Builder Blog from Integrity Windows and Doors » homebuyer tax credit

To buy or not to buy?

Berit Griffin — Mon, 13 Jun 2011 14:00:19 +0000

With the housing market continuing to decline it’s not difficult to guess at what keeps people from buying: it’s the economy, stupid! With people being laid off, working at reduced pay or worrying about getting laid off, fear is a powerful motivator for letting houses sit on the market.

But it’s not the only thing. Over at Boyce on Building, Boyce Thompson of BUILDER Magazine offers a few other ideas.

There’s the problem of too much choice. It’s no secret that it is a buyer’s market out there, but maybe there’s just too much available to make a decision. With a seemingly limitless supply of houses (and more becoming available every day), who can blame potential buyers for paralysis?

Thompson also brings up the green factor. Yes, it is something that is very important to homebuyers nowadays, but there is the struggle between offering basic, well-known things like ENERGY STAR appliances and offering green options that are unusual and really differentiate a home from others on the market.

And then there’s the uncertainty — will it get worse? If it does (the thought goes), there’s no need to buy now. After all, it would be nice to spend as little as possible. But if the market keeps getting worse, buying in a possibly declining neighborhood isn’t a prospect most potential homebuyers relish.

What do you think? Do you see these thoughts displayed with your clients, friends and neighbors? How should builders respond to these attitudes?

Industry news round-up for December 30, 2010

Berit Griffin — Thu, 30 Dec 2010 15:00:21 +0000

Hire Locally Will Become the Law in San Francisco
New York Times
“Under the ordinance, city contractors and subcontractors working on city-financed construction projects worth $400,000 or more would be required to hire at least 20 percent of their workers from San Francisco. The requirement will increase by 5 percent each year until it reaches 50 percent in 2017.”

Tax Bill Keeps Energy Credits in 2011
EcoHome
“Homeowners looking to make upgrades on Uncle Sam’s penny have another year to do so, thanks to an extension of the home energy-efficiency improvement tax credits.”

Housing market perks up as economy strengthens
Washington Post
“The housing market is showing surprising signs of improvement in recent months, as the broader economy strengthens slightly heading into 2011.”

NAHB study: Small builders rule the housing market
Professional Builder
“Small home builders are the mainstay of the nation’s housing industry, including a sizable number of self-employed mom-and-pop operations, according to a new study by economists at the National Association of Home Builders.”

Industry News Round-up for June 24, 2010

Laura Scherer — Thu, 24 Jun 2010 14:00:25 +0000

The Home-Buyer Tax Credit May Have Actually Worked
Developments Blog by WSJ
“Did the last round of the home-buyer tax credit have a bigger impact than analysts had previously anticipated? When it comes to new home sales, the answer may be yes. Consider that U.S. existing home sales ran at an estimated seasonally adjusted rate of 5.77 million in April, up 7.6% from March’s pace. Meanwhile, Commerce Department estimates of new single-family home sales ran at a seasonally adjusted rate of 504,000 last month, up 14.8% from March.”

U.S. Average House Size Shrinks in 2009
Big Builder Online
“The average size of a new single-family house shrank significantly from 2008 to 2009, the census figures show. Nationally the average decrease was 51 square feet, to 2,422 square feet.” The Wall Street Journal Developments Blog also comments on this trend here.

Job Growth is Key for Housing Recovery
Residential Architect
“According to the JCHS report, the housing recovery will hinge on employment recovery. Historically, high employment rates have driven both existing-home purchases and new-home purchases. Unemployment is at an all-time high, and as of April 2010, 6.7 million workers had been out of work for six months or longer.”

Demand for Windows Forecasted to Rise
Pro Sales Online
“Demand for windows in the United States will reverse a four-year slide in 2010, climbing 10.5% to 43 million units and then continuing to rise steadily through 2013, a research group working for two major trade associations has forecast.”

Industry news round-up for April 22, 2010

John Kirchner — Thu, 22 Apr 2010 14:00:37 +0000

Tax Credits Make It Difficult to Interpret Housing Data
WSJ.com Developments blog
“The home buyer tax credit continues to complicate the task of figuring out what’s going on with underlying demand for homes. … After the tax credits expire, buyers will have less reason to rush. If interest rates start to rise from today’s unusually low levels, that will create another obstacle to recovery in the housing market. At that point, home sellers will have to hope fervently that the economy can start to generate more well-paid jobs.”

The Housing Market After April 30: Going Up or Going Down?
Old House Web
“The big question is what happens after April 30? The spring buying season is traditionally good for selling new and existing homes, and then it drops off slightly as families go on vacation and are busy with summertime activities. The tax credit will have expired, and the federal programs holding down interest rates are also running out. Mortgage rates are headed upward: USA Today reports that home buyers are rushing to purchase before rates rise too much, and they can no longer afford to buy.”

Small Entity Compliance Guide to Renovate Right EPA’s Lead-Based Paint Renovation, Repair, and Painting Program
Home Construction & Improvement
“The EPA’s new Lead Paint Law takes effect on April 22, 2010 and there seems to be more questions than answers especially from small business owners. Many of the smaller contractors have questions about Contractor Lead Paint Certification, waivers, personnel training and costs associated with this new law. The EPA has created a publication to help educate small businesses about the new Lead Paint Law.”

Smart Meters Hit Bumps in the Road
Inhabitat
“Last week in Texas, a state senator responding to consumer complaints about skyrocketing bills asked the Public Utility Commission to halt Oncor’s installation of the devices. This week, the California PUC announced that it would investigate similar complaints about meters installed by Pacific Gas & Electric Co.. (Both utilities insist the bills stemmed from heavier usage, not the meters.) Then San Francisco-based online privacy watchdog the Electronic Frontier Foundation seized the opportunity to send the PUC a laundry list of related privacy concerns.”