Interior Design Trends 2013 & 2014

Photos from article at LauraBielecki.com 

Design Days Dubai 2012 brilliantly brought the world’s most renowned trend forecaster Lidewij Edelkoort to the UAE for an enlightening talk about the trends in fashion, interiors, graphics, cosmetics, automobiles etc. for 2013 and 2014. Lidewij is a fantastic resource for designers in creating products and interiors that have longevity past the current year as she forecasts ahead by at least 2 years. An inspirational design leader shared some of Lidewij’s main points as they relate to the future trends in Interior Design with me. I thought it best to share a few of them with you as I have begun to see many of these trends emerging, most noteably with the recently held ISaloni furniture, kitchen and bath show in Milan and Maison & Objet in Paris.

Here are a few key Interior Design Trends for 2013 + 2014:

• Yellow is the new Pink! The color will dominate with vibrancy making for lively and stimulating color palettes, fabrics and fittings. Watch out Pantone Tangerine…. yellow will have much more staying power! The question is which shade…

• Pattern is making a comeback. Let’s not over focus on color blocking as historic patterns are being recreated with the strongest new trend: a white background. Foresee fabrics and wall coverings bringing small and massive florals with white backdrops, vintage prints with a twist of white, bold colors and patterns thrown onto a white canvas…. you get the jist! Whatever it is do it on white to make it in style.

• In regards to Pattern stop being so matchy-matchy the trend will be to clash your fabrics and stimulate the senses, this goes hand in hand with the yellow trend. Have more fun with your palette by throwing together stripes, florals, hand sketches and geometrics in an array of colors and textures. Patterns will also become more inspired by Folklore african, bulgarian, mexican…. animals, culture and crafts will all come in to play. Watch for designers like Adriana Hoyos and Kelly Wearstler and galleries like Espasso

• Touch is the biggest sense to focus on. Fabrics and finishes should all be touchable, textures with warmth and depth are preferred engaging the user into the space with all their flesh. The colors of sand and stone will prevail. Be inspired by your morning whole meal bread with the warmth of beige and neutral. These colors mixed with white will allow the texture and touch of materials to take the forefront. 2013 will be about experiencing and engaging in your home rather than passing by it. This trend is brought about by a need for the caring of others with the natural sense of touch. Tactile qualities, the color of flesh and nails, the softness of suede and non blatancy of lack of color. Think of natural materials with texture and neutral tones like roots and washed up wood.

• One step further will make Mushrooms the form of choice to spruce up the fun, intrigue and whimsy of interiors.

• Design will shift from being about a single person to being about a group. The group dynamic will make projects more exciting and thought out. Having numerous designers running their hands over a project will refine and strengthen the concepts. This will also make for incredible sales tactics showcasing the numerous talents of a design team. One designer will focus on the finishes even creating custom fabrics and patterns, another on the space planning and innovative movement through the interiors, another on custom lighting and ambiance. Consider this with your firm; can you make a design team work to excel at projects completing them in the demanded tight time lines without jeopardizing the design by having group concept and diverse backgrounds? The black sheep will be dead as design begins to highlight human skill and ability to make presentations pop. Collectiveness is key.

• Embroidery, knitting and hand craft. We have seen this wave take off through sites like Etsy and re-created in stores like Anthropology or Forever 21. Think large scale knits and macramé taking off in decor and furniture. Its times like these I wish I had tried my grandmother’s attempts at getting me to cross-stitch, sew and knit! Watch for designers like Patricia Urquiola and custom kids plush toys from Child’s Own

• An entirely different trend will be a longing for order and repetition will a love for stripes and squares. Think bold red and white patterns and gingham.

• Graphic work will be more handmade and rough. Hand sketches, photos of handmade work, craftsmanship etc.

• The happiness and/or foolishness of everyday objects. Don’t just buy a chair; buy a chair that makes you smile. Silly but structured items. (Fashion will lead with clowns, mimes and oversize bow ties). Design should be fun and lively. Take materials out of context and use them in a new way. Handmade and spontaneous will bring more fun and whimsy to interiors. Like using a measuring cup as a flower vase or hanging forks and spoons from a chandelier. Thinking in a childish and cost effective way the mind will let everyday objects receive new functions. Who said you can’t upholster your couch in your old jeans or your pillows in your favorite shirts and scarves? This brings me to another trend…. scarves! They will be everywhere or at least the concept of them. Long drapes of fabric flowing off of things, light breezy materials and extra fabric.

• The beauty of the un-done: unfinished trimwork and detailing with a homemade and adaptable feel bring warmth and creativity to the home.

• African influence is back. Think black and white, voodoo, spirits, bold monochrome geometrics, hallucinations, blur and the red and white of sacrifice. Watch for companies like Ege Carpet and Moroso

• The Romantic period will make a comeback with dramatic high collars and balloon pants for fashion. The one difference from the Romantic period will be the focus on groups rather than individuals. The balance of life and placement of accessories in groupings and the spaces in between will play a major role in accessorizing.

• Surrealism and enchantment will let spaces tell stories. Alice in Wonderland and Disney classics meet interiors. This may tie in with the trend of Humor with gimmicky items like smiling robotics. Children will be delighted to dress like characters with the full freedom to dress like something else (a craze that has already dominated Japan). For this trend watch for companies like Gervasoni

• Calligraphy and hand sketching will be huge… there are already some amazing examples.

• My favorite trend based on what is happening in society is the relationship of men in the home. Men are spending more time at home making their lives more equal with women and participating in decisions about home design and work/life balance. This means that interiors will begin to have more male dominance and masculine features. Think Paul Smith suit fabrics for upholstery and heavier furniture. A quote from Lidewij Edelkoort herself: “this major evolution of society is going to create a very new generation of kids that have been fathered and mothered at the same time; a fact of society never witnessed before. These children will possibly be more in harmony with the self and will be able to reach out to the role models in both genders. Creating equilibrium and a new dynamic and only god knows what will happen to the oedipus complex?” She predicts that male fashion will become softer with more elegant and romantic taste.

• With the aging population and higher life expectancy the relationship with grandparents and grandchildren will change bringing about a very blended collection of old and new…. handmade and technology. Reincarnation of old furniture with new finishes will also evoke this trend.

• Design will be about coming down to earth with farm and city merging to a more sustainable future. Think green walls and garden rooftops with livestock. This trend has staying power and will snowball into a lifestyle and global movement. The slow food and slow healing movement will be instrumental.

• Objects will be in clear boxes safe from the outside world and showcased. For this trend watch for designers like Paula Hayes

Date Issued: September 2012 By: Laura of Arabia Taken from:  http://www.laurabielecki.com/blog/interior-design/interior-design-trends-2013-2014/

Commercial Real Estate Forecast Update: 2013-2014

The office market enjoyed “11 consecutive quarters of occupancy growth and eight straight quarters of rent increases,” according to the Jones Lang LaSalle firm. The length of the expansion is more noticeable than the strength of the expansion. REIS Inc. reported national figures for office vacancy that are only slightly lower than a year ago. Jones Lang LaSalle also reported that most of the improvement is in Class A space, which confirms the anecdotes I’ve been hearing as I travel around the country: the only challenge for tenants is finding large contiguous Class A spaces in downtown areas. DeLoitte’s annual commercial real estate survey notes low construction levels in office space, which should bode well for landlords’ future occupancy and rent rates.

Before we get too overjoyed, note the limiting factors on the office rebound. First, the pace of economic growth is subdued, with a risk of recession large enough to demand concern. Second, high tech is a growing element of office occupancy. The software industry’s preference for putting many programmers in one large room cuts the square footage per worker. It may not be justified on productivity grounds, but the open workspace concept is so established in the software industry that it’s not going away any time soon.

Industrial space is starting to expand, with more new deliveries than in recent years. Industrial typically has the shortest development and construction periods and thus is the first sector to complete new projects when the market improves. This trait means that vacancy rates will not fall too far, nor will rents rise too fast. Still, increased volume of rented space will help the large landlords improve their efficiency, though it does little for owners of one or two properties who must compete in a market with growing supply.

Retail space is seeing more absorption than construction, but there’s plenty to worry about. Retail spending has only increased 4.4 percent in the past 12 months; a year ago we saw a 6.2 percent gain, and a year before that a 7.8 percent increase. Our recent figure is certainly an increase, but not terribly fast, especially in light of two percent inflation. Looking forward, the end of the temporary payroll tax cut will pinch a number of wallets.

On the positive side for property owners is the extremely low interest rate for commercial mortgages. Those owners who qualify pay so little interest that it’s almost free. Others, however, still have some difficulty obtaining cheap financing.

Investor interest has been strong, but the recent stock market surge may shift some money away from real estate into stocks. It’s certainly foolish to invest for the future based on recent gains or losses, but that is what many investors seem to do. In the coming year it’s unlikely that prices of commercial properties who show a strong upward trend. Light to moderate gains are likely, but price risk is greater on the downside than the upside.

For contractors itching to erect some buildings, the best opportunities last year were in multi-family residential. This year single family residential and industrial offer the best gains. Next year and in 2014, look for retail then office construction at the top of the leaderboard.

The greatest economic risk for commercial property owners is recession.The Wall Street Journal’s most recent survey of economic forecasters shows a 17 percent risk of recession. I am at 20 percent, but what’s a few percentage points among friends? The most likely trigger for a recession this year would be a worsening of Europe’s financial crisis. The Continent had been in a mild recession, then last quarter it turned decidedly ugly. If bond defaults or bank failures begin, the Europe’s economy would turn down, with ripple effects triggering an American recession. Most likely that will not happen, but nobody can be sure.

Given this risk, it may be better to sign a long-term lease at a low rental rate than to hold out for a premium rent in a year or two. Holding out for a better rent will probably work out—but probably is not the same as certainly.

Dated Issued: February 2013 By: Bill Conerly Taken from: http://www.forbes.com/sites/billconerly/2013/02/21/commercial-real-estate-forecast-update-2013-2014/

8 Ways the Housing Market Has Changed for 2013

The real estate recovery is now in full effect in most areas, and that means more of you are hopping off the fence to buy or list a home.  Do you know what you're in for?

The housing market is a different place than it was just six months ago, with new issues, rules and opportunities even for those who are planning on staying in their house for a while. In this slide show, MSN Real Estate will fill you in on eight ways the housing market has shifted since last spring's peak selling season and what these changes mean for you: the buyer or seller.

1. Homes are more expensive but not much more.

An improving economy and low interest rates have boosted buyer demand in most markets, decreasing supply and raising prices. Indeed, the national median home price increased 10.1% in November to $180,600 from the same period a year earlier, according to the National Association of Realtors. November marked the ninth consecutive month of home price increases.

This year, the gains should be more restrained, says Alex Villacorta, director of research and analytics at Clear Capital. "2013 should be interesting for the housing market, where national gains should continue to see upward growth, but likely at a more modest growth,” he says.

Clear Capital expects prices to rise just 2.1% nationally this year. That's good news for buyers in many Western markets, including Phoenix, where prices have surged in the past year, pricing some buyers out.

Some notable exceptions to this moderation are Seattle, where Clear Capital expects prices to rise 13.5% this year, and Birmingham, Ala., with a 10% increase.

Indeed, only eight out of the 50 major markets it studied should see prices fall in 2013 and in those areas only slightly. Those markets are St. Louis; Chicago; Baltimore; Atlanta; Philadelphia; Denver; Charlotte, N.C.; and Louisville, Ky. None of these markets is expected to drop more than 1.7%, however, according to Clear Capital.

2. Loans are getting pricier.

After bouncing along at record lows in 2012, interest rates are expected to rise slightly in 2013. Just how much is really anyone's guess. However, Greg McBride, senior financial analyst with Bankrate.com, says he wouldn't be surprised if rates hovered between 3.5% and 4% for much of the year, barring any big changes in the overall economy.

Moreover, the costs associated with securing some loans are rising, as well. The Federal Housing Administration last spring once again increased its one-time upfront mortgage insurance premium for minimum down payment loans (less than 5% down) to 1.75% of the loan, while raising its annual monthly premiums to 1.25%.

This year, those premiums could increase again. The Federal Housing Administration Fiscal Solvency Act of 2012 gave the FHA authority to raise premiums to as high as 2.05% annually to build and maintain its reserves, which are at record low levels. If that happens, the increase would tack an additional $133 onto the monthly payout for a $200,000 loan.

Still, McBride says he doesn't expect small increases to deter many buyers from the FHA's low down payment loans. Many people, he says, just don't have enough cash tucked away for a conventional loan. "If you are looking at making less than a 10% down payment, your options are pretty limited."

3. Inventory is bottoming out.

Rates are great, but not a lot of houses are for sale.

The inventory of existing homes for sale at the end of November was down 3.8% from the previous month to 2.03 million. That represents a 4.8 month supply at the current sales pace and is the lowest supply since the go market of fall 2005. Listed inventory is down 22.5% from a year ago, when there was a 7.1 month supply.

The problem is, prices haven't gone up enough to enable many homeowners to sell and recoup enough to put down on a move up home. Also, the banks are funneling more of their distressed sales to investors as rental properties.

The dearth of listings should begin to change sometime this year, analysts say, as pent up demand, historically low interest rates and slightly higher home prices prompt more move up buyers to list their home.

However, for the foreseeable future, if home shoppers see a desirable property, they should move quickly, because in this tight market they can be sure that someone else will.

4. A new mortgage rule will protect buyers from shady lenders.

To head off another financial crisis, the government's consumer watchdog, the Consumer Financial Protection Bureau, recently announced a new rule to ensure that prospective buyers are actually able to repay their mortgage.

The Ability to Repay rule, which officially takes effect in January 2014 but will be put into place by most lenders sometime this year, protects consumers from risky practices such as "no doc" and "interest only" features that contributed to so many people losing their home in recent years.

"When consumers sit down at the closing table, they shouldn't be set up to fail with mortgages they can't afford," CFPB Director Richard Cordray said.

The new rule, spurred by 2010's Dodd Frank financial reform law, requires that borrowers' financial information employment status, income, assets and debt be supplied and verified by lenders, thereby eliminating no- or low doc loans.  That information, including debt to income ratio, must be used to prove that the borrower has the ability to pay back a loan.

5. Home-equity loans are back.

Low mortgage rates may have stolen all the headlines last year, but rates on home-equity loans have been falling, too, making those long overdue home remodels more attractive to people who have been in their house for some time.

"With home prices stabilizing, you will see more lenders competing for home equity business," McBride says.

The average rate on a fixed-rate home-equity loan fell to 6% in early January from 6.3% at the beginning of November, according to Bankrate.com. That average ran as high as 8.5% during the financial crisis in 2009.

Why did these loans get so pricey? Home-equity loans became much riskier for lenders in recent years, as home values declined and huge waves of people began defaulting on their mortgage. Equity lenders get paid only after the primary mortgage lender gets its money, so many lenders were taking losses on these loans as distressed property sales failed to recoup enough to satisfy these second liens. Many got out of this business, McBride says.

Now, however, with home values rising, more lenders are willing to make these loans.

6. There are fewer distressed-home bargains to buy.

The mortgage crisis is starting to fade into memory, and so are those cheap foreclosure deals.  While the number of distressed homes is still fairly high at 2.3 million units, according to CoreLogic, fewer of these homes are getting a for-sale shingle.

One reason: Almost half of those 2.3 million homes are still seriously delinquent but haven't been taken back by the bank because of a backlog in processing.

"I honestly thought the next wave would be short sales," says Kim Drusch, an agent with Century 21 Award in San Diego. "But the banks are giving new opportunities to distressed homeowners to stay in their properties. They are even offering principal reductions to their loan balances as opposed to going the short-sale route."

Moreover, a large number of the properties being repossessed by lenders are being sold off in portfolios to investors, rather than listed for individual buyers. When they make it back onto the market with a little face lift, they aren't such a bargain anymore.

In addition, many portfolios of single family bank owned homes are being auctioned as rental properties. These big portfolios of homes are attracting the big guns, including national real estate investment trusts (or REITs) that are expected to buy tens of thousands of properties over the next several years.

That's great news for sellers, who have seen their neighborhood property values hammered by bargain basement bank sales. But it's meant rising prices for buyers as inventory has dwindled.

7. More new construction is coming.

Existing homes are in short supply, but there will soon be many more new homes to add to the mix.

While housing starts fell slightly in November on delays related to superstorm Sandy, the number of building permits for new single family homes and condominiums rose 3.6% from the previous month alone and a whopping 27% from the same time last year.

Record-low interest rates and an uptick in hiring spurred the increased activity by builders. New home sales are up 15.3% over the past year, hitting an annual rate of 377,000 in November, according to Census Bureau data.

After years of building inactivity and a dearth of turn-key homes on the market, many buyers are welcoming the chance to buy new and have it their way.

New home prices however are moving up faster than prices for existing homes. The median price of a new home in the U.S. rose to $246,200 in November, a 15% increase from the previous year. Greater supply in the months ahead, however, could ease the pace of future price increases.

8. The luxury market suffers a hangover. 

Sales of homes over $1 million surged 51% in November, as high-net-worth owners rushed to list their existing homes and buy new ones to avoid the capital-gains tax hikes in January that were part of the fiscal-cliff deal.

Under these changes, high-income earners would pay $88,000 less in taxes if they made a $1 million profit on their home in 2012 rather than in 2013. So, out went the for-sale signs, and down came the inventory of luxury homes in the last quarter of 2012.

Publicly traded Toll Brothers, which specializes in the luxury-home market, saw its sales contracts jump 60% in the fourth quarter from the same period last year the highest level since the red-hot market of 2005. "We enjoyed resurgent activity across all of our product lines and in most of our geographic regions," said Douglas C. Yearley Jr., Toll Brothers' chief executive officer. "The momentum that began in our first quarter of FY 2012 built throughout the year."

However, due to the dwindling supply of luxury homes in many markets and the huge number of buyers who took the plunge last year, experts predict a bit of a slowdown in luxury-home sales during the first part of this year.

For those shopping for a high-end custom home, it means less to choose from, but also a lot less competition.  Of course, the drop off in demand probably won't last long. More and more big-budget international buyers are continuing to invest in U.S. real estate, particularly along the coasts.

After so many years of decline, American real estate remains quite the bargain.

Dated Issued: February 2013 By: Melinda Fulmer of MSN Real Estate Taken from: http://realestate.msn.com/8-ways-the-housing-market-has-changed-for-2013

Housing market improving in all 50 states

Another piece of evidence that the housing-market recovery is spreading: All 50 states now have cities on the National Association of Home Builders/First American Improving Markets Index.

"The fact that all 50 states now have at least one metro on the improving list shows that the housing recovery has substantial momentum and continues to expand from one market to the next," NAHB Chairman Rick Judson, a homebuilder from Charlotte, N.C., said in a news release. "Of course, there is still much room for improvement in metros that have not yet been listed, as well as those that have."

NAHB rolled out this index – which measures home values, employment growth and building permits – in September 2011, and only 12 of the 361 metro areas evaluated made the list. The picture has been improving steadily, and the list grew from 242 in 48 states in January to 259 in all 50 states in February.

The last two states to join were New Mexico (Albuquerque) and Kansas (Lawrence and Topeka). A notable addition to the improving-markets list was New York City. Also among the 20 new metros this month were Fort Wayne, Ind., Myrtle Beach, S.C., and Racine, Wis.

Falling off the list were Champaign, Ill., Lebanon, Pa., and Amarillo, Texas. 

To be classified as improving, a city has to have shown improvement in building permits, employment and home prices for at least six months.

Analysts suggest that 2013 will not see as much home-value appreciation as we saw in 2012. Plus, the recovery continues to be uneven city to city. Still, the builder group expressed optimism.

"Just over 70% of the 361 metros covered by the IMI are listed as improving this month," NAHB chief economist David Crowe said in a news release, noting the change since the index started in September 2011 with just 12 markets listed. "Today, the story is about how widespread the recovery has become as conditions steadily improve in markets nationwide."

Date Issued: February 2013 By: Teresa at MSN Real Estate Taken from: http://realestate.msn.com/blogs/listedblogpost.aspx?post=9b34f174-06a0-42e6-8888-8fd1748dbb51