Open House by Jim Woodard

There's growing interest in new homes specifically designed for buyers older than 55, says a report from the National Association of Home Builders.

Builders of single-family homes are reporting increased traffic at model homes designed for the over-55 market. While sales volume remains slow, interest is accelerating.

"A strong and growing number of retirees and empty-nest households are interested in either downsizing or moving to a more user-friendly home, especially if it's near their existing community," said David Crowe, NAHB chief economist. "But the current market still presents significant obstacles to homeowners who need to sell an existing home before buying a more appropriate one. That's holding many mature consumers from moving."

Despite sluggish market conditions, builders who specialize in senior housing are seeing more prospective buyers coming through their doors, according to the NAHB survey. The builders are guardedly optimistic as they look toward the next six months, the report said.

"With the return of a more stable, healthier housing market, the pent-up demand for housing with the features and amenities that appeal to baby boomers will keep builders in this sector busy for years to come," Crowe said.

Q: When will we see a healthy rise in new home construction?

A: In short, now. Construction starts for new homes increased significantly in May — a positive sign for the housing industry. The number of starts increased by 17.2 percent April's number, reports the National Association of Home Builders.

"Having drawn down standing inventories to very thin levels over the past year, some home builders are now carefully replenishing their supplies in response to demand from buyers who are taking advantage of low interest rates and home prices," said Joe Robson, NAHB chairman.

"The new report, showing three consecutive months of gains in single-family housing and two consecutive months of gains in single-family permits, is a very welcome sign that the market may be nearing a turning point."

Q: Will increasing mortgage rates ruin the emerging economic recovery?

A: That remains to be seen. But from a positive perspective those slowly rising rates might help the recovery. Many prospective home buyers have been waiting to buy when home prices and mortgage rates are lowest.

Now, with prices stabilizing or edging up in some markets and interest rates on the rise but still very low, more buyers see this is the strategic time to buy.

That would be significant boost to the economy. At least, that's the view of this writer. However, at this writing the number of mortgage applications is down.

Q: Are there plans to expand the tax credit for home buyers?

A: Several major real estate organizations are pushing for an expansion of the current $8,000 tax credit for first-time homebuyers, raising the credit amount to $15,000 and making it applicable to all homebuyers, not just first-time buyers.

"The current $8,000 credit has had a positive effect on the housing market this year," said David Kittle, chairman of the Mortgage Bankers Association. "Increasing the amount and expanding the benefit to include all homebuyers would have an even larger impact in spurring the housing market and stabilizing the economy."

Q: What protection do tenants have in foreclosure situations?

A: A recently enacted law — Helping Families Save their Homes Act of 2009 — protects tenants from eviction as a consequence of a foreclosure on their rented property.

There have been many cases over the past year where families were evicted without prior notice when their rented home was foreclosed. In most cases, the family did not know the property was nearing the point of a foreclosure.

The new law mandates that tenants be given at least a 90-day notice prior to having to vacate the property. Also, the law allows them to remain through the remainder of their lease if the home continues to be a rental property.

Q: Are there incentives for owners to "green up" their homes?

A: There is increasing political pressure to give property owners greater incentives to upgrade with energy efficiency, or "green," improvements.

A proposed bill would be a big step forward in this effort, says the National Association of Realtors. The Green Resources for Energy Efficient Neighborhoods Act (H.R 2336) would establish needed incentives to encourage energy-efficient building, rehabilitation and upgrades, the NAR said.

Also, the bill provides a loan fund for states to implement renewable energy projects and would encourage the U.S. Department of Housing and Urban Development to actively pursue pilot programs that would provide best practices and experiences for promoting energy efficiency in housing.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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