Archive for the ‘Home Building’ Category

The home building sector remains discouraged about the housing market and new home construction as of November, according to a recent survey held by the National Association of Home Builders.

The NAHB index for home builders’ confidence dropped to 17 in November from the unrevised index of 18 in October. Before the housing crisis, the NAHB index had never fallen below 20 in the 24-year history of the index, but over the past 19 months, the index remained below 20 points.

The index also has been below 50 points – the break-even level – for 43 consecutive months already. The index improved in September to 19 points, as indications of improvements in the market appeared, such as increases in home sales and prices. But the index later fell as home builders became discouraged by the approaching expiration of the federal tax credit scheme.

Goldman Sachs economist Ed McKelvey said that the October index was disappointing because it reinforced the view that recent increases in home sales were temporary and that the transitory factor of federal tax credit was largely driving home sales increases.

The one positive thing about the study was that it was held before Congress approved the proposed extension of the federal tax credit.

A study conducted by TD Bank Financial Group also showed a sharp slowdown in home building activity in October. TD Bank reported that new residential construction decreased by nearly 11 percent from 592,000 units in September to 529,000 units in October. The October count was far below the industry forecast of 600,000 units and was the second monthly decrease over the past 6 months. It also marked the lowest level of new home construction since April.

New single-family house construction dropped by 6.8 percent to 476,000 units and new multi-family construction fell by 15.2 percent to 89,000 units.

Housing starts in October fell by nearly 32 percent from October last year and dropped to almost 77 percent below their peak level of 2.27 million housing units in January 2006. Building permits also declined by 4 percent on a month-over-month basis to 552,000 units, driven by a drop in building permits for single-family units. It was in the multi-family subsector where building permits rose by six percent to 123,000 units.

The two reports are disappointing to housing analysts and housing market participants, but the expansion and extension of the federal tax credit are expected to spur increased activity in the home building sector.

Building a home in some parts of Georgia, particularly in Somerset, Canton and other parts of Cherokee County, has been profitable for niche builders.

These niche builders have been constructing homes for retirees in active adult communities that have amenities for homeowners aged 55 and above.

Steve Romeyn, head of homebuilding firm Windsong Properties, said most retirees who are buying homes in the area are moving back from other states to be nearer their families or older couples who are downsizing because they no longer like to maintain big houses.

Romeyn added that his clients are not financially troubled and that they have sold their homes at good prices. Additionally, he said that there are no short sales and foreclosure sales in the neighborhoods where he builds homes, so housing units continue to increase in price, unlike in other places in Georgia.

The Windsong builder also related that every home he builds has three bedrooms, two bathrooms, an outdoor courtyard and a bonus room in the attic. Some have sunrooms and screened porches and all units are made of high-quality building materials. Each home also has the Earthcraft energy-saving certification.

Building a home has also been good for John Wieland, whose current project is the 126-home adult community Cadence at Woodmont. The homes feature main-floor living and private courtyards. Home prices range from $300,000 to $500,000.

Another niche builder is Active Lifestyle Communities, which is continuing the development of the 728-home active adult community at Laurel Canyon. Evan Cramer, head of Active Lifestyle, said that one-story homes in the community are priced from $236,650 through $450,000, with many units featuring basements.

The Laurel Canyon community features a large clubhouse that includes a teaching kitchen, pottery kilns, a lakeside amphitheater, indoor and outdoor pools, tennis courts and membership to the nearby golf course.

Another home builder in Cherokee is Dan O’Dwyer, who is currently selling the Earthcraft-certified homes he has built at Heritage Springs. Home prices start at $219,900, with some houses attached and others detached. O’Dwyer built the homes in a way that their exteriors are maintenance-free.

An exclusive development called Hawk’s Ridge is also targeted at people who do not want the responsibilities of property maintenance. Homes in this project would be smaller than similar developments and would be priced below $1 million. Indeed, building a home with amenities for the financially stable retiree is profitable.

Nowadays, it is not enough that you think about you and your family’s needs when building a home. With the many campaigns to reduce energy consumption worldwide, you will also have to consider the environment’s as well.

Lucky for you, there are a lot of home builders who specialize in this particular home construction. You will only have to decide which construction and design you will go with. The choice usually ranges from using recycled materials to installing energy-efficient features to indoor quality of air to land-use.

With so many ways that a homeowner can participate in the green home movement, building a home can be so much simpler. Consider the following tips:

Installing solar panels, maximizing daylight, collecting rainwater – by utilizing natural energy and resources, you will be able to cut energy and water consumption considerably.

Use of sustainable products such as cork, bamboo and wheatboard cabinets – sustainable products usually make use of renewable materials and will have almost no impact on the environment.

Choose locally-manufactured materials and products – aside from not wasting energy since you have to transport these items; you also help the local economy.

Remodeling and upgrading to energy-efficient features – this could include the installation of maximum insulation, windows that are efficient in controlling penetration of sunlight, choosing water-fixtures with low flow, installation of tankless water heater, upgrading to a more efficient HVAC system and going for energy-efficient appliances.

Of course, the only way you can attain your “green” objectives is by working with a home builder who is familiar with sustainable design as well as green building. Your contractor should also be able to give you expert advice regarding energy efficiency.

Do not be surprised if such construction will cost you more than building a home without these green features. Just remember that you will actually be saving money in the long run and only have to shell out money at the beginning. For this reason, you might want to shop and compare home building cost and conduct some research about green homes. This way, you become familiar with the ins and outs and are able to make informed decisions.

Confidence of the home construction industry has declined by one point this October to 18. This is according to the most recent Housing Market Index report from Wells Fargo and the National Association of Home Builders.
One of the reasons for the decline is the nearing expiration date of the tax credit program. For the [...]

Joining the “green revolution”, Mississippi’s house building industry has started to incorporate environmentally-friendly features into new home and building designs.
Jackson-based company, Residential Advantage, is just one of the new breed of home builders which specializes in such field. For the company, building greener homes is considered to be a part of their responsibility to [...]

Two proposals is currently being debated in the Congress involving the extension of the federal program that gives first time homebuyers $8,000 in tax credit. The said bills are being supported by the building home industry to pave the way for a long term recovery.
Many housing analysts are not sure if the extension is [...]

The Securities and Exchange Commission is currently investigating KB Home, a large company involved in building houses, due to the possibility that the company has violated certain disclosure and accounting policies.
The said investigation is actually the second time that the home builder attracted the attention of the commission. The first one is an investigation [...]

Concrete blocks have been popular materials for building houses, since long ago. As new materials are introduced in house construction, it is important to know whether or not it is fit for your house, as well as for your location to choose concrete. Here are some pros and cons in using concrete blocks in building [...]

New York City is finding ways into turning itself into a location of energy-efficient house office building projects. Michael Bloomberg, Mayor of New York City, unveiled an energy efficient office building that is worth $25 million. Located at Perry Avenue, the building uses solar panels, toilets that use rainwater and has six windmills on its [...]

The home building market sees significant improvements as the country’s economy continues to experience difficulties. This is due to the government’s efforts to help first-time buyers to purchase a house. For instance, tax credit is given to home buyers, encouraging them to buy a house. Although the housing market has continually experienced low performance, the [...]