Economics

Forgivable PPP Loans May be Taxable in Some States

Filed in Economics, Tax Reform by on September 21, 2020 0 Comments
Forgivable PPP Loans May be Taxable in Some States

Businesses who received loans under the Payroll Protection Program (PPP) may be eligible to have that loan forgiven, which may result in unforeseen tax consequences.  The federal Internal Revenue Code generally treats forgiven debt as taxable income; fortunately, Congress has excluded forgiven PPP loans from federal taxable income. However, as noted in a recent blog post by the Small Business Administration, that income may still be treated as taxable by your state.

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Single-Family Housing Continues Growth in August

Filed in Economics, Multifamily by on September 17, 2020 41 Comments
Single-Family Housing Continues Growth in August

Single-family starts showed continued growth in August but overall housing production fell 5.1% to a seasonally adjusted annual rate of 1.42 million units due to a double-digit percentage decline in multifamily production, according to a report from the U.S. Housing and Urban Development and Commerce Department. The pace of single-family starts in August was the highest production rate since February.

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Builder Confidence Soars to an All-Time High, Lumber Risks Remain

Filed in Economics by on September 16, 2020 16 Comments
Builder Confidence Soars to an All-Time High, Lumber Risks Remain

In a strong signal that housing is leading the economic recovery, builder confidence in the market for newly-built single-family homes increased five points to hit an all-time high of 83 in September, according to the latest NAHB/Wells Fargo Housing Market Index (HMI) released today. The previous highest reading of 78 in the 35-year history of the series was set last month and also matched in December 1998.

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IRS Guidance on Payroll Tax Deferral Leaves Key Question Unanswered

Filed in Economics, Tax Reform by on September 8, 2020 2 Comments
IRS Guidance on Payroll Tax Deferral Leaves Key Question Unanswered

The Internal Revenue Service (IRS) recently released Notice 2020-65 implementing the Aug. 8 presidential memorandum instructing the Department of Treasury to use its statutory authority to permit employers to defer withholding and payment of the employee’s 6.2% social security tax.

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More Buyers Look to the ‘Burbs as Lumber Price Hikes Continue

Filed in Economics by on September 7, 2020 0 Comments
More Buyers Look to the ‘Burbs as Lumber Price Hikes Continue

Housing demand remains solid, despite rising costs. However, consumer preferences are pivoting away from high-density markets and more toward suburban markets.

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National Economic Council Hears NAHB Concerns on Lumber

Filed in Advocacy, Economics, Housing Affordability, Trade by on September 4, 2020 4 Comments
National Economic Council Hears NAHB Concerns on Lumber

In a special webcast for association leaders and now available to members on NAHB efforts to combat rising lumber prices and supply shortages, NAHB Chairman Chuck Fowke said that Senior Officers held talks with members of the White House National Economic Council (NEC) on Aug. 28 to discuss the impact that soaring lumber prices are having on the housing industry.

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A Suburban Shift for Home Building

Filed in Economics, Trends by on September 1, 2020 1 Comment
A Suburban Shift for Home Building

Evidence of a suburban shift for consumer home buying preferences as a result of the COVID-19 pandemic can be found in the second quarter NAHB Home Building Geography Index.

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New Home Sales Surge to 13-Year High

Filed in Economics, Housing Affordability by on August 25, 2020 0 Comments
New Home Sales Surge to 13-Year High

In a sign that the housing market continues to lead the economy during the coronavirus outbreak, sales of newly built, single-family homes rose 13.9% in July, climbing to its highest pace since 2006.

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WTO Finds in Canada’s Favor in Softwood Lumber Dispute

Filed in Advocacy, Economics, Trade by on August 24, 2020 1 Comment
WTO Finds in Canada’s Favor in Softwood Lumber Dispute

According to a World Trade Organization (WTO) dispute settlement ruling issued today, the United States inappropriately applied countervailing duties on Canadian softwood lumber. The WTO report came in response to Canada’s challenge of the U.S. Commerce Department’s imposition of countervailing duties on Canadian softwood lumber in 2017, after the countries failed to reach a new agreement on softwood lumber.

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Average New Home Price Now $16,000 Higher Due to Lumber

Filed in Advocacy, Economics, Housing Affordability, Trade by on August 21, 2020 15 Comments
Average New Home Price Now $16,000 Higher Due to Lumber

The recent spike in softwood lumber prices has caused the price of an average new single-family home to increase by $16,148 since April 17, according to NAHB standard estimates of lumber used to build the average home. Similarly, the market value of the average new multifamily home has increased by $6,107 over the same period due to the surge in lumber prices.

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