Archive for the ‘Home Building’ Category

Following the announcement on Wednesday regarding the new home building tax credit of $8,000, real estate analysts and home builders expressed disappointment and predicted slow growth for the home building industry.

The original $15,000 credit value for first time home buyers was seen as the potential igniter of the new home construction market. According to the National Association of Home Builders, they were actually expecting an increase in property sales by around 500,000, and that new jobs of up to 250,000 would be created.

The new home building tax credit will apply only to first-time home buyers who sill start construction before the end of November this year. This further discourages buyers, and as Chairman Ken Rosen of the Fisher Center for Real Estate and Urban Economics say, this move by the government will only be able to help uplift the home building industry by a very few notches. The original amount of $15,000 could have shot up the number of home sales, but it was scrapped.

The Home Builders Association of Northern California, as represented by its chief executive officer Joseph Perkins, agrees that the new tax credit of $8,000 has a very insignificant effect on the housing market, especially to high-end places such as the Bay Area.

However, the National Association of Realtors said last Thursday that the approved tax credit can actually create 200,000 sales this year. This can also help lower the borrowing cost, according to Robert Kleinhenz, deputy chief economist of the California Association of Realtors. This is after Freddie Mac, Fannie Mae and the Federal Housing Administration increased mortgages in expensive areas, as an effect of the new tax credit.

The recovery package is generally seen as lacking in potential to help the home building industry, as well as the whole housing industry, to regain momentum and get running again. For instance, the proposal to lower mortgage rates to about 4 percent was not approved. A proposal from consumer groups aimed at protecting homeowners facing foreclosures never made it to the final versions of the bill in both the Senate and the House.

While private home builders are languishing in a housing market slowdown, the nonprofit group Habitat for Humanity of Greater New Haven is expecting to complete more houses this year.

With the group doing the home building for middle to low-income families and with more families asking for help to stop foreclosure, the group is now in a good position to acquire properties at a low price.

Four or five years ago many people, invested in foreclosed homes when there were lesser affordable homes in the inventory. Many invested in abandoned houses, hoping to renovate them and resell them for a nice, quick profit. Habitat then shifted gears and went into house building instead of gutting and renovating property.

Presently, there are again lots of foreclosed properties in the market, and Habitat is back in the game. This year, the group is expecting the completion of eight houses. According to Habitat, they are also planning for the construction of three single-family homes on recently purchased lots. The houses have been described as “green-built” homes and are expected to be completed in the coming spring.

Another organization, the Neighborhood Housing Services of New Haven, has the same aims as Habitat – to provide affordable homes to families in need and to help stabilize neighborhoods in the inner city. So far, Habitat has complete construction of 60 homes while NHS has averaged 10-12 homes yearly.

Habitat sells its houses at around $85,000, with the cost running to up to $115,000. The volunteers then raise money to offset the difference.

These groups still face quite a challenge though since the economy has failed to recover. Even though there are affordable homes in the market, people are still afraid to buy in the current economic conditions. There have been instances also of the group being outbid by some investors.

On a positive note, New Haven has now changed city policies from the demolition of abandoned homes to supporting groups in their home building and rehabilitation efforts.

Homeowners must now welcome the construction of smaller, but modest houses in every community.

For instance, Parkside Homes President and Nashville house builder Randy Chastain is currently building houses that have fewer rooms and is maximizing spaces as well. He said homeowners now sell their homes for the simple reason that it is too big for them and would rather have a lifestyle that is within their budget.

Americans’ appetite for bigger homes started in 1950 and still continues. During that time, the standard home size was about 1000sq. feet and increased to 500sq. feet in 1970 and 1990. Two years ago, 2,521 square feet was the average house size.

The American Institute of Architects said that properties started to decrease in size in 2008. Consumers are now being practical when it comes to their needs, and house building manufacturers should now make some changes for the demands to be provided.

Living a simple life is what Baby Boomers and Generation Y wants to achieve. The latter buys properties at a younger age and would give up space for lifestyle and location.

On the other hand, Baby Boomers are worried about the increasing energy costs.

Solve LLC Founder Jenn Garrett said that Generation Y is shaping the consumer market enormously. Same thing also happens with Baby Boomers.

Chastain focuses on front porches and kitchens instead of building very spacious rooms. Furthermore, he constructs properties to achieve U.S. Green Building Council’s standards.

Village Real Estate Founder Mark Deutschmann said that not only smaller houses are better, but consumers could also save time for commutes.He sells condos and urban houses to buyers who are willing to have lesser space and time commuting.

Regent Homes house builder David McGowan said that homeowners are concerned about a job loss and that lenders are now stricter in terms of loans. This will reduce the desire for large houses.

Decline in US construction projects have been forecasted in November last year, but surprisingly, records now show that the spending on construction has fallen even less that half of what has been forecasted. Economists have estimated a median of 1.4 percent drop. This has reflected great declines in home building, while there have been gains […]

Building a new home has been stressful for Don Armitage’s Family as they encounter problems with their land title and the contractor they hired. It has been three years already and they still cannot move into their new home, even this Christmas, for their issues might remain unresolved. The building permits that Don Armitage has […]

You are planning to build your dream house. You have already established your budget and have prepared your funds. You have finalized the location and have the initial plans for the house and even have them printed in full color. All you need to do now is to identify the house builder who will turn […]

A home construction is probably one of the biggest investments an individual or a family can have. But before delving into the actual home construction, a wise investor or homeowner would need to sit it out first, probably with the assistance of a professional builder, and set an accurate estimate on the total cost and […]

Building a new home can entail a big investment particularly on construction costs. If you have just purchased a foreclosed property, home renovation costs could very much amount to the same thing. Following practical tips and procedures related to home building can provide the homeowner considerable savings which can be used for future projects. Preliminary […]