Eye On Housing
Author Archives
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Cash Finances Smallest Share of New Home Sales Since 2010
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that just 4.7% of new home sales in the first quarter of 2017 were purchased with cash—down from the most recent peak of 9.5% in the fourth quarter of 2014. In contrast, the share of new home sales financed with conventional mortgages… Read More ›
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Softwood Lumber and OSB Push Building Materials Prices Higher
For the second consecutive month, prices of softwood lumber, gypsum, ready-mix concrete, and OSB all increased, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The increases were led by softwood lumber and OSB. The price of softwood lumber increased 2.3% in March after rising 4.8% in February. Softwood lumber prices have increased 7.2% over the… Read More ›
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New Residential Energy Tax Credit Estimates
In 2005, Congress established a number of energy-efficiency tax incentives related to housing that benefitted new home buyers and remodeling homeowners. These policies included the tax code section 45L credit for the construction of energy-efficient homes (including for-rent residences and low-rise apartments), the 25C credit for retrofitting/remodeling existing homes, and the 25D credit for the installation of power production property in… Read More ›
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Housing Provides Boost to GDP
Final estimates of fourth quarter 2016 GDP growth (revised up two-tenths of a percentage point to 2.1%), show that housing’s share of gross domestic product (GDP) was unchanged at 15.6%. The home building and remodeling component—residential fixed investment (RFI)—also held steady at 3.5% as a share of GDP. The fourth-quarter expansion of RFI added 0.35 percentage points to the headline… Read More ›
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A Primer on Border-Adjusted Taxes
In June 2016, House Republicans introduced the outline of a tax reform proposal (a.k.a. the blueprint). The blueprint includes significant changes to how business income would be taxed. In particular, corporate taxation would move toward a cash-flow tax (CFT). In their most basic form, CFTs tax income based on where the income ultimately flows. In contrast, income tax liability currently… Read More ›
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Softwood Lumber, Gypsum Products Lead Price Increases Among Building Materials
The prices of softwood lumber, gypsum, ready-mix concrete, and OSB all increased in February, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The increases were led by gypsum products, with softwood lumber a close second. After decreasing in four of five months, the price of softwood lumber rose in February. The 4.8% increase was the… Read More ›
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Lumber Prices Rise to Start 2017
The price of lumber, from framing to structural panels, has increased in recent weeks with some prices rising more than 30%. Softwood lumber prices have been relatively steady since 2014. During this period, the largest one-week price increase of framing lumber (+6.8%), as measured by the Random Lengths Framing Lumber Composite Index, occurred in the middle of the recent price… Read More ›
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Pace of Residential Construction Spending Continues Positive Trend
Private residential construction got off to an auspicious start in 2017, continuing the growth trend that began in October of last year. NAHB analysis of Census Construction Spending data shows that total private residential construction spending grew 0.5% in January 2017 to a seasonally adjusted annual rate (SAAR) of $476.4 billion. Multifamily construction spending in January grew by 2.2% to a seasonally-adjusted… Read More ›
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Have Gypsum Prices Found a New Normal?
The prices of ready-mix concrete, gypsum, and softwood lumber fell 0.2%, 3.5%, and 0.1%, respectively, in January according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. OSB prices ticked up 1.8%, reversing the 1.3% price decline in December. Long-term trends in gypsum and ready-mix concrete prices are in focus this month, albeit for different reasons. Gypsum… Read More ›
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Who Claims the Home Office Deduction?
With tax preparation season well underway, it is a good time to examine the use of the home office deduction. Often cited as a “red flag” for tax audits, the home office deduction is a legitimate business deduction particularly important for certain professionals and small business owners. Moreover – from the housing economics perspective – IRS data concerning the deduction,… Read More ›