Take Advantage of the Financial Benefits of New Construction
During New Homes Month
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NAHB.org -
http://www.nahb.org/news_details.aspx?newsID=4355
April 2, 2007 - As the National Association of Home Builders (NAHB) draws
attention to the vast benefits of new home construction during April’s
New Homes Month celebration, one thing is clear: while the unsustainably hot
housing market of the past few years has slowed down to “real time,” it
remains a great time to buy a new home. And with the breakthrough technology
available to home builders, new homes offer safety, amenities, energy efficiency
and lifestyle like never before.
“Buying a new home remains an excellent investment,” said Brian
Catalde, NAHB president and a builder from Playa del Rey, Calif. “Compared
with investing in stocks and bonds, buying a new home still has the greatest
financial impact due to its leveraging power. And in the current slower-paced
market, there’s more room for negotiation. Coupled with today’s
historically low mortgage rates and the great advances made in new home construction,
buying a new home today just makes good sense.”
Following the boom levels of the previous two years, 2006 was a year of decline
for many housing markets across the country. According to NAHB’s Regional
Housing Starts Forecast, 2007 is expected to be a year of transition, with
growth emerging in many areas.
“Because the boom and correction cycle has largely been driven by national
rather than local factors, most regions have experienced some degree of over-heating
and correction,” said NAHB Chief Economist David Seiders. “We expect
2007 to be a time of transition in most regions, with housing starts bottoming
out during the year before transitioning to gradual recovery paths.”
Buying a new home makes even more sense when you take into account uncertainty
about the market, which has many potential buyers waiting to see if housing
prices fall. But if consumers try to wait and time the bottom of the market,
they are likely to lose out, and could end up literally waiting for years before
opportunity knocks again.
What is certain is the value of investing in new housing. First, there’s
the leveraging power of owning a home. And unlike any profits from other financial
assets, capital gains from owning a house are virtually certain to be tax-free
(up to $500,000 for jointly-filing couples, up to $250,000 for single filers).
Then there is the functional value of owning a home, whether in a flat or surging
market. You can’t live in a bank account or a stock portfolio. But your
house will both shelter you and your family, and help build you a nest egg
that grows and grows over time.
In addition to the financial benefits of owning a home, new home construction
bring a level of safety, efficiency and lifestyle unseen in years past. Technological
advances mean that new homes are safer, because new homes take advantage of
breakthroughs in building science such as new fire-resistant construction materials,
tempered glass and hard-wired and interconnected smoke alarms. Builders nationwide
have been embracing new green building techniques and materials, such as high-tech
insulation and energy efficient appliances, and incorporating them in new construction.
This results in new homes being more resource-efficient while saving homeowners
money. And with the abundance and variety of features that new homes offer,
home owners can create the home of their dreams—down to the knobs on
their kitchen cabinets.
For more information on New Homes Month and taking advantage of the financial
benefits of new home construction, visit www.NAHB.org/forconsumers.