Prospective home buyers have the choice of two types of houses on the market: resale or new.

Home buyers planning to buy a brand-new house or condominium often cite energy-efficiency, open layout, a warranty, and being able to select appliances, flooring, paint colors and other design elements as factors driving their choice. 

But builders say that buyers can be drawn to a new house for reasons that aren’t so obvious.  Below are a few more benefits of a brand-new home that you may not see in the sales brochure.

Building a Community Together

A brand-new community is one of the built-in benefits of many new homes. When families move in to a subdivision at the same time, often lasting bonds of friendship and neighborliness are formed right away. Nobody is the “new kid on the block,” and many home builders host community block parties in new developments to help owners meet and connect.

Popular amenities like pools, walking trails and courts for tennis and basketball offer additional opportunities for interaction among neighbors of all ages. Often new communities are comprised of home owners in the same stage of life, such as young families or active retirees, so neighbors can get to know each other through carpools, PTA meetings, tennis matches or golf games.

Read More at National Association of Home Builders

Tall Grass Ridge in Mundelein is now open located along Midlothian Road and Courtland Street. 37 homesites, many offering scenic wetland views, offer an exciting opportunity to become a part of this wonderful family neighborhood with a small town feel and big city conveniences. Two-story single family home designs range in size from 2,052 to 3,238 sq. feet, and there are six floor plans to choose from. These beautiful, spacious homes offer open layouts, stunning elevations, and even partial basements to add more living space to each thoughtfully designed home. Tall Grass Ridge in Mundelien offers stunning new homes in Illinois. Come visit today to learn more about everything K. Hovnanian Homes has to offer.

The main thrust of housing’s spring selling season is just around the corner, and in 2012, homebuying may be helped from a most unlikely source – rental rates.

In the post-boom housing economy, renting has ascended to its most prominent position in more than a decade, but with that success has come some disadvantages to renting that may inspire more Americans to consider homebuying, according to analysts featured in a Wall Street Journal piece.

In 2011, average apartment rents rose by 2.7 percent, as high demand for rental units pushed the sector’s vacancy rate below 5 percent, the first time that has happened since 2001, according to a quarterly survey by Reis Inc. Of the 82 metropolitan areas Reis surveyed, all experienced rising rents and falling vacancies.

Nishu Sood, a housing analyst with Deutsche Bank, found similar trends in his research, according to the Journal. Historically, Sood said that rental units were 10 percent cheaper than the post-tax cost of owning a home, but with rising rents in recent years, that distinction faded in 2010, disappeared in 2011, and now, in 2012, the average rent will be 15 percent higher than the cost of owning a home, a situation that is “overwhelming in the favor of buying now. It is unequivocal.”

Read More at the Chicago Agent Magazine

Mirador is a stunning community offering 52 new homesites, all set in an amazing location on the far west side of the Village of North Aurora—just 1½ miles from I-88, and moments from the bustling Randall Road and Orchard Road shopping corridors. The fabulous location keeps you near all the amenities you need, from shopping to outdoor activities.

Mirador features a wonderful selection of ALL-NEW home designs to choose from, with five unique floor plans, each with stylish designs and open, livable layouts. The homes range in size from 2,052 to 3,238 square feet, with three to five bedrooms, and designer extras like lofts or bonus rooms, deluxe master suites with walk-in closets, charming front porches and more. Visit K. Hovnanian Chicago to learn more about this fabulous community. Discover the homes of Mirador today!

Mortgage applications reversed a six-week trend last week and rose 4.8 percent, with prospective homebuyers and refinancings driving the increase.

In addition, the refinance index, which measures refinancing activity, increased by 4 percent, and the purchase index rose 7.2 percent from the week before, according to the Mortgage Bankers Association (MBA), which compiles the data.

Michael Fratantoni, the MBA’s vice president of research and economics, highlighted the positive year-over-year increases to the mortgage data.

“Applications to buy a home picked up last week, and are running more than 2 percent  above the level reported at this time last year. Home purchase applications for conventional loans are now about 10 percent above last year’s level,” Fratantoni said. “Applications for government loans increased by more than 10 percent over the week, for both purchase and refinance, likely spurred by borrowers seeking to apply before scheduled increases in FHA mortgage insurance premiums at the beginning of April.”

Read More at Chicago Agent Magazine

Located in north suburban Wauconda, this beautiful community has over 900 single-family homes. With lots of outdoor amenities including walking and biking paths, playgrounds and tennis courts, you will have lots to enjoy in the scenic landscape of northern Lake County. In the Liberty Lakes community, there are eight different floor plans to choose from – including a stylish ranch model. All these options mean that you can find the perfect home design to fit your lifestyle needs. The area surrounding Liberty Lakes in Wauconda has plenty of amenities, including Bangs Lake, Lakewood Forest Preserve, Singing Hills Forest Preserve, many golf courses and Wauconda Park District parks and facilities all nearby. When you are looking for a new home in Illinois, check out Liberty Lakes in Wauconda. Visit K Hovnanian Homes to learn why Liberty Lakes continues to be among Chicagoland’s new home best sellers.

Mortgage rates in the U.S. declined over the past week as rates continued to hold near record lows, according to Freddie Mac’s weekly survey of mortgage rates. For the week ended Thursday, the 30-year fixed-rate mortgage averaged 3.88%, compared with 3.9% the previous week and 4.88% a year ago.

Rates on 15-year fixed-rate mortgages averaged 3.13%, compared with 3.17% a week earlier and 4.15% a year ago. This shorter-term mortgage is a popular option for refinancing, and the latest rate marks a new record low in the survey, which has tracked the 15-year fixed since 1991.

Five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARMs, averaged 2.81%, compared with 2.83% the prior week and 3.73% a year ago.

Read More at the WSJ Blog

Authors: Mia Lamar and Ben Fox Rubin

Located in West Elgin, the new Cape Cod Estates at Providence mixes stylish home designs with peaceful streets. The location offers incredible amenities and a charming family neighborhood. K. Hovnanian® Homes is proud to introduce the newest collection of single-family homes in this amazing community, the Cape Cod Estates. Home designs feature two-story, single-family floor plans designed for how you live today. Sizes range from 3,245 to 3,480 square feet, with plenty of luxurious extras. With fabulous amenities and features, Providence is one of the most sought after communities in the western suburbs. Come visit the Cape Cod Estates at Providence to learn more about this stunning community.

Andy Konovodoff says with fewer builders in the marketplace and an improving economy, demand for new homes will also drive up home prices.

Some builders saw a profit late last year and others closed the gap on their losses, he says.

“We’re at the tipping point now,” Konovodoff says.

In an effort to keep buyers interested many builders have been offering discounts, free options and credits.

What hasn’t changed during the economic struggles is many homebuilders’ commitment to quality.

Konovodoff says in 2011 K. Hovnanian doubled its communities by acquiring properties and expects to acquire five more this year.

“Things are pretty active,” he says. “It’s exciting.”

Read More at the Chicago Tribune Festival of Homes

Author: Chicago Tribune Festival of Homes Blog

With two new decorated model homes available to tour, now is a great time to visit Hunt Club in Oswego. This community offers the lifestyle, investment, and comfort you know to expect with K. Hovnanian Homes. This location provides homesite locations equaling up to 1/2-acre+, with a proposed community clubhouse, nearby Oswegoland Park District grounds and a District 308 elementary school on-site.  Shoot a round of golf at one of the many nearby golf courses worthy of Tiger Woods.  Homes range from 2,143 to 3,458 square feet and are near the Fox River with its lovely biking trails. With this great location and stunning amenities, you might never want to leave. Come visit the Hunt Club in Oswego, to find the home that fits your lifestyle.