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weekly updates from your association
2935 Breezewood Avenue, Suite 100 Fayetteville, NC 28303         910.826.0648        admin@fayhba.org       RSVP
Week of February 6
In This Issue In Every Issue
BUILDERS, BIDS & BEERS

presented by

Tuesday, February 24
5:30 pm-7:00 pm

MEMBER ONLY EVENT

Attend this intimate networking opportunity, hosted by your Membership Committee. Builders are invited to attend and bring materials that will assist Associates in bidding on projects in the future. Associates are invited to attend to network with Builders and create new working relationships. This is a casual event held at the HBAF office. Light refreshments will be served.

Tile with Style Plus, Inc.
314 E. Russell Street
Fayetteville, NC 28301

Register to attend


 
Are You Taking Advantage of this Powerful Member Benefit?
List your homes for free on the HBAF site, and now leading new home websites NewHomeSource.com and MoveNewHomes.com!
 
Builders Digital Experience (BDX) has partnered with the HBAF to help builders list their homes for free online. And now this member benefit is even better and includes more exposure.  Now when you list your communities on HBAF, your communities and homes will also display on the two leading new home websites for FREE.  These heavily trafficked sites see over 1 million unique visitors each month – this is a huge advantage for your company. 
 
Your Free Basic Listings on New Home Source and Move New Homes Includes:
  • Community Name
  • Community Address
  • Up to 3 Community Images
  • Inclusion on the Area Map
  • Located After the Paid Listings in Search Results 
Listing Your Homes is Simple
Signing up is easy and the time commitment on your end is minimal -- BDX will help you upload your initial community data and train you on how to keep it updated going forward. Depending on the number of communities you wish to list and the quality of the data you have available, our team will normally have your listings live on the site within 5 business days.
 
Don’t Wait – Sign Up Today
Set yourself apart from the competition and improve your exposure among new home buyers by signing up for the free listing program by visiting www.fayhba.org/members-resources/bdx


Rethinking Realtor Relationships
By John Rymer, Rymer Strategies

 
   Ask a top general Realtor about the state of the housing market and you’ll learn a lot about what's going on.
  • The change in appraisal practices
  • The higher credit scores required for mortgage approvals
  • The frustrations in dealing with REO and short sales.
   What you may not hear is what’s happening with new homes. If you’re surprised, think again. While new homes typically account for 25% of Realtors’ commissions and got up to almost 40% of total commission dollars in 2005 and 2006, they now contribute just over 10% of total Realtor compensation.
   â€œNew homes aren’t very appealing to our business today” is a consistent theme I hear from top general Realtors. When I probed as to why new homes have lost their appeal the reasons are surprising but understandable:
   Who’s minding the store? – During these tough times, some builders have opted to staff their model centers less than seven days a week or only part time on certain days. Others have decided to use “hostesses” in lieu of true sales professionals . . . continue reading here
Tax Reformless
Elliot Eisenberg, Ph.D.
 
   The combination of ongoing weak GDP growth and a steep rise in corporate inversions designed to reduce US corporate tax liabilities has again brought the perennial idea of tax reform to the fore.  Done right tax reform is a winner.  By closing loopholes and lowering marginal rates the economy can better perform and GDP growth can be raised.  That said, despite the positive rhetoric coming out of Capitol Hill, don’t count on it soon.  Moreover, the sharp, and short-lived seven day brawl about scaling back tax breaks for 529 college savings plans is painfully instructive and illustrative as to why.
    In his State of the Union address, President Obama proposed doing away with the tax-free treatment of capital gains in 529 college savings plans.  Instead, he proposed increasing the size of the American Opportunity Tax Credit, available only to families with pretax incomes of less than $180,000, from $1,000/year to $1,500/year and to allow it to be used for five years, up from four.   
    Looked at in isolation, the economics behind this particular policy is pretty solid.  First, there is limited evidence that tax breaks designed to increase savings actually do so.  Rather, the evidence generally finds that tax breaks reward individuals who would have saved anyways.  Worse, the tax incentives don’t seem to increase the total amount of savings either! 
   Second, most of the tax shelter goes to higher income households.  According to the White House, 70% of the benefits from 529 plans go to households with incomes greater than $200,000, while a GAO study from 2010 found that 47% of families with a 529 plan had incomes above $150,000.  A recent College Savings Foundation study found that not quite 10% of 529 account holders have household income below $50,000.  In short, these plans give tax breaks to wealthier households who already send their kids to college and would have saved as much with or without the plan.  By contrast, giving all households with incomes below $180,000 slightly more money for college might raise the percentage of kids from middle- and lower-class households that attend college. 
   More concerning is that be it via 529 plans, the American Opportunity Tax Credit, guaranteed student loans and now increasing student loan forgiveness, government, through the tax code and elsewhere, heavily subsidizes college costs, and in the process dramatically inflates the cost of college tuition.  Real tax reform would scrap these inflationary subsidies and implement a more coherent and more focused approach.                     
   But here is the rub, taking away the advantageous tax status of 529 plans created an instant coalition of three powerful groups that rolled the administration.  The groups included parents with kids bound for college fearful they were about to lose a valuable tax break that they “deserved,” higher education that was concerned it was losing a subsidy and the financial industry which feared losing the billions in fees associated with administering a huge $250 billion program.       
   While everyone claims that they want a simpler tax code with lower rates and bereft of deductions, loopholes and credits, taking any of these away creates winners and losers.  And while the winners may be numerous, what they stand to gain is nebulous and distant.  By contrast, losers quickly organize themselves and make themselves heard.  If doing away with something as small as this was impossible, good luck with larger tax issues that touch deeper pockets.

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net.  His daily 70 word economics and policy blog can be seen at www.econ70.com.

 

Up Coming

February 10
Membership Committee Meeting
11:30 am 
HBAF Office

February 12
Board of Directors
9:00 am 
HBAF Office

February 17
NCHBA Quarterly Meeting
Raleigh, NC
Click here to register online for the 1st Quarter Meeting

February 24
Builders, Bids & Beers
5:30 pm-7:00 pm 
Tile with Style Plus
314 E. Russell Street
Fayetteville, NC 28301

Fayetteville Area Habitat for Humanity is requesting bids.
Please visit their website.


Construction Statistics

Local Stats: December 2014

Local Stats Residential Trend: 2008-2014

Absorption Report: December 2014

Commercial Building Permit Index: December 2014 

The Market Edge Residential Building Permit Trend: December 2014



NAHB NEWS
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Significant Changes to the 2015 International Codes
Wednesday, Feb. 25, 2-3 p.m.
Policy and Finance series

New homes are required by law to comply with state and local building codes and the standards referenced in those codes. Most jurisdictions that enforce a building code have adopted one or more of the family of International Codes (I-Codes) developed by the International Code Council (ICC). This webinar highlights significant changes to the 2015 editions of the I-Codes, particularly the International Residential Code (IRC) and International Building Code (IBC).

HBA of Fayetteville
910-826-0648
910-826-0649 fax
www.fayhba.org
admin@fayhba.org

Natalie Fryer, Executive Officer
Pamela Grierson, Communications Manager

NAHB Member Discounts
www.nahb.org/ma
Dues Payments & Lobbying Expense 2015 Disclosure
Dues payments to the Home Builders Association of Fayetteville are not deductible as charitable contributions for federal income tax purposes. However, dues payments may be deductible as an ordinary and necessary business expense, subject to exclusion for lobbying activity. Because a portion of your dues is used for lobbying by NAHB, NCHBA and HBAF, 10% of the total dues, or $ 48.22 is not deductible for income tax purposes for builder and associate members. For affiliate members, 2% of the total dues, or $2.35 is not deductible for income tax purposes. Membership Dues are non-refundable.
Copyright © 2015 HBA of Fayetteville, All rights reserved.


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