President Joe Biden’s proposed $15,000 homebuyer tax credit

 The housing industry has been keeping a keen eye on President Joe Biden’s proposed $15,000 homebuyer tax credit for first-time buyers. But just how many people would actually benefit from it?

According to a report from Zillow, about 9.3 million renter households in the U.S. (27.4%) would spend less than a third of their income on the monthly payment for the median home sold in their metro in 2020 if they received the full tax credit. That is, of course, if certain stars align: think a 3.5% down payment on a 30-year mortgage with a 3% interest rate.

But given those factors, the tax credit would cover a borrower’s entire down payment for a home in 40 of the 50 largest U.S. metros. In metros that are considered more affordable, the tax credit would help a large percentage of renter households: in Pittsburgh, 40.5% could afford a median mortgage; in Cincinnati it would help 39.7%; in Cleveland, 39.0%; and in St. Louis, 38.5% would benefit. On the other hand, areas like California would see a smaller share of renters who could benefit — more likely in the thousands than millions.

Under former President Barack Obama, the federal government offered first-time homebuyers a tax credit of $7,500 in 2008 and $8,000 in 2009 and 2010 via the Housing and Economic Recovery Act. Those who received the credit in 2008 were required to pay back the credit over time, while those who received it later had it waived.

The Biden administration has released few policy details about the first-time homebuyer tax credit, but one key difference with earlier tax credits is that the money would be available to borrowers up front at the time of closing. With previous tax credits, borrowers paid the money out of their own pocket to buy the house, and were reimbursed at tax time.

To date, the administration has focused on the COVID-19 pandemic, and given that the U.S. housing market is at its hottest point in a generation and prices are already at a peak, it’s unlikely that the Biden White House will prioritize it in the near-term.

One consequence of creating a $15,000 down payment assistance program is the demand it would create in a market that’s already struggling with supply. The Census Bureau found that just 307,000 new homes were on the market in January, roughly four months’ worth of supply at the current sales rate. As for how much borrowers paid that month, the median sales price was around $346,000, while the actual sales price averaged closer to $409,000 — pushing prices out of reach for those who would receive the down payment assistance.

If it does get passed, the tax credit would be a game-changer for many renters, particularly those who struggle to save for a downpayment in high-cost metros.

Renter households are estimated to save only 2.4% of their income each year, according to Moody’s Analytics. At that rate it would take a typical renter about 14 years to save $15,000. A $15,000 down payment springboard could potentially push millions of renters in to homeownership within a few years, especially Black and Latinx renter households that make up a disproportionately smaller share of potential buyers. 

“Policies targeting the systemic inequities in our financial system — including reforming the credit reporting system  — could help disadvantaged households get their foot in the door and close the racial homeownership gap,” said Zillow economic analyst Alexandra Lee.

Lawrence Yun, chief economist at the National Association of Realtors, said preserving the 1031 Exchange to incentivize land sales for builders is key to the future of the housing market. An extra $15,000, he said, won’t help with the already low supply of homes available.

“Only with added supply will the homebuyer tax credit be effective in boosting homeownership and enlarging the middle class,” Yun said. “Without supply, home prices jump much higher with no meaningful gain to new homeownership.”

 

 

Animals and Other Pests That Can Quickly Ruin Your Roof

Posted on Mar 15 2021 - 3:51pm by Housecall

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By Anita Ginsburg

Your roof is what protects your family from the elements and other dangers outside your home. However, your roof is susceptible to damage, especially from different critters. Here are some of the animals and other pests that can quickly ruin your roof:

Birds

It can be nice to hear birds singing out in your yard, but you don't want to hear them singing on your roof. Though birds aren't very heavy, they do have some talons that can tear up the roof, and some will peck at the roof looking for insects to eat. Their droppings are also acidic, which can cause corrosion. The issues can get even worse if the birds decide to build a nest on your roof. Most likely, the nest will be in your gutters. These nests, however, can block the gutters and create pools of water that can leak through the roof or into your home's foundation.

Rodents

Mice and rats like to live in the walls of homes for warmth, and they'll often reach the roof if the infestation isn't discovered and eradicated. Once in or on your roof, they may eat the building material or insulation in the walls or attic. Additionally, rodents that aren't exterminated will likely have babies that will also live in your walls and roof. If you notice a biting sound in the walls or ceilings of your home, you likely have rodents. Another sign to look for is bitten or gnawed on walls, wires or other materials around your home.

Termites

Although your roof may not have wood shingles, it likely has wood underneath, so it's important to get protection from these wood-eating pests regularly. If you have termites, the wood in the infested area will start to get thinner and thinner until holes start to appear. It will be harder to control the temperature and your home won't be protected from the rain and water damage. While termites prefer wood, they'll also snack on other materials too, like paper, cardboard, cotton and anything else that contains cellulose. Termites will even chew through plastic to get to their meal of choice.

Bees

It's important to protect bees, but that doesn't mean we want them living in or on our roofs. If bees do decide to build a hive on your roof, they'll eat at it to provide room. Bees will also add a lot of weight to your roof, potentially weighing it down to the point of structural damage. That isn't to mention the possibility of getting stung if you open an upstairs window.

If you've noticed damage to your roof caused by any of these creatures, you'll need to get your roof inspected after having the pests cleared out. A residential roofing contractor can tell you whether the damage is serious enough to require a whole roof replacement or if you just need some repairs.

These pests aren't necessarily a nuisance in the wild, however, they will be in your home. There are a number of natural ways to prevent creatures from getting too comfortable on your property. If those tactics don't work, call pest control!

Anita Ginsburg is a freelance writer from Denver, Colorado. She studied at Colorado State University and now enjoys writing about health, business, and family. A mother of two wonderful children, she loves traveling with her family whenever she isn't writing. If you have roof damage from pests, she recommends contacting a residential roofing company. You can find her on Twitter @anitaginsburg.

 

RE Report Print them and they will come: the 3-D house While 3D-printing has been talked about for a while now, where home building is concerned, it’s a phenomenon whose time is due. With home prices surging due to lack of inventory and builders fretting over the cost of building materials, 3D-printed homes now means the homebuilding industry is on the edge of a revolution, according to CNBC’s Diana Olick. Olick describes how 3D-printing technology was used to build a 900-square-foot model home on Long Island. But its builder, Kirk Anderson, is about to build another (even more important) one – the first 3D-printed home in the United States to be marketed to the public. “The new home will be slightly larger at 1,500 square feet and will feature three bedrooms, two bathrooms and a garage. It is listed at just under $299,000, about half the price of a comparable newly built home in the area,” says Olick. “Demand is off the charts,” says a local Long Island Realtor. The maker of the homebuilding feast, Andersen is director of operations at SQ4D, a New York-based company with barely a dozen employees. Olick explains how, while other companies have 3D-printed small structures that are being used to house the homeless, Andersen’s firm is the first company using the technology specifically for the for-sale market. That meant scaling up their robotic printer, doing lots of testing, then printing up the foundation, interior, and exterior walls and utility conduits for the model home. They did that in just two days. How does it look? “Like a massive spout squeezing out concrete toothpaste in long lines, but the result is an incredibly solid, resistant structure. The raw walls look a bit like concrete corduroy, but they can be smoothed depending on the buyer’s tastes,” says Olick. “It requires little labor to build, and the price is low — two potentially attractive points as the industry contends with a severe labor shortage and high material costs. And instead of using costly lumber, they used concrete, which is far cheaper. “We’re trying to build homes and houses in half the time for half the price,” said Andersen in the article. “Our profits will be higher and we will be able to show that with more projects that we do.” But there will be red tape barriers, as there always are for new technology no one knows how to deal with. Getting permits won’t be easy. Andersen will need to work with local officials, teaching them about the process and the potential, while dealing with zoning regulations for this first batch of printer-made homes. As for the first prototype, there are already multiple offers on the house, some from regular buyers, others from investors. Andersen said he has also gotten a lot of interest from developers who want him to build 3D housing developments. He sees this as being involved in an important piece of history, staying local at first but looking ahead as well, hoping to take the concept to places like Florida and California, proving this can be done anywhere. Source: CNBC TBWS