I attended an online seminar (“Stimulus and the Housing Market”) yesterday put on by Professional Builder Publications. Here are a few interesting tidbits.
- First time home buyers can still get an $8,000.00 tax credit if you purchase the home by December 1 of 2009. There is speculation that this credit may be extended or even expanded to non-first time buyers. Let’s hope.
- For those thinking of remodeling tax credits are available for window and door replacements and / or other energy improving strategies. You can get more information on this at www.energystar.gov/taxcredits
- The Home Affordability Index is at a record high. This means that construction costs are low and financing is still relatively cheap. If you are in a position to build or buy, this is truly the time to do it.
- Consumer confidence is just beginning to improve.
- Single Family housing is expected to begin modest recovery soon. Multi-Family is expected to lag for a while.
- Existing home inventory is still high, but it is going down. This is a good sign.
- U.S. construction spending is expected to start increasing by end of 09′ or early 10′.
So what is the point? Now is really a good time to buy, build or remodel. Low consumer confidence and low demand are keeping construction costs down while financing costs are still relatively low. This is a good combination if you are in a position to take action. Once recovery starts to happen you know where construction costs are going to go.