Erie, PA – A group of local builders and developers met yesterday at the Builders Association of Northwestern Pennsylvania to discuss changes occurring to Residential Building Code. Included in that is the possibility that all new home construction would require mandatory fire sprinklers by 2011. Both state and local officials are analyzing what the impact of this new law may mean.

Additional cost may harm potential sale of new construction and think of all the potential for water and mold damages resulting from accidental discharge some builders would argue. On the other side there is no dollar value you can place on a saved life fire officials would argue, insurance premiums would fall as a result of the sprinkler system offsetting cost.

“Political lobbying from both sides of the table is occurring. It will be a fight until the end of the year to see if this is a part of the final code or not,

FOR IMMEDIATE RELEASE
CONTACT: Paul Lopez
(202) 266-8409
plopez@nahb.org
www.nahb.org

NEW-HOME SALES REMAIN FLAT IN AUGUST

WASHINGTON, Sept 24 – Sales of newly built, single-family homes were
unchanged in August, holding at a seasonally adjusted annual rate of 288,000
units and matching July’s revised sales figures, according to data released
by the U.S. Commerce Department today.

“Today’s report is in keeping with recent builders surveys that indicated
that most potential home buyers have put off buying due to uncertainty about
the economy and job market,” said Bob Jones, chairman of the National
Association of Home Builders (NAHB) and a home builder from Bloomfield
Hills, Mich. ” However, many of our members remain frustrated because they
can’t get loans for viable projects and are turning customers away.”

“The general housing market is clearly in a holding pattern,” agreed NAHB
Chief Economist David Crowe. “While historically low interest rates and
affordable prices should attract potential home buyers to the market, the
slow pace of economic recovery and worries about job security are keeping
many of them on the fence. Unfortunately, in the regions where we are seeing
increasing demand, builders are stymied by the inability to get loans to
build homes.”

Sales of new homes increased in the Northeast and West by 16.7 percent and
54.3 percent, respectively. The Midwest and South posted double-digit
declines of 26.1 percent and 10.8 percent, respectively.

The latest figures indicated that builders are continuing to keep a tight
rein on the inventory of new homes for sale. That inventory, at 207,000
units in August, was 1.0 percent lower than the month before. The pace of
sales activity was essentially unchanged, with the month’s supply of homes
dropping to 8.6 from 8.7 in the previous month.

FOR IMMEDIATE RELEASE

CONSUMERS REMINDED TO ASK HOME IMPROVEMENT CONTRACTORS FOR STATE REGISTRATION NUMBER
Homeowner education still important to prevent home improvement fraud

ERIE, PA

August 26, 2010
717-730-4380, ext. 3011 (office)
717-712-3984 (cell)

lpyne@PaBuilders.org

COMMONWEALTH COURT RULES AGAINST PENNSYLVANIA’S NEW HOMEBUYERS

LEMOYNE, Pa. – On August 25, 2010 Commonwealth Court ruled unanimously
against new homebuyers through their chief advocate the Pennsylvania
Builders Association in the case to roll back the 2009 Uniform
Construction Code to the 2006 Code on constitutional grounds.

“We are obviously disappointed in this ruling,” said PBA
Executive Vice President Louis J. Biacchi. “It is now necessary for the
legislature to take action,” he continued.

PBA has 30 days to appeal the decision to the Pennsylvania
Supreme Court, but the judicial process leading to a reversal could take
all of 2011.

“This highlights the need for legislative action as the
statewide sprinkler mandate takes effect January 1, 2011 for
single-family homes. In fact, not pushing this issue to a vote in the
Senate and House of Representatives is the same as voting against new
homebuyers across the state by forcing this expensive sprinkler mandate
on them,” Biacchi explained.

The estimated added cost of the 2009 Code changes to a new home
in Pennsylvania is $13,000 between mandatory sprinklers and other
requirements. This is not acceptable, particularly during a time when
housing starts have dropped to their lowest level since World War II and
our country is in danger of slipping into a deeper recession.

New-Homes Sales Fall to Record Low in July

WASHINGTON, Aug. 25 – Sales of newly built, single-family homes declined
12.4 percent to a seasonally adjusted annual rate of 276,000 units in July,
according to data released by the U.S. Commerce Department today. This was
the lowest sales rate for new homes on record.

“Today’s report, though not unexpected, is disappointing in view of the
improvement in sales activity that we saw in June,” said Bob Jones, chairman
of the National Association of Home Builders (NAHB) and a home builder from
Bloomfield Hills, Mich. “Potential home buyers have become very hesitant due
to uncertainty about the economy and job market, and are putting off the
decision to buy until they feel more confident.”

“The slow pace of economic recovery and worries about job security are
weighing heavily on the minds of potential home buyers right now,” agreed
NAHB Chief Economist David Crowe. “As a result, the housing market is
clearly in a holding pattern. That said, NAHB does not project that a
double-dip recession is in the cards, and we are looking for employment
gains later this year to help bolster sales activity moving forward.”

Sales of new homes fell across every region in July, with a 13.9 percent
decline registered in the Northeast, an 8.3 percent decline in the Midwest,
an 8.7 percent decline in the South and a 25.4 percent decline in the West.

Meanwhile, the latest figures indicated that builders are keeping a tight
rein on the inventory of new homes for sale. That inventory remained
unchanged at 210,000 units in July. However, due to the slower pace of sales
activity, the month’s supply of homes rose to 9.1 from 8.0 in the previous
month.

####
ABOUT NAHB: The National Association of Home Builders is a Washington-based
trade association representing more than 175,000 members involved in home
building, remodeling, multifamily construction, property management,
subcontracting, design, housing finance, building product manufacturing and
other aspects of residential and light commercial construction. NAHB is
affiliated with 800 state and local home builders associations around the
country.

BUILDER CONFIDENCE DECLINES IN AUGUST

WASHINGTON, Aug. 16 – Builder confidence in the market for newly built,
single-family homes edged down for a third consecutive month in August,
according to the latest National Association of Home Builders/Wells Fargo
Housing Market Index (HMI), released today. The HMI declined one point to
13, its lowest level since March of 2009.

“Builders are expressing the same concerns that they are hearing from
consumers right now, particularly the sense that the overall economy and job
market aren’t gaining any traction,” said NAHB Chairman Bob Jones, a home
builder from Bloomfield Hills, Mich. “Meanwhile, many continue to report
that problems with inaccurate appraisals, competition from the large number
of distressed properties on the market, and tight consumer lending
conditions are causing them to lose potential sales.”

“Today’s report reflects single-family home builders’ concerns about current
and future economic conditions and about the increasing hesitancy they are
seeing among potential home buyers,” added NAHB Chief Economist David Crowe.
“It also reflects the frustration that builders are feeling regarding the
effects that foreclosed property sales are having on the new-homes market,
with 87 percent of respondents reporting that their market has been
negatively impacted by foreclosures.” Even so, he noted, NAHB continues to
project that modest job gains, historically low mortgage rates and pent-up
demand will ensure a better housing market in the second half of 2010 than
in the first half.

Derived from a monthly survey that NAHB has been conducting for more than 20
years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions
of current single-family home sales and sales expectations for the next six
months as “good,” “fair” or “poor.” The survey also asks builders to rate
traffic of prospective buyers as “high to very high,” “average” or “low to
very low.” Scores from each component are then used to calculate a
seasonally adjusted index where any number over 50 indicates that more
builders view conditions as good than poor.

Two out of three of the HMI’s component indexes fell in August. The
component gauging current sales conditions declined one point to 14, while
the component gauging sales expectations for the next six months declined
three points to 18. The component gauging traffic of prospective buyers held
unchanged at 10.

Meanwhile, three out of four regions posted HMI declines in August. A
six-point decline to 18 in the Northeast partially offset a big gain in that
region in the previous month, while the South and West each posted one-point
declines to 13 and 8, respectively. The HMI for the Midwest held even at 15
in August.

Please visit www.nahb.org/hmi for tables, historic data and details.

Remodeling Dips but Shows Signs of Stabilization

WASHINGTON, July 29 – The remodeling market slid backward during the second
quarter, according to the latest National Association of Home Builders’
(NAHB) Remodeling Market Index (RMI). The RMI (combining current and future
market indicators) sunk to 40.7 from 47.9 in the first quarter. Current
market conditions slid back to 42.6 from 44.5 in the previous quarter.
Future indicators of remodeling business declined to 38.9 from 43.1 in the
last quarter.

The RMI measures market demand for current and future residential remodeling
projects based on remodelers’ perceptions and indicators of future activity
like calls for bids. Any number below 50 indicates that more remodelers say
market conditions are getting worse than report improving conditions. The
RMI has been running below 50 since the final quarter of 2005 and during the
last quarter approached break even again.

“Remodelers are suffering from weak consumer confidence and constricted
credit lines,” said NAHB Remodelers Chairman Donna Shirey, CGR, CAPS, CGP, a
remodeler from Issaquah, Wash. “Homeowners are delaying remodeling projects
because of economic uncertainty.”

The current conditions indices for the remodeling market worsened in two
regions: Northeast 41.4 (from 46.6 in the first quarter); and South 42.4
(from 44.1). However, current remodeling indices improved in the Midwest
44.7 (from 43.8) and the West 42.0 (from 34.8). Major additions fell to 44.2
(from 48.0), as did minor additions to 45.8 (from 47.3). Maintenance and
repair indicators showed a milder decline, from 37.3 to 36.6.

All the indices for future remodeling business declined. Calls for bids
dropped to 46.2 (from 49.4). Work committed for the next three months
slumped to 27.9 (from 29.9). The backlog of remodeling jobs dipped to 37.7
(from 44.8), and appointments for proposals slid to 43.7 (from 48.1).

Responding to additional special questions in the survey, remodelers also
reported on the changing composition of remodeling projects. Sixty-one
percent said bathroom remodeling was one of their most common projects
during the first half of 2010. Kitchen remodeling came next with 52 percent.
In previous years, kitchen remodeling was reported as the most common
activity by more than 70 percent of remodeler respondents.

In general, comparisons to historical data show that larger remodeling
projects (such as room additions, whole house remodeling, bathroom
additions, and second story additions) have been on the decline for several
years. Smaller remodeling jobs (such as window and door replacements) have
remained relatively steady, or, in the case of handyman services, actually
increased. For example, only 29 percent of remodelers reported that room
additions were a common activity in 2010, compared to 70 percent in 2004.
Conversely, none of the professional remodelers responding to the survey
reported that it was common for their companies to perform handyman services
in 2004, while 33 percent of remodelers were regularly providing handyman
work in the first half of 2010.

“While remodelers are continuing to struggle, we expect the rest of 2010 to
be a period of stabilization for remodeling, with the first stages of
recovery emerging by the end of the year, followed by a more robust recovery
beginning early next year,” said NAHB Chief Economist David Crowe. “For now,
professional remodelers are taking on smaller projects and working to find
consumers willing to spend money despite the economic uncertainty.”

For more information about remodeling, visit www.nahb.org/remodel.

#####

ABOUT THE RMI: The RMI is based on a quarterly survey of professional
remodelers, whose answers to a series of questions were assigned numerical
values to calculate two separate indexes. The first index gauges current
market conditions and is based on remodelers’ reports of major and minor
additions and alterations, plus maintenance work and repairs, on both owner-
and renter-occupied dwellings. The second index summarizes indicators of
future remodeling activity and is based on remodelers’ responses to
questions about calls for bids, amount of work committed for next three
months, job backlogs and appointments for proposals.

ABOUT NAHB REMODELERS: NAHB Remodelers is America’s home for professional
remodelers, representing the more than 20,000 remodeling industry members of
the National Association of Home Builders (NAHB). Founded in 1982, the
organization provides information, education and designation programs to
improve the business and construction expertise of its members and to
enhance the professional image of the industry. Its membership incorporates
145 local councils in 43 states. Learn more about remodeling at
www.nahb.org/remodel.

ABOUT NAHB: The National Association of Home Builders is a Washington-based
trade association representing more than 175,000 members involved in home
building, remodeling, multifamily construction, property management,
subcontracting, design, housing finance, building product manufacturing and
other aspects of residential and light commercial construction. NAHB is
affiliated with 800 state and local home builders associations around the
country. NAHB’s builder members will construct about 80 percent of the new
housing units projected for 2010.

**************************************************************
1201 15th Street NW, Washington, DC, 20005
**************************************************************

Single-Family Housing Starts Virtually Unchanged in June

WASHINGTON, July 20 – Single-family housing starts were virtually unchanged
from the previous month at a seasonally adjusted annual rate of 454,000
units in June, according to newly released figures by the U.S. Commerce
Department. Meanwhile, a 21.5 percent decline on the more volatile
multifamily side weighed down the overall housing production number, which
fell 5 percent to a 549,000-unit rate.

“As our most recent member surveys have indicated, builders remain very
cautious in light of the sluggish pace of the economic recovery and the
hesitancy they are seeing among potential home buyers,” noted Bob Jones,
chairman of the National Association of Home Builders (NAHB) and a home
builder from Bloomfield Hills, Mich. “However, today’s report is actually
somewhat encouraging, because it indicates that single-family production is
stabilizing following an expected lull that occurred with the end of the
home buyer tax credit program.”

“The government’s figures suggest that single-family housing production may
be finding a bottom following the tax credits,” agreed NAHB Vice President
and Senior Economist Bernard Markstein. “Over the next several months, we
expect to see some improvement in both housing starts and sales activity as
buyers come forward to take advantage of the very attractive home prices,
historically low mortgage rates and excellent selection that characterize
today’s new-home marketplace. However, builders continue to confront
significant challenges in obtaining financing for viable new projects, and
this problem remains a formidable obstacle to economic growth.”

Nearly all of the 5 percent decline in housing production was on the
multifamily side this June, which fell 21.5 percent to a seasonally adjusted
annual rate of 95,000 units. Meanwhile, single-family starts hardly budged,
with a 0.7 percent decline to 454,000 units. All four regions posted
declines in overall housing production, with an 11.3 percent reduction in
the Northeast, a 6.9 percent decline in the Midwest, a 2.4 percent decline
in the South, and a 5.9 percent decline in the West.

Meanwhile, nationwide permit issuance, an indicator of future building
activity, rose 2.1 percent to a seasonally adjusted annual rate of 586,000
units in June. While single-family permits fell 3.4 percent to 421,000 units
for the month, that decline was due entirely to a drop-off in the South,
with every other region holding steady or better on the single-family side.
Multifamily permits rose 19.6 percent to a seasonally adjusted annual rate
of 165,000 units in June. Combined single- and multifamily permit issuance
was up 32.3 percent in the Northeast, down 10.8 percent in the Midwest, down
3.1 percent in the South, and up 9.7 percent in the West in June.

####
ABOUT NAHB: The National Association of Home Builders is a Washington-based
trade association representing more than 175,000 members involved in home
building, remodeling, multifamily construction, property management,
subcontracting, design, housing finance, building product manufacturing and
other aspects of residential and light commercial construction. NAHB is
affiliated with 800 state and local home builders associations around the
country.

BUILDER CONFIDENCE DECLINES IN JULY

WASHINGTON, July 19