When it Comes to Housing Bottom, Who to Believe?

Picking the bottom of the market may be impossible, but perhaps the conflicting views of 2010 presented in the WSJ.com videos below mean opportunity is out there for intrepid buyers.

This video says foreclosure activity will see a second and third wave in 2010. The first wave was started by poor lending practices, which help create the now-burst bubble. The second wave of foreclosures will come from unemployment and the third wave from the boom-vintage adjustable rate mortgages resetting on underwater homes. Yikes.




All that said, if you still have a job, in most places of the country, housing is affordable relative to historic earning power. This is a powerful, but rarely emphasized metric that Inside the Brackets has written about before in our Moody's Crystal Ball.

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Underwater Homeowners Get the Guilt Trip?

Would you walk away from your mortgage if you knew you owed more than your home was worth? What if you owed significantly more? Turns out a lot of us do.

FEMA recommended homeowner attire?

As New York Times Magazine contributing writer Roger Lowenstein points out, businesses often implore the "strategic default" as a means to minimize losses and bring forward potential returns. Bankruptcy, renegotiation, and contract termination are all cards to be played if free-market circumstances call.

The idea of an individual walking away from a mortgage, though, seems to carry moral implications not emphasized in the high-stakes world of big business deals. Homeowners are being implored by CEOs and politicians to "do the right thing" and honor their contracts even though it could be against the individual's best interests.

Certainly there are economic consequences for an individual defaulting on an underwater mortgage (e.g. foreclosure, personal bankruptcy or damaged credit); so if those consequences are fairly suffered, why the moral argument?

Inside the Brackets wonders if its readers think it's hypocritical for leaders to expect individuals to act a certain way while they run their businesses another. Further, speaking strictly in the long term, is it possible that staying in an underwater mortgage hurts not only the owner, but other homeowners as well?

Let us know what you think. Comment below.

Full NYT Magazine article text: here.

Interesting interactive graph of negative equity mortgages on WSJ.com: here.
Photo credit: http://www.flickr.com/photos/mister_tee/ / CC BY 2.0

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Green Condos: Proving You Right or Wrong?

Is your opinion that spending time and money building sustainable, "green" condos is a risk that further compounds an already dangerous investment, or is it a perfect differentiation in a market of commodity that will lead your project to success?

Check out this video about one of the greenest residential buildings in NYC, The Visionaire, also previously featured on Inside the Brackets here and see what you think.


Video from McGraw-Hill

It should be pointed out that despite all of the 2008-2009 economic headwinds, The Visionaire sales team reports great results in this Bloomberg.com article by John Gittelsohn.

"Starwood is the majority investor in the Visionaire, a $300 million, 35-story apartment building that opened in October 2008. Apartments there have been selling at a pace of more than one per week, with six units closing in November, said Christopher Albanese, principal of the Albanese Organization that developed the project.
'In this market, selling more than one a week is
like hotcakes,' he said. Almost 60 percent of the Visionaire’s 250 apartments
have been sold, Albanese said."

Perhaps this is further evidence that well-designed, well-built, sustainable, and correctly priced units will vindicate a development strategy that may look riskier upfront because it is different from the norm. This is Albanese's third green residential tower in NYC, so clearly they believe they are onto something good.

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Andrew C. Wilson, AIA, LEED AP is a Principal at [1016] Architecture in Chicago and New York. Contact him to discuss sustainable, infill development opportunities in either of these cities.

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Wrightwood Crossing: Progress Update 2

Construction continues at a healthy clip over at Wrightwood Crossing, a GCorp Development project and [1016] Architecture design. This project is LEED registered with the certification goal of Platinum.

The activity is attracting attention in a neighborhood that otherwise has few projects under development at this time, and was recently featured on the blog ChiTown Living in a post called Wrightwood Crossing Rises.

Despite being a 19-unit building, efforts were made to ensure that the street frontage of the building fit the scale of the neighborhood. From the front, only the two and a half stories shown here will be visible. The third floor and penthouse levels will be set well back from this wall.

The deep site will be well landscaped with native plants and trees along this long side. The corners of the building (now empty) will be high-performance window walls for floor-to-ceiling views.

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So, You Want to Find an Architecture Job: 12+ Tips

If you're looking for an architecture job in today's tough market, chances are good that following some of these tips will help you stand out and get a better than average shot at landing one of the few positions available.

These tips come from experience of being both an potential employee and a small firm potential employer. Let us know what you think in the comments section below, especially if you have any additional tips.

Reality Check:
The majority of architecture firms are small businesses which don't have the ability to staff full time HR departments or hiring directors. This means that chances are good that the person who reviews your incoming cover letter and resume will have little time to do so, and will probably not have a formal system for keeping track of your attempts to get their attention. Think of the following tips as making this person's job as easy as possible.

Sending out resumes:
Sending out unsolicited resumes is time consuming and daunting. If you Staying organized about the task is the only way to avoid spending too much time with this activity.

5+ Tips for Sending out Resumes Electronically:

1. Show you're not a spammer: Personalize the body of the email with a short indication that shows you reviewed the firm's website or otherwise makes clear that you are not copy-pasting and blasting 500 firms at once. 2-3 sentences will suffice.
2. What a body!: Don't be afraid to include more information than not in the body of your email. You should include an attachment (see below), but it's better to get all important info in the body of the email (text only); this includes resume information.
3. Keep it simple: Number of attachments: One. It is better to include all the info that you want to send in one file, rather than many. Sometimes this might not be possible, but remember: It is easier for a potential employer to scroll down through several pages than open multiple files, and getting them to open one file is a victory on your part. Send Adobe Acrobat files (.pdf) only, as this insures formatting will be retained and all of your superior aesthetic effort will not go to waste.
   
4. Contents of attachments: Cover letter is great to include, but should be basically redundant to the letter in the body of the email. A one- or two-page formatted resume should follow the cover letter, and one or two pages of work samples with some brief text explaining the projects.
5. Follow up!: Send out the info as described above, wait two weeks, and follow up with your targeted firm again, even if you don't hear back from them. The impact of this step is enormous, because it places you in a small, organized minority of job seekers who are organized enough to accomplish this task. Your follow up email should contain specific questions that might elicit a response or helpful feedback.
   
6. BONUS TIP: huge attachments (+5MB) are generally a bad idea.
   

Your Portfolio:
Your full portfolio is what you would take on an interview, and is different from the selected works page(s) which can be easily distributed electronically.

3 Tips for your Interview Portfolio:

1. Breadth of work is more important than bulk of work. In other words, highlight the full range of building types, sizes, geographic locations, and computer programs within your experience, rather than overloading with a bunch of very similar projects or drawings.
2. Know something interesting to say about every drawing or project in your portfolio. This will allow you to focus the attention of the interviewer on a strength you want them to notice.
   
3. Showing working drawings in a portfolio is okay, even better if it is accompanied by a design sketch or drawings from other phases of the design process.

Networking:
According to the U.S. Department of Labor Statistics, 70% of all job hires are based on a networking connection. The importance of online and face-to-face networking cannot be overstated, even if you are following all of the tips above.

Check out this cheat sheet (.pdf) from Careerspots.com for 20 Tips on Networking.

The following networking tips, which are not on the Careerspots list, are also useful:

1. Network with your fellow alumni: alumni events in your area is one of the top recommendations not on the list.
2. Attend events that are not necessarily business related, but approach them as a way to meet people and potentially expand your professional network. It is important to know professionals outside of architecture.
   
3. Be open-minded: Don't judge people too quickly based on the answers to just a few questions. You may find yourself doing this after going to about four meetings and feeling like you're not getting anywhere.
   
4. Be helpful: You are more likely to experience success when you start to think of things from the other person's perspective. Don't be afraid to lead with the question, "How do you think I could help you?"

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Andrew C. Wilson, AIA, LEED AP is a Principal at [1016] Architecture in Chicago and New York. Contact him for networking opportunities in either of these cities.

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Wrightwood Crossing: Construction Progress

Wrightwood Crossing construction progress continues. First floor concrete plank is set, foundation is backfilled, and columns shown will support the second floor. Masons have begun laying the stone base which will eventually circle the whole building. Nothing too glamorous yet, but any construction activity in this environment is good news.

Speaking of news: the project was recently featured by GreenBeanChicago.com, a leading website featuring green and sustainable architecture in the Chicago area. Click the link to the full article, "Wrightwood Crossing Adds a Green Touch to Lincoln Park," by Shafaq Choudry.

Caution tape, not a crime scene.

View from Northwest corner of front property line.

Rendering of final building. (Image by Studio 2a)

Wrightwood Crossing, a [1016] Architecture design, is LEED Registered with the certification goal of Platinum. The first group of the 19 overall units are scheduled for delivery in Spring 2010.

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Remodeling or Building? The Time May Be Now.

Owners,

It might not be a newsflash, but the construction industry is slow, and the Wall Street Journal points out that you might be able to get more for your renovation or construction dollar now.

The article includes some good tips for saving money on your renovation or build. While most of these ideas will save you money in any market, the current climate may yield especially low prices and high values:

1. Get multiple bids
2. Don't select on price alone, check with the Better Business Bureau and references, and be wary of bids that are "too low."
3. Confirm that the builder has experience with your project type, i.e. compared to new construction, renovation is a different animal
4. Ask for a discount, but be prepared for a "no"
5. Apply for available tax credits, especially for energy efficient improvements

Be aware that the biggest hurdle your project will face in the current economy is financing. Determining a realistic budget upfront is paramount.

Despite the slowdown, the best designers and builders may not be discounting prices much or at all. This does not mean you are not getting a value from them at this time; think: exceptional quality and attention. During the boom, a firm might have tackled a dozen (or more) jobs at once, but now they may only have a couple. This means, when you call or ask questions, you will be heard.

If you are unsure of the steps you need to take, the best place to start might be to speak to an architect or designer. Their network and connections should help you navigate your project successfully.

For more information on available Energy Efficient Tax Credits: click here.

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Andrew C. Wilson is an architect licensed in Illinois and New York, a LEED accredited professional, and principal of [1016] Architecture in Chicago.

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