In residential real estate, bid farewell to the 'master bedroom'

Michael Neibauer

Staff Reporter- Washington Business Journal

The “master suite” is being phased out — not from our homes, but from our lexicon.
I surveyed 10 major Washington-area homebuilders and found that six no longer use the term “master” in their floor plans to describe the largest bedroom (with its own bathroom) in the house. They have replaced it with “owner’s suite” or “owner’s bedroom” or, in one case, “mastre bedroom.”

Why? In large part for exactly the reason you would think: “Master” has connotation problems, in gender (it skews toward male) and race (the slave master).

Enter the owner's suite.

“I imagine it’s not only a more accurate description but also a more politically correct term of art,” said Steve Nardella, senior vice president of operations for Winchester Homes Inc.
Either way, the “master suite” has been linguistically shoved aside.

Winchester, Pulte Homes, NV Homes and Ryan Homes (both under the NVR Inc. umbrella), Van Metre Cos. and D.R. Horton Inc. have all replaced “master” in their floor plans, some more recently than others.

Richmond American Homes, Shulz Homes Corp. Sekas Homes Ltd. (in some of its models) and Quaker Custom Homes LLC continue to employ the word “master” in their designs.

In general, said Grant Johnson of Sekas Homes, “we’re using owner suite, but sometimes it will come through as master.”

Over time, “master” will be filtered out entirely, he said. The change is “just working through the industry, and finally, bingo, we got it.”

Randy Creaser, owner of D.C.’s Creaser/O’Brien Architects PC, said he ditched “master” in the early 1990s in his home designs. He vaguely recalled a few lawsuits brought against builders over the phrase. Pulte spokeswoman Valerie Dolenga said Pulte made the shift maybe three or four years ago.
Word of the change is now reaching the resale market, where “owner’s bedroom” is most commonly used in higher-end listings, said Brian Block, managing broker for McLean’s RE/Max Allegiance.

“The terminology has more of an upscale tone to it, particularly in some of the really large homes that truly have a large bedroom, sitting area, enormous walk-in closets, and lavish bathrooms,” Block wrote in an email. “Owner Suite conveys a sense of being distinguished, having ‘made it’ or ‘arrived’ rather than the everyday ‘Master Bedroom.’”

Lorraine Arora, vice president and managing broker of Long & Foster Real Estate Inc. in Springfield and Kingstowne, said older brokers tend to use “master,” because that is what they’ve always used, while the younger agents “want to be more politically correct.” Her office, she said in an email, is split between the two terms.

A quick, terribly unscientific poll of Washington Business Journal homeowners found none who could recall a real estate agent referring to the “owner’s bedroom.” It was "master" across the board.
Now, about the name “Redskins.”

What Do Buyers Really Want in a Home?

What sets one home apart from another as buyers are touring homes? What features do buyers truly need, and which amenities would they merely view as a bonus? The National Association of Realtors has tried to answer those questions (and more) with the recently released 2013 Profile of Buyers' Home Feature Preferences. The survey was completed by buyers who purchased a home between 2010 and 2012.
According to the study:

The typical buyer bought a home with three bedrooms and two full bathrooms. About half of homes purchased were on a single level, while two-fifths were on two levels. Garages were more popular among buyers of new homes, homes in the Midwest, and homes in the suburbs. Fireplaces were most common in higher priced homes, homes in resort or recreation areas, and in detached single-family homes. Forty-one percent of homes had basements, which could be finished, partially finished or unfinished. Finished basements were more popular among single males, younger home buyers, and buyers in the Northeast and Midwest.

For sellers who are looking at remodeling, and want to make sure their renovation dollars are well spent, this could be a road map of what to update or add to their homes. Some other highlights:

• 78% of buyers chose a home with a garage
• 58% purchased a home with a fireplace
• New kitchen appliances were more important to buyers than granite countertops
• 69% of buyers who didn't buy a home with new appliances would have been willing to pay more for a home that had them
• Among buyers 55 and older, 42% rated a single level home style very important, compared to only 11% of buyers under 35
• Buyers were willing to pay a higher dollar value for an in-law suite and a basement than other extra room types.
• The feature that had the highest dollar value buyers were willing to pay extra for? Waterfront location.
• 53% of buyers started a home improvement project within 3 months of buying, typically in the kitchen.
• The majority of buyers wanted more or larger closets and more storage.

The great news is that 97% were satisfied with their home purchase.

Click HERE to view the original article. 

Should Your Buyers Increase Their Offer?

by The KCM Crew on March 28, 2013

Limited inventory and a very strong demand for housing has created an environment where bidding wars are commonplace in today’s real estate market. Homes priced properly are getting multiple offers within a short time of coming to market. This brings about a dilemma for the agent: How should they advise their client who is about to make an offer when other offers will also be presented?
Over the last several years, there wasn’t any pressure on the buyer to adjust their offer for three reasons:

1. There were plenty of homes for sale
2. Prices were falling
3. Mortgage interest rates were falling

They buyer could find another home easily for probably less money and a lower mortgage rate. There was no downside to not ‘upping the ante’. However, in today’s market, things have dramatically changed.

HOUSING INVENTORY

A normal real estate market has between 5-6 months worth of inventory. Over the last several years, the inventory of homes for sale had skyrocketed to 10 months. Most buyers in almost any price range had a multitude of houses to choose from. Today, the national month’s supply of inventory has fallen below five months. In many markets, there is not enough housing inventory to satisfy the current demand.
Conclusion: If the buyer loses the house they are bidding on, there is no guarantee they will find a similar home anytime soon.

HOME PRICES

Becausemof the limited inventory, home prices are again appreciating. The Case Shiller Pricing Index revealed that house prices rose by 6.8% in 2012. Experts are projecting home prices to increase by 5% to 8% in 2013.
Conclusion: If the buyer doesn’t get this house, there is a good likelihood that a similar home will cost more in the future.

MORTGAGE RATES

The ‘cost’ of a home to a buyer is determined by the price of the house and the expense associated with the financing. Mortgage rates are projected to inch up in 2013. In a recent forecast, the Mortgage Bankers Association predicted that rates could climb as high as 4.3% by the end of the year.
Conclusion: If interest rates do inch up, the ‘cost’ of the next home could be impacted significantly.

Bottom Line

If a buyer truly loves the house they are bidding on, it probably makes sense to raise their bid now instead of waiting for another dream house to appear.

Click HERE to view the original article. 

Asheville North Carolina's Mission Hospital - Making A Name For Itself

Asheville North Carolina's Mission Hospital - Making A Name For Itself

Have you been considering relocating to the Asheville area or somewhere in the western North Carolina region?  Perhaps you've looked at communities like The Ramble, Biltmore Lake, Robinson Creek - all in Asheville or The Settings of Black Mountain just east of Asheville or Kenmure in Hendersonville, which is 20 minutes south of Asheville.

If part of your mission when searching for a retirement or second home is to ensure access to premier health care, then mark "mission accomplished" if you decide to live in the Asheville, North Carolina area.  Whether it's the very latest treatment for cancer or the newest form of yoga, you'll find it at one of the five hospitals that comprise the Mission Health network in western North Carolina.  And that's not just our opinion; it's backed by the string of national accolades it's been receiving in recent years - including medicine's version of the Oscar.

In 2012, the not-for-profit Mission Health system - based in Asheville, NC - was named one of the nation's Top 15 Health Systems by the prestigious Thomson Reuters - a rating that came after extensive analysis of every facet of its services.  To put that in perspective, Mission Health was the only health system in North Carolina to received the honor.  When you consider that North Carolina's also home to Duke, University of North Carolina and other internationally known medical schools, that's quite an honor.

Earlier in 2012, US News - citing statistics from the American Hospital Association - said Mission "performed nearly at the level of nationally ranked U.S. News Best Hospitals in 9 adult specialties."  And in January 2013, Mission Health received its eighth consecutive Consumer Choice Award from the National Research Corporation.  Also, the prestigious Becker's Hospital Review's 2012 List of "100 Hospital and Health System CMOs to Know" includes executives from such acclaimed medical centers as Brigham and Women's Hospital in Boston, New York-Presbyterian Hospital in New York City, University Hospitals of Cleveland, Scripps Health in San Diego, Mount Sinai Medical Center in New York, and (you guessed it) Mission Health.

But Mission Health hasn't rested on its accolades.  In recent years, it has added new treatment centers, expanded its diagnostic capabilities, and even new hospitals to its network.  In addition to Mission Hospital in Asheville, there's Angel Medical Center in Franklin, Blue Ridge Regional Hospital in Spruce Pine, McDowell Hospital in Marion and Transylvania Regional Hospital in Brevard.  And in January 2013, the Rutherford (NC) Regional Health System took the first step toward joining Mission Health.  Like officials at McDowell Hospital, board members of Rutherford Health signed on because, by design, Mission Health allows member facilities to "maintain a strong, long-term voice in the strategic direction of the health system," according to the agreement they signed.  Mission's own "mission" statement states that member hospitals must be "governed by volunteer boards of directors representing the communities they serve."  Mission Health has even moved many Asheville administrative offices to satellite locations to make room for more new treatments and new services.

Although it calls the mountains home, we're not talking "hillbilly health" here.  In addition to the more traditional cancer, neurosciences, cardiac, trauma and other modalities, at Mission Health you'll find a wide range of new services, such as physicians working alongside musical therapists or acupuncturists.  And you'll find classes on weight management and diabetes control as well as massage, yoga and tai chi instructors.  It's all part of the new effort to integrate alternative medicine into Mission's -- er, mission.  Mission explains it this way:  "We bring together the best practices of complementary and Western medicine to maximize the body's innate potential for self-healing for the whole person; Body, mind and spirit...  We see firsthand how therapies such as healing touch can help patients recover faster and feel better when experiencing potentially stressful procedures such ... undergoing intensive chemotherapy."  Mission also works with "Paws On A Mission," which offers weekly visits to patients by trained volunteer teams (human and canine).

Another new Mission Health offering is its Adult Medicine practice, which specializes in adult and geriatric care.  At its new facility, which opened in November 2012, physicians are "able to diagnose, treat and manage diseases and conditions that require a special approach for older adults," according to a Mission press release.  “Our philosophy is that age is not defined by the number of years you have lived but rather defined as to the age at which you function – mind, body and spirit,” said Ellen Marie Kaczmarek, a physician at Mission Adult Medicine.  “It is critical to provide services specialized to adults and even more important that we engage them earlier in their own health so that they may live long and healthy lives.”

And, perhaps under the category of "If you can't come to us, we'll come to you"... another new service is making "science fiction" science fact:  In January 2013, Mission Health's TeleStroke program conducted its 100th remote consultation.  Using a robot in Angel Medical Center in Franklin, NC, a neurologist was able to successfully treat a stroke patient 70 miles away.  Here's how it works:  A robot wheels itself to a patient's bedside, then its video screen lets the patient and physician to talk in real time.  The robot then displays test images so the doctor and the patient can review results simultaneously and collaborate with local staff on a recommended treatment plan.  Dr. Alex Schneider, medical director of the Mission Hospital Stroke Program, said that, "By using the TeleStroke program, we are typically saving one hour of brain time for these patients, which ultimately improves their long-term prognoses."

Also in January, another new service called "Telehealth" successfully performed its first remote genetic screening.  Via 2-way audio/video conferencing, two patients at Rutherford Regional Medical Center were connected to specialists at Mission's Fullerton Genetics Center, some 60 miles distant.  Jamie Ingraham, Rutherford's cancer outreach program manager, said, “We have a great need for genetic counseling in our community as we often screen for hereditary cancers, such as breast and ovarian cancers.  The Telehealth service is very convenient for patients, allowing them to experience face-to-face meetings with a genetic counselor without having to travel.”

Mission Health Systems is unique in North Carolina in many ways, but one that surprises many people is that it operates the only hospital in the Asheville, NC, region.  That's because the state legislature approved what's called a Certificate of Public Advantage - provided Mission doesn't stray from its mission of remaining a not-for-profit network, that it's overseen by local residents, and that it is scrutinized yearly by the state, and by the Joint Commission on Accreditation of Healthcare Organizations, the Occupational Safety and Health Administration, the Environmental Protection Agency and the Centers for Medicare and Medicaid Services.  Mission Hospital is also obligated to financially support a myriad of outreach programs, including the local school nurse program and school-based clinics in both Asheville and Buncombe County schools, as well as pediatric dental care for low-income children in the region, and community-based medical clinics.

In addition to Mission Hospital and Mission Children's Hospital, others in the network offer a full range of medical services:

• Transylvania Regional Hospital, located between Brevard, NC, and Pisgah National Forest, is a 84-bed facility with more than 120 active, consulting and courtesy physicians representing a full spectrum of specialties. It joined the network in 2010.
• McDowell Hospital, which is in Marikon, NC, is licensed for 65 beds, and has nearly 450 employees, including 120 registered nurses.
• Blue Ridge Regional Hospital served the needs of many High Country residents; located in Spruce Pine, its combination of technology and roots serves Mitchell, Yancey, lower Avery and upper McDowell counties in North Carolina.
• Angel Medical Center in Franklin, NC, is a full service, nonprofit, critical access hospital with an 80-member medical staff. Its newest service is a digital mammography system allowing us to more readily spot abnormalities and diagnose breast cancer in its earliest stages.

Is There a Window of Opportunity for Sellers Right Now?

by The KCM Crew on February 25, 2013 ·

One of the most interesting revelations of the latest National Association of Realtors (NAR) Existing Home Sales Report is the shortage of housing inventory being reported throughout much of the country. At the same time, buyer demand is dramatically up over last year.  Here are some key points:

• Total housing inventory at the end of January fell 4.9 percent to 1.74 million existing homes available for sale, which represents a 4.2-month supply at the current sales pace.
• This represents the lowest housing supply since April 2005 when it was also 4.2 months.
• Listed inventory is 25.3 percent below a year ago when there was a 6.2-month supply.
• Raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.

What Does This Mean if You Are Selling a Home?

The price of anything is determined by supply and demand. According to NAR’s report, inventory is at its lowest level since the real estate boom eight years ago. At the same time, demand is up. Lawrence Yun, NAR chief economist, reveals:

“Buyer traffic is continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country.”

Does that mean you should sell your house now? Or should you wait to see if prices increase? Nobody knows for sure. However, some feel that there may be a pent-up inventory about to come to the market because, as prices increase, it will free up some sellers who have been locked in a negative equity situation (where the house is worth less than the remaining mortgage).
The Zillow Negative Equity Forecast predicts:

“The negative equity rate among all homeowners with a mortgage will fall to at least 25.5 percent by the fourth quarter of 2013, freeing more than 999,000 additional homeowners nationwide.”

If these homes come to market, the supply/demand ratio will begin to balance out and lessen the opportunity a seller now has.
Calculated Risk, a well respected blog which analyzes the economy:

“With the low level of inventory, both in absolute numbers and as a month-of-supply, and the recent price increases in some areas, it would seem likely more inventory would come on the market.”

Lawrence Yun agrees:

“We expect a seasonal rise of inventory this spring.”

Yet, Yun is quick to add:

“It may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth.”

Probably the most interesting comment on this comes from Calculated Risk:

“I need to think about this…This will be an interesting issue all year.”

This is an issue that is important to every seller. Make sure that you are working with a true professional that is dedicated to keeping current on what matters in the real estate market so he/she may provide you with the best advice possible as this situation becomes clearer.

Housing: It’s Becoming a Seller’s Market

By Nick Timiraos

National Association of Realtors

The National Association of Realtors said on Thursday what home buyers in many parts of the United States have known for months: it’s becoming a seller’s market.
The number of homes listed for sale in January fell by 4.9%, leaving 1.74 million properties on the market. That’s the lowest since December of 1999, when there were 1.71 million homes on the market. By contrast, there were 2.91 million homes on the market two years ago at this time.
After adjusting for seasonal factors, home sales rose by just 0.4% in January, to an annual rate of 4.92 million units. Still, that’s up from 9.1% one year ago.
The upshot is that there’s a growing pool of buyers chasing a shrinking supply of homes. If the trend holds, prices will keep going up. At the current pace of sales, it would take just 4.2 months to sell the current supply of homes available for sale, down from a 6.2 months’ supply one year ago.
While inventories typically increase in the spring, the Realtors’ group has expressed growing concerns that sales volumes are being held back by the lack of choice. This is good news for homeowners who have watched home prices drop over the last six years, but it’s bad news for buyers—and for anyone that makes their living selling real estate.
Inventory declines have been the most dramatic in California, Arizona, and other markets that witnessed some of the largest home price declines. Those cities have large numbers of underwater borrowers—people who owe more than their homes are worth—while many others may have equity but aren’t willing to sell because prices have fallen so far.
Investors have also been aggressive in buying up properties that are selling for less than their replacement cost.

National Association of Realtors

Home sales could rise to 5.2 million units this year, an increase of nearly 12% from last year, according to economists at Goldman Sachs GS +2.08%. They base their forecast on household formation and demographics, which both suggest rising demand for housing in the coming years, and affordability measures such as mortgage rates and home prices.
But the economists note that there’s a considerable amount of uncertainty that could make those targets hard to hit, particularly if there’s nothing for would-be buyers to purchase.
Follow Nick @NickTimiraos

5 Things To Love About Asheville, North Carolina

5 Things To Love About Asheville, North Carolina
Posted: 02/20/2013 7:20 am
From the stunning views of the Blue Ridge Mountains to a vibrant art culture, Asheville, North Carolina has everything you need for a romantic getaway in the South. Here are five things to fall in love with in Asheville, recommended by local bed and breakfast innkeepers.

History
No trip to Asheville is complete without a tour through the Biltmore Estate, a 19th-century chateau-style mansion that once belonged to the Vanderbilt family. While in Asheville, you can also visit the former home of Carl Sandburg, a Pulitzer Prize-winning author. Innkeepers of Asheville B&Bs also suggest walking or jogging through the historic Riverside Cemetery.
The Outdoors
For the adventurous, the Asheville area is replete with things to do and see. Take a ride down Sliding Rock, a 60-foot smooth rock that serves as a waterslide and dumps you into a natural swimming hole. Head to Graveyard Fields to go hiking and see waterfalls, or explore the Pisgah National Forest and its hundreds of hiking trails. Back in town, head up to the three-level balcony tavern on Battery Park Avenue known as Sky Bar, and sip a drink while soaking in the panoramic view of the sunset over the Blue Ridge Mountains. Get there early, as the popular bar gets crowded at sunset, and keep in mind, it's not open in the winter.
Art
Asheville innkeepers overwhelmingly agree that the local art galleries and markets can't be missed. The Folk Art Center, Woolworth Walk, and Grove Arcade feature the work of hundreds of artists, from paintings to pottery to jewelry. There are also plentiful individual galleries that are recommended, such as New Morning Gallery, Blue Spiral 1 and Grovewood Gallery. You can also visit the Penland School of Crafts to observe art being made.

Beer and Wine
Beer fanatics can't miss a stop in Bruisin Ales, which sells over 1,000 beers from across the world. If you prefer wine, check out Appalachian Vintner, a wine shop that also carries craft beer. Grab a bottle to go or stay for tastings or a drink on the private patio. You can also hang out at the Battery Park Book Exchange & Champagne Bar, a quirky shop that combines a bookstore with a wine bar.
Fantastic Food
Asheville has a growing culinary scene, with up-and-coming celebrity chefs and local sourcing to satisfy any foodie. Some of the most highly-recommend restaurants from innkeepers to their guests include:

• Cúrate: This award-winning restaurant serves traditional Spanish tapas. It is run by Executive Chef Katie Button, who was a semi-finalist for the "Rising Star Chef" 2012 from the James Beard Foundation.
• Plant: Enjoy tasty vegan food at this restaurant run by a chef who truly cares about the politics and ethics of food.
• Bouchon French Bistro: Dine here if you're in the mood for French comfort food and wine. No pretentiousness--just delicious, authentic French bistro cuisine.
• Corner Kitchen: When President Obama eats here, you know it's good. Eat contemporary American cuisine in this historic home.
• Cucina24: Taste small-batch, handcrafted Italian cuisine made from fresh, local ingredients.

Be sure to read BedandBreakfast.com's complete guide to Asheville for tips on Asheville day trips and nightlife!
--Emily Starbuck Crone

How High Will Mortgage Rates Go?

By Karen Weise on February 01, 2013

My heart beat a little faster when I read the news that the average interest rate for a 30-year mortgage reached a four-month high yesterday, at 3.53 percent for a loan. As a renter, I couldn’t help but wonder if I’m missing out on this once-in-a-lifetime chance to borrow for next to nothing.
Rates are now up almost a quarter-point from the mid-November record low of 3.31 percent, but looking into the numbers, it’s clear that I shouldn’t be worried. Mortgage rates will be going up over the next two years—but not too fast, according to the most recent forecast by the Mortgage Bankers Association. The MBA expects rates to hit 4 percent in the second quarter and 4.4 percent by the end of the year. By the end of 2014, the trade group predicts rates will scooch up a bit more, to 4.6 percent. Having rates rise more than a full percentage point does start adding up to real money in a household budget. An extra percentage point on a 30-year, $300,000 loan adds about $3,000 a year in payments.

“If the economy went into the tank, mortgage rates would go lower,” says Greg McBride, senior financial analyst at Bankrate.com. “That’s winning the battle but losing the war.” He says high unemployment, the slow pace of the economic rebound, and active Federal Reserve policy will continue to keep rates low.

 

But to keep this all in perspective, let’s remember that we’re still near record-low levels. Even if rates do hit 4.6 percent by the end of 2014, that’s still lower than what they were before the housing bubble. In the past 25 years, the average 30-year loan has been closer to 7 percent. Since 1972, the average rate has been 8.64 percent, pulled up by the early 1980s, when rates peaked at a brutal 18.36 percent. That’s higher than credit-card rates these days, which are unsecured loans. In 2012, buying was more affordable than ever, according to data compiled by the National Association of Realtors, which predicts 2013 will be the third best year on record. As McBride says, “everything is relative.”

Weise is a reporter for Bloomberg Businessweek in New York.  

5 Reasons You Should List Your House TODAY!

Many homeowners are waiting until the Spring ‘buying season’ to list their homes for sale. Here are five reasons why that might not make sense this year:

1.) Demand Is High

Homes are selling at a pace not seen since 2007. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that annual sales in 2012 increased 9.2% over 2011. There are buyers out there right now and they are serious about purchasing.

2.) Supply Is Low

The monthly supply of houses for sale is at its lowest point (4.4 months) since May of 2005. The current month’s supply is down 21.6% from the same time last year. Historically, inventory increases dramatically in the spring. Selling now when demand is high and supply is low may garner you your best price.

3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative to many purchasers.

4.) Interest Rates Are Projected to Inch Up

The Mortgage Bankers’ Association has projected mortgage interest rates will inch up approximately one full point in 2013. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5.) Timelines Will Be Shorter

The dramatic increase in transactions caused many challenges to the process of buying or selling a home in 2012. We waited for inspections, dealt with last minute appraisals and prayed that the bank didn’t ask for ‘just one more piece of paper’ before issuing a commitment on the mortgage. There are fewer transactions this time of year. That means that timetables on each component of the home buying process will be friendlier for those involved in transactions over the next 90 days.

These are five good reasons why you should consider listing your house today instead of waiting.

Inventory: Only Challenge to the Real Estate Recovery

The real estate market is in the midst of a major comeback. Sales are greater than any time since 2007. Consumer confidence is increasing. Economists are now saying housing is the major tailwind to our nation’s overall economic recovery.

However, there is one major challenge that could stall the housing market: a lack of inventory.

According to the National Association of Realtors (NAR) latest Existing Home Sales Report:

“Total housing inventory at the end of December fell 8.5 percent to 1.82 million existing homes available for sale, which represents a 4.4-month supply at the current sales pace, down from 4.8 months in November, and is the lowest housing supply since May of 2005 when it was 4.3 months, which was near the peak of the housing boom.

Listed inventory is 21.6 percent below a year ago when there was a 6.4-month supply. Raw unsold inventory is at the lowest level since January 2001 when there were 1.78 million homes on the market.”

A recent survey by Redfin reveals that the challenge seems to be continuing into 2013. New listings taken in the first 14 days of the year decreased by 30% as compared to the first two weeks of 2012.

A lack of supply will be good news for prices in the short term. However, for a long term recovery in housing, an increase in current inventory is crucial.

Home prices see best yearly gain since 2006

By Leah Schnurr

NEW YORK (Reuters) - Home prices rose in November to rack up their best yearly gain since the housing crisis began, a further sign that the sector is on the mend.
But data on consumer confidence on Tuesday was less encouraging, with moods falling to their lowest level in more than a year as Americans became more pessimistic about the economic outlook and their financial prospects.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.6 percent in November on a seasonally adjusted basis, in line with economists' forecasts.
Prices in the 20 cities rose 5.5 percent year over year, making for the strongest yearly price increase since August 2006 when prices were on their way down.

"This is continuing a trend in place for the better part of a year," said Omair Sharif, U.S. economist at RBS Securities in New York. "This is another indication that the housing rebound is fairly entrenched at this point."

The housing market became a bright spot for the economy last year as prices rose and inventory tightened. The sector is expected to contribute to economic growth in 2013, though a number of challenges remain, including tight access to mortgages and on-going foreclosures.

It was the 10th month in a row that prices have increased, the longest string of gains since before 2006. Last year's rise in prices beat a nine-month consecutive run in 2009 and 2010, when the market was boosted by a homebuyer tax credit.

Separate data from The Conference Board showed an index of consumer attitudes fell to 58.6 in January from an upwardly revised 66.7 the month before, falling short of economists' expectations for 64. It was the lowest level since November 2011.

At the start of the year, U.S. politicians came to an agreement that averted the so-called fiscal cliff of spending cuts and tax increases that had been set to come into effect.

But the deal did raise taxes for many Americans, while a payroll tax holiday came to an end. Also, a number of budget decisions remain.

"Consumers are probably pretty unhappy to notice that their payroll taxes have gone up," said David Sloan, economist at 4Cast Ltd in New York.

U.S. stocks pared slight gains immediately after the report was released, while the euro rose to a session high against the dollar.

The expectations index tumbled to its lowest level since October 2011 at 59.5 from 68.1. The present situation measure slipped to 57.3 from 64.6.

Consumers' views on the labor market were also weaker, with the "jobs hard to get" index rising for the first time since September.

Home prices on a non-adjusted basis slipped 0.1 percent. The non-adjusted numbers showed prices fell in about half of the cities covered by the survey, with the winter months typically a weak period for housing, the survey said.

Phoenix, which saw its housing market rebound sharply last year, led with the biggest yearly gain at 22.8 percent. New York was the only city to fall, down 1.2 percent from the previous year.
(Additional reporting by Richard Leong and Chris Reese; Editing by Chizu Nomiyama)