The $6 billion program dubbed by the media the cash for caulkers program passed the House last Thursday and now makes its way to the Senate later this summer. The bill, officially known as the Home Star Energy Retrofit Act has been touted by President Obama since late last year as a central piece of his job creation strategy.

The bill would fund rebates of as much as 50%, up to $3,000 for energy saving efforts such as insulation improvements and the replacement of windows, doors, heating and cooling systems. The installations will have to be completed by qualified contractors. The bill also covers reimbursements for those who perform comprehensive energy audits and reduce their home’s total energy consumption.

The House vote simply authorizes the creation of the program but it does not appropriate the funds needed to run it. The Senate will take up the legislation this summer and will determine how to pay for the program. The bill has the support of the National Association of Home Builders and the National Association of the Remodeling Industry as a much needed boost for their beleaguered industries that are experiencing significant downturns from the deep economic recession.

We were recently introduced to a very cool iPhone App designed for the true DIY’ers out there. This app called iHandy Carpenter has 5 professional tools in one all for $1.99 which is a fraction of the cost if one were purchasing each item separately. The app comes with a plumb bob to tell you if your walls are straight, a bubble level bar, a digital protractor for use when designing your home projects, a surface level which every DIY’er needs, and the coolest feature is a digital ruler that allows you to measure things even longer than your iPhone by using the iPhones touch screen. No doubt serious DIY’ers will put this app to very good use.

Real Estate agents all across the country have seen a definite increase in business in the last several months leading up to today’s deadline to have qualified buyers under contract to purchase a home. Real estate offices report that the activity level is reminiscent of the boom years of the early to mid part of this decade.

As long as a binding contract is signed by April 30th, home buyers have until June 30th to complete the purchase. The home buyer tax credit is forecasted to generate 900,000 – 1 million home sales for first time home buyers and another 1.5 million sales for repeat buyers before it expires on June 30th. The previous credit which expired in late 2009 is thought to have added 2 million first time home buyers to make their purchases just because of the credit.

The worry now is whether the housing market can sustain itself once June 30th comes and goes. April, May, and June new and existing home sales will undoubtedly be strong but market watchers will be watching closely to see what the numbers look like for July and August – traditionally strong months for home sales to gauge the strength of the broader housing market in the US.

The broader economy is starting to show small signs of improvement and this fact is projected to show up in the form of an increase in home remodeling expenditures in 2010. A number of economic measuring sticks now point to a slow but gradually improving economy which is supported by the fact that consumers have begun to increase their discretionary spending.

Three factors are playing a big role in the early stages of this recovery:

* A modest increase in house prices in many markets around the country

* Both new and existing home sales are showing continued strength

* Employment is beginning to stabilize and even improve in some sectors as employers are starting to feel more positive about the short and long term economic outlook

Harvard’s Joint Center for Housing Studies predicts that Remodeling expenditures will increase by 5% in 2010 which is great news for a market that’s been in the dumps for nearly two years. Our business at AnchorBayTile really ebbs and flows with the swings in the remodeling market so we welcome the positive news forecasted by the experts.

We like to keep a close eye on the numbers and report our thoughts and opinions from time to time as there is more news.

There was positive news in the housing market last week as sales of both new and existing homes showed solid increases in the most recent reporting periods. The Commerce Department reported that sales of new homes were up 27 percent in March and are at their highest sales levels since last summer.

On Thursday, the National Association of Realtors reported that sales of existing homes had risen 6.8 percent which is welcome news for both home sellers and real estate agents.

Buyers have been opening their wallets more and more this spring as retail sales have been strong in the last 2 months and auto sales set records in March for both domestic and foreign manufacturers.

In the housing market buyers seem to be moving ahead with their purchases to take advantage of the expiring tax credit and bargain housing prices both from new home builders and existing home sellers. Buyers are also still enjoying low mortgage rates which are coming at the right time for the housing market.

Remember, the Home Buyer Tax Credit will be expiring this spring meaning all buyers must be under contract by April 30th.

There was a good article in the Wall Street Journal this past Tuesday talking about some of the guests / homeowners who have been the subject of past Extreme Home Makeover episodes. The show undoubtedly does a lot of good for it’s homeowners but in some cases they have almost done too much for each family. The large homes built by the show’s producers for their shows featured families have in many cases been too large and too expensive for the family to maintain. As a result many have been weighed down financially by the upkeep cost and care for their McMansion homes.

We thought the article was interesting because the shows producers really were mirroring what was going on in the housing market all around us. Folks who were purchasing a home were buying more house than they could afford and those who were Remodeling an existing home were adding in over-the-top amenities that certainly look to be unnecessary today.

The article states that “back in the boom, the makeovers got a little out of hand because of competition among home builders aware of the free publicity that came with the show and who tried to outdo previous projects. These days, the show is backing away from the boom-era showpieces”.
Where it was common only a few years ago for the show to build their families 5,000 sf plus homes, today the average size of current makeovers is 2,800 to 3,000 sf.

Examples of past homes show projects that were built for families with modest incomes yet were 5,000 sf or more and different projects included among other things a movie theater, a carousel, and an English castle in one case.

While the show’s executives had good intentions, the properties in many cases were not in line with the budgets of the families that had moved in and occupied the properties once the show had moved on. When the large heating and electricity bills came followed by large property tax payments, and the inevitable on-going maintenance costs (who to call when the carousel breaks) the burdens for many just became too much to bear.

Many owners have sought loan modifications to reduce their payments to stay in their home. Others have been forced to sell. But in either case, the experience of homeowners from the show really parallels that happening in communities all across the country with struggling homeowners who took on more than their budgets would allow. We thought the article was quite interesting for these parallels to what we are reading about and hearing on our news programs everyday.

Potential homebuyers take note, there is less than 30 days until April 30th arrives which is the day by when those wishing to take advantage of the federal homebuyer tax credit must enter in to a sales contract to buy a home and qualify for the tax credit under federal guidelines. The home purchase must then be closed by June 30th.

This pending deadline may be why on Monday the National Association of Realtors announced that pending home sales of previously occupied homes rose 8.2% from January to February. Economists had expected the index would fall slightly so the report is certainly a surprise.

Pending home sales rose most in the Midwest by a percentage of nearly 22%. Sales posted gains of 9% in the South and Northeast but fell nearly 5% inn the West.

For those Remodelers doing work for seniors in this country there are two Universal Design certifications available and you as a consumer should want your remodeling contractor to have been certified by at least one of the two certifying associations.

The two associations that provide such certification include NARI which is the National Association of the Remodeling Industry and NAHB which is the National Association of Home Builders. Both certifications are valid and a remodeler doesn’t need certifications from both organizations.

Both certifications aim to accomplish the same objective which is to ensure that a remodeling company or remodeling company individual has been certified in the technical and business practices unique to performing work for those wishing to “age in place”. Homeowners and Seniors can rest assured that remodeling contractors who have obtained such certification are qualified to advise you and work on your project design aimed at making your home comfortable for your later years.

In light of the difficult economic situation we find ourselves in nationally it is clear from the numbers in Remodeling magazines 2009 – 10 Cost vs. Value report that consumers are being more cautious with their money. Remodeling expenditures are down 3.5% – 4.5% and homeowners are doing what is being called “phased in” remodeling where the kitchen might be remodeled today with the master bath next and the guest bath after that for example instead of consumers taking on the entire project at once.

Low-cost improvements will typically re-coup much of their cost and that is exactly what consumers are spending their money on. Each of the projects in the Top 10 of costs re-couped are under $15,000. The lowest cost project on the list for this years report weighing in at a cost of $1,172 is for the replacement of a homes front entry door. The Cost vs. Value Report estimates that nationally a consumer can expect to be able to re-coup 128.9% of the cost of replacing a door on a home. Again, low-cost and functional is the name of the game in today’s housing market.

How did tile work for the home fare? Reasonable cost tile jobs show the best return and those are the smaller projects like updating a kitchen backsplash or selected bathroom areas. Jamey Wood, an agent with Prudential Jack White Real Estate says kitchen and bathroom remodels are still huge. In the kitchen says Wood simply updating a laminate countertop and adding a tile backsplash will provide a 100% return. In the bathroom, if you spend $1,200 on a new tile shower or spend $300 to $350 for a new tile floor, you get a 70% to 80% return.

We have several low-cost tile options for those wanting to tackle sensible remodeling projects this spring and summer. Check out our Coastal Glass Mosaic Tile Blends for only $4.99 per sf or our Soho 3 x 6 Subway Tiles for $8.50 per sf. Both products are in stock and ready for immediate shipment.

President Obama on Tuesday proposed rebates of up to $3,000 to help American consumers make improvements and upgrades to their homes with the goal of making homes more energy-efficient.

With job creation now a top priority for the Administration the “cash for caulkers” program as it has been dubbed is estimated to create tens of thousands of jobs as 2 to 3 million consumers are expected to invest in their homes by purchasing energy efficient windows and doors, insulation and other upgrades that are aimed at stimulating manufacturing and construction jobs from companies that produce the materials and companies that install them.

The bill must make its way through Congress still so let’s see what kind of support the measure gets from both Democrats and Republicans.