STEEL FRAMING ALLIANCE | FRAMEWORK ONLINE
September 3, 2008
MARKETPLACE
 
First-Time Home Buyer Tax Credit Will Help Stimulate Housing Market

The nation’s home builders are confident that a new temporary $7,500 tax credit for first-time home buyers included in a landmark housing bill enacted into law last week will get buyers back into the marketplace and help end the current cyclical downturn in the housing industry.

“First-time home buyers make up about 40 percent of the entire market,” Sandy Dunn, president of the National Association of Home Builders (NAHB) and a home builder from Point Pleasant, W.Va., said during a news tele-conference held yesterday to highlight the provisions and benefits of the new housing stimulus legislation. “They don’t have a home to sell and they bring demand to the market. As more than 2 million anticipated first-time buyers enter the market and claim the credit, this will stimulate buying up the housing ladder.”

Ed Brady, a home builder from Illinois who builds about 130 homes annually, said the biggest problem in his market is a backlog of inventory.

“The housing bill contains two key components that will help take inventory off the market and restore a more normal supply-and-demand balance,” said Brady.

Brady said the temporary, first-time home buyer tax, which expires on July 1, 2009, will provide prospective buyers a major financial incentive to get off the fence and jump back into the market.

While getting more first-time home buyers into the market will help to whittle down existing inventory, Brady also noted that the new law provides FHA insurance for a program geared to prevent families facing foreclosure from losing their homes.

“Together, the first-time home buyer tax credit and foreclosure relief in the housing bill will help to reduce inventories,” said Brady. “In turn, this will firm up prices and send a signal that we are either at the bottom or very near the bottom and that there isn’t a better time to buy than today’s market.”

Major builders also see the benefits of the new home buyer tax credit.

Richard Dugas, president and CEO of Pulte Homes, said the tax credit will “stimulate buying and selling activity and contribute to a much-needed turnaround in housing.”

“The tax credit will free up home sellers who can then purchase a home they have their eye on,” said Dugas, whose firm operates in 26 states.

Last year, the active adult business accounted for about 50 percent of Pulte’s closing volume, and Dugas said the home buyer tax credit will provide a big boost for this market segment.

“The single biggest challenge for seniors to move into our active adult communities has been their inability to sell their own homes. The tax credit will help to break this logjam,” said Dugas.

NAHB tax economist Rob Dietz explained how the tax credit works and encouraged those interested and wondering if they qualify to consult NAHB’s new Web site, www.federalhousingtaxcredit.com. The Web site, which attracted more than 50,000 unique visitors during its first four days, contains consumer information about the tax credit, including eligibility requirements.

Source: National Association of Home Builders, August 5, 2008

Next Article >>

 

HEADQUARTERS
 

Steel Framing Alliance
1201 15th St., NW,
Suite 320
Washington, D.C. 20005
Phone 202.785.2022
Fax 202.785.3856

 
UPCOMING EVENTS
 
September 25, 2008
“It’s All Green. Are you?: LEED, the New National Green Building Standard and Green Globes” to be presented by Maribeth Rizzuto, LEED AP and SFA Director of Education and Sustainable Construction
Florida CFSEI chapter meeting
6 p.m.
Orlando, Florida
More
 
 
October 1, 2008
Steel Framing Alliance 10th Anniversary Dinner
Begins at 6:30 p.m.
Hyatt Regency Baltimore, Baltimore, Maryland
More
 
 

October 1-3, 2008
METALCON International
Baltimore, Maryland
More

 
 

October 14-15, 2008
19th International Specialty Conference on Cold-Formed Steel Structures
Hilton St. Louis at the Ballpark
1 North Broadway
St. Louis, MO More

 
 

November 19-20, 2008
STEEL Doing It Right – Southern California
Carpenters Local #2361
1916 W. Chapman Ave.
Orange, CA More

 



 


 
 


Become a Member | Hotline 1-800-79-Steel | Unsubscribe

Brought to you by the Steel Framing Alliance (SFA) on the first Wednesday of each month, Framework Online arms you with the latest news and commentary on the steel framing and construction industries. In addition to industry headlines, trends and project profiles, Framework Online provides information and ideas that will better enable members to increase their participation in the residential and commercial construction markets.