The market for single-family homes targeted to buyers aged 55 and up is looking better to NAHB builders surveyed for our second quarter 55+ Housing Market Index. The index, released on Aug. 8, showed continuing, strong improvement from a year ago, with a 24-point gain to 53. That's the highest second-quarter reading since we started the index in 2008, and it marks a seventh consecutive quarter of year-over-year improvement.
All of the components of the 55+ single-family HMI showed major growth from a year ago in this year's second quarter. The component gauging current sales rose 24 points to 54, while the component gauging expected sales in the next six months increased 25 points to 60 and the component gauging traffic of prospective buyers rose 26 points to 48.
The 55+ multifamily condo HMI also posted a substantial gain, of 24 points to 43, and also marked its highest second-quarter reading since the index was created. All 55+ multifamily condo HMI components rose from a year ago, with the index gauging present sales up 26 points to 44, the index gauging expected sales in the next six months up 26 points to 46, and the index gauging traffic of prospective buyers up 19 points to 38.
The 55+ multifamily rental indices also showed strong gains in the second quarter, with the component gauging present production rising 19 points to 50, the component gauging expected future production rising 20 points to 52, the component gauging current demand for existing units rising 20 points to 62, and the component gauging future demand rising 21 points to 63.
Read more about the 55+ Housing Market Index at NAHB.org by clicking here.
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Monday, August 12, 2013
NAHB: OSHA abandons controversial inspector access rule
In a victory for HBA members, the Occupational Safety and Health Administration (OSHA) this week abandoned its plan to reshape the rules under which compliance officers can enter work sites that take advantage of the federally funded Onsite Consultation Program.
NAHB and other industry groups urged OSHA to scrap the rule when it was first proposed three years ago, saying the changes that OSHA wanted to make would effectively remove incentives to participate in the voluntary safety program that offers free and confidential safety advice to small and medium-sized businesses in all states across the country. Since then, several state consultation programs have lodged their own complaints about the proposed rule, fearing it would hurt small businesses who were interested in participating in the consultation program and decrease the number of employers developing comprehensive safety and health management programs. However, union groups had strongly supported the measure as a means of addressing any hazards that might emerge on these sites, and OSHA appeared close to issuing a final rule as early as September of 2011.
Last week OSHA reversed course with its latest decision, announcing that it is dropping the proposal altogether and citing comments received from various stakeholders. The bottom line for HBA members is that your national association has helped preserve the use of OSHA's free on-site consultation program without the threat of additional OSHA enforcement.
NAHB and other industry groups urged OSHA to scrap the rule when it was first proposed three years ago, saying the changes that OSHA wanted to make would effectively remove incentives to participate in the voluntary safety program that offers free and confidential safety advice to small and medium-sized businesses in all states across the country. Since then, several state consultation programs have lodged their own complaints about the proposed rule, fearing it would hurt small businesses who were interested in participating in the consultation program and decrease the number of employers developing comprehensive safety and health management programs. However, union groups had strongly supported the measure as a means of addressing any hazards that might emerge on these sites, and OSHA appeared close to issuing a final rule as early as September of 2011.
Last week OSHA reversed course with its latest decision, announcing that it is dropping the proposal altogether and citing comments received from various stakeholders. The bottom line for HBA members is that your national association has helped preserve the use of OSHA's free on-site consultation program without the threat of additional OSHA enforcement.
NAHB: Size of newly constructed homes reaches record high
Newly released data from the U.S. Census Bureau's Survey of Construction shows that the trend toward smaller home sizes, which started during the market downturn, has since reversed itself. In fact, since 2009, the median size of newly started homes has increased steadily to a record high of over 2,300 square feet last year.
NAHB's economists have analyzed the latest numbers to produce a helpful summary of Characteristics of New Homes Started in 2012, which is now available free of charge from HousingEconomics.com. They explain that, because the data applies to newly started homes as opposed to newly completed ones, it sheds light on emerging trends that much faster. Spotlighting some of the more interesting findings, they show that the average number of bathrooms in new single-family homes rose to a new high of 2.56 in 2012 following a period in which it edged down to as low as 2.20 in 2009.
Meanwhile, the average number of bedrooms in newly started homes - which had also declined during the downturn - has since very gradually but steadily increased. Looking at garages, the share of newly started, single-family homes with garages for three or more cars rose to over 19 percent in 2012 after having fallen to 16 percent in 2009.
The latest findings are all the more interesting because, to many experts, the decline in home sizes seen during the latest recession was due to factors that were more likely to persist after a downturn ended -- including, for example, an increased desire to reduce energy costs. However, when the size of new homes began to rise again in 2010, that happened against a backdrop of historically low housing starts and tight credit conditions, so it was likely driven primarily by the smaller share of first-time and other marginal buyers in the market. (In other words, those who were able to purchase a new home tended to have more resources and greater space requirements.)
Our economists' latest report also looks at recent financing trends for new homes, as well as the prevalence of certain exterior amenities such as patios, porches and decks. To read more at HousingEconomics.com, click here.
NAHB's economists have analyzed the latest numbers to produce a helpful summary of Characteristics of New Homes Started in 2012, which is now available free of charge from HousingEconomics.com. They explain that, because the data applies to newly started homes as opposed to newly completed ones, it sheds light on emerging trends that much faster. Spotlighting some of the more interesting findings, they show that the average number of bathrooms in new single-family homes rose to a new high of 2.56 in 2012 following a period in which it edged down to as low as 2.20 in 2009.
Meanwhile, the average number of bedrooms in newly started homes - which had also declined during the downturn - has since very gradually but steadily increased. Looking at garages, the share of newly started, single-family homes with garages for three or more cars rose to over 19 percent in 2012 after having fallen to 16 percent in 2009.
The latest findings are all the more interesting because, to many experts, the decline in home sizes seen during the latest recession was due to factors that were more likely to persist after a downturn ended -- including, for example, an increased desire to reduce energy costs. However, when the size of new homes began to rise again in 2010, that happened against a backdrop of historically low housing starts and tight credit conditions, so it was likely driven primarily by the smaller share of first-time and other marginal buyers in the market. (In other words, those who were able to purchase a new home tended to have more resources and greater space requirements.)
Our economists' latest report also looks at recent financing trends for new homes, as well as the prevalence of certain exterior amenities such as patios, porches and decks. To read more at HousingEconomics.com, click here.
FHFA seeks to reduce its support of multifamily housing
The Federal Housing Finance Agency (FHFA) is seeking public input on strategies for reducing Fannie Mae and Freddie Mac’s presence in the multifamily housing finance market in 2014.
In keeping with the goal of contracting the market presence of Fannie Mae and Freddie Mac while simplifying and shrinking their operations, FHFA’s 2013 Conservatorship Scorecard included reducing their volume of new multifamily business by 10 percent relative to 2012. FHFA expects this reduction to be achieved this year through a combination of increased pricing, more limited product offerings and stronger underwriting standards.
FHFA is now evaluating alternatives for reducing Fannie Mae and Freddie Mac’s multifamily businesses in 2014 and is seeking public input on the potential market impact of various strategies. These include:
In keeping with the goal of contracting the market presence of Fannie Mae and Freddie Mac while simplifying and shrinking their operations, FHFA’s 2013 Conservatorship Scorecard included reducing their volume of new multifamily business by 10 percent relative to 2012. FHFA expects this reduction to be achieved this year through a combination of increased pricing, more limited product offerings and stronger underwriting standards.
FHFA is now evaluating alternatives for reducing Fannie Mae and Freddie Mac’s multifamily businesses in 2014 and is seeking public input on the potential market impact of various strategies. These include:
- Restrictions on available loan terms;
- Simplification and standardization of loan products;
- Limits on property financing;
- Limits on business activities; and,
- Other options that FHFA should consider to contract the Enterprises’ multifamily businesses.
Statement from Home Builder Rick Judson, Chairman of NAHB
On August 5, President Obama delivered a speech in Phoenix, AZ, that focused on the Federal Government's housing-related policies. Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Charlotte, N.C., issued the following statement in response to the president's speech:
“NAHB applauds President Obama for affirming the importance of maintaining a federal backstop as part of efforts to revamp the housing finance system and protect the 30-year mortgage. This will preserve financial stability, promote investor confidence and limit taxpayer exposure.
“The President also stressed that a healthy housing market is critical to create jobs, build a strong middle class and maintain a vibrant economy. In normal economic times, housing accounts for more than 17 percent of the nation’s gross domestic product. Constructing 100 homes creates more than 300 full-time jobs and generates $8.9 million in tax revenues that help local governments to provide essential services such as schools, roads, and police and firefighter protection.
“Among other reforms, the nation’s home builders also support strengthening the FHA to facilitate the flow of mortgage credit to qualified home buyers, cutting red tape and easing tight credit conditions that are preventing creditworthy borrowers from obtaining home loans, and supporting the Low Income Housing Tax Credit to ensure the availability of safe and affordable rental housing. This will help spur job growth, provide homeownership and rental opportunities for all Americans and boost the economic expansion.
“NAHB looks forward to working in a bipartisan manner with the White House and Congress to achieve these goals in the weeks and months ahead.”
“NAHB applauds President Obama for affirming the importance of maintaining a federal backstop as part of efforts to revamp the housing finance system and protect the 30-year mortgage. This will preserve financial stability, promote investor confidence and limit taxpayer exposure.
“The President also stressed that a healthy housing market is critical to create jobs, build a strong middle class and maintain a vibrant economy. In normal economic times, housing accounts for more than 17 percent of the nation’s gross domestic product. Constructing 100 homes creates more than 300 full-time jobs and generates $8.9 million in tax revenues that help local governments to provide essential services such as schools, roads, and police and firefighter protection.
“Among other reforms, the nation’s home builders also support strengthening the FHA to facilitate the flow of mortgage credit to qualified home buyers, cutting red tape and easing tight credit conditions that are preventing creditworthy borrowers from obtaining home loans, and supporting the Low Income Housing Tax Credit to ensure the availability of safe and affordable rental housing. This will help spur job growth, provide homeownership and rental opportunities for all Americans and boost the economic expansion.
“NAHB looks forward to working in a bipartisan manner with the White House and Congress to achieve these goals in the weeks and months ahead.”
Wednesday, August 7, 2013
Rick Quinn elected Chairman of SC Builders PAC
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| Rick Quinn |
S.C. Builder PAC is a cooperative committee administered by the Home Builders Association of South Carolina. The purpose of the PAC is to raise money from HBA members to support candidates for office who understand and support the interests and agenda of South Carolina's Home Builders. For each dollar raised for the PAC, 20 cents is used to support candidates for statewide office, like Governor, and for other committees and caucuses. The balance of the money is held in local funds for each participating HBA and used for local and legislative races. The PAC is governed by a Board of Trustees, of which Quinn is chairman. However, all local funds are directed by the local association. The HBA of Greenville's local fund is directed by the HBA of Greenville Board of Directors with the advice of the Legislative Committee.
Quinn has been a Home Builder, developer, and real estate professional for more than 30 years. He has served on the HBA of Greenville Board of Directors since 2008, was Legislative Chairman in 2011-2012, served on the HBASC Legislative Committee since 2011, and has been the PAC Trustee from Greenville since 2011. Quinn was named HBA of Greenville Builder of the Year in 2008.
Remodeler to EPA: Lead Paint Rule Infeasible in Multifamily Renovations
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| Mike Nagel, CGR, CAPS |
Noting that his company is an EPA-registered firm and that he is an EPA Lead Safe Certified remodeler with considerable experience on large-scale renovation projects in high-rise buildings, Mike provided the officials specific examples of how the rule is infeasible and counterproductive in certain projects. He told them how his company recently added $8,800 to its estimate to pay for what it thought it would cost to comply with the rule on a whole condo remodel. In the end, total compliance costs for the $360,000 project amounted to $16,000.
“The question is," he said, "how do I take scores of cubic yards of debris eight stories down in a 5-foot by 6-foot by 7-foot common elevator, down a 30-foot common hallway, down a ramp to the alley and up 90 feet to an enclosed truck without contaminating everything in sight along the way? The answer is that I don’t – at least not in a manner that is economically feasible."
Mike noted that the rule is already causing single-family remodeling companies to be priced out by “fly-by-nighters” who won’t obey the law – and the same thing is likely to happen if the rule is extended to commercial remodeling. He also emphasized that the lack of an effective, reliable test kit for measuring the presence of lead paint – and the Government Accounting Office’s own study criticizing the cost effectiveness of the rule -- are two important reasons to fix the existing problems before increasing the scope of the LRRP program to include commercial buildings.
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