NAHB News
NAHB DEVELOPS 'PARTNERSHIP PAVILION'
Wall Street and Main Street will come together at the International Builders' Show® (IBS) this January, thanks to an exciting new offering called the Partnership Pavilion that is being developed by the National Association of Home Builders (NAHB).
"The severe lack of available credit for acquisition, development and construction (AD&C) financing constitutes a significant threat to thousands of home building and development companies, as well as to the immediate and long-term future of the housing industry," says NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "Given the current situation, an innovative approach was called for to help our members find new sources of debt and equity financing while reinvigorating the traditional sources of housing credit, and that is the aim of the Partnership Pavilion.
"NAHB members build roughly 80 percent of all new housing in this country every year, and about 95 percent of them are the key decision-makers within their business-including presidents, CEOs, owners and managing partners," Robson adds. "Many of them are already planning to travel to the International Builders' Show (IBS), which is the largest and best-attended annual building industry tradeshow in this country. It just makes sense to provide a confidential setting within that venue for such professionals to meet one-on-one with potential new backers for their projects."
As envisioned, the pavilion will be a centrally located forum with private office space and concierge services at the International Builders' Show, which takes place Jan. 19-22 at the Las Vegas Convention Center. Here, NAHB members will have the opportunity to discuss their funding needs with representatives of a variety of capital sources and financing advisors.
Builders and developers who are interested in participating in the Partnership Pavilion will need to qualify in advance of the show by providing specific information on their proposed projects via an online portal soon to be available on NAHB's website. At that time, potential funding sources will review the information, and those who are interested in further exploring a given deal will be able to set up a meeting at the pavilion with the designated applicant. For additional information and a sign-up form for financing and investment companies that wish to participate, visit www.nahb.org/partnership.
"At a time when credit for housing production is extremely difficult to come by, we hope that the Partnership Pavilion will provide a new channel through which home builders, developers and potential investors can communicate and conduct business while attending our industry's most important trade show of the year," says Robson.
MODEST IMPROVEMENTS CONTINUE IN HOME REMODELINGMARKET
Remodelers are starting to report that conditions in their markets are stabilizing, according to the latest NAHB Remodeling Market Index (RMI). The current market conditions index rose slightly to 39.8 in the second quarter. The index of future indicators jumped to 38.7 in the previous quarter.
The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number below 50 indicates that more remodelers say market conditions are getting worse than report improving conditions. The RMI has been running below 50 since the final quarter of 2005.
"Some remodelers are receiving more calls for bids, but it is still extremely difficult to close a sale," says NAHB Remodelers Chairman Greg Miedema. "Financing continues to be an impediment with many homeowners not able to secure home equity loans or other lines of credit."
The index for current remodeling market conditions rose in the Midwest to 43.2 and West to 47.3, but declined in the Northeast to 33.7 and South to 38.6.Major additions grew to 41.9.Minor additions also improved to 43.2. Maintenance and repair remained fairly flat at 33.1.
The summary index of future market indicators showed greater improvement. Among the components of future indicators, calls for bids jumped to 46.5. Appointments for proposals grew to 43.5. Amount of work committed for the next three months climbed to 27.5. And backlog of remodeling jobs increased to 37.2.
For more information about remodeling, visit www.nahb.org/remodel.
BUILDERS APPLAUD CONGRESS ON EXTENDING HOME BUYERTAX CREDIT
The NAHB applauded Congress for passing legislation that will extend and expand the $8,000 first-time home buyer tax credit, stating that this will provide a much-needed boost to the fragile housing market and economy.
"We commend lawmakers for acting in a bipartisan manner to extend the first-time home buyer tax credit beyond its Nov. 30 deadline and expand it to a wider group of home buyers," says NAHB Chairman Joe Robson. "The tax credit has proven to be a powerful economic incentive. Today's action by Congress will further stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices."
The new law will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed by June 30. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence. An existing homeowner can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight. Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised to $125,000 for individuals and $225,000 for married couples.
NAHB estimates that the extended and expanded home buyer tax credit will create 211,000 jobs and generate 180,000 additional home sales in the coming year. It is also expected to generate $9.6 billion in wage income and $6.9 billion in federal, state and local taxes.
The legislation, which also extends unemployment insurance benefits and offers relief to cash-strapped firms by providing broader tax benefits for businesses with net operating losses (NOLs), is expected to be signed into law shortly by President Obama.
HOUSING AFFORDABILITY HOVERS NEAR RECORD-HIGH LEVEL
Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing
Opportunity Index (HOI) released Nov. 19.
The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.
"At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers," says NAHB Chairman Joe Robson, a homebuilder from Tulsa, Okla. "With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices."
Indianapolis was the most affordable major housing market in the country during the third quarter, a position the metro area has now held for 17 consecutive quarters. Almost 95 percent of all homes sold were affordable to households earning the area's median family income of $68,100.
For tables, historic data and details, visit www.nahb.org/hoi.
BUILDING SYSTEMS COUNCIL OF NAHB HONORS INDUSTRY LEADER
Tracy Keyser, Vice President of M&T Bank's Systems-Built Construction Division, received the S.A. Walters Systems-Built Achievement Award at an awards ceremony and luncheon held during the BSC's annual SHOWCASE event in Marco Island, Fla. last month. The S.A. Walters Systems-Built Achievement award is given annually to an individual who has made significant contributions to the industrialized housing industry in the United States.
"Tracy's hard work and dedication to the systems-built industry makes her very deserving of the S.A. Walters Systems-Built Achievement Award," says Lynn Gastineau, owner of Gastineau Log Homes. "She joins a very elite group. Only two women have won the S.A. Walters Award since its creation in 1986. Tracy just doubled our membership."
Gastineau, the only other woman to win the S.A. Walters Award, presented Keyser with the award. She won the honor in 2001.
Keyser began her career at M&T when it was still Keystone Financial in 1994 as an administrative assistant. By the time Keystone was purchased by M&T Bank in 2000, Keyser had become Vice President of the Systems-Built Division. She now oversees all construction sales for the mortgage company of M&T. With more than 15 years of mortgage construction lending experience, Keyser is considered a true professional by the manufacturers and builders she works with.
Keyser has been an active member of the Building Systems Council since 1998. She was the BSC Associates Council President from2001-2003, and a BSC Board of Trustees member from2002-2007.Keyser has also been an integral part of the BSC Membership Committee since 2004 and has been an active member of the BSC Sales and Marketing Committee.
She received a "Top 30 Under 40 Award" in 2007, being recognized as an emerging leader in the systems-built industry. Keyser continues to be active with her local and state homebuilder associations.
The S.A. Walters Systems-Built Achievement Award is named after the first Chairman of the Home Manufacturers Councils, now the Building Systems Councils of NAHB, in 1986. He passed away in 1987 and the award's name was changed to the S.A. Walters award in that year, the same year the HMC changed its name to the Building Systems Councils.
