| April 20, 2009 |
By Joe Robson
NAHB Chairman and
Jerry Howard
NAHB President and CEO |
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A key market indicator headed up this week
as builders reported increasing sales calls and buyer traffic in response to April's Housing Market Index (HMI) survey that gauges builder confidence.
Released on April 15, the HMI showed a five-point gain this month to 14. While still quite low by historical standards, this is the highest level reached by the index since Oct. 2008 and brings the measure out of single-digit territory for the first time in six months. In fact, it marked the index's biggest gain in over five years. Every component of the HMI reflected the boost, with the largest improvement recorded for sales expectations in the next six months. NAHB's press release conveyed two main messages about the HMI results to the media and public at large, both of which were picked up by numerous major news outlets. First was Joe Robson's assessment that "If you're a potential buyer who's been sitting on the fence waiting for a sign that now is the time to act, this is it. Some of the most favorable buying conditions in a lifetime are now in place, and they are drawing more consumers back to the market." Second was a quote from NAHB Chief Economist David Crowe, in which he noted that "This is a very good sign that we are at or near the bottom of the current housing depression."
Of the HMI's three component indexes, the one gauging sales expectations for the next six months posted a very impressive 10-point gain, while the others, measuring current sales conditions and traffic of prospective buyers, each gained five points this time around. Every region also posted substantial HMI gains, including an eight-point bump in the Northeast, a six-point rise in the Midwest, a five-point climb in the South and a four-point gain in the West. Read NAHB's press release and view the HMI tables online for details. Contact Gopal Ahluwalia (x8480) or Ashok Chaluvadi (x8482) for an explanation of the HMI survey; contact Paul Lopez (x8409) for help with media inquiries.
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The tax benefits of homeownership
are thoroughly examined and explained in new research from NAHB economists that home builders can use as a source of information for their prospective customers. The research is summarized in a newly published article that looks at how tax benefits reduce the cost of homeownership for individual home owners and buyers for certain mortgage amounts and income levels. Those benefits include deductions for mortgage interest and real estate taxes, the capital gains exclusion for the sale of a principal residence, and the newly enacted $8,000 first-time home buyer tax credit. For example, a new home-buying married couple with an annual $80,000 income and initial mortgage of $250,000 can save more than $11,000 in the first five years of homeownership from their mortgage interest and real estate tax deductions. And that's not all. Assuming the couple resides in the home for 12 years – the average ownership period – those tax savings grow to more than $25,000 for the period they have owned the home. Combined with the capital gains exclusion, the estimated total savings associated with homeownership exceed $52,000 over that time span. These research findings have been summarized in NAHB's "Opportunity Knocks for Home Buyers" brochure, which can be a useful selling tool for builders and marketing professionals in the real estate industry. For information on the new research, contact Rob Dietz (x8285); for help obtaining the Opportunity Knocks brochure, contact Gwyn Donohue, x8447.
On a related note: NAHB is looking for stories from home buyers who were motivated to become home owners this year because of the $8,000 first-time buyer tax credit. Builders are encouraged to reach out to their customers and see if they would be willing to share their stories at: www.nahb.org/taxcreditstory.
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Single-family starts held even in March
as characteristic volatility on the mutlifamily side brought the overall starts number down 10.8%, according to government numbers released April 16. Total starts fell to a seasonally adjusted annual rate of 510,000 units, in keeping with NAHB's latest forecasts that anticipate them bottoming out in the second quarter (note: improvement in starts typically lags improvement in new-home sales). The overall March decline reflected no change from the 358,000-unit pace recorded for single-family starts in the previous month and a 29% decline on the multifamily side to a 152,000-unit rate. Single-family starts have now held virtually even for the past three months. While builders are more optimistic these days due to the greater interest and enthusiasm we're seeing from potential home buyers, we don't want to ramp up production until new-home sales have improved, noted NAHB Chairman Joe Robson in our press release. "A cautious attitude about new building is definitely what's call for, and what most builders have wisely adopted for the time being," he said. The Midwest was the only region to post a gain in housing starts in March. Meanwhile, building permits declined 9% in the month to 513,000 units, with single-family permits down 7.4% to 361,000 units and multifamily permits down 12.6% to 152,000 units. Permits fell across every region except the West, which remained unchanged from February's number. View NAHB's press release or see the government's report online. Contact Paul Lopez (x8409) for help with media inquiries.
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Get ready for "National Remodeling Month" in May
 with free promotional materials available to our remodeler members, HBAs and local Remodelers' Councils. These materials, developed by the NAHB Remodelers, are available on the NAHB Web site at www.nahb.org/remodelingmonth, and they'll be added to over the coming weeks. Note that you must be logged into our Web site with your username and password to view these free materials. Information now available includes easily customizable press releases, articles and plenty of marketing ideas to help promote remodeling throughout the month of May. The information also includes a step-by-step guide to lead remodelers and HBAs through a publicity campaign. You can also access a special toolkit on how to start a local remodelers council. Contact: Kelly Mack, x8451.
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An upcoming audio seminar on stimulus opportunities for builders
 is being sponsored by the National Commercial Builders Council and The University of Housing. The May 14 seminar will focus on ways to find available projects; how the bidding process works for federal, state and local jobs and military construction; and opportunities in building military housing. Scheduled speakers include builders who have more than 20 years of experience with government contracts and an attorney who specializes in contract law. Seminar participants will learn about a variety of government construction projects listed in the stimulus package and what they need to know to bid on – and win – government contracts. After a panel discussion, questions from the audience will be answered. These questions should be submitted in advance, no later than COB Friday, May 8, to commercialbuilders@nahb.com.
"Stimulus Opportunities for Builders: Exploring Commercial Opportunities in the Stimulus Package" will begin at 2:00 p.m. ET on Thurs., May 14. There is a registration fee of $79. To sign up, visit www.nahb.org/stimulusopportunities. Contact: Kisha DeSandies, x8455.
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Send your AD&C stories to NAHB
to facilitate our efforts with federal regulators and politicians toward resolving the severe credit crunch. Last week, we told you about a newly developed online template for member feedback that allows you to plug in the information we need to create compelling case studies that will vividly illustrate the challenges builders are confronting in terms of obtaining and maintaining AD&C financing. If you haven't checked this out already, please take a moment now and tell us about your experiences. For those who have already written in, thank you for sharing; we will put your information to the best possible use in our meetings and documentation. You can link directly to the feedback template at: www.nahb.org/adccasestudy. Contact: John Dimitri, x8529.
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HBAs: Apply for NAHB assistance grants by week's end
 to meet the April 24 deadline. As this report explained in a recent issue, NAHB is offering grants of up to $25,000 to help strengthen up to 139 HBAs that need help in achieving specific membership and retention thresholds. Applications will be reviewed at each NAHB Board meeting and HBAs should be prepared to present their proposals to an NAHB task force, either in person or via teleconference. To be considered at the upcoming Spring Board Meeting, applications must be submitted by this coming Friday, April 24. Get more information about the grant program at www.nahb.org/hbasupport or by contacting Rusty Deiss at x8231.
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Economical one-day passes for NAHB spring conferences
 are now available to help our members reduce expenses while still being able to access the top-notch education and networking opportunities that NAHB provides. The NAHB University of Housing is offering one-day passes for specific days of both the upcoming Building for Boomers & Beyond: 50+ Housing Symposium in Philadelphia and the National Green Building Conference in Dallas. Get details on what's included with your one-day pass and how to register for either of these great events in Nation's Building News Online or the NAHB Web site. Your contact for more information is the Office of the Registrar, at x8338.
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