Fiberlite Technologies, Inc.

Price and Proximity to Work Key Concerns for Home Buyers

Posted on March 6, 2013 by

Price and proximity to work are key concerns for first-time home buyers, while trade-up buyers tend to be most focused on the design of the home and neighborhood.

More than 90 percent of the sales reported in 2011 were existing homes, a significant increase from previous years. “Sales of new homes were very low in 2009 and 2010 due to the unique circumstances surrounding the Great Recession and housing market crisis. We expect that situation to turn around as the housing market recovery takes hold,” said David Crowe, NAHB’s chief economist.

There is a growing interest in single-story homes, and energy efficiency continues to be a concern. In fact, nine out of ten buyers would prefer to purchase a home with energy-efficient features and permanently lower utility bills rather than buy a home without those features that costs two to three percent less.

NAHB’s analysis of information from 2011 AHS shows that energy costs are about 10 percent lower in new homes, even though new homes tend to be larger. The average annual cost of energy was $2,478 for all single-family homes and $2,240 for those built after 2008.

“No matter what their preference for location or style, financially qualified buyers are likely to find a new home with the features they most want,” said Crowe. “The housing market is strengthening in most areas of the country, and home builders are eager to help buyers achieve or further their homeownership goals.”

NAHB Study Reveals What Home Buyers Really Want

Posted on February 21, 2013 by

The housing downturn of the last few years affected not only the number of new homes that are built each year, but also the characteristics, features and size of the ones that do get built. Builders and other industry professionals now have an opportunity to find out what home buyers really want and will not give up in today’s market, as well as which features they are ready to leave behind in light of current economic realities with a new publication from the National Association of Home Builders (NAHB).

What do home buyers really want?

First and foremost, energy efficiency. Some of the most wanted features involve saving energy. Nine out of ten buyers would rather buy a home with energy-efficient features and permanently lower utility bills than one without those features that costs 2 to 3 percent less.

Today’s home buyers recognize the need for energy-efficient homes and understand the importance of energy-star rating for the whole home and not just appliances and windows.

Survey Indicates Growing Concern Over Building Costs

Posted on February 14, 2013 by

The monthly NAHB/Wells Fargo Housing Market Index often includes a set of “special” questions on a topic of current interest to the housing industry. In January 2013, the special questions asked builders about the problems they faced in 2012 and expect to face in 2013. The survey was divided into 5 different sections with significant problems faced by the builders. One section covered problems related to building costs. A year earlier, similar questions asked about the problems faced in 2011, so it’s possible to trace the evolution of problems builders faced in 2011, 2012 and expect to face this year.

According to the survey, more than three-fourths of the builders expect building materials prices to be one of their significant problems expected in 2013, up substantially from 46 percent in 2012 and 33 percent in 2011. Second is cost/availability of labor, a significant problem 51 percent of the builders expect to face in 2013, up from 30 percent who said they faced the problem in 2012 and on 13 percent in 2011. Nearly half of the builders expect cost/availability of developed lots to be a significant problem. This is also up from 24 percent who said they faced the problem in 2012 and 21 percent in 2011.

Against the backdrop of impending health reforms scheduled to go into effect in 2014, 42 percent of the builders expect costs of health insurance to be a significant problem in 2013. Like many of the costs categories further down on the chart, problems with health insurance were slightly less common among builders in 2012 and 2011, but expectations indicate this small improvement is likely to be reversed in 2013.

Loan Demand Increases, Despite Rising Rates

Posted on February 7, 2013 by

Mortgage applications were on the rise last week even as interest rates continued to climb upward, the Mortgage Bankers Association (MBA) reports in its weekly mortgage application survey.

Loan requests for home purchases, viewed as a leading indicator of future home sales, climbed 2.2 percent in the week ending Feb. 1. Refinancing applications increased 3.5 percent.

Overall, the MBA index, which includes both loans for purchase and refinancing, ticked up 3.4 percent during the week.

Meanwhile, mortgage rates continued to fall slightly off all-time lows set in previous weeks. The 30-year fixed-rate mortgage averaged 3.73 percent last week, up from 3.67 percent the week before. The 30-year fixed-rate mortgage, the most popular choice among home buyers, has risen seven of the last eight weeks, according to the MBA.

Multifamily Industry to Remain Strong through 2013

Posted on January 28, 2013 by

The multifamily sector has led the way in the recovery of the overall housing market and will continue to do so over the next several years, said panelists during a press conference at the National Association of Home Builders (NAHB) international Builders’ Show in Las Vegas. The multifamily market has recovered substantially since the end of 2010 and now stands at about 70 percent of the way back to a sustainable level.

“Last year was a banner year for the multifamily market, and our baseline forecast calls for further steady growth in the rate of multifamily production,” said NAHB Chief Economist David Crowe. “We are forecasting construction of 299,000 new multifamily residences in 2013. While this is an improvement from just a few years ago, it is still well below the 350,000 units that are required to keep supply and demand in balance.”

Although the forecast calls for an increase in multifamily production, developers see several difficulties that could hinder a full recovery. “A lack of capital is restraining the ability of developers in many markets across the country from being able to build apartment communities for residents of all income levels,” said Michael Costa, president and CDO of Highridge Costa Housing Partners LLC in Gardena, California. “Additionally, we are being faced with increases in the cost of building materials and construction labor, which makes it infeasible to build in certain circumstances.”

There are several reasons for optimism, however. “The market continues to improve as new household formations generate demand, especially in the market-rate rental segment,” said Lance Swank, president of The Sterling Group in Mishawaka, Indiana. “There is also a change in attitude toward renting-people like the flexibility it gives and the option to be able to easily move to another city or state for a job opportunity.”

One-Hour Fire Resistance Rating

Posted on January 17, 2013 by

Over the years, we have had many insulation contractors, builders and architects ask us how they can achieve a one hour fire rated wall using cellulose insulation. The simple answer: Check the International Building Code!

The International Building Code includes guidelines to calculate fire resistance ratings for both load-bearing and non-load bearing wood frame assemblies. Cellulose insulation was incorporated into this code by the International Code Council in 2000.

The calculation method is intended only for one-hour rated assemblies, and the process is quite simple. Just add the fire resistance rating of each wall component together. For example, a frame consisting of wood studs 16 inches on center is given a 20-minute rating, 5/8 inch gypsum wallboard used for the interior finish adds another 30 minutes. By filling this all with cellulose insulation, an additional 15 minutes of protection brings the calculated fire resistance of this wall above a one-hour rating. This rating can also be achieved using other types of wallboard, such as ½-inch Type X gypsum.

NAHB Reports Housing Remains on Track for 2013 But Challenges Remain

Posted on January 2, 2013 by

Upward trends in recent months among a number of housing indicators point to a slow and steady growth in the nation’s housing market in 2013, but several challenges remain, according to the latest economic and housing forecast by David Crowe, chief economist for the National Association of Home Builders (NAHB).

“Consistent, positive reports on housing starts, permits, prices, new-home sales and builder confidence in recent months provide further confirmation that a gradual but steady housing recovery is underway across much of the nation,” said Crowe. “However, stubbornly tight lending standards for home buyers and builders, inaccurate appraisals and proposals by policymakers to tamper with the mortgage interest deduction could dampen future housing demand.”

Stating there is no consistent national trend; Crowe noted the housing recovery is local but spreading.

“We are transitioning from a very low demand level, where most people hold themselves out of the marketplace, to a case where supply will start being the problem,” he said. “As we begin to build more homes to address that supply, the new home stock will be a much more important element of the recovery.”

Setting the 2000-2002 periods as a baseline benchmark for normal housing activity, Crowe said that owner-occupied remodeling has returned to previously normal levels.

“Multifamily production is also well on its way, back to 69 percent of normal,” he said. “It’s the single-family market that has the farthest to go, standing at only 40 percent of what is considered a typical market.”

Another factor spurring the recovery is that household formations are on the rise. In the early part of the decade, the nation was generating 1.4 million new households each year. This collapsed to 500,000 annually during the housing downturn and currently new households are being formed at close to a 900,000 clip per annum.

“We’re not up to normal, but this is adding to demand for housing,” Crowe said.
Single-family home starts are projected to climb to 534,000 units this year, up 23 percent from 2011. NAHB is forecasting that single-family new-home production will post a healthy 21 percent gain in 2013 to 647,000 units. Starts will continue their upward climb in 2014, posting a further 29 percent rise to 837,000 units.

Multifamily production is expected to rise 31 percent in 2012, reaching the 233,000 level, and posting a solid 16 percent gain in 2013 to 270,000 units. Multifamily starts are anticipated to rise an additional 9 percent in 2014 to 294,000 units.

Meanwhile, new single-family home sales are expected to rise from 307,000 last year to 367,000 this year, a 20 percent rise. Sales are anticipated to climb to 447,000 next year, up 22 percent from 2012 and jump to 607,000 in 2014, a 36 percent increase over 2013 levels.

Why You Should Hire a Professional Insulation Contractor

Posted on December 26, 2012 by

We all want to save money on home projects and adding cellulose insulation to your attic may seem like the perfect do-it-yourself project. Please continue reading before you decide adding insulation yourself.

Working in an attic can be hazardous. More than a few do-it-yourselfers have been seriously injured stumbling over joists or falling through ceilings. Ceiling repairs can be very costly.

An attic must be ventilated to keep hot air from becoming trapped and creating wood rot and mold from forming. Attic baffles must be used to prevent the insulation from blocking air flow.

Barriers must be placed around heat-producing devises, such as chimneys, furnace and stove flues and recess lights.

It is important to seal all holes, cracks in ceiling and gaps at attic intrusions and transitions. If not sealed properly, the insulation will not perform as designed.

Insulation contractors devote their time to insulation contracting services and focus on energy conservation and comfort. The proper installation of any type of insulation is essential for insulation to perform. Knowledge of air infiltration, ventilation, and recessed lighting are just a few of the areas critical to installation techniques. Professional Insulation contractors have access to a wide variety of training, are familiar with local codes and regulations, and can offer guidance about the type and amount of insulation required for your home.

Hiring a professional insulation contractor will ensure the job is done right!