NAHB Lobbies to Extend Tax Credit

The National Association of Home Builders have heard from their members that the housing tax credit for first time home buyers has been driving sales, and recent economists’ observations have shown the truth – the tax credit is working.  People are buying homes.  But with the credit about to expire in November and the housing market still struggling, the NAHB wants Congress to extend the credit to November 2010.  Doing so could fuel 80,000 more starts in the coming year.  The NAHB also wants to expand the availability to all purchasers of a primary residence rather than just first time buyers.  There is a downside – without a looming deadline people are more likely to postpone decisions.  Also some builders have put up spec homes in order to capitalize on late coming buyers as we near the deadline.  Those builders may have to carry those homes longer than expected if the deadline is moved out.

Source: Builderonline.com

Spending on Construction Up

Construction spending was up 0.3% in June compared to estimates of a 0.5% drop.  Although the spending is still down versus 2008 by 10.2%, the data comes as another indication that the economy may be bottoming out.  The spending was assisted by public spending and federal government spending, as well as private residential.  The economy overall still shrank 1% during the first quarter, but far less than the 6.4% from a year ago.  Read: Associated Press