Archive for the ‘Home Building News’ Category

As part of the new administration’s rescue plan for the ailing US economy, a new housing tax credit of $8,000 will be given to first-time buyers. However, the release of this news disappointed home builders, saying that this is not enough to help the housing industry.

The past year was a very difficult time for the US and the whole world as well. The economic recession is the worst that the US has experienced. This has caused massive unemployment as large companies declared bankruptcy. This is a trend that continues up till today, so the new government under the leadership of President Barack Obama is taking necessary actions to reverse this trend.

In particular, the housing industry suffered greatly, and is even contributing to the worsening economic crisis. Thus, a significant part of the government’s bailout plan is dedicated to extend help and support to home buyers and homeowners as well.

The new housing credit was actually scaled down, from an original amount of $15,000 for home buyers. This is also limited to first-time buyers who will start construction within the start of the year to November.

Not only are the home builders disappointed. Most buyers who were expecting the $15,000 are now reconsidering if they will continue with their plans of home building, after the new tax credit was released. According to Beazer Homes USA Inc., a lot of people got interested in new home construction after learning of the tax credit. This can also put home builders in jeopardy, as less people are likely to start home construction.

On the other hand, this may have a good effect on the real estate industry. According to Paula Swayne, a Sacramento, California real estate broker, they are expecting an increase in home sales because of the low tax credit for home building. Moreover, since there are a lot of foreclosed properties in that area, the value of homes are very affordable. The National Association of Realtors are even expecting 200,000 property sales, as an effect of the new tax credit.

The need for reinvention in the home building industry arises as home builders try to cope up with the challenging economy. Builders continue to diversify by tapping their other skills or reinvention their roles in the industry.

One interesting case is that of Curtis Perlman of Empeco Custom Builders, who has gained knowledge about property tax assessments while being a home builder and an owner of rental properties. He has familiarized himself well with the appeals process; ad now, he is doing property tax appeals while working with a real estate attorney and an appraiser. He has gained a lot of clients and has won business from his competitors in the home building industry.

The study conducted by the National Association of Home Builders has shown that builders consider the remodeling industry as a relatively safe haven. This means that while few consumers spend on home remodeling, the business is still doing better as compared to the construction of a new home because homeowners would rather remodel their homes if they do not want to move or if they cannot qualify for a mortgage.

Bryan Nooner, the chairman of Distinctive Cos., has introduced landscape and remodeling divisions this year, schooling employees who would work in a home with people in it, rather than building in an empty area. He also had to investigate legal issues concerning remodeling.

Another new move of home builders is working with banks that are forced to play the role of property developer, home builder, and landowner whenever strapped companies yield project control.

Gladstone Builders & Developers has formed Gladstone Special Asset Solutions to aide lenders controlling real estate assets that have to be repositioned and to attract new investors; for example, working with a municipality to turn a 4-unit townhouse into a two-unit building.
With the continuous role reinvention of home builders, the home building industry can go a long way despite the tough economy.

The Eskaton Senior Residences and Services, an assisted living facility based in Carmichael, California, opened a single-story, two-bath and two-bedroom model home for the elderly on October 23, 2008. It is a house construction project that provides a glimpse of the role of technology on home building for older people.

The in-home technology featured in the model house helps older people achieved what they most desired; to live the remaining days of their lives in their own houses.

The technologies displayed in this model house not only provide comfort to residents but also peace of mind to their relatives.

For example, you will receive a text message on your cell phone if your aging mother is not yet out of her bed by noon. If she forgets to open her medicine container to take her pills, you will be alerted immediately on your cell phone, laptop or Blackberry.

The model house is part of the Eskaton Certified build home program and is designed to attract the interest of home builders and those in the field of home renovation.

Some technologies featured in the model house are:

• A computer designed in part by the UCLA Center on Aging, that features memory exercises to help older people prevent dementia.
• Intel’s Health Guide touch-screen system allows older people to have medical consultations and receive health-related advice without going to a doctor.
• Grand Care remote monitoring system that allows older people to live in their houses. The system allows you to monitor the whereabouts and activities of your mother.
• Sensors that detect an older person’s motion and can be installed in various places at home to alert her relatives if there has been an accident or medical emergency.

The model house, which is a feature of Eskaton’s home construction program, is an alternative to those elderly people who lost their homes in foreclosure.