New Housing Starts Predicted to be Strong in 2011

Housing starts will probably reach a three-year high of 739,000 in 2011, creating about 500,000 jobs and helping trim the unemployment rate to 9.1%, said David Crowe, chief economist for the National Association of Home Builders, in an interview with Bloomberg.

“This is an ugly economic cycle,” he said. “We need job creation to get people comfortable with buying a home. If they do that, we’ll create jobs that will reinforce that home buying and fuel additional job growth.”

Job growth in other sectors, as well as population growth, will also likely have an effect. The number of U.S. households will rise 0.7% to 118.7 million in 2011, the largest annual gain since the beginning of the housing crisis in 2007. Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, N.J., expects jobs to rise by an average of 200,000 per month in 2011.

The CEO of luxury home builder Toll Brothers is optimistic. “The recovery is here to stay,” said Douglas Yearley. “I think 2011 will be an improving year, but I think 2012 will be a big year for us.”

Call or email me to find the best new home developments in Mercer County and surrounds, and the builders offering the best buyer incentives.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
Source: Realtor.org, Bloomberg, Joshua Zumbrun and Kathleen M. Howley (12/28/2010)

Smaller Builders are the Foundation of the US Housing Industry

According to a new study by economists at the National Association of Home Builders (NAHB), small home builders are the mainstay of the nation's housing industry, including a sizable number of self-employed mom-and-pop operations.  "We are seeing market conditions returning to normal in many parts of the country after a long, hard downturn, and these companies have the agility to move quickly and start leading the economy forward," Bob Jones, NAHB chairman, said. "But first they need access to financing to build, which remains scarce during this critical phase of the recovery."

The report concluded, "The residential construction industry is very dynamic, and a large number of firms enter the industry each year and a large number exit each year.  With few barriers of entry, start-up builders can launch their business with a single new home. Most home builders and remodelers are small businesses, further facilitating movement into the industry when opportunities improve, and exiting either because of business failure or life-cycle decisions."  In addition, a much higher share of small businesses both enter and fail in the residential construction industry when compared to all U.S. firms, according to the report.

NAHB estimates that the ratio of the income of usually small, self-employed independent contractors to wages and salaries generated in the construction industry is one to four. This is compared to a ratio of one to 10 in some other industries, such as manufacturing.  Housing also provides more opportunities for Hispanic businesses than U.S. industries overall, the study found.

For ideas on where and how you can purchase a new home in Mercer County and surrounds, call or email me.  There are many builders who want your business.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

Habitat for Humanity Builds 400,000th Home

Habitat for Humanity is one of the nation's largest builders.  Founded in 1976, it has served more than 2 million people worldwide.

"In 2005 we celebrated our 200,000th house. Now, five years later, we have more than doubled that number thanks to the generous support of our volunteers and sponsors,” says CEO Jonathan Reckford.  Habitat and its homeowners, volunteers and partners build so much more than houses for these families, however. They build community, friendships, health, tolerance, construction skills, and financial literacy.

A copy of Habitat for Humanity International's fiscal year 2010 annual report, "What We Build," is now available on the group's Web site. The report gives a snapshot of Habitat's work around the world.

The organization seeks to eliminate poverty housing and homelessness from the world and to make decent shelter a matter of conscience and action.  To accomplish these goals, they invite people of all backgrounds, races and religions to build houses together in partnership with families in need.

Learn more about the work and volunteer or fundraising opportunities for this very meaningful and needed non-profit at the Habitat for Humanity web site.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

New Construction Statistics in November Show Mixed Market

Here are the U.S. Census Bureau and the Department of Housing and Urban Development (HUD), new residential construction statistics for November 2010.

Single-family housing starts in November were at a rate of 465,000; this is 6.9% (±13.5%) above the revised October figure of 435,000. The November rate for units in buildings with five units or more was 72,000.

Single-family building permits in November were at a rate of 416,000; this is 3.0% (±1.0%) above the revised October figure of 404,000. Authorizations of units in buildings with five units or more were at a rate of 94,000 in November.

Single-family housing completions in November were at a rate of 436,000; this is 10.1% (±11.6%) below the revised October rate of 485,000. The November rate for units in buildings with five units or more was 73,000.

These numbers don't mean much if you can't find new homes in your area.  Call or email me and let's discuss your options.  I can fill you in on all the new homes available in Mercer County and our central New Jersey areas.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

Builder Confidence Waits for Spring

According to the National Association of Home Builders (NAHB) - Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built, single-family homes remained unchanged in December from the previous month at 16.  "Builders are bracing themselves for a slow holiday season as a number of factors continue to cause uncertainty among consumers and builders alike," said NAHB Chairman Bob Jones. "While the HMI is adjusted for seasonal factors, the typical cold-weather slowdown in sales activity is being accentuated by ongoing weakness in the job market, the rising number of foreclosures and short-sales, and very challenging credit conditions for both builders and buyers."

"The steady but low level of the HMI reflects the fact that builders and consumers have yet to see consistent signs that the economy is improving," noted NAHB Chief Economist David Crowe. "The good news is that the index and its subcomponents remain above recent lows from the early fall. NAHB expects an improving job market this spring will help prospective buyers feel more confident and propel more sales activity in 2011. However, the continued problems that builders are facing in obtaining construction credit and accurate appraisal values could significantly slow the onset of a housing recovery."

Two out of three components of December's HMI remained unchanged from the previous month, including the component gauging current sales conditions (which remained at 16) and the component gauging sales expectations in the next six months (which was flat at 25). The component gauging traffic of prospective buyers fell a single point, to 11.  Regionally, the Northeast, which can display greater month-to-month volatility due to its smaller survey sample, posted a 12-point gain to 24 in December.

Call or email me and let's talk about your new home options in Mercer County and surrounding areas.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.blogspot.com/

Baby Boomers Using Remodeling to Satisfy their Changing Needs

The decline in prices in the suburbs appears to be keeping a lot of aging boomers from selling and moving to accommodate a change in lifestyle.  David Crowe, chief economist for the National Association of Home Builders (NAHB), said, “National conditions for this sector have not yet turned the corner, and they will not improve until employment improves and consumers are more confident of keeping their jobs.”

Boomer-watchers say this wants-to-move-but-can’t generation is engaging in “recession remodeling,” making small and not-so-expensive changes to their houses to accommodate health or other life-changing issues.  80% of those 65 and older, who responded to a July telephone poll of 1,616 adults ages 45 and up conducted for AARP, said they wanted to stay in their houses as long as possible.

A few tweaks to remodeling plans can make a house more user-friendly.  Recently AARP sponsored a “recession remodel” contest to demonstrate that comfort and efficiency were achievable, even in hard times.  The winners: a kitchen in a farmhouse in Richfield, N.C., about an hour from Charlotte, and a bathroom in a house in Snohomish, Wash., near Seattle.

The kitchen renovation was the result of a move to the house by the owner’s 67-year-old mother, after the death of the owner’s father, who had built the house.  The kitchen was outdated and difficult to use. AARP’s makeover expanded and brightened the room, and added an open floor plan, cabinet and counter space, multilevel work and eating space, and easy-to-reach appliances.

The bathroom renovation was for a daughter who cares for her parents, one in a wheelchair with Parkinson's, and the other who uses a walker.  A cramped bathroom that could accommodate neither parent was changed to remove barriers and add a walk-in shower, a heated nonslip floor, and glare-free lighting.  AARP arranged donations to the two winners of appliances, fixtures, and other building products, along with designer and contractor services.

“These makeovers demonstrate what homeowners can do when they finally get around to remodeling,” AARP’s Ginzler said. The work “can make them ready for whatever surprises life can bring.”

Many New Jersey builders are ready and willing to help you with remodeling projects, especially this time of year.  Call or email me to discuss your needs and ideas.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/


(resource:  RISMedia.com)

New Consumer Web Site Launched to Keep Mortgage Interest Deduction

The National Association of Home Builders (NAHB) has launched a newly-designed consumer-oriented website, http://www.savemymortgageinterestdeduction.com/, to provide up-to-date information on the threat to the mortgage interest deduction.

The website separates the myths about the mortgage interest deduction from reality, and shows why this cornerstone of American housing policy is essential for millions of middle-class homeowners and families who aspire to own their own home.

The site contains fact sheets, FAQs, statistics, and other information to allow consumers to stay informed as debate on the mortgage interest deduction moves forward.  Also, he website tells visitors how to make their opinions are heard by connecting through NAHB’s Facebook and Twitter mortgage interest deduction communities and Eye on Housing (http://eyeonhousing.wordpress.com/) blog.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/

US Builder Confidence Improves in November

Builder confidence for newly built, single-family homes improved slightly in November 2010, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.

“Though the gains have been incremental, the fact that builder confidence has improved over the past two months is encouraging,” said NAHB Chairman Bob Jones. “Many builders are reporting that while the quantity of buyer traffic through their model homes has not improved dramatically, the quality of that traffic seems to be getting better—meaning that more people appear to be serious about buying in the near future. Builders remain very concerned, however, about the lack of available financing for new-home construction at a time when inventories of completed new homes are quite thin; after all, you can’t sell what you can’t build.”

“The most positive aspect of today’s report is the future expectations component, which not only held onto the five-point gain it registered in October, but improved by an additional two points to 25 for November,” said NAHB Chief Economist David Crowe. “This is the highest that component of the HMI has been since the home buyer tax credit program spurred sales activity this spring.” At the same time, he noted, “The most concerning aspect of the report is that survey participants say they have observed absolutely no improvement in their ability to access credit to build viable new projects. This problem is clearly a roadblock to recovery in many markets.”

The Northeast was the only region to post a decline in its HMI score in November, with a three-point drop to 13. Meanwhile, the Midwest posted a five-point gain to 18, the West posted a three-point gain to 15 and the South held even at 18.  This regional shift reflects the winter weather patterns, which return first to the Northeast.

There are many new homes available in Hamilton, NJ, Mercer County, and surrounding areas.  Call or email me to preview your choices.

Joe Giancarli, SA
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.dogwoodmeadowsnewhomes.com/
http://www.njhomesource.blogspot.com/
www.activerain.com/blogs/josephgiancarli

New Jersey Green Homes - a Viable Alternative for Builders

A recent article on RISMedia.com explores the questions now for builders about the costs of Building Green.   "Green homes offer a wide variety of benefits from reducing carbon footprints to saving money on utility bills to even improving the health of children. However, a recent Whirlpool Corporation and Habitat for Humanity survey conducted by the NAHB Research Center, polled home builders, as well as consumers, and found many believe there’s a disconnect between living in a green home and purchasing one. Yet, the majority of respondents (64%) indicated that savings from green home features were sometimes worth the added costs and efforts. This finding was consistent across all income level groups for both renters and homeowners.

"The majority of High (67%), Upper Middle (65%), and Middle (59%) income respondents, as well as nearly half of low income respondents (48%), indicated they believe a completely green home would be affordable to live in or maintain. Yet only high-income respondents were more likely to indicate that a completely green home would be affordable to purchase (71%).

"The builder survey, fielded July-August 2010 to members of the Research Center’s Online Builder Panel, found that 87% believe green homes are affordable for middle income families to live in, while 30% felt green homes were too expensive for the segment to purchase or build. For low-income families, 70% of home builders believe green homes are affordable to live in, and nearly 60% of builders thought green homes were too expensive for low-income families to purchase or build.

“'The health benefits, low utility costs and other factors make green homes ideal for all homeowners. However, it takes a united front of manufacturers, builders and organizations to help builders and consumers understand that building green can be affordable,' said Tom Halford, general manager, contract sales and marketing, Whirlpool Corporation. 'There’s a need to bridge the perception gap between green-building and affordability, so that builders and families understand that options exist to improve their footprint in the long-term, while saving money and resources in the short-term.'

“'Under Habitat’s nonprofit construction model, Habitat affiliates across the United States are incorporating sustainable materials and energy-efficient products in Habitat homes, as this is both a responsible building practice and it improves the affordability of homes for Habitat partner homeowners,' said Larry Gluth, senior vice president of U.S. and Canada for Habitat for Humanity International. 'The challenge is to help people understand that building green doesn’t mean it can’t be affordable too.'”

Contact me for information about which New Jersey builders are offering (or will be in 2011) Green Homes so you can make your own decisions on the solutions that fit your needs.

Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
www.activerain.com/blogs/josephgiancarli
http://www.njhomesource.blogspot.com/