Americans Still See Homeownership as a Top Priority

Americans still consider owning a home essential to the American Dream, and Washington policymakers would be wise to keep this in mind in the coming election season.

Proof of this statement is evident in a May 2011 poll conducted on behalf of the National Association of Home Builders by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C.

The national poll reached two thousand likely voters and asked them about their attitudes regarding homeownership and housing policy. The results could not be clearer.

Despite the ups and downs of the housing market—and whether or not they currently own a home—voters overwhelmingly indicated that they place a high value on homeownership as a core achievement in their lives.

Of the poll respondents who are current home owners, nearly all of them—95 percent—said they are happy with their decision to own a home and believe that owning their own home is important. Almost three-quarters of respondents who do not now own a home said it is a goal of theirs to eventually buy one.

Equally telling, voters rated the importance of homeownership just as highly as the importance of being successful at their job or being able to pay for a family member’s education.

“The bottom line is, even after years of economic turmoil and an unprecedented and prolonged downturn in the housing market, homeownership is still a central goal for most Americans,” said Marc Burkholder, President of the HBAGTA. “It’s an undeniably deep emotional attachment that can’t be ignored by the politicians who are looking to address budget issues by cutting housing incentives in the tax code such as the mortgage interest deduction.”

Americans also feel strongly about the financial benefits—and challenges—of homeownership.

Poll respondents said they considered owning a home their best investment, more than their retirement savings program or stock market investments. And 75 percent said that owning a home is worth facing the potential ups and downs of the housing market.

Meanwhile, non-owners identified saving enough money for a down payment and closing costs as the number one barrier keeping them from homeownership, more than job uncertainty or concerns that the value of their home may drop below the purchase price.

Yet exceedingly stringent mortgage lending requirements could make that barrier even tougher for the typical American family to overcome in the future. For example, according to estimates by both NAHB and the Center for Responsible Lending, it would take more than 12 years for a typical family to save enough money for a 20 percent downpayment on a median-priced single-family home.

“Lawmakers need to put themselves in the shoes of the average American, and see that excessive downpayment requirements and a reduction in housing tax incentives will keep homeownership out of reach for most first-time home buyers and many middle-class households,” said Burkholder “This would be a fatal blow to the American Dream for many, many families.”

To learn more about homeownership and housing policy in Greater Grand Traverse Area, contact the Home Builders Association of the Grand Traverse Area, Inc at 231.946.2305 or visit their website at www.hbagta.com.

Remodel Smart: Know the Language

An educated shopper is a smart shopper. This especially hold true in the world of hiring and working with contractors to make improvements to your home.

As you interview potential contractors, being able to understand the terminology they use can help you avoid miscommunication and ensure a smoother remodeling experience so you and your family can enjoy your new or updated kitchen, bathroom or room addition even sooner.

Here’s a glossary of some of the common terms used by builders and remodelers to help you understand the language of your remodeling project:

Allowance: A specific dollar amount allocated by a contractor for specified items in a contract for which the brand, model number, color, size or other details are not yet known.

Bid: A proposal to work for a certain amount of money, based on plans and specifications for the project.

Building Permit: A document issued by a governing authority, such as a city or county building department, granting permission to undertake a construction project.

Call-back: An informal term for a return visit by the contractor to repair or replace items the home owner has found to be unsatisfactory or that require service under the warranty.

Certified Graduate Remodeler (CGR): A professional designation program offered through the National Association of Home Builders (NAHB) Remodelers Council™. To attain the CGR designation, a remodeler must take a specified number of continuing education courses and must comply with a strict code of ethics.

Certified Aging-in-Place Specialist (CAPS): The CAPS designation was developed by the National Association of Home Builders and AARP. CAPS professionals have been taught the strategies and techniques to meet the home modification needs of home owners who want to continue living in their homes safely, independently and comfortably, regardless of age or ability level. CAPS graduates pledge to uphold a code of ethics and are required to maintain their designation by attending education programs and participating in community service.

Change Order: Written authorization to the contractor to make a change or addition to the work described in the original contract. The change order should reflect any changes in cost.

Cost-plus Contract: A contract between a contractor and home owner based on the accrued cost of labor and materials plus a percentage for profit and overhead — also known as a time-and-materials contract.

Draw: A designated payment that is "drawn" from the total project budget to pay for services completed to date. A draw schedule typically is established in the contract.

Lien Release: A document that voids the legal right of a contractor, subcontractor or supplier to place a lien against your property. A lien release assures you that the remodeler has paid subcontractors and suppliers in full for labor and materials.

Mechanic’s Lien: A lien obtained by an unpaid subcontractor or supplier through the courts. When enforced, real property — such as your home — can be sold to pay the subcontractor or supplier. If a subcontractor or supplier signed a lien release, then this lien cannot be enforced.

Plans and Specifications: Drawings for the project, and a detailed list or description of the known products, materials, quantities and finishes to be used.

Punch List: A list of work items to be completed or corrected by the contractor, typically near or at the end of a project.

Subcontractor: A person or company hired directly by the contractor to perform specialized work at the job site — sometimes referred to as a trade contractor.

To learn more about remodeling your home, including a checklist for selecting and hiring a remodeler and advice on financing and designing your project, visit www.nahb.org/remodel, or to find a professional remodeler in the Greater Grand Traverse Area, contact the Home Builders Association of the Grand Traverse Area at 231.946.2305 or visit their web site at www.hbagta.com.

2011 HBAGTA Parade of Homes & Developments

The Home Builders Association of the Grand Traverse Area is proud to host the 2011 Parade of Homes & Developments which will be held June 18 - 26, 2011.  Tour 16 Homes and 1 Development in the Greater Grand Traverse Area and view the latest in design, techniques and technology.  The HBAGTA is delighted to announce the TBA Credit Union as a Platinum Sponsor of the Parade this year!  You can purchase tickets at any TBACU branch or the following ticket outlets in the area:

Olesons Food Stores - East and West

Brown Lumber Company

Floor Covering Brokers

Twin Bay Glass

VanDrie Home Furnishings

Traverse Area Association of REALTORS

Pure Water Works

Tickets Vouchers can also be purchased on the HBA web site at http://www.hbagta.com/.

Ticket prices are $10/per person through June 17 and $12/per person during the Parade.  Children under one are free, however, all others must purchase a ticket to tour any Parade Home.

Parade Hours:

Saturdays:  12:00 pm to 8:00 pm

Sundays:  12:00 pm to 5:00 pm

Monday, Tuesday:  3:00 pm to 8:00 pm

Wednesday:  CLOSED

Thursday, Friday:  12:00 pm to 8:00 pm

Thank you for your support and...We'll see YOU at the Parade!

HOUSING STARTS GAIN 3.5 PERCENT IN MAY

WASHINGTON, June 16 - Nationwide housing starts rose 3.5 percent to a seasonally adjusted annual pace of 560,000 units in May, according to newly released figures from the U.S. Commerce Department. The gain partially offsets a larger decline that was registered in April.

"While the upward movement registered in today's report is somewhat good news, housing production continues to bounce along the bottom near historic lows, and is only running at a level necessary to replace dilapidated or destroyed units," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. He also noted that "Amidst this fragile marketplace, the nation's policymakers should be aware of a recent poll that confirms the strong value that most American voters continue to place on homeownership and housing choice."

Conducted this May on behalf of NAHB by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C., the poll asked 2,000 likely voters about their attitudes on homeownership and housing policy. It found that the vast majority of current home owners are happy with their decision to own a home and believe that owning their own home is important, while nearly three-quarters of those who do not now own a home consider it a goal of theirs to eventually buy one. Additionally, the poll determined that 73 percent of owners and renters believe the federal government should provide tax incentives to promote homeownership. Details on this poll are available at www.nahb.org/voterpoll.

"Like consumers, builders remain very concerned about the pace of economic growth and are awaiting signs of improvement before moving forward with new projects," noted NAHB Chief Economist David Crowe. "The relative bright spot in new-home construction is on the multifamily side, where improving demand for rental apartments is spurring gains in that sector. However, access to construction credit remains a limiting factor for new building."

Single-family housing starts rose 3.7 percent to a seasonally adjusted annual rate of 419,000 units in May - their strongest pace since this January. Multifamily starts rose 2.9 percent to a 141,000-unit rate in May.

Regionally, housing production rose 1.5 percent in the South and 18.1 percent in the West, but declined 3.3 percent in the Northeast and 4.1 percent in the Midwest in May.

Issuance of building permits, which can be an indicator of future building activity, rose 8.7 percent to a seasonally adjusted annual rate of 612,000 units in May. This was the strongest pace since December of 2010. Single-family permits were up 2.5 percent to a 405,000-unit rate, while multifamily permits rose 23.2 percent to 207,000-units - their best pace since October of 2008.

Permit issuance posted double-digit gains in the Northeast and West in May, rising 35.6 percent and 15.1 percent, respectively. The South also posted a gain, of 3.5 percent, while the Midwest registered a 1.1 percent decline. www.nahb.org/voterpoll.

ASSAULT ON HOUSING

Today, the nation faces an unprecedented assault on housing that threatens to derail nearly 100 years of national policy promoting the value of homeownership, and the public remains largely unaware of the potential catastrophe that lies ahead:

·         A sharply limited availability of long-term, fixed-rate mortgages

·         A huge jump in the cost of mortgages

·         Minimum downpayments of 20 percent or more

·         A severe reduction in mortgage credit

One of the primary targets of this unjustified attack on housing is the mortgage interest deduction. This cornerstone of American housing policy has been in place since the inception of the tax code in 1913 and supports the aspirations of families at all income levels to become home buyers.

Although Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, according to the results of a recent poll conducted by the Republican and Democratic polling firms of Public Opinion Strategies and Lake Research Partners for the National Association of Home Builders, many lawmakers have expressed a willingness to eliminate or curtail this vital housing tax provision. Such a move would further depress home values, leaving more home owners with “underwater” mortgages larger than the value of their property and fueling even more foreclosures.

The polling also found that home owners and non-owners alike consider owning a home essential to the American Dream. An overwhelming 75 percent of those surveyed said that owning a home is worth the risk of the fluctuations in the market, 95 percent of the home owners said they are happy with their decision to own a home and 73 percent of renters said that owning a home is one of their goals.

Meanwhile, six federal agencies are proposing a national Qualified Residential Mortgage standard that would require a minimum 20 percent downpayment and other stricter qualifications, which would keep homeownership out of reach for most first-time home buyers and middle-class households. The National Association of Home Builders estimates that it would take 12 years for a typical family to save enough money for a 20 percent downpayment on a median-priced single-family home and other research has found it would take even longer.

Some members of Congress are actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing. Absent a federal role to help absorb market risk, private lenders would increase interest rates and fees on all types of available financing options. The 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, would become increasingly scarce and much more costly, pricing many credit-worthy borrowers out of the marketplace.

Complicating the situation, the federal government is looking to trim back the Federal Housing Administration’s participation in the market, which would further limit the availability of low downpayment mortgages.

As policymakers debate the housing finance and budget issues that will impact job creation and future growth, they must understand the important role that housing plays in the U.S. economy. Building 100 average single-family homes generates more than 300 jobs and nearly $9 million in taxes and revenue for state, local and federal governments.

The federal proposals now under consideration would reverse national housing policies that have helped generations of American households to own their homes, enter the ranks of the middle-class, build strong and stable neighborhoods and communities and provide a steppingstone to greater long-term financial security.

For these reasons, it is important that policymakers be fully aware of the depth and breadth of housing’s many contributions to American society and that owning a home is a strong core value for most American households.

June – National Homeownership Month

This month, the housing industry celebrates the many benefits of owning a home. Despite the downturn in the housing market, families continue to seek to achieve the American Dream of homeownership and take their place among the more than 74 million Americans that own a home.

The value Americans place on owning their home continues even through times of economic hardship. Home appreciation over the long term builds financial security for a family’s future.

But the value of homeownership can be much more than financial. Owning a home can often be a lifestyle improvement, enabling a family to enjoy a neighborhood, features and other amenities that suit their present and future day-to-day activities.

Newly-constructed houses can deliver energy efficiency, storage space, well-designed floor plans, and the latest technologies in electrical systems and appliances. A new home also comes with the peace of mind of little maintenance needed and a warranty against defects.

Existing homes offer neighborhoods whose character has already been established, mature landscaping with tall trees, and an existing selection of businesses and services for the home owner to use. If the home isn’t already a great fit to the buyers’ taste, it can be renovated to reflect the new owners’ needs and preferences.

Homeownership lets families build connections. Owners take pride in their homes, and develop friendships with other people who also own homes and care about the neighborhood. A home is a place where families make a sanctuary that feels comfortable and safe, and where they develop social networks, begin friendships and create memories that will last a lifetime.

OWNING A HOME ESSENTIAL TO THE AMERICAN DREAM, SURVEY SHOWS

WASHINGTON, June 7 -- Despite the ups and downs of the housing market, home owners and non-owners alike consider owning a home essential to the American Dream.

That's the key finding of a recent survey of people likely to vote in 2012 that was conducted on behalf of the National Association of Home Builders (NAHB) by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C.

"The survey results show that Americans see beyond the immediate housing market to the enduring value of homeownership," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home," Nielsen said.

"Homeownership is worth the risk, pure and simple," said Neil Newhouse, a partner and co-founder of Public Opinion Strategies. "Even though the market is weak, people who don't own say they want to buy a house. Almost three-quarters of those who do not currently own a home, 73 percent, said owning a home is one of their goals. And among younger voters who are most likely to be in the market for a home in the next few years, the percentages are even higher," Newhouse said.

One of the more striking aspects of the survey results is the intensity of sentiment among potential voters, according to Celinda Lake, president of Lake Research Partners. "People believe overwhelmingly that owning a home is an anchor to the American Dream," she said. "It's an anchor to your retirement, and it's an anchor to your personal economic well-being."


Among the other survey results:

• Homeownership and a retirement savings program are considered by voters to be their best investments.
• 80% of home owners would advise a close friend or family member just starting out to buy a home.
• Saving for a downpayment and closing costs is the biggest barrier to homeownership.
• Americans believe that owning their own home is as important as being successful at their job or being able to pay for a family member's education.

"Owning a home isn't just a policy to people," said Lake. "It isn't just a commodity to people. It is a core value."

This national survey of 2,000 likely 2012 voters was conducted May 3-9, 2011 by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C. It has a margin of error of +2.19%.
Public Opinion Strategies is a national political and public affairs research firm based in Alexandria, Va. Founded in 1991, it has conducted more than 6 million interviews with voters and consumers in all 50 states and over two dozen foreign countries.

Lake Research Partners is a leading public opinion and political strategy research firm providing expert research-based strategy for campaigns, issue advocacy groups, foundations, unions and non-profit organizations.

To view slides on the poll, please go to http://www.nahb.org/VoterPoll.

GRAND TRAVERSE AREA HOME BUILDERS HIGHLIGHT BENEFITS OF OWNING A HOME DURING NATIONAL HOMEOWNERSHIP MONTH

Traverse City, 6/6/2011 — Tax advantages, long-term financial security and the ability to decorate or renovate to your family’s personal style are just a few of the advantages of homeownership being highlighted by the Home Builders Association of the Grand Traverse Area during National Homeownership Month in June.

“Despite the market downturn, there are still many incredible long and short term advantages to owning a home,” said Marc Burkholder, HBAGTA President, “And for anyone thinking of buying there are unprecedented opportunities in the current market including a large selection of affordable homes for sale and interest rates that remain near historic low levels.”

The financial benefits of homeownership begin in the first year for most home owners, through the ability to deduct mortgage interest and property taxes paid off their taxable income. This can result in savings of thousands of dollars every year, especially in the early years of the mortgage when interest makes up the largest portion of the monthly payment. 

Over years of ownership, home appreciation builds financial security for a family’s future. While home values can fluctuate with economic conditions, they have historically increased over the long term.

Finally, owning a home provides important emotional benefits in addition to financial advantages.

“Home buyers and home owners should never forget that first and foremost, a home is where your family can relax, spend quality time together and build lifelong memories,” said Burkholder.

To learn about homeownership opportunities in Grand Traverse Area, contact the Home Builders Association of the Grand Traverse Area at http://www.hbagta.com/ or call 231.946.2305.

2011 Golf Outing

The HBAGTA office will be closed on Friday, June 3 to host the annual golf outing being held at Lochenheath Golf Club.  If you are not a golfer, give us a call, there is still room for dinner at the end of the event for just $25.

Thank you to all of our sponsors for this event!  We are looking forward to having a great day on the course!