New-Home Sales Jump 8.3 Percent in June

Posted on by

July 23, 2013-The National Association of Home Builders (NAHB) is reporting sales of newly built, single-family homes surged 8.3 percent to a seasonally adjusted, annual rate of 497,000 units in June.  This is the fastest pace in the last five years, according to data released today by HUD and the U.S. Census Bureau.

“New-home buyers are returning to the market in larger numbers as firming prices, shrinking inventories of homes for sale and improving local economies convince them that now is the time to make their move,” said Rick Judson, chairman of the NAHB and a home builder from Charlotte, N.C.  “Meanwhile, the very low supply of new homes on the market is indicative of the difficulty that builders are having in keeping up with demand due to availability issues with regard to materials, credit, labor, and lots for development.”

“The takeaway from this report is that the housing recovery is solidly on track and isn’t going to be derailed by slightly higher mortgage rates,” said NAHB Chief Economist David Crowe.  “After years of fence-sitting, buyers are back and are ready to move forward with an investment in homeownership.”  Looking ahead, he said he anticipates further, though more incremental gains in sales through the end of this year.

Three of four regions saw solid gains in new-home sales activity in June, with the Northeast, South and West posting increases of 18.5 percent, 10.9 percent and 13.8 percent, respectively.  The Midwest posted an 11.8 percent decline following an above-trend bump in activity in May.

The inventory of new homes for sale declined to 161,000 units in June, making a razor-thin, 3.9-month supply at the current sales pace.  The months’ supply of homes for sale has not fallen below this level since March of 2004.

PATH Act to Create Housing Sustainability

Posted on by

Representatives on the House Financial Services Committee announced the Protecting American Taxpayers and Homeowners (PATH) Act to create a sustainable housing finance system.  The proposal ends the taxpayer-funded bailout of Fannie Mae and Freddie Mac while phasing out the enterprises within five years.  Additionally, the legislation increases competition by ending the federal government’s domination of the mortgage finance system and gives consumers more options in determining which mortgage product best suits their needs.

The National Association of Home Builders (NAHB) is working with lawmakers to make changes to the PATH Act proposal to ensure that it provides the federal support necessary to maintain a strong and liquid housing finance system.  NAHB believes federal support is particularly important to ensure that 30-year, fixed-rate mortgages, the bedrock of the nation’s housing finance system since the 1930s, remain available at reasonable interest rates and terms.  As currently drafted, the PATH Act does not provide the federal support necessary to ensure a strong and liquid housing finance system.

There are some positive elements in the PATH Act, and NAHB agrees that private capital must be the dominant source of mortgage credit.  However, ensuring the safety and stability of the housing finance system cannot be left entirely to the private sector.

The historical record clearly shows that the private sector is not capable of providing a consistent and adequate supply of housing credit without a federal backstop.

NAHB has recommended to the committee that Fannie Mae and Freddie Mac be gradually phased into a private sector oriented system, where the federal government’s role is explicit but its exposure is limited.  Federal support would be limited to catastrophic situations where carefully calibrated levels of private capital and insurance reserves would be depleted before any public finds were employed to shore up the mortgage market.

NAHB cautioned the committee about the important t role of the housing industry in economic recovery and with housing just getting back on its feet; they don’t want to see anything reverse the positive momentum.

 

 

 

OSHA Announces New National Emphasis Program for Occupational Exposure to Isocyanates

Posted on by

The Occupational Safety and Health Administration announced a new National Emphasis Program to protect workers from serious health effects from occupational exposure to isocyanates.  Isocyanates are compounds containing the isocyanate group (NCO).  They react with compounds containing alcohol (hydroxyl) groups to produce polyurethane polymers, which are components of polyurethane foams.  Jobs that may involve exposure to isocyanates include foam blowing, the manufacture of many Polyurethane products, such as chemicals, polyurethane foam, and insulation materials.

OSHA develops national emphasis programs to focus outreach efforts and inspections on specific hazards in an industry for a three-year period. They will focus on workplaces in general, construction, and maritime industries that use isocyanate compounds in an effort to reduce occupational illnesses and deaths.

“Workers exposed to isocyanates can suffer debilitating health problems for months or even years after exposure,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels.  “Through this program, OSHA will strengthen protection for workers exposed to isocyanates.”

Health effects of isocyanate exposure include irritation of skin and mucous membranes, chest tightness, and difficult breathing.  Isocyanates include compounds classified as potential human carcinogens and known to cause cancer in animals.  The main effects of hazardous exposures are occupational asthma and other lung problems, as well as irritation of the eyes, nose, throat, and skin.

Energy Costs Added to Chicago Home Listings-Will Others Follow

Posted on by

Chicago will become the first city in the country to include energy costs on home listings.  Homes listed on the Multiple Listing Service in Chicago will display annual and monthly energy costs, including gas and electric service to home.

Only real estate agents will have access to view the information and will then be able to share it with their clients.

Homeowners in the city will provide agents with account numbers for electrical and natural gas companies.  A computer program will be used to automatically pull the monthly and annual energy cost information.  Those energy estimates will be included on the property listing.

With energy costs on the rise across the U.S., the energy costs to operate a home can be very valuable information to the potential buyer.  Homes that are more energy efficient could increase in value and could prompt homeowners to make energy-savings upgrades.

We hope other cities will follow Chicago’s example and include the energy costs in their home listings.

New Home Sales Rise 2.1 Percent in May

Posted on by

Sales of newly built, single-family homes rose for the a third consecutive month in May, posting a 2.1 percent gain to a seasonally adjusted annual rate of 476,000 units according to data released by HUD and the U.S. Census Bureau on June 25, 2013.  This is the fastest sales pace recorded since July of 2008.

“Builders are reporting increased demand for new homes as buyers seek to take advantage of historically low mortgage rates while they remain so favorable,” observed Rick Judson, chairman of the National Association of Home Builders (NAHB) and a homebuilder from Charlotte, NC.   “Consumers in markets nationwide are definitely becoming more confident about making a home purchase as firming prices and tighter inventories provide further evidence of the ongoing housing recovery,”

“The report confirms that the improvement we have been seeing in housing markets over the past year continues to take place at a gradual and steady pace,” said NAHB Senior Economist Robert Denk.  We expect to see more of this positive momentum in the coming months, tempered by the caution that builders are exercising to avoid getting ahead of demand along with ongoing constraints they face with regard to the availability of credit, materials, lots, and labor.”

Three of four regions posted sales gains in May, with double-digit increases of 20.7 percent and 40.7 percent in the Northeast and Midwest, respectively, and a more moderate, 3.6 percent gain in the West.  The South posted a 9.0 percent decrease following an unsustainably large gain in the previous month.

The inventory of new homes for sale edged up slightly to 161,000 units in May, which is a 4.1 month supply at the current sales pace.

Builders Needed In Oklahoma for Tornado Relief

Posted on by

If you are an Oklahoma State Home Builder Association (OSHBA) member with your own crew of subs, you are needed in Moore, South Oklahoma City, El Reno, Carney, Shawnee, and other areas.

The tornados and storms have finally left, but while they were here, they caused a lot of destruction and grief.  Rebuilding is underway and the limited number of reliable subs in affected areas is making the recovery harder and slower for all builders.

The Moore HBA has received calls from builders around the country wanting to come in and help.  More builders contacting the local subcontractors will not help.  What are needed are those builders who can come in with the necessary subcontractors and materials.

To facility the recovering, OSHBA is assembling a list of member builders who are qualified to help in the rebuilding efforts and can bring crews and materials into affected areas.  If you are equipped to meet these criteria and want to be included on the list, please send your name, company name, e-mail, and phone number.  Do not put your name on the list if you cannot supply your own subcontractors and materials.  As is the State Policy, we will recommend Certified Professional Builders first, then other members alphabetically.  We will only list active members and will update as members join the effort.

Builders in every recovery area are working overtime to move their projects forward, but they need help.  Builders from other parts of the state can help the local builders and survivors as they work together to keep Oklahoma strong.

The list is available at www.osha.org/pages/tornadorelief

Note:  This article was provided by Mike Means

SAVE Act Update

Posted on by

Home buyers purchasing energy-efficient properties could qualify for lager mortgages than their incomes would normally allow under a Senate bill reintroduced on June 6, 2012 with broad real estate industry support.

The measure would allow lenders to include projected energy savings from efficiency upgrades when measuring the borrower’s income against expenses and the value of the home against the debt.  In addition to giving borrowers larger loans in new purchases and refinancing, it could also lower their interest rates.

The government already promotes so-called-energy-efficient mortgages under a Department of Housing and Urban Development program.  But the proposed legislation would require lenders to take the projected energy savings into account when presented with a qualified energy report.  Decreasing the amount of energy a home uses increases the amount of dollars in the pockets of homeowners.

The bill was originally introduced in 2011 and although it attracted support from groups across a broad political spectrum – including the United States Chamber of Commerce and the Center for American Progress – it failed to gain approval.  The sponsor of the bill have broadened its appeal within the real estate industry, chiefly by eliminating provisions that could have penalized older, less efficient homes or those lacking a report based on estimated energy consumption.

In absence of a home energy report, which would come from an approved third-party inspector, the home’s energy use would not become a factor.  But lenders would provide applicants with information about the benefits of investing in energy-saving upgrades and counsel them on how they could go about doing this.

If passed the proposal could help close the gap, in addition to promoting energy conservation and construction jobs, generating $1.1 billion a year in saving for consumers by 2021.  Loan applicants could expect to gain about 5 percent more borrowing power on average.

More than 750 Builders Discuss Housing Issues in Hill Visits

Posted on by

On June 5, 2013, more than 750 builders from across the nation converged on Capitol Hill for the annual National Association of Home Builders (NAHB) Legislative Conference to urge their lawmakers to support policies that will keep the housing recovery moving forward and increase housing opportunities for all Americans.

“We are sending a load and clear message to members of Congress that strong housing market is critical to create jobs and boost economic growth,” said NAHB Chairman Rick Judson.

In 300 individual meetings with their representatives and senators, builders discussed the following key housing issues:

  • Tax reform.  To meet the nation’s growing need for affordable rental housing and home-ownership opportunities, NAHB members urged Congress to maintain its support for vital housing tax incentives, including the mortgage interest deduction.  Builders also emphasized that the Low Income Housing Tax Credit is essential to ensure that lower-income families have access to safe, decent, and affordable housing.

 

  • Housing finance reform.  With Congress preparing to address the future of the nation’s housing finance system and Fannie Mae and Freddie Mac, NAHB continued to advocate that any restructuring provides for reliable and adequate flow of credit for home buyers and that the federal government plays an appropriate role in backing up the housing finance system.

 

  • Immigration reform.  NAHB called on Congress to enact comprehensive immigration reform that protects the nation’s borders; focuses on the direct employer-employee relationship so that U.S. employers remain accountable only for the identity and work authorization status of their direct employees; and creates an efficient, temporary guest worker program that allows employers to recruit legal immigrant workers when there is shortage of domestic workers.

 

  • Credit for housing production.  Despite the recent upturn in housing, builders in many markets are still unable to obtain construction loans for viable home building projects.  NAHB called on lawmakers to support House bill H.R. 1255 and companion Senate bill S. 1002 that would help resolve the ongoing credit problems for builders.

Attic Insulation Tips

Posted on by

The attic of a home for most of the United States can be a dreadful place to visit in the summer for homeowners.  Depending on the geographical area, attics in the summer are stereotypically scorching and feel hotter than the Arizona desert.  If the right measures are taken, attics don’t have to be extremely hot in the summer.

One thing that is very important is to never cover attic soffits with insulation.  By covering the soffits with insulation you’ll restrict the flow of air in the attic resulting in temperature increase.

Installing baffles or vent chutes in your attic will allow air to flow into and out of the attic as well as prevent any insulation from covering the soffits.

An attic ventilation fan will help control the heat within an attic during the summer months.  An attic ventilation fan will push the hot air out of the attic and help bring the cooler air from outside in.  This will help jumpstart  airflow throughout the space and reduce the high temperatures.

These tips will result in lower energy bills, increased life of roofing materials and overall increase the comfort of your home.

NAHB Applauds New Legislation to Spur Construction Lending

Posted on by

The National Association of Home Builders (NAHB) today applauded Sens. Robert Menendez (D-N.J.) and Johnny Isakson (R-Ga.) for introducing bipartisan legislation to encourage residential construction lending, spur job growth and keep the housing and economic recovery on track.

“Sens. Menendez and Isakson know that a robust housing market is vital to generate jobs and maintain a vibrant economy,” said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C. “This bill will help builders access the credit they need to construct new homes in a growing number of markets that need and want them.”

S. 1002, the Home Building Lending Improvement Act of 2013, would discourage lenders from calling construction loans where payments are current and establish regulatory guidelines to allow the banking industry to restore lending for viable home building projects.

The legislation to resolve the ongoing credit problems for home builders is similar to House bill H.R. 1255, the Home Construction Lending Regulatory Improvement Act of 2013, which was introduced earlier this year by Reps. Gary Miller (R-Calif.) and Carolyn McCarthy (D-N.Y.).

The nationwide inventory of completed newly built homes is extremely low due to the limited amount of new home construction that took place during the economic recession. During this time, college graduates were forced to move back in with their parents and others doubled or tripled up in residences rather than renting separate apartments.

It is estimated that roughly 2 million household formations were delayed as a result of recent economic conditions.

Housing stands ready to serve as an engine of economic job, Judson said, noting that whenever new homes are built, new jobs are created and a permanent source of ongoing revenue for local, state and federal government spring to life.

NAHB estimates that constructing 100 new single-family homes generates more than 300 full-time jobs and $8.9 million in federal, state and local tax revenues.

“With housing and the economy now on the mend, there is pent up demand for homes in many parts of the country,” said Judson. “By helping to restore the flow of credit to home builders, S. 1002 will help meet this growing demand, put Americans back to work and strengthen our communities by increasing the property tax base that supports local schools, teachers, police, firefighters and public services.”