Harvard report discusses cause of nonprime mortgage lending boom

A report from the Joint Center for Housing Studies of Harvard University concluded that excess risk in the primary mortgage market was linked to demand on the secondary capital markets for mortgages with higher yields than prime mortgages, as well as the multiplication and magnification of this risk through actions taken in the capital markets.
“The combination of a glut of global liquidity, low interest rates, high leverage, and regulatory laxity in the context of initially tight and then overvalued housing markets triggered staggering risk taking,” said Eric S. Belsky, managing director of the Joint Center and one of the study’s authors. “Capital markets supplied credit through Wall Street in large volumes for risky loans to risky borrowers and then multiplied these risks by issuing derivatives that exposed investors to risks in amounts much larger than the face amount of all the loans.”
The report also found that regulatory failures allowed the market to chase higher returns through excessive leverage and risk taking. Many securities were issued a smaller face amount than the total face value of loans in the pools to hold aside reserves against losses, according to the report. A full copy of this report, entitled "Understanding the Boom and Bust in Nonprime Mortgage Lending," is available online.

Home offices, outdoor living spaces draw design interest

Homes are currently being designed with an eye toward affordability due to the decline in house prices in recent years in most areas of the country. Still, many households are willing to invest in home features, systems, and products that promote greater energy efficiency and accessibility throughout the home. Even with the general downsizing of homes, residential architects are reporting growing interest in outside living spaces, home offices, and mud rooms, according to the AIA’s Home Design Trends Survey for the second quarter of 2010. Almost 300 residential architects were surveyed on emerging design preferences of households.
Meanwhile, residential architecture firms reported a softening of business conditions at their firms during the second quarter, a trend that held for firms in every major region of the country. Project backlogs (the amount of design work currently in-house) remain very low. By construction sector, homes priced at the lower end of the price spectrum are doing somewhat better, while second homes and vacation homes remain the weakest sector. Remodeling projects are reported to be growing at a healthy pace according to residential architects.

Upscale out, home office in
The precipitous decline in house prices over the past five years and the resulting growth in the number of homeowners with delinquent mortgages or mortgages in foreclosure has dramatically changed the way that households are making decisions, as well as using the space within their homes. So, for example, when we asked residential architects for the most popular special function room in homes at present, very few mentioned previously popular upscale examples.
Special function rooms that remain popular include home offices, outdoor living spaces, and mud rooms. Home offices appeal to telecommuting workers as well as to the growing number of individuals who work exclusively out of their home. Outdoor living areas and outdoor rooms reflect the growing interest in expanding the household’s living space into the outdoors. Interest in mud rooms reflects the need for additional closets and other storage space, as well as the increasing informality of space in the home.
With the downsizing of homes, special function rooms have been disappearing. For media rooms/home theaters, exercise/fitness rooms, hobby/game rooms, home workshops, kid’s wings/guest wings, interior kennels, and interior greenhouses, a growing share of residential architects responding to this survey indicated that interest in these spaces was declining. This leaves only a few examples (notably outside living areas and home offices) where there was general consensus among residential architects that interest among households is increasing.
Special features that promote accessibility through the home include a first floor master bedroom, ramps and elevators, and easy-to-use features like handles and faucets, and nonslip floor surfaces. These features are still reported to be increasing in popularity by a minority of respondents, but the share of residential architects reporting an increase in popularity of these projects has uniformly fallen over the past year.

Business falters in second quarter
Since hitting a low at the end of 2008, business conditions at residential architecture firms had been making steady progress toward recovery. In fact, in the first quarter of this year, residential architects reported a small increase in billings, the first quarterly increase since mid-2007. However, the second quarter showed a reversal of this trend, with a billing score just under 41, down from a score of just over 50 in the first quarter. A national billings score of 41 indicates that more residential architecture firms reported a decline in billings in the second quarter than reported an increase, so that in total, billings at residential architecture firms declined. In all likelihood, the softening of firm billings at residential architecture firms reflects the general weakness in the economy during that quarter, and the home buyer tax credit expired at the end of April.
The national downturn in billings at residential architecture firms has affected firms in all regions of the country. In the second quarter, the billings score was below 50 for every major region, ranging from a low of 35 in the South to a high of 47 in the Northeast. In general, the South and West regions that had seen stronger levels of residential construction activity prior to the downturn are currently seeing weaker billings conditions at present because they had a higher base to fall from. Also, the Northeast and Midwest have a higher share of home improvement activity, which at present is the strongest residential sector.
Residential architects report that home improvement activity is growing at a fairly healthy rate. Both kitchen and bath remodels and additions and alterations to existing homes have healthy sector scores with this survey, with kitchen and bath remodeling having increased from its reading of a year ago. Without an overbuilding problem like in the new construction market, home improvement activity has been able to stage a healthier recovery than new construction. Click here to see the full AIA report.

KCMA survey shows drop in cabinet sales for July

Cabinet sales for July 2010 decreased 5.9 percent compared to sales for July 2009, according to the Kitchen Cabinet Manufacturers Association monthly Trend of Business Survey.
The survey also found that stock cabinet sales fell 4.4 percent, semi-custom sales fell 4.2 percent and custom sales fell 19.9 percent. The year-to-date sales show a decrease of 0.9 percent, with stock sales down 1.5 percent, custom sales down 14.7 percent and semi-custom sales up 2.9 percent. Survey participants included stock, semi-custom and custom companies whose combined sales represent more than 50 percent of the U.S. cabinet market.

Where does my wood come from?

The universe is full of questions--"Why am I here?, Why do people insist on driving slow in the fast lane? and Where does my wood come from?" Thankfully Zepol just released a “Wood Import Report” for the continuously shaped wood segment of the US market. One less question to keep you up at night.
I know, it sounds riveting but I’m a trend junkie and I want to know where my wood comes from. The report details recent import trends and provides information on wood imports in late 2009 to early 2010.
Here are a few tantalizing tidbits:
*Brazil is the U.S.’s top supplier for wood products in HTS 4409, with $238,155,180 exported over August 2009 to July 2010 – a 16.64% increase over the previous year.
*Canada dominates the U.S.’s supply of red cedar siding (HTS 4409.10.1020 & HTS 4409.10.1060), with 95% and 100% market share respectively from August 2009 to July 2010.
*July 2010 was a big month for U.S. wood imports across the board, with several HTS product categories posting their high for the year in this month.
To download the full report (for a limited time), click here.

Behold inspiration!

Fall has hit the Midwest and being from a land-locked state (Lake Michigan doesn't count as an ocean), coastal living seems, in a word--awesome! check out Coastal Living's 2009 Seawatch idea house. It's full of beautiful millwork and the design is inspiring. My favorite room is the master suite and it wasn't an easy choice. What's your favorite room?

Do you suffer from 'Sitting Disease'?

OK, I get it Americans are big, fat fatties.
Forbes has praised the TrekDesk Treadmill Desk As “one of the best workplace luxuries anywhere.”
Medical reports and studies have focused on rising obesity rates and ill health caused by “Sitting Disease,” a term that includes syndromes and diseases caused by sedentary lives. While the financial and productivity risk to American business is understood, affordable solutions to the problem have proven to be a challenge.
Forbes.com, spotlighting office innovations, praised the TrekDesk Treadmill Desk as a way to restore health and lose weight.
“We are pleased by Forbes recognition as to the tremendous health benefits attributable to walking and working with a TrekDesk, however based on recent medical evidence we would replace the word luxury with necessity,” says TrekDesk founder Steve Bordley.
While this cool, healthy desk sounds really neat...I'd rather sweat off my double quarter-pounder with cheese in the gym and not in the office.

AWFS 2011 Fresh Wood Student Competition now accepting entries

The Association of Woodworking and Furnishings Suppliers (AWFS) is accepting entries for the 2011 Fresh Wood Student Woodworking Competition as part of the AWFS Fair, scheduled for July 20-23, 2011, in Las Vegas.
The competition is open to full-time students in an accredited high school or post-secondary woodworking or related program, and part-time students in an accredited post-secondary woodworking or related program who are transitioning into a career in woodworking or design. The deadline for entry applications is May 2, 2011.
The competition has six categories at both school levels: case goods, chairs, open, production/contract, reproduction and tables. Entries will be rated by a panel of judges that represent different aspects of the industry and those scores will determine the finalist pieces that will be displayed at the AWFS Fair. The final judging will be held July 19 at AWFS Fair, where awards will be given for first and second place winners in each category, at both school levels. A Best of Show award will be selected among all first place winners and the winner’s school will receive the Larry Hilchie School Grant Award. Fair Attendees will also have the opportunity to vote on the People's Choice award.
All forms and guidelines for the 2011 Fresh Wood Competition are available online or by contacting Adria Torrez of AWFS at 800.946.2937.

Reclaimed, restored and reborn

I’ve always like the idea of using something you don’t need to make something else you want. Call it recycling, upcycling or green—I call it smart.
Old bowling alleys are disappearing all over the country, but what happens to the long, beautiful heartpine wood lanes? I’ve read articles of people salvaging the wood to make countertops, and frames but Counterevolution has taken it one step further. Craftsman, Jim Malone has created three contemporary fine furniture lines out of these old lanes. Modern Rustic and Industrial Green series feature tables, seating, kitchen and desks. The Buffalo Greens series includes wine racks, lazy susans, clocks and jewelry. Malone has also done some beautiful commercial installations.
Its furniture fit for a kingpin! Go green!!

Global demand for new housing to reach 53 million units in 2014

After a sharp drop in new housing construction in North America, Western Europe and Japan, those countries are expected to enjoy the fastest growth in construction through 2014, according to a study, World Housing, from The Freedonia Group. But despite that new housing activity in the U.S. is forecast to increase 24 percent annually, the level of activity in 2014 will generally remain below what was achieved a decade earlier.
Worldwide, demand for new housing through 2014 is projected to advance three percent per year, generating the construction of 53 million new housing units. Among the developing regions, the most rapid growth in new housing units will be in the Africa/Middle East region, where growth in population and household formation will support 3.9 percent annual advances in new housing construction through 2014 to 11 million units.
The largest number of new housing units will be generated in the Asia/Pacific region, where an expected rise in new housing construction of two percent per year will result in 31.7 million new units; a deceleration from 2004-2009.
The world housing stock was 1.9 billion units in 2009, roughly two percent larger than the number of households. The Asia/Pacific region had the largest housing stock, with its nearly one billion units accounting for 52 percent of the world total; China alone represented 23 percent of the world total. The Africa/Middle East region had the second largest housing stock in 2009, with 292 million units, or 15 percent of the world total. Western Europe and North America, together, accounted for just under 20 percent of the housing stock.

Moser to make furniture for Simply Ming television show

Thos. Moser, designers and builders of hand-crafted wood furniture, will once again partner with chef Ming Tsai to handcraft a table and chairs for the set of his public television cooking show, Simply Ming. The cherry Meridian round dining table, designed by David Moser, is the newest addition to the Meridian collection and is an adaptation of the existing Meridian trestle table. Tsai will use it to dine with his guest chefs in the last segment of each show, as well as to help display the food they have prepared to the viewing audience.
The Meridian 48-inch tabletop accommodates up to four. The dining chairs feature a fine radius of the chair’s underside, the inverse matched radius at the top of the leg, and the optical correction effect at the termination of the chair’s crest. The single back slat is a first for David and accentuates the chair’s sleek lines. The Meridian collection will be available in ash, and cherry and includes a coffee table, dining sideboard, rectangular dining table, hall table, chests, and stools.

I blame 'Mad Men'

Yes, the 1960s' are back (cigarette smoke not included).

Esquire throws its mass-produced vintage fedora into the design ring

Inspired by the lifestyle of the modern, discerning Esquire man, Hearst Magazines is launching, the Esquire Home furnishings collection. The collection features accessories, area rugs, lighting, furniture and upholstery from licensing partners The Halo Group, Asia Minor and Go Home Ltd. Some highlights include barware, desk accessories, and decorative “man toys.” If you’re not sure what a “man toy” is, it’s apparently a vintage inspired brass wall sconce modeled after the headlight of an early 20th century Jaguar.

Furniture pieces have fun, manly names like the “Triple Whisky Collins” leather sofa, “Irish Coffee” table lamp, “Black Russian” architectural desk and a “Martini” armchair. Wait, I’m picking up on a theme here… I wonder, if Cosmopolitan magazine launched a furniture line for the ladies would it have names like … “The one night stand” sofa sleeper, “Walk of shame” rug collection, and “Appletini” vomit, I mean champagne bucket.

Acimall reports positive industry numbers in Q2 2010 survey

The second quarter 2010 brought significant signs of recovery, though highly diversified, among the companies included in the statistic sample selected by Acimall, the Italian woodworking technology manufacturers’ association.
The periodical survey indicates the industry has grown by 69.8 percent from the same period during the previous year. Orders from abroad recorded a 63.6 percent increase, with an even stronger trend on the Italian market, which was up by 83.3 percent.
From April to June 2010, prices recorded a slight increase (up 0.4 percent), while the period of ensured production was 2.2 months at the end of June. Looking at turnover, there was a massive increase over the first quarter (up 70.5 percent).
According to the quality survey, 44 percent of interviewed companies indicate a positive production trend, 52 percent stable and 30 percent reported a decrease. Employment is considered stationary by 83 percent of the sample, falling by 8 percent and increasing by the remaining 9 percent.
Available stocks are stationary according to 65 percent, decreasing according to 22 percent and growing according to the remaining 13 percent.
The forecast survey outlines possible trends in the next few months: after the positive rebound of orders, a period of stability is expected to consolidate the results obtained in the first half of the year.
Foreign orders will grow according to 30 percent of the sample, while they are expected to stay at the same level according to 48 percent. The remaining 22 percent predict a drop. The Italian market is expected to remain stable according to 61 percent of the interviewees, shrink further for 22 percent and expand for the remaining 17 percent.

2010 Craftsman's Challenge winners announced

Scott Grove of Green Grove Design, Rochester, N.Y., earned the Grand Prize and took the Cabinetry category for his Ski Media Cabinets in the Sixth Annual Veneer Tech Craftsman’s Challenge sponsored by CabinetMakerFDM magazine. Grove’s cabinets feature a variety of veneers including amboyna burl, quilted maple, sapele and wenge.
2010 Veneer Tech Craftsman's Challenge Woodworking Competition winners include:
Grand Prize/Cabinetry
Scott Grove, Green Grove Design, Rochester, N.Y.
Distributor, Certainly Wood of East Aurora, N.Y.; Sales representative, Greg Engle
Architectural Woodworking
Albert Grant, Albert S. Grant Fine Woodworking and Design, Melrose, Conn.
Furniture
Abdolhay Parnian, Parnian Furniture, Scottsdale, Ariz.
Store Fixtures
Abdolhay Parnian, Parnian Furniture, Scottsdale, Ariz.
Specialty Items
Rob Milam, VeneerImages, Atlanta, Ga.
Student Design
Christy Oates, San Diego State University
Honorable Mention
Mark Bernhard, Bernhard Woodwork, Northbrook, Ill.
Tom Knoebel, Beach Cabinets, LLC, Melbourne, Fla.
Pattrick Loew, Hastings High School, Hastings, Mich.
Malcolm McDowell, Tunnicliffe, Art Lights, Torreon Co., Mexico
Earl Kelly, Earl Kelly Furniture, Pensacola, Fla.
John Harper, EMC Woodworking, Phoenix
Ramon Valdez, Exotic Woodworks, Bloomfield, N.M.
Chuck Sharbaugh, Holly, Mich.
Scott Grove, Green Grove Design, Rochester, N.Y