NAHB Compares Energy Savings to Age of Homes

In a recent blog post by the National Association of Home Builders, homes which are 4 years old or less were compared with older homes in regards to energy and routine maintenance costs. Of course, it is generally expected that older homes will have more maintenance costs. However, CF Funding was surprised to learn that 73 percent of new homeowners spend only $25 per month or less on routine maintenance. This is compared to the 26 percent of all homeowners who spend over $100 on maintenance costs.

The study compared information from the American Housing Survey (AHS) dating back to 2009. As seen in the chart on the left, the majority of homeowners in new homes pay much less on average for routine maintenance than the average homeowner.

Homeowners who are stuck in a decision between a higher-priced new home (less than 4 years old) and a less expensive older home should consider the facts. Not only do most new homeowners spend less than 25 dollars per month on routine maintenance, but the AHS also reported that new homeowners saw major savings in energy costs. Electricity costs for the average homeowner totaled about 81 cents per square foot per year, while newer homes averaged about 68 cents per square foot. Even lower electricity costs were seen in homes with piped gas, where homeowners spent about 50 cents per square foot per year.

Other utilities were reported similar results: while water bills averaged 28 cents per square foot per year, new homeowners saw average costs of 22 cents. The median trash bill for homeowners was 15 cents per square foot per year, and newer homes had a medium price of 13 cents. Not only do homeowners with properties less than 4 years old save on energy costs, but insurance costs can also be reduced, as the median property insurance for newer homes was 31 cents per square foot as opposed to the national average of 39 cents per square foot. According to the NAHB, “These reduced expenditures represent one of the many reasons that the current system of appraisals needs updating to reflect the flow of benefits that come from features in a new home.” Many of the benefits the NAHB is referring to may be seen in Green homes. As CF Funding reported in February, green homes have significantly contributed to the home construction market over the past few years and green homeowners frequently reported lower utility costs and better insulation. The lender is happy to see reduced energy costs for new homeowners as the quality of green home building continues to improve.

Both new and old homebuyers will need financing to support home purchases in 2014. Those who are home shopping this spring should contact CF Funding Corporation for a free preapproval and competitive interest rates on mortgage loans. CF Funding loan specialists are rated 5 stars on Facebook at www.facebook.com/cffundingcorp and on Yelp at http://www.yelp.com/biz/cf-funding-naperville

Single-Family Home Starts Grow 6 Percent in February

The warm March weather caused an increase in housing starts last month, as single-family home starts grew 6 percent in comparison to February’s estimate. New home starts for privately-owned buildings were up about 2.8 percent from the revised February estimate, reaching 946,000 in March (seasonally adjusted annual rate). Although these increases also come with losses, as fewer permits were issued and fewer homes were finished in comparison to February, CF Funding is optimistic that housing starts will bounce back as the weather continues to improve.

Other stats in the U.S. Department of Housing and Urban Development’s Building Permits Survey include a 0.5 percent increase in single-family building permit authorizations as compared to February, and a 3.8 percent decrease in single-family housing completions as compared to the revised February rate. In March, there were 79,100 housing starts (on an unadjusted basis) as compared to 63,100 in February. 54,000 of those were single family units, as compared to 41,000 in February. On a non-seasonally adjusted basis, approximately 83,000 permits were issued in March, as compared to 70,500 in February.

CF Funding is happy to share that the Midwest saw large increases in permits, with a 26.0 percent increase month-over-month and an 18.7 percent increase year-over-year. According towww.mortgagenewsdaily.com, “Housing starts [in the Midwest] rose 65.5 percent from February and were 2.9 percent above the same period in 2013. There were 14.1 percent fewer completions than in the previous month but 15.5 percent more than a year earlier.” The West saw an unchanged rate of permits issued, and the Northeast saw a 33.3 percent increase. The South unfortunately saw a decrease in permits issued, with 17.1 percent less than February and 1.1 percent less than one year previous.

The Building Permits Survey is based on a voluntary mail survey by building permit officials. For more information visit www.census.gov.

Those who are looking to build a new home or remodel in 2014 should contact CF Funding Corporation for the best construction mortgage options, including our new Express Home Loanand One-Time Close Construction Mortgage. Those who are looking to buy a home should start shopping sooner than later to avoid rising prices. Lock in a low interest rate by contacting a CF Funding loan specialist at (888)344-3080 or http://www.cffunding.com.