightened underwriting criteria and mortgage access for qualified homebuyers remain concerns.

A glimpse at what’s to comeWith continued improvement of the economy and job prospects, and relatively low mortgage interest rates, new home sales are predicted to grow by about 20% this year—similar to last year’s growth. 2014 is the year momentum is expected to take effect and produce a more solid 30% growth. Richmond simgle-family starts are predicted to reach 53% of normal by the end of 2013 and 70% of normal by the end of 2014. Richmond currently stands at about 42% of normal levels seen in the early 2000’s.

Mr. Poe recently attended the 2013 International Builders’ Show® in Las Vegas, attended by 49,000 industry professionals and 976 vendors. He shared a sneak peak at some up and coming products and trends that will likely be making increased appearances in homes in the near future.

These trends included:

kitchens • faucets with square lines or color accents• faucets with SmartTouch technology • enameled cast iron sinks, and sinks with compartments for entertaining• large, industrial styled, or wave shaped pendant lighting• open shelving • quartz countertops • counter-height islands and bars • additional windows and more seating • painted cabinets in new colors and boldly painted accentsbathrooms• freestanding bathtubs; especially slipper tubs • audio technologies for bath and shower entertainment • remote controlled toilets, with integrated bidet and dryer • framed decorative mirrorsliving and outdoor • high definition golf simulators • floor to ceiling windows that open entirely to outdoor spaces • hand-scraped vintage wood flooring • faux stone walls and interior accents • tall, sleek, and slender fireplaces, with minimalistic lines

Real estate companies are starting to request better paint for their clients, because they know how valuable quality products are to long lasting relationships. Even latex paint, which is considered a safe alternative by most, contains detrimental compounds. Volatile organic compounds (VOCs) might contain the word “organic,” but they are in no way beneficial to your health. Once airborne, many VOCs combine with each other, or with other molecules in the air to create new chemical compounds. Healthier paints have been around since the 1980’s, but affordability was a major deterrent to common application. It is very difficult for a consumer to buy this paint directly from a home improvement store. Large volume purchasing reduces the price considerably.

River City Painters completed more than 300 interior paint jobs in 2012 alone, using 100% zero VOC paints, made by Benjamin Moore. By partnering with the Virginia Paint Company, River City Painters has made this an affordable option. River City Painters were recently honored as the number one regional painting company by the R-Home Richmond Magazine readers and Angie’s List.

River City Painters remains committed to the safety of customers and employees by staying ahead of the curve on new industry innovations and eco-frien dly options. If you have any questions, or are interested in learning more about their services, visit:www.rivercitypainters.com.

Most people know whether they like a color or not. What many don’t know is just how dangerous interior finishes can be, when not handled by an expert. Joshua Marble, owner of Richmond based River City Painters is serious about quality for his clients. A second generation painter, he is very knowledgeable about the unfortunate ill-effects of low quality paint on health and home. Most paints contain chemicals and compounds that are harmful to the environment, and potentially harmful to families. So, it is important to be well informed and find a painter who truly cares.American consumers have demanded a safer product for years; now it is accessible and affordable for use in residential and commercial environments.

“The industry has come a long way in creating environmentally safer paint at a good price,” said Joshua Marble, President of River City Painters. “Benjamin Moore has been a pioneer in this regard. I’m proud that my children will grow up in a home free of harmful paint-based VOCs. I’m proud to be able to guarantee my customers and my paint crews greater peace of mind.”

Pick your color, not your POISON.River City Painters Banishes VOCsA message from River City Painters

“I’m proud that my children will grow up in a home free of harmful paint-based VOCs.”

Joshua Marble,President, River City Painters

If you have a message for Richmond REALTORS®, homebuyers, or homeowners, please contact lgarcia@rarealtors.com.

On February 5, 2013, the Virginia Association of REALTORS® legislative advocacy conference hosted speaker Bob Adams, for the presentation “Housing 2020: What is Shaping the Future of Housing in Virginia?” Adams is the President and founder of Housing & Development Advisors, which provides a wide range of consulting services for non-profit, for profit, and public sector organizations.

One factor he cited as a force shaping the future of housing in Virginia is the population growth. Virginia’s population is expected to grow from 8 million to 9.8 million within the next few decades, and 80% of that growth is expected to locate within the “golden crescent” area—running from Northern Virginia through Richmond to Hampton Roads.

Another factor he cited is demographics. The “Baby Boomers,” just beinning to reach retirement age, are increasingly rejecting the tradition of aging in a retirement community. This increasing desire among seniors to “age in place” will create the need for more walkable, villiage-like, mixed-use communities. The “Millenials,” with their affinity for remaining socially connected at all times, are leaning toward the same preference for “urban villages,” with community gathering spots outside work and home. Multi-generational households, seen more often in the 1940s and 1950s, are on the rise again. There are almost 50 million multi-generational households in the country now. There has also been a dramatic increase in single person household and single-headed household formations.

Economics is another factor shaping the future of housing. Home prices have started to rise, bringing more people into the market. Student debt is increasing, making recent graduates less financially able to purchase a home. Interest rates are expected to remain low for the next couple of years, but the mortgage product variety will be more limited and underwriting criteria will be slow to expand. Government Sponsored Enterprises (GSEs) aren’t expected to change during the Obama administration.

For more information on factors shaping the future of housing in Virginia, visit housingvirginia.org

Speaker Bob Adams

Housing

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The spectacle produces much more than just “ooh’s and ahh’s.” Proceeds help fund restoration projects at some of Virginia’s most cherished historic sites, such as Monticello, Poplar Forest, Maymont, and Lewis Ginter.

Four garden clubs in Richmond: James River, Three Chopt, Tuckahoe, and Boxwood join forces to coordinate the open houses, garden tours, and other events in the Richmond area. Far in advance of garden week—often years in advance, a committee selects a variety of Richmond neighborhoods to feature for tours. The Richmond neighborhoods featured this year are:

Chatham HillsChatham Hills, on the south side of River Road near the Country Club of Virginia’s Westhampton Clubhouse, is a bucolic residential area that was once farmland. Most of these gracious homes were built in the 1920s on several acre lots, and many of the properties reached down to the Kanawha Canal. A select few were designed by prominent architects, including Duncan Lee, best known for the historic preservation of many major Richmond landmarks. Windsor on the JamesWindsor on the James is a beautifully planned subdivision off River Road in Henrico County developed in the late 1980s. It is defined by large manicured lots and custom homes, many of which have panoramic views of the James River and park-like settings.

Laburnum ParkThe Laburnum Park neighborhood is listed on the National Register of Historic Places and comprises approximately 116 acres northwest of downtown Richmond. It was one of Richmond’s streetcar suburbs which began to be developed in 1919 by the heirs of Joseph Bryan, an important and wealthy businessman whose estate was mostly completed in the early 1930’s. The houses are dominated by the Colonial Revival style and the influence of Arts and Crafts and the Mediterranean styles.

Windsor Farms/Rothesay Circle/Loch Lomond LaneHistoric Windsor Farms was designed in 1926 to resemble an English village. Gracious homes in a myriad of styles – from Colonial Revival to English Tudorto Cape Cod – retain much of their original character and are situated on ample lots with manicured lawns, well-tended gardens, and mature trees.

Attention flora lovers, history buffs, architecture and interior design enthusiasts, and classy “looky-loos”: this April marks the 80th celebration of Virginia’s Historic Garden Week.

Each year, the event touted as “America’s largest open house,” consists of 32 tours throughout the state, produced by 47 Garden Club of Virginia clubs and 3,300 volunteers.

Virginia’s 80 th

Historic Garden Week“America’s Largest Open House”

Homes are decorated with flowers cut from their own gardens. (Photo provided by the Garden Club of Virginia).

Rothesay Circle is nestled behind Windsor Farms along a stretch overlooking the James River. With its diverse architectural styles, sweeping lawns and ornate gardens, this neighborhood was previously a place where homeowners hunted quail and rode horses in their backyards. Adjacent Loch Lomond Lane is a unique cul de sac that overlooks the James River and the Philadelphia Quarry. Both neighborhoods are so well hidden that they defy their very urban address.

{Neighborhood descriptions provided by the Garden Club of Virginia. For descriptions of all featured properties in the state, visit vagardenweek.org/tours.}

In addition to tours of the gardens, visitors receive tours of the homes, which are filled with fresh arrangements of flowers cut directly from the gardens of the home and arranged by club volunteers.

“Each room in every house has a host or hostess in it to inform visitors about characteristics of the architecture and furnishings, and to answer questions,” said Mary Frediani, Co-Chair of the event. “Throughout some homes, architects, landscapers, and other professionals are also available to answer questions,” she added.

Adding to the significance of this year’s milestone for Garden Week, an additional series of unprecedented events will coincide with the home and garden tours—several occurring in the Richmond area. These events include a botanical artwork show in community art galleries; a “marketplace” at the Tuckahoe Women’s Club; and three days of tours, discussions, and demonstrations at Tuckahoe Plantation, Thomas Jefferson’s boyhood home. The plantation will also host an “heirloom plant sale,” featuring plants of historic merit available for purchase. The Valentine Richmond History Center will also offer programs never before held during Garden Week; including an heirloom dress exhibit, with costumes typical of those worn by the founders of Garden Week, and a “Women in Richmond” tour, highlighting women who have made a significant impact on the area.

Whether you’re a perennial participant, or you have yet to experience Historic Garden Week, this year is a particularly compelling time to attend.

{Photograph of Tuckahoe Plantation provided by the Garden Club of Virginia.}

The term green, as it refers to housing and building materials, means different things to different people; and because it has been floating around for years, this term has become somewhat overused. In an effort to help nurture a deeper understanding of what green truly means, this series will begin with an overview of the concept, and continue with suggestions for applying its principles to everyday living.

Green building (also known as green construction or sustainable building) refers to a structure and methods of its use that are environmentally responsible and resource-efficient throughout a building’s life-cycle: design, construction, operation, maintenance, renovation, and demolition.

That’s the “Webster’s” style description, but what does all that mean and why is it important? All the parts and pieces that go into building a home have some intrinsic cost associated with them from the moment they are created or harvested, to their destruction at the end of their usefulness. That cost, both in dollars and in impact to the earth, is what determines a product’s efficiency and sustainability. A product is considered to be green when that intrinsic cost is low or offset completely during its life-cycle.

Let’s take a typical 2” X 4” framing board and examine its life-cycle and associated costs: It begins as a tree and has to be logged, milled, dried and shipped to a lumber yard; then it is shipped again to the retail outlet that will sell it. Whoever buys that board has to get it to their jobsite, so it is shipped again; then it is installed to potentially become a semi-permanent part of

the structure. It will likely last as long as the structure; so, judging by the average life of a house, that would be about 50 years. Once the home is demolished, the board must be hauled to a landfill to eventually decompose with all the other trash. It takes many years for the impact of just one board to be removed from the planet. Plus, all the transporting of it creates carbon emissions from vehicle exhaust. So the intrinsic cost of this board that was sold for a little over $2.00 is many times greater than that, and makes wood studs not a very green material.

The renewable aspect of a product is also a factor in how green a product is considered to be. Bamboo is a grass and renews (grows) very quickly. Any trees cut for lumber have to grow back over a long time period, making them less green. Also, when time to discard, bamboo breaks down and decomposes quickly. There are more and more companies getting into the recycling of building materials, but there is plenty of room for improvement in that area.

It is easy to see from this example how large an impact housing has on the environment. An average home has over 300 two-by-fours in its framing system, which is just the beginning of the hundreds of other products that go into each home. A truly green home will incorporate those materials which have the least negative impact on the earth and its limited resources; and it will contain energy-efficient systems for the heating, cooling, water and electricity usage.

As we continue this series, we will examine such topics as Energy Star appliances and home classification, home energy audits, solar energy systems and solar generators, geothermal HVAC units, and sustainable material choices—everyday items that consumers can switch out to make their current homes more green.

THE GREEN SERIES

WHAT ISGREEN?

By Guest Columnist, REALTOR® Tim Dunkum

•All the parts and pieces that go into building a home have some intrinsic cost associated with them from the moment they are created or harvested, to their destruction at the end of their usefulness. That cost, both in dollars and in impact to the earth, is what determines a product’s efficiency and sustainability.

This April, the first net-zero energy apartments for low-income seniors will open in Richmond,—the most extreme “green” development so far from the Better Housing Coalition. Located on N. 28th St. in Church Hill, the seven net-zero energy apartments will complement 32 apartments for seniors in an EarthCraft certified building across the street.

The concept behind the development of these apartment homes is that building with high standards of efficiency and sustainability will not only be beneficial for the environment, but will also cut the costs associated with maintaining the residences—threrefore maximizing their affordability. Click below to play the video and learn more.

Click on the play button to view a video on the new senior apartments in Church Hill.

Special green features of the building include: solar hot water heaters; Photovoltaic (PV) panels; energy recovery ventilation to bring in fresh air and remove stale air; ductless mini-split HVAC systems; high-quality Styrofoam SIS™ insulation, made from 94% recycled materials and taking the place of plastic sheathing and insulation; high-performance double-glazed windows; and Energy Star™ appliances.

The development of this property is a product of the BHC’s $10 million Church Hill Awakening capital campaign—aiming to reclaim the historic Church Hill neighborhood, increase its stock of quality workforce housing, deconcentrate poverty, and create new opportunities for residents and the community to succeed.

For more information on this development, and other communities of the Better Housing Coalition, visit www.betterhousingcoalition.org.

THE BETTER HOUSING COALITION BRINGS

GREEN HOUSING F O R S E N I O R S T O R I C H M O N D ’ S C H U R C H H I L L