The cost of materials
continues to grow as a portion of home construction costs when compared to
years prior. You will see some additional information on this later in the
newsletter. Though we are nowhere near historic highs, prices are still an
incredible value when compared to the past. We are posting any notifications of
announced price increases on our blog and you can verify what impact these
increases may have on your business with your sales person.
Cost of Housing Still Making Great Strides
The month of June has
seen the largest increase yet in cost of housing for a typical two-story home
this year when compared to 2011. Cost of housing now is 20% higher than this
time last year, surpassing last month’s shocking leap from a 1% (April) to 13%
(May) increase when compared to last year. The continuation of such significant
growth further validates signs that both the economy and housing market are
improving.
Campaign for Home Ownership on Capitol Hill
In recognition of National Home
Ownership month, the National Association of Home Builders (NAHB) called on
congress to make home ownership a national priority. More than 700 home builders
gathered on Capitol Hill on June 6, 2012, in an effort to improve the job
market, national economy, and housing market.
According to the NAHB Chairman Barry
Rutenberg, “Persistently tight lending standards for home builders and buyers,
uncertainty regarding the future of the housing finance system, ongoing threats
to vital housing tax incentives, and overly burdensome regulations are
hampering a housing recovery and keeping countless home building firms from
constructing viable projects and hiring new workers.”
Builders met with senators and
representatives to support legislation in favor of the following initiatives:
•
Restore the
flow of credit for new housing production with the Home Construction Lending
Regulatory Improvement Act. The bill would reduce barriers for lending while also
preserving regulators and financial institutions.
•
Reform
housing government sponsored enterprises Fannie Mae, Freddie Mac and the Federal
Home Loan Banks to provide a federal backstop and ensure a reliable and
adequate flow of affordable housing credit in all economic and financial
conditions.
•
Preserve current
housing tax incentives such as the mortgage interest deduction and Low Income
Housing Tax Credit.
•
Improve the
Environmental Protection Agency’s (EPA) Lead: Repair, Renovation and Painting
rule (LRRP) by reinstating the opt-out provision, allowing home owners without
children to decide whether to comply with LRRP.
•
Reduce the
overreach of federal power under the Clean Water Act. The Preserve the Waters
of the United States Act would prevent the EPA and U.S. Army Corps of Engineers
from expanding the Clean Water Act to include virtually every ditch, pond and
seasonal runoff ditch in the nation.
