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May 7, 2010

House Passes Home Star Bill

Remember the successful “Cash for Clunkers” program last year?  Well prepare to apply that idea to homes across America with an initiative being commonly referred to as “Cash for Caulkers”. 

The House has passed the Home Star Bill which authorizes $6 billion dollars over the next two years in the form of rebates for homeowners who embark upon energy efficient remodeling projects. Instead of a rebate to professional remodelers and retailers, the rebate would be issued directly to the consumer.  This bill is not to be confused with the $1,500 tax credit issued last year and ending at the end of 2010.

Supporters estimate that 3 million homes would utilize the Home Star bill, saving $9.2 billion in energy costs over a 10-year period.  Along with the benefits to homeowners and home improvement companies,  a boost in job growth in the hard hit construction sector should also result.

The Home Star bill still faces another vote in the Senate, where Republicans intend to voice their concerns.  The biggest issue is that of funding the bill, but Democrats state that a solution will be found after Congress approves the annual spending budget.  Allocation of the funds is another point of contention, as states are having difficulties receiving grants from a similar weatherization bill issued last year.

So where does this leave homeowners?  Those fortunate enough to be in the position to begin remodeling projects should be encouraged that the government is willing to assist them in shoring up their dwellings.  However, those looking to remodel in order to sell their homes still face a market flooded with excess inventory and a lack of buyers.  America’s housing sector is at a crossroads, but the government is making every attempt to lighten the burden and continue moving forward.

May 6, 2010

Consumers Are Finding New Ways To Save Energy And Money

While many of us (especially on the East Coast) are happy to make it to spring after a merciless winter, others are preparing for warmer weather.  The time for taking a survey of your home’s energy usage is upon us.  Fear not, as there are a multitude of resources on the internet to research the best ways to cut back on energy use while staying cool and financially stable.

When the subject of summer energy consumption is brought up, it’s difficult to not think of gas and oil prices.  However, the easiest way to counter these high energy costs is to look into your home.  Kimberly Palmer and Maura Judkis of U.S. News and World Report recently wrote an article about saving on energy costs in the home.  They break down their ideas room by room, and their suggestions for saving energy in the kitchen are unique to say the least:

“If you’re up for a challenge, try baking cookies on your car—yes, your car. Nicole Weston of Baking Bites developed a method of baking chocolate cookies with the heat that collects inside cars on steamy days. She suggests parking in the sun, using a thermometer to help monitor the temperature, and protecting your dashboard by putting a barrier between it and the baking sheet. (It should be at least 95 degrees outside and the baking process takes around two and a half hours.)”

If you are in the market for new appliances, now may be a great time to make that purchase.  As of May 1^st, 2010 the EPA’s Energy Star 4.0 program begins. The new standards of Energy Star 4.0 are an upgrade to the less effective principles of 3.0.  New to market high definition televisions are affected the most, as their consumption limit for a 50 inch television has been cut in half from 300 to 153 watts.  The new rules are not a strain on companies such as Sony and Samsung, as their televisions normally consume around 160 watts.  Many states will also see new Energy Star requirements affect appliances.  The Federal Recovery Act provided each state with funds to offer rebates for consumers who purchase energy saving appliances.  Many states have already or are preparing to launch their rebate programs in the near future. This initiative has proven wildly successful in the past.

There are a lot of reasons to be excited for the summer of 2010 (other than the World Cup).  Whether you welcome the heat outdoors with open arms or try to escape the rampage of the sun inside; this summer is a great opportunity to make changes to your home in the name of saving energy.

May 4, 2010

Remodeling Professionals Foresee A Brighter Future

Every quarter the National Association of Home Builders conducts a report gauging the remodeling climate.  This report is called the Remodeling Market Index (RMI).  The RMI for the first quarter of 2010 suggests that the remodeling industry is beginning to turn around.  Couple this report with the news that consumers are beginning to spend more on home improvement projects, and you have a bright forecast for the remodeling industry.

The Northeast, South and Midwest regions showed the most improvement while the West continues to work through its housing problems.  Remodeling professionals are still a bit skeptical about the recent surge, as signed contracts are not increasing at the rate of calls for estimates.  Skeptics aside, many see this as the precursor to a rebirth in the home improvement sector.

“Although the overall RMI and most of its components are still slightly below the break-even point of 50, the recent improvements suggest that the remodeling market may soon reach its bottom and begin to grow in the coming months,” said NAHB Chief Economist David Crowe.

To learn more about the National Association of Homebuilders’ RMI report click here. Read more…