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New Bethesda Home from our Paramount Portfolio of Homes Collection.
Take a video tour of this new home. We can build this same home on your lot
or one of our building lots.

We can also modify this home plan and customize it to your needs.

Business conditions stayed weak through 2009’s 3rd quarter for housing design architects, yet specific segments at the market’s lower end look ready for a 2010 recovery, according to fresh numbers from the AIA.

Since the billings for architects are usually a good prediction of future activity in construction, this could be good news for homebuilders.

Design work for affordable homes for first-time buyers jumped from -64 percent in the third quarter of 2008 to -2 percent in a year over year comparison, according to architects responding to the latest AIA Quarterly Design Trends survey. (Percentages indicate the number of respondents reporting sector ‚improving‚ minus the number reporting ‚ aweakening.‚)

The feeling towards the move-up market had an improved gain that traveled from -57 percent down to -29 percent within the same time frame.

Each market segment has been boosted through decreasing home costs and good mortgage rates. AIA cheif economist Kermit Baker noted the kick-start the affordable market received from such aid as the federal tax credit for those purchasing a home for the first time.

The third quarter of 2009 showed strong gains in remodeling activity, with 27 percent of architects reporting an increased demand for both renovations and additions, up from 13 percent in the year prior. Kitchen as well as bathroom remodeling jobs increased by a very large percentage, from approximately eight percent during 2008 to approximately twenty six percent during 2009, an increase of more than three times the percent for one year.

Additional market segments have not been as fortunate. The townhouse/condo market remained stagnant, with a score of -43 percent in 2009 vs. -49 percent in 2009. Interest in custom/luxury homes and second vacation homes remained extremely low, at -48 percent and -70 percent, respectively.

Through the third quarter of 2009, the AIA‚Äôs residential billings index rose sharply from a score of 20 in the fourth quarter of 2008 to 38 in the second quarter of 2009, but then remained flat at 38 overall. Individual scores not above 50 are indicative of negative activity, however “less bad” categories are those that show scores that are ten or above.

Moving from a score of 35 in the first quarter of 2009 to 47 in the second quarter, new project inquiries at architecture firms remained similarly meager last year, but inched closer to the halfway mark.

Geographically speaking, reports from architects suggest that recovery will be concentrated most heavily in urbanized areas. Some 69 of respondents in the latest survey indicated a rise in demand for infill development, up from 63 percent in 2008.

The source of this article is Builder Online.

Do Want A Custom Home That Reflects Your Lifestyle? Not Some Cookie-Cutter House
Plan You Can Find In A Magazine, But A Design That Truly Reflects Your Lifestyle? Check
Us Out – World Class Architecture Designed For You. This home has 9 foot ceilings, wood
floors, luxxury bath great yard – 13ksf Award Winning Architect and Builder Paramount Construction
Homes Starting at $425,000 on your lot – call 301-370-6463
s 9 foot ceilings, wood floor granite tops great design Several new homes under construction
– call 301-370-6463 for home tours go here for our homes for sale
Or if you already have a lot and you need an award winning architect to create a set of custom home
plans click here

Happy custom home building client in Bethesda Maryland describes her process for selecting an architect and builder to design and build her custom home.

Lots of homeowners are trying to decide of adding on to their home is better than tearing the house down and building a new home. But where do you start? Who do you turn to?

Yingjie was faced with this dilemma. So listen and watch Yingjies story.

Yingjie first met with an architect. But the architect wasn’t much help. He was not able to tell her if adding on to the existing home or knocking down and building new was the best way to go.
Next, she met with a builder. But the builders home plans were unimaginative and looked like “one of those” homes that
so many builders put up – B-O-R-I-N-G!!!
Then, her life magically changed when she received a message one day from Paramount Construction.

Listen and watch Part 1 of her story here:

Here is Part 2 of Yingjies story and about her new Bethesda custom home building experience and how she went through the process of of selecting an architect and builder and what some of her concerns were:

Read the full interview here:

Part 1
A Life-Changing Story Yingjie Shu, of Bethesda, Tells How Life Has Changed Since Rob & Kevin Designed & Built Her Custom Home (Winner of the Gold Award)

Hint: Yingjie has Become Self-actualized due to her New Custom Home Which Reflects Her True Essence….
Ok, Maybe That’s a Bit Lofty, but She Sure is HAPPY

(R = Rob)
(Y = Yingjie)

R: What is your name?
Y: Yingjie

R: What is your name?
Y: Yingjie

R: Where do you work?
Y: U.S. News and World Report. (laughter). I really don’t know how to get started. Like you said, it took us years on debating, wrestling whether to expand our house, or tear down our house, we do love our old little house.

R: So, you….what’s your process?
Y: At first, we hired an architect, the architect came here and talked to us about one hour. I thought before the guys came here that he should have ideas and at the end he would give us some ideas whether to build a new home or expand our house. So, after I talked to this architect, I still don’t have any idea.

R: Because you are just not sure whether you should knock it down or add on?
Y: Yes, after we talked to him, we still have no idea. Looks like we have to pay him in order to have some ideas. At that point because we don’t know that architect, we are not willing to do that. So, we gave up that idea and started to look at other builders. There’s one builder that came over, you know, his plans, whatever, then he showed us, took us to of the some houses that he built and when I looked at that house, I’m not impressed, you know, they all looked like one of those houses up there. There is no character, you know. So, we let it go, you know and then suddenly, we received Paramount’s Open House Invitation in Falls Church, so you know, it was like winter time. So I said, hey, let’s go, let’s just check out. So, we went there. So, when we were driving close to the house, I said to Bill, ‘That’s it!” Co’z the house looks so charming from outside and then we went inside and our hat just brimming. I just said “Hey, Bill, that’s it”. We love the floor, we love the fixtures, we love the design especially the master bedroom, you know. So, at that point, I said “Hey Bill …….

R: Did you talked to Kevin or Rob there?
Y: Yeah, we talked to Kevin and Rob and have some ideas. I guessed Kevin asked us, you know, what we want, what we liked at the house, whatever. So, then you came over to our house with a sketch, what our house should look like. And we discussed whether we should, you know, renovate or tear down the house. You did some analysis and you said, “Tear down, get a new one”. So that’s what we did. And then you gave us some reference to another house in DC and I went there and when I saw the house, I said, “Oh, my gosh, I love this house”. So, I said, you know, we will stay with Paramount. Build a house that has us, that has the character, has the charm, something really referencing us instead of just one of those out there. And we’re very happy.

R: Now that you’ve lived in here for…., how long have you lived here?
Y: About how many…three, four months.

R: How’s your life now compared to the old house?
Y: I think it’s beyond what I can say, it’s beyond. I am extremely happy, you know. I think the house is not huge but it’s the perfect size for us and the space is really well-designed, well-used, you know. Pretty much we can use every room, you know, we have in the house. We just love everything in the house. We love the windows, we love the kitchen cabinets, we love the lights, we love the wall, the shape, you know. We love the basement, we love the loft, oh, we love the floor. We just love it, we love everything.

R: How was the design process from the beginning? When we first met you, how was the process?
Y: I think the process was really really easy. I think Kevin did a good job to get us through what we need to do. So, a lot of things we have no idea, you know, the color, the design, all that kind of things. He really get us to, you know, what will fit, you know, meet our need, meet our budget, you know, fit our style and everything came out well.

R: How about during the actual building, during the actual construction period, how was that?
Y: It’s great, really. I think everybody is really really professional. I think the neighbors love it too, you know. The impact on the neighborhood is very minimum. And whenever we come here, we always see progress, you know,”how’s the house by the way?”. We come here everyday, we passed by, you know. So, everyday, there is some progress, you know, and we’re really happy.

R: And where there meetings on a regular basis during the construction period?
Y: Yeah, yeah, we had weekly meetings.

R: You had that? How was that? Did they keep you informed?
Y: Yeah, they kept us informed, really helpful. What hasn’t been done and what’s, you know, going to be done. I think that’s really really good.

R: What do you think of the quality of the work?
Y: Oh, great. Oh, by the way, there was once… Because I don’t know much about building, that kind of thing. So, there was once I took a guy at work. He is like our facility manager, he came here. So, I showed him, at that time we were doing the outer trimming, you know. So, he said, “This is definitely a Bethesda house, not a Rockville house”.

R: What did he mean?
Y: Quality. He said its top quality stuff. He said, “Yingjie, just relax, everything’s gonna be alright for you”. So, that made me…from a colleague, somebody I can trust, somebody who knows about facility. So, that’s really comforting.

R: Where there any unpleasant surprises or changes that came up here during the construction?
Y: None that I am aware of. No.

R: How about the timeframe. How fast did it go, the construction? Did they deliver on time?
Y: I think what’s really beyond our expectation, you know, I think it’s longer to get a permit than build the house, you know. But I guess the permit is just America’s deal.

R: How about the after construction service or issues that came up?
Y: Oh, it’s great! Actually the part I was really impressed… couple of times, you know, Mike showed up to see and say, “Ms. Shu you need to do this”. “Oh, my gosh, Mike I completely forgot about it”, you know. It’s really really good, follow-up.

R: Has ______Zuckerman said anything about the house?
Y: No. But I did talk to his nephews. (laughter)
R: And are they gonna come over?
Y: I told them. I said, “ I have an open invitation, come over”.
R: How about the Obama children. Have they been over to play with Ray yet?
Y: Not yet. (laughter) They’re too young for Ray.
R: I thought Ray likes older women.
Y: But they are younger. (laughter)
R: They are younger? I thought they are older than him.
Y: They are ten (10) and seven (7).
R: Could Ray bay-sit, at least? (laughter)
Y: Maybe.
R: So well, when friends have their Christmas party here, will the Obama’s be here?
Y: (laughter) I have to ask him. We’ll love to have them here.

R: Ken what am I missing? (video taping about to end)

Click here to see photos of this award winning new home

Part 2
A Life-Changing Story
Yingjie Shu, of Bethesda, Tells How Life Has Changed Since Rob & Kevin Designed & Built Her Custom Home (Winner of the Gold Award)

Hint: Yingjie has Become Self-actualized due to her New Custom Home Which Reflects Her True Essence….
Ok, Maybe That’s a Bit Lofty, but She Sure is HAPPY

R: You’re really on trying to decide if you should knock it down or build new, you’ve interviewed the architect, you’ve interviewed the builder.
What kept you up at night? Was there any… like.. what went through your mind, if there was any fear, what was it? Before, pre making any decision?
Y: I think it’s still we’re making big chance, you know. There’s a lot of money gonna be involved. We don’t’ know anything about building and even though we went to your Open House, we got some references, but still there’s risk out there, you know. So, there were period of times at the beginning, I said, “Oh, my gosh, did we make the right decision?” you know. How about the house, is it gonna come together, how about wasting all the money, co’z we hear all the stories, you know.

R: Stories like what? What’s the worst story that you’ve heard?
Y: Like for example, I have a friend. Her sister is building the house, then suddenly, I think they poured the concrete in and there were cracks, you know. So, they have to stop the work, hire another contractor to pour the concrete and do that whole thing again, then re-fill it again. And eventually, they went to a, they had to go to the court, you know, that kind of things, throw the money down the drain, you know. That’s just really horrible, you know. I think, that house, their house, my friend’s sister started early in that house but then, you know, when they’re getting close to finish everything, they were still gonna finish the trimming. So, you hear a story like that or something, you know, people stopping the work for whatever reason, you know, the builder would go bankrupt, you know, whatever. And then the job is hanging there, never finished. So, you hear those kinds of stories. Or another thing is just, you know, you have a fixed price and then they keep raising the price and then saying, “We need to do this, we need to do that”, and all kinds of problems and then the price just went up, you know, dramatically and that’s kind of a nightmare too for us.

R: How did you get the comfort level that Paramount wouldn’t do that or wouldn’t go and have cracked foundations or wouldn’t have a price that they kept going up or wouldn’t build a complete job on time?
Y: Well, I think when everything goes on schedule

R: But how did you make that decision with Paramount?
Y: At the beginning….?
R: Yeah, because how did you determine that the price was fair, that Paramount could perform?
Y: Well, um, well the price of course we checked with some other builders, you know, we checked with a friend. So, we have some rough idea how much it’s gonna cost, so the price, you know, Paramount presented to us, like it fit in our budget, we can do what. And in terms of, you know, assurance of the work, we talked to the references and all the references we talked to were happy with the work, you know. So, we just feel like, you know, we checked, we checked with all the references, we checked like 4 or 5 references and every single one praise Paramount. So, we feel like, you know, we just have to take a chance. And also, we saw the Open House in Falls Church in 23rd St, we saw the quality of the house and I said, “Hey, we cannot go wrong”. So, we did take our chance but the risk is worth it and yeah, everything is just worth it.

R: Last question. (laughter)
Were there things that kept you up at night during construction?
Y: No. No.

Paramount Construction nominated for another MNCBIA Custom builder award.
Here’s a look at the inside and an interview of the homeowner.
The judges from MNCBIA loved the home too. They almost wouldn’t
leave. Click Here & take a look at this home we designed and built.
This is a great example of why owners come to us for design
and construction. Anyone can design a “plain-old-box” of a house.
Lots of builder around town basically design and sell the exact same plan.
You can actually get the plan at your local Giant or Safeway while you’re
standing in the checkout line.
We’ve discovered that the Washington D.C. area has many owners
with more discerning tastes and sense of design. Our plans are
designed differently.

These are not “cookie cutter” homes. Take a look here

Yet, as great as the design is, our pricing very reasonable.
When we present a home price the price is all inclusive.
Many other builders start at $85 per square foot over the phone.
The problem is that by the time they add permits, excavation, engineering,
dumpsters, driveways, upgrade the vinyl floor to wood, upgrade the vinyl
siding to hardiplank their over $200 per square foot. Plus it takes these guys
months of your time until you finally extract all the information out of ’em.

Let me know what you’ve found in the market place as you talk with
building companies out there. I’d like to hear from you.

Another reason it’s a great time to build your custom home —
home prices are low and work quality is high. Here is an electrical
contractor who works in the Montgomery County Maryland,
Fairfax County Virginia, N.W. Washington D.C. area and works
on new homes for area home builders:

Paramount Constructions’ “Madison” Home is winner of Maryland National Capital Building
Industry Association Award. The category is
Best Traditional Home Award

The Madison House Plan by Paramount Construction Kitchen

The Madison House Plan by Paramount Construction Kitchen


Design Considerations

The owners’ intent was to build a new home for sale.

Our design goal was to create a marketable house plan
at a cost the owner could earn a profit.

We discovered that the lot was comprised of two
separate lots. The largest lot was large enough to
build a home on it. However, if we combined the lots
we could build a wider home with an elevation that
had more street presence.

After research and discussions with the county, we
concluded that the time and cost of combining the
lots was greater than the benefit, especially in a slow
market. So we designed a narrower home than we
could have designed had we opted to go through
the subdivision process.

The lot sloped front to back. The grade of the
lot made a walk-out basement plan a natural fit.

The lot is close to downtown Bethesda and the
homes throughout the neighborhood are Traditional
style homes. So we designed a Traditional style home
with cottage and shake accents on the exterior to
blend into the surrounding neighborhood.

We concluded from our market research and
understanding of our target buyer, that an
open floor plan
would be appealing.

Another major design consideration was
creating cost effective finished space to meet
the lenders’ appraisal requirements. Finishing
the basement and the third level achieved this.

Market research also drove us to place the
laundry room on the second floor.
This is a convenience the majority of the
target market prefers.

The best view of yard was the back of the
lot, so we placed the family room and kitchen
as well as the master suite on the back of the
home. All views from these rooms face out
to the rear yard. The results is a very bright
and open feeling.

Our goal was to make the home feel as spacious
and room
y as possible, especially considering
that it was a relatively narrow floor plan due
to the self imposed lot constraint. To achieve
this effect we widened hallways, we created a
open loft area at the second floor landing area
and we designed the dining room and living
room to be open to one another, with minimal
wall area.
Construction Details

We wanted a low maintenance exterior
so we specified Hardiplank siding and pvc
cornice. The siding was horizontal clapboard
siding with shake style Hardiplank accents at
the gables to add interest.

The finished third level was constructed
using room trusses. This saved money
compared to stick framing this area.

We gave the owner lots of free upgrades
because we wanted the home to show well
to our future prospects (and she is a nice lady).
One of the nice construction details we added
was the stone in the front of the exterior of
the home. We placed flagstone on the walkway
and laid a stone water table to accent the front
elevation. The wood floors were upgraded to
three inch oak from 2 ¼” oak.

Montgomery County required installation of
three drywells in the rear yard to contain water
runoff from the home. We used terne standing
seam metal roof on the front elevation to the
Traditional design character.
Specific Ways the house satisfied the client

The new home has a wonderful, bright, open floor plan.
It is a great plan for a family with a wonderful rear yard,
a walk-out basement with a ton of natural light,
generous room sizes and very close to all of the restaurants
and shopping downtown Bethesda has to offer.

The clients primary objective was to have house
that fit into the neighborhood and was a good value.
And a home that is marketable. The house was built
affordably and we incorporated design elements into
the home that didn’t cost a premium to build but
result in value. The is very pleased with the design
and the size of house we delivered.
Unusual problems encountered and overcome

Originally, the owner purchased the home thinking
she would remodel the 70 +/- year old structure
that was originally on the lot. We actually drew
a full set of plans for a major addition and had
obtained a building permit for the addition.

We quickly performed a “new home” zoning
analysis and created a new home plan that
worked within the setbacks on the one parcel
(so we could avoid the cost and time of a lot
combination thru Park and Planning). We then
pushed through permitting and obtained a
permit for a new home. All of this took only
a few months more time.


List of major manufacturers

Pella
WoodMode cabinets
Kohler Plumbing fixtures
Hardiplank
Certainteed shingles
Kitchen Aid appliances
Carrier heating and cooling
Hinkley light fixtures

Anyone read the article in the Washington Post about Case Design Build?
I think they are wrong about the housing market in the DC area.

May I suggest an article idea?

We are home builders and architects and we have more business than we have had in two years.

There are many owners that realize that rates are low and construction costs are flat, and that real estate is a long term investment, not something that bounces daily like the stock market.

We are selectively pursuing many home building opportunities in this market place. This is a great time to be building as a builder because we are taking advantage of the cost of construction to maintain our profit margins and pass on the greatest value to clients since the late 1980’s and the early 1990’s (the last recession). This is a great time to build homes.

Washington DC real estate and home real estate in particular, is the best real estate on earth.

Tell me what you think?

New Home builders, big and small, would be among the winners if the $838 billion stimulus measure the U.S. Senate passes today.

The Senate bill seems to be more generous to home builders than the House was in the $819 billion measure it passed last month.

President Barack Obama, who spoke to the nation last night, has said he wants stimulus legislation signed by this weekend. President Obama is counting on the plan to help revive the economy. The economy has lost 3.6 million jobs since December 2007. This has caused the unemployment rate to soar to the highest level since 1992.

To quote a Bloomberg wire: “In a bill this big, there are countless private-sector winners and losers,” Rogan Kersh, associate dean of New York University’s Wagner School of Public Service was quoted as saying.

The Senate cleared the stimulus proposal yesterday by a vote of 61 to 36. There were three Republicans siding with Democrats.

It’s quite possible that U.S. home builders could see sales increase if consumers tap into the planned tax credit of $15,000, or 10 percent of the purchase price, whichever is less, under the Senate legislation.

Morningstar analyst, Eric Landry said “If someone’s going to give you $15,000 in free money it has to be stimulative”.

The proposed new tax credit does not have to be repaid. And it appears that all home buyers are eligible for the home purchase tax credit. This proposed home tax credit would replace the $7,500 tax credit for first-time home buyers that was passed sometime last year. In addition to the amount of the proposed home purchase tax credit, another difference is that the $7,500 home tax credit had to be repaid over 15 years.

Jerry Howard, president and chief executive officer of the National Association of Home Builders stated, “We’re pretty happy with the way the Senate bill is shaping up. We think it will entice a lot of those people sitting on the sidelines into the marketplace.”

As a home builder building new homes in the Washington D.C. area, I feel lucky because our area inside the Washington D.C. beltway is relatively strong. Values have held up and business is steady. So I can see real benefits to home builders, subcontractors and home building and remodeling vendors.

We also work with a large number of families and individuals that are just starting out and are looking for their first home to purchase. So it will be a huge benefit to individuals and families like that. But I’m not sure it is the best thing in the long run for our economy.

What do you think? Let me know your thoughts and comments.

This is some great news if it passes and is from a newsletter we subscribe to call

Builder Business Update:

Senate Adds $15,000 Home Buyer Tax Credit to Stimulus
Amendment to Senate version of stimulus bill provides the credit to all home buyers and doesn’t require repayment.
By Pat Curry

The U.S. Senate on Wednesday voted unanimously to approve a home buyer tax credit of $15,000 or up to 10 percent of the purchase price in its version of the stimulus bill. This proposed credit would be available to all home buyers and would not have to be repaid as long as a buyer lives in the house for at least two years. The amendment to the Senate’s economic stimulus package, co-sponsored by Sen. Johnny Isakson (R-Ga.) and Sen. Joe Lieberman (I-Conn.), offers the credit on purchases from one year of the date of enactment and could be applied to the home buyer’s 2008 taxes.

Isakson, who spent more than 30 years in the real estate business, proposed the tax credit because he’d seen it used effectively to jump-start housing in the 1970s.

“It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said in a prepared statement Wednesday evening. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history, and repeated a method that worked by adopting this amendment.”

Dwight Jaffee, a professor of finance and real estate at the Haas School of Business at the University of California, Berkeley, called the 1973-1975 recession the “classic example” of how a direct stimulus to housing demand impacted economic recovery. “Housing led us into this recession, and we really need a stimulus for it to lead us out,” Jaffee said in a statement released by the Fix Housing First coalition, a group of home builders, manufacturers, and others advocating for several housing-related measures, including the tax credit.

According to Jerry Howard, the NAHB’s CEO, the amendment’s provision to offer the tax credit for a year from the date of enactment “reflects Sen. Isakson’s in-depth understanding of housing. It gives the people who market housing a chance to ramp this up and put it in its proper perspective in the field.” Depending on the enactment date, it could make the tax credit available well into 2010. (In previous versions, the tax credit was only availble through Dec. 31, 2009.)

Howard also said Thursday that the NAHB’s staff is working closely with the Senate offices of Sen. Mitch McConnell (R-Ky.), John Ensign (R-Nev.) and Lamar Alexander (R-Tenn.) on additional amendments that the Fix Housing First Coalition considers crucial to solving the housing crisis. Those include low-interest mortgages for home buyers and additional measures to stem foreclosures.

The National Lumber and Building Material Dealers Association also issued a statement this morning applauding the adoption of the amendment and thanking the senators for their leadership. “We believe, if adopted in the final stimulus package, the tax credit could go a long way toward reviving the housing economy by encouraging more home purchases, creating new jobs, and restoring consumer confidence in the housing market,” said NLBMDA President and CEO Michael O’Brien.

The Fix Housing First coalition, which includes the NAHB and NLBMDA, continues to advocate for additional housing stimulus measures, including an amendment that would provide discounted 30-year fixed-rate mortgage financing for eligible home buyers.

In appearances on television news shows, several senators this week expressed support for such an amendment. “We have a 4% mortgage proposal where creditworthy home buyers could buy down their mortgages or save them on the average $5,600 a year,” Sen. McConnell said on Sunday on “Face the Nation.”

One disappointment for home builders in the bill is that this amendment does not include the ability to monetize the credit at closing, a feature in an earlier bill Isakson filed in mid-January. “Emails were flying back and forth this morning, asking ‘Can it be used for closing?’” says Michelle Smallwood, vice president of sales for Melbourne, Fla.-based Holiday Builders.

Pat Curry is senior editor, sales and marketing, at BUILDER magazine.Senate Adds $15,000 Home Buyer Tax Credit to Stimulus
Amendment to Senate version of stimulus bill provides the credit to all home buyers and doesn’t require repayment.

By:
Pat Curry

The U.S. Senate on Wednesday voted unanimously to approve a home buyer tax credit of $15,000 or up to 10 percent of the purchase price in its version of the stimulus bill. This proposed credit would be available to all home buyers and would not have to be repaid as long as a buyer lives in the house for at least two years. The amendment to the Senate’s economic stimulus package, co-sponsored by Sen. Johnny Isakson (R-Ga.) and Sen. Joe Lieberman (I-Conn.), offers the credit on purchases from one year of the date of enactment and could be applied to the home buyer’s 2008 taxes.

Isakson, who spent more than 30 years in the real estate business, proposed the tax credit because he’d seen it used effectively to jump-start housing in the 1970s.

“It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said in a prepared statement Wednesday evening. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history, and repeated a method that worked by adopting this amendment.”

Dwight Jaffee, a professor of finance and real estate at the Haas School of Business at the University of California, Berkeley, called the 1973-1975 recession the “classic example” of how a direct stimulus to housing demand impacted economic recovery. “Housing led us into this recession, and we really need a stimulus for it to lead us out,” Jaffee said in a statement released by the Fix Housing First coalition, a group of home builders, manufacturers, and others advocating for several housing-related measures, including the tax credit.

According to Jerry Howard, the NAHB’s CEO, the amendment’s provision to offer the tax credit for a year from the date of enactment “reflects Sen. Isakson’s in-depth understanding of housing. It gives the people who market housing a chance to ramp this up and put it in its proper perspective in the field.” Depending on the enactment date, it could make the tax credit available well into 2010. (In previous versions, the tax credit was only availble through Dec. 31, 2009.)

Howard also said Thursday that the NAHB’s staff is working closely with the Senate offices of Sen. Mitch McConnell (R-Ky.), John Ensign (R-Nev.) and Lamar Alexander (R-Tenn.) on additional amendments that the Fix Housing First Coalition considers crucial to solving the housing crisis. Those include low-interest mortgages for home buyers and additional measures to stem foreclosures.

The National Lumber and Building Material Dealers Association also issued a statement this morning applauding the adoption of the amendment and thanking the senators for their leadership. “We believe, if adopted in the final stimulus package, the tax credit could go a long way toward reviving the housing economy by encouraging more home purchases, creating new jobs, and restoring consumer confidence in the housing market,” said NLBMDA President and CEO Michael O’Brien.

The Fix Housing First coalition, which includes the NAHB and NLBMDA, continues to advocate for additional housing stimulus measures, including an amendment that would provide discounted 30-year fixed-rate mortgage financing for eligible home buyers.

In appearances on television news shows, several senators this week expressed support for such an amendment. “We have a 4% mortgage proposal where creditworthy home buyers could buy down their mortgages or save them on the average $5,600 a year,” Sen. McConnell said on Sunday on “Face the Nation.”

One disappointment for home builders in the bill is that this amendment does not include the ability to monetize the credit at closing, a feature in an earlier bill Isakson filed in mid-January. “Emails were flying back and forth this morning, asking ‘Can it be used for closing?’” says Michelle Smallwood, vice president of sales for Melbourne, Fla.-based Holiday Builders.

Pat Curry is senior editor, sales and marketing, at BUILDER magazine.

Question:
Do you think this is a good idea as a taxpayer?
If you are in the market to purchase a home, will this impact your decision to buy a home?