According to local reports, most builders are choosing usable space over tall roofs, while others install laminate countertops and not the more expensive granite. Vinyl floors have also become much preferred over hardwood that could increase the price of a home considerably. Still others are building smaller houses to make sure that the price stays within the $271,000 mortgage limit imposed by the Federal Housing Authority.

For those who continue to build larger homes, they try to lower the price by offering sparse amenities to buyers and keep the selling price at $150,000 or less. Such techniques have been adopted by majority of home builders in the city and this, according to home building industry observers, have resulted in most firms having the ability to cope with the housing market downturn and the recession. Some have even recorded profits despite the economic downturn.

These efforts exerted by local home building companies are being rewarded by recent increases in new housing sales. According to the latest housing market figures, a total of 100 new houses were sold in March 2010 compared with the 31 dwellings sold in March 2009.

April 2010 saw the city selling 96 newly built dwellings compared with 61 in April a year ago. June 2010 totals were at 134, with June 2009 total at 44, while July 2010 saw 126 residences being sold compared with the 77 total posted in July 2009. So far, building permits for 2010 total 437, a figure that is considerably higher than the whole 12-month total of 385 recorded in 2009.

According to some home builders, this improved condition in the house building industry shows that most buyers are realizing that the prices of dwellings will not get any better and it would be better to make a purchase now instead of later. They also stated that the coping strategies used by most home building companies in Memphis have worked to keep most of the firms in business despite the recession.

Memphis Home Building Companies Adapt to Market Condition is a post from: HomeBuildingNet.com - The home building net!

According to industry observers, the poor economic condition of the country and the onslaught of cheap foreclosed dwellings that have discouraged people from purchasing new houses both played major roles in the industry's declining confidence. The score of 13 is way below the confidence threshold of 50. April 2006 was the last time builders' confidence index reached over 50.

The continuous decline of industry confidence was primarily blamed by analysts on fewer homebuyers investing in new residences. This is despite the fact that mortgage rates are at record lows and prices of residential properties have stabilized in most markets, allowing people with good credit history to qualify for loans. Analysts explained that the reluctance of homebuyers to make purchases is primarily due to high unemployment rates and stricter credit rules. In addition, home prices are expected to decline again in the coming months.

Most home building construction industry members believe that the confidence index will remain way below 50 unless the condition of the job market gets better. Majority of consumers are wary of making any residential purchase with the housing sector exhibiting a weak recovery and the job market remaining in poor condition. This sentiment is highly evident in the home building activity for June which recorded its lowest level since the start of the fourth quarter of 2009.

For the small number of people who are buying homes, most of them opt for cheap foreclosed dwellings, making hardly any contribution to the house building sector. A survey of homebuilders showed how much foreclosures have hurt the residential construction industry, with 90% of respondents blaming foreclosures for the industry's woes.

The confidence of the home building construction business is expected to continue to decline for the rest of the year, with analysts predicting that the only way the confidence index will improve is for the job market to show some positive movements.

Confidence of Home Building Construction Industry Dropped in August is a post from: HomeBuildingNet.com - The home building net!

DeGennaro was a businessman who operates in Tewksbury and Wilmington in Massachusetts. He was convicted for allegedly cheating customers for money totaling over $100,000. His co-defendant and bookkeeper, Charlene Conners, was also found guilty of fraud on five counts, although she was acquitted on 11 other charges.

Sources from the office of the Middlesex District Attorney have revealed that the crimes were committed between November 2001 and August 2002. DeGennaro reportedly accepted over $100,000 of escrow funds meant for the construction of two houses, but the money was allegedly used for something else. When the customers asked the contractor to return the money, he was unable to do so since the funds were allegedly already spent on something else.

In one of the cases, DeGennaro was revealed to have accepted an initial deposit worth $5,000 for the construction of a house in Wilmington. Once the contract had been signed, he supposedly accepted an additional $43,500. The money was supposed to have been put on escrow like most home building contractors usually do, but DeGennaro deposited it instead on a checking account. Conners, DeGennaro's co-defendant, was reportedly present during the meeting with the customer.

The second case was almost the same as the first one. DeGennaro accepted a deposit for the construction of a house. The $5,000 deposit was reportedly followed by a check worth $41,000 after the building contract has been signed. Additional $7,000 was allegedly received by DeGennaro for extra expenses in the building of the house. The total amount was then deposited in a private account instead of being escrowed as promised by DeGennaro to his customer.

According to court documents, both homes were never built by DeGennaro. The two customers even signed extensions to have their homes built, but it turned out that the contractor had not even secured the property rights from the city. Authorities have stated that the case of DeGennaro should serve as a lesson to other home building contractors who are planning to commit questionable actions towards their customers.

Home Building Contractors Warned by Authorities is a post from: HomeBuildingNet.com - The home building net!

House construction and building permit applications declined in May, offsetting the strong performance of the manufacturing sector and the favorable wholesale inflation reports. The lack of construction projects also means that more people working in the industry are out of jobs. This further contributes to the high unemployment rates all around the country.

Industry analysts state that the performance of the construction industry has a huge impact on various sectors of the economy. The higher the unemployment rate, the less number of people are buying new houses or having dwellings constructed. Although mortgage rates have declined to an almost record low, the house construction industry still struggles.

Some economists have seen a slight positive to the trend. They stated that while the economy is growing, the housing industry remains in recession. However, despite the fact that the industry will not be able to contribute to the growth of the economy, it is also not going to pull it back down.

Home construction company activities for apartment and residential dwellings declined by ten percent, while building permit applications dropped by almost six percent. According to homebuilders, the decline is largely due to the expiration of the tax incentive offered by the federal government to home buyers.

Meanwhile, construction of single family dwellings dropped by 17%, making it the largest monthly decline since January 1991. Builders have stated that, with the tax incentive gone, it is unlikely that the sector will be able to sustain its first half performance. They added that the strong numbers posted by the sector during the first four months of the year were largely due to the tax credit.

Although home construction company projects are expected to remain flat for the rest of the year, industry observers believe that the national economy is still on its way to recovery and that the weak construction market will not hinder its pace.

Home Construction Company Activities Declined in May is a post from: HomeBuildingNet.com - The home building net!

According to local housing officials, building a house according to the city’s code is important and the permit issued for the construction is necessary for the project to get started. Before the actual construction, homeowners are required to file a building permit application. In the application, owners are asked certain information such as the location of the house, legal and physical description and property lines among others.

The application is then forwarded to the public works department where it will be approved. The building inspector will then make a permit that will require additional information to make sure that the house or structure is built according to the requirements specified under the building code.

In Sidney, there are areas that have specific house building requirements, like what type of residence is allowed and what types are not. Certain areas might allow only single family houses to be built in the neighborhood, while others might allow multifamily dwellings. The city is currently using the 2006 International Building Code, although it has started the process of implementing the 2009 version.

According to county officials, the guidelines are not strictly required, but they do recommend them since acquiring a building permit will help homeowners get financing. They added that there are certain banks that do not grant loans to homeowners unless their homes comply with building code requirements.

Once the construction is completed, a final inspection to check whether the home fulfilled the requirements under the code is conducted. Local housing officials have encouraged homeowners to get help from a building inspector to make sure that they are following the house building code to avoid errors that could result in additional costs and troubles.

Sidney Code for House Building Provides Financing Advantages is a post from: HomeBuildingNet.com - The home building net!

Homeowners are using it mainly for window replacements and the tax credit is equivalent to around 30 percent of the cost of the product with a ceiling of $1,500. The cost of installation is left out of the computation and the credit can only be applied to the primary residence, which disqualifies new construction.

The building costs range from $7,000 to $20,00 and this is quite high as it involves not only on the quality of the window it also takes into account the intricacies of installing replacement windows including leak damage prevention. There are other specifications that homeowners need to adhere to like the energy savings standard governed by a rating system to check the cost efficiency of the windows. Some window replacements actually do not meet the building requirements and are disqualified for the credit.

The windows that consumers need to use to qualify for the credit and bring down building costs should have the seal of the National Fenestration Rating Council. The ratings of the council are labeled on the product and indicates the energy rating among other product specifications.

Another energy rating honored by the government is the Energystar label that is more widely used in the cold regions of the country. The Energystar label is from the US Environmental Protection Agency and labels products meeting the highest energy efficiency levels. But there are some Energystar labels that do not qualify for the tax credit because energy savings depend on where the window labeled with the Energystar rating is being installed.

It is always a good practice to consult experts before embarking on a window replacement home improvement to ensure that building costs are kept in check and that the tax break can be availed.

Government Tax Credit to Defray Building Costs on Window Replacements is a post from: HomeBuildingNet.com - The home building net!

The collapse of the wall caused crevices about 8 feet wide and about 15 feet deep in some portions. It also caused soil movement underneath several houses and it made 27 homes totally unsafe for homeowners.

After the collapse, about 90 families were evacuated and moved to hotels and other residential properties. Most homeowners returned to their homes later, except for the owners of the 27 severely damaged homes.

Last week, Pulte Homes offered to buy back the 27 damaged homes from the owners. It also offered to pay moving expenses, home improvements and legal fees. Centex, the division of Pulte Homes that developed Rivermist, also said that homeowners who opt to keep their houses will be provided with temporary housing while the retaining wall is built, completed and certified.

Pulte Homes said that it will take about six months to build a new retaining wall and will cost about $4 million to $5 million. City officials of San Antonio said that no permit was issued for the building of the retaining wall, but Pulte Homes insisted that all necessary permits were obtained and all city requirements were followed before home construction, retaining wall construction and all housing development activities.

Homes at Rivermist were sold at an average of $200,000, with units adjacent to the retaining wall priced higher because of their city views and their bigger sizes.

Some residents are complaining that the collapse of the wall has cut down home values. Homeowner Dell Hammett said that owners are angry because they put all their life’s savings into properties that lost value quickly.

In response, Pulte spokesperson Valerie Dolenga said that the housing development has been holding up in value, as evidenced by the recent sale of six homes after the collapse at the original listing prices. In addition, two of the properties affected directly by the wall collapse just got sold.

Last week, Pulte Homes Inc. was lauded by Fortune magazine as among the most admired firms in the world. Two of its home building companies, Centex and Pulte Homes, were among the top 5 firms in the home construction category. Pulte was second in the ranking while Centex, which was acquired by Pulte last year, was ranked fifth.

Home Construction Firm Pulte Homes Corrects Damage is a post from: HomeBuildingNet.com - The home building net!

In February, the index climbed up to 17, higher than the previous index of 15 and higher than the prediction of analysts. It was also the highest point reached over the past three months.

The buyer traffic gauge stood at 12 and the measure of sales prospects surged to 27, up from the January reading of 26.

According to analysts, although figures below 50 mean that most home builders view the industry situation as poor, the increase in the index meant that builders are less gloomy about their prospects for recovery. One of the factors that have encouraged builders is the expansion and extension of the homebuyer tax credit program.

The general economic index of the Federal Reserve Bank of New York also climbed up to 24.9 in February from the January reading of 15.9. Readings above zero mean that New York and portions of Connecticut and New Jersey have significant growth prospects.

According to Michigan businessman and NAHB chairman Bob Jones, optimism is growing among home builders because of the still low mortgage rates, the improvement of the tax credit scheme and the apparent stabilization of home prices.

Of the four regions tracked by the index, confidence surged in two regions, rising to a record 19 in the South and to 13 in the Midwest. In both regions, the index rose by two points.

In contrast, confidence dropped to 19 in the Northeast and to 14 in the West. The index fell by one point in both regions.

David Crowe, the chief economist of NAHB, said that the tax credit expansion has been a positive factor for builders, but the continued foreclosures are still pushing down the level of builder expectations.

As predicted by a foreclosure tracking firm, about 3 million homes will be taken back by mortgage banks this year because of depressed property values and high unemployment rates. Last year, 2.82 million homes were put into the foreclosure process.

According to survey respondents, housing starts may have increased to an annual rate of 580,000 units in January from 557,000 units in December last year. If the scheduled release of the Commerce Department report affirms the projection, the 4.1-percent increase in housing starts shows that home builders have begun to act on their optimism.

More Home Builders Are Confident about Recovery This Year is a post from: HomeBuildingNet.com - The home building net!

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.

Home Building Activity Remains Slow Nationwide is a post from: HomeBuildingNet.com - The home building net!

The tax refund would enable companies to recover from their losses, especially large firms which can claim refunds of taxes they have paid over the past 5 years.

The National Association of Home Builders lobbied hard for the passage of the tax break legislation, which also includes all other types of industries. But home builders say they will be helped significantly by the tax refunds because they were directly hit by the housing meltdown and suffered huge losses.

According to several financial analysts, the tax refund would not only help home builders recover; it would also increase the cash hoard of the biggest home construction companies in the country. They claim that the largest home builders have accumulated cash after selling most of their real estate properties over the past years and not building more homes.

Based on a report released by J.P. Morgan, each of the ten top home builders in the country has a cash hoard of about $1.2 billion, compared to their average of $616 million in cash in 2007.

Rob Stevenson, an analyst with investment bank Fox-Pitt Kelton, said that home builders sold a lot of their assets over the past years and that the tax refunds would be equivalent to free money added on top of their cash hoard.

Michigan-based home builder Pulte Homes expects to receive more than $450 million in tax refunds while Lennar Corp. of Florida could receive up to $300 million. Arizona-based Meritage Homes Corp. could claim around $60 million.

With these tax breaks, the extension and expansion of the federal tax credit for home buyers and other positive developments affecting home builders, credit rating agencies such as Credit Suisse upgraded home builders, sending prices of home building stocks to higher levels.

The stocks of Lennar rose by nearly 5 percent or 63 cents to $14.14 and the shares of Meritage increased by nearly 6 percent or $1.11 to $19.90.

According to many housing analysts, what the tax breaks would really significantly help are the small home builders, which had been battered by the housing crisis and which have temporarily closed their home building activities. The cash money would enable them to restart their operations and recover.

Home Builders Getting Windfall from Tax Refunds is a post from: HomeBuildingNet.com - The home building net!