Will Obama Bring Back ‘Buy-Downs’?

NAHB wants Barrack Obama and the new Congress to use a combination of deep mortgage interest rate “buy-downs plus federal income tax credits to jolt housing sales and new construction back to life. The housing industry’s new emphasis on mortgage rate buy-downs harks back to the 1970s, when the government lowered rates to consumers through a program known as “Tandem Plan,” where Ginnie Mae purchased discount-rate loans made by private mortgage lenders to home buyers. David Ledford, senior vice president for housing policy at NAHB, acknowledged that a mass-market buy-down plan would be expensive, but it would be a cost-effective way to energize the housing sector and stimulate the broader economy. He said, “Our view is that until you stabilize housing, we’re not going to get out of the mess we’re in” — with rampant foreclosures and short sales, a glut of unsold new and resale houses and a credit squeeze for many consumers. (www.washingtonpost.com)
Washington Post (11/15/08); Kenneth R. Harney

[Return to top]

Trend Setter Home Series Helps First-Time Home Buyers

One of the leading home builders in Wichita Falls, Texas — Lance Friday Homes — is embarking on a mission to provide the area with affordable housing without sacrificing quality or value. Located in Highpoint Village, the “Trend Setter Home Series” features energy-efficient homes starting as low as $119,900 that include three bedrooms, two full baths, a two-car garage and central living room with fireplace. “For first-time home buyers, this is the perfect way to have a quality starter home that will grow in value,” said Lance Friday Vice President Barney Brock. “Additionally, if you are an empty-nester wanting to save on a smaller home, these homes also are ideal.” Brock noted that prospective first-time home buyers who have been sitting on the fence now have a significant financial incentive to explore the opportunities available in today’s housing market — the federal $7,500 tax credit available for the purchase of a first home before July 9, 2009. “Homes by Lance Friday Homes are designed and constructed to be very energy-efficient,” added Brock. These homes have all of the energy-saving features to keep the home cool in summer and warm in winter while reducing the monthly electricity bill and surpassing newly mandated energy-efficiency code ratings in Texas. (www.timesrecordnews.com)
TimesRecordNews (11/9/08); Scripps Howard

[Return to top]

In These Economic Times, Will a Bungalow Be Our Dream Home Again?

Paul Goldberger, arguably the most influential commentator in the U.S. on architecture, said tough economic times make us appreciate modern houses more, the kind often built in the subdivisions of the 1950s. “The modern-style houses of this period are typically modest but well-designed, making good use of their relatively small space,” he says. NAHB statistics show the average American home was approximately 1,000 square feet in 1950 and had grown to 2,400 square feet by 2005. While families were larger in the 1950s, houses were not; it was usual for a family of five or six to feel lucky to live in 1,200 square feet. In addition, there was usually a basement and carport or, if the family was well-to-do, an enclosed garage. People lived in the living room because there was no place else. If there was a family room, it was a breakfast nook connected to the kitchen. Children often shared bedrooms and most always a bathroom. No one had huge closets. “Modern houses tended to make good use of natural light, and the best had good relationships between exterior spaces,” Goldberger says. The most lauded examples of connection to the outside, and the expansion of perceived living area, are the classic plans of Frank Lloyd Wright. In the home magazines of the times, someone was always extolling the virtues of sliding glass doors and windows that let in garden views. (www.nationalpost.com)
National Post (11/14/08); Kelvin Browne, Canwest News Service

[Return to top]

Some in Congress Choose Couch Over D.C. Housing

At least on days when Congress is in session, chances are that two of Arizona’s 10-member congressional delegation are hunkering down for the night on couches in their government offices. Neither Rep. Jeff Flake nor Rep. John Shadegg own or rent housing in the Washington, D.C. metro area. Instead, they sleep most Tuesday, Wednesday and Thursday nights in the spacious inner offices of their respective office complexes on Capitol Hill. They are among legions of U.S. senators and representatives who merely bunk rather than reside in Washington in an effort to stretch their paychecks further in a city where rents are notoriously high. For example, the Web site craigslist.org recently listed one-bedroom condominiums near Capitol Hill for $1,400 to $1,900 a month, which comes to $16,800 to $22,800 a year. Stories are rife in Washington of congressional members who rent dank basement apartments in brownstones and others who crowd three or four into rental houses to split the cost. Most Congress members who sleep in their offices slumber on sturdy leather couches that otherwise are used to receive staff, constituents and other guests. The practice is widely accepted at the highest levels of government, but rarely publicly discussed. (www.eastvalleytribune.com)
Phoenix East Valley Tribune (11/16/08); Paul Giblin

[Return to top]

Growth in Basement Remodeling Undeterred by Sluggish Housing Market

In the all-new report, “Trends and Opportunities in the U.S. Basement Remodeling Market,” market research publisher SBI forecasts that the basement finishing market will grow 5% in 2008 to $23.3 billion, and subsequently will grow a steady 7% annually through 2012 to 30.6 billion. “Faced with the glut of houses on the market and the prospect of a low sale price, more home owners are pulling back and deciding to sit tight while hoping for an upturn in the market,” says Shelley Carr, associate publisher of SBI. “As an option to buying a new home, some owners turn to remodeling the basement for the extra space they need.” Other factors predicted to contribute to the growth of the basement remodeling market are the aging of the nation’s housing stock, and product developments that lessen the challenges basement remodeling presents — such as waterproofing, mildew and mold control, and insulation. (www.marketwatch.com)
MarketWatch (11/10/08)

[Return to top]

Need Some Help? D.R. Horton-Schuler Steps Up

Employees at D.R. Horton-Schuler Division have a long tradition of giving their own time to the community. The company, which has built nearly 9,000 homes on Oahu, Maui, Kauai and the Big Island since it began some 30 years ago, was known as Schuler Homes until 2004, two years after it merged with Texas-based D.R. Horton Inc. The tradition of giving back to the community began with the company’s founder, Jim Schuler, who six years ago set up the James Schuler Family Foundation, which gives more than $1 million to various charities each year. The company itself also supports a number of local charities, and last year alone gave more than $121,000 to more than 67 nonprofit and community organizations. “We try to give to different organizations,” President Mike Jones said. “The foundation’s main focus is on children, giving to a lot of organizations that focus on children.” One of the company’s primary beneficiaries is the Read to Win program, which was created in 2004 to provide children in West Oahu with an incentive to read. Each school year, students at participating elementary schools read a set number of books donated by D.R. Horton-Schuler Division and write a report on each book. Students who reach the reading goal help to win money for their schools. (www.pacific.bizjournals.com)
Pacific Business News (11/14/08); Janis L. Magin

[Return to top]