The clock ticks for new home buyers

Time is quickly slipping by for purchasers who hope to close on a home sale in time to claim the up-to $8,000 first-time home buyer credit that expires at the end of November.

That makes now an excellent time for a checkup on your local housing market. In particular, investigate the pipeline of pending sales – is it flowing freely or clogged? Is there a danger that willing buyers will be shut out of the credit due to any paperwork backlogs at lenders and title companies?

Here’s the latest IRS bulletin on the credit, which is up to 10 percent of the sale price. Eligible buyers must not have owned a principal residence within the past three years; the credit phases out for single filers earning more than $75,000 and married filers with income over $150,000. Be sure to note that it’s a fully refundable credit, meaning that filers will get the full amount even if their overall tax liability is lower than that.

Real estate and lending experts have warned that buyers making offers toward the end of October and beyond risk underwriting snags and other delays that could cause them to miss the deadline.

The National Association of Realtors has an extensive portal devoted to the credit, including factoids, an in-depth primer and legislative news.

That trade group, among other entities, is lobbying for an extension of the credit, which is part of the 2009 American Recovery and Reinvestment Act stimulus program. So far, the tax break is credited with boosting the nation’s moribund housing market by some one million sales.

To keep abreast of legislative changes, keep an eye on the Mortgage Bankers Association site; here’s a summary of the trade group’s Congressional testimony on Wednesday.

Bear in mind that many states also run assistance efforts aimed at making housing affordable to first-timers; check with your state’s housing authority for statistics and rules. The National Association of Home Builders operates a Web site on the federal tax credit; - note, you can follow developments via Twitter, Facebook and YouTube as well as through conventional means. The Facebook page in particular highlights the complementary state programs for new or low-income buyers.

Localize coverage by following families attempting to beat the deadline; tracking their red-tape triumphs and setbacks could make for a dramatic and appealing standing Web feature or blog. Another approach: Enlist local Realtors to help you create a graphic checklist for prospective buyers, with specialized tips for those with poor credit, job complications and other precarious scenarios.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.

Tracking the Supply Chain

We’re in for another smorgasbord of economic reports this week, with key statistics about jobs, industry, credit and housing on the agenda.

Some of this macro data normally wouldn’t get much of a look – outside of certain analysts’ offices – in the sluggish weeks leading up to Labor Day. But this is no ordinary August, with the ongoing summer rally in U.S. stock markets, relatively upbeat GDP and car sales numbers and other signs prompting pundits to whisper of an end to the recession.

Take time to digest the Institute for Supply Management releases out this week. This trade group for supply and logistics professionals has been publishing these closely watched surveys since 1931. Monday’s ISM manufacturing report, which showed that sector still is weak but getting stronger, drove much of yesterday’s market gains, shoving the Nasdaq and S&P 500 indices to peaks not reached since last fall.

Out tomorrow is the mirror image of Monday’s release: the ISM Non-manufacturing survey. It reports on activity in sectors as wide-ranging as pet care, dry cleaning, entertainment, forestry and utilities, among many others. Each report is issued monthly; peruse the site for the methodology behind these reports, which are based on input from managers at the ISM’s member companies.

Keep in mind that despite the ISM’s focus on supply, the surveys deal with a variety of data from prices to employment to inventory levels; you can use the macro results to formulate questions for companies in your region. How are they faring compared to the national average?

Supply and logistics might sound sort of dry but is actually a rich source of ideas and information. And one way or another probably employs a good segment of your audience. Another trade group, the Council of Supply Chain Management Officials, offers educational resources and factoids on its Web site and says that the U.S. spending on logistics is larger than the GDP of all but 10 countries on the planet.

Definitely a sector worth understanding, and you’ll be well served by getting to know the players in your territory. If you’ve a shipping port or airport handy, start there, because transportation clearly is a huge part of the nation’s supply chain. Trucking firms, trucking schools, warehouses, service hubs – the list of story-worthy companies is legion. And it’s not all car parts on pallets – think Netflix or Amazon.com or livestock for interesting story springboards.

Other supply and logistics resources include the international Supply Chain Council, about the and oddly enough, a Logistics forum on About.com. This list of supply chain resources, courtesy of the University of Wisconsin library system, also is very helpful.

Housing data heads-up

Just a reminder that the National Association of Realtors monthly pending home sales index also is being released today; at the very least you’ll want to get a short story up on your Web site. Here’s a look back at an earlier tipsheet on localizing real estate stats.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.

Crafting Local Housing Stories

Get ready for another busy week on the residential real-estate front. A number of key statistics will be released over the next few days, giving you more news pegs for reports on the local housing scene.

Dollar signs are an irresistible draw for most readers, and there are plenty to be found in upcoming reports:

* On July 22, the Federal Housing Finance Authority its monthly Home Price Index. This one will reflect May 2009 sale prices for mortgages backed by Fannie Mae and Freddie Mac. Here’s an FAQ about the report and how it compares to other home-price indices. The monthly gains and/or declines in selling prices are presented regionally but the site offers quite a bit of historical data on a quarterly basis that's available for selected metropolitan markets.

Also Wednesday, the Mortgage Bankers Association weekly roundup of home-loan application data can provide some demand-side perspective as well as average interest rates and terms.

* On July 23, the National Association of Realtors posts its monthly Existing Home Sales report at 10 a.m. It shows the number of units sold, as well as home prices, also on a regional basis. Ancillary reports break out single-family dwellings, condos and other niches. While you await the report, here’s a look at the NAR’s historical data and methodology.

* Next week will bring another round of reports, including the U.S. Census Bureau’s new home sales report on July 27, reflecting May sales. It also includes sales prices and makes for an interesting – though not, of course, apples-to-apples – contrast to the NAR’s existing sales report. On Tuesday, more home price data arrives via the S&P/Case-Shiller Indices.

It’s helpful to be familiar with all of the above data and the methods used to obtain it. But really, the reports are just some of the building blocks for reporting on your local real estate scene. You need to get a narrative going and show how a stagnant market hinders mobility – that people who can’t sell their current houses can’t move to take another job, be closer to family, retire in Tennessee. Hit the classified ads and talk with the people behind the real-estate listings (keeping in mind that do-it-yourselfers may be more accessible than those represented by agents). Take note of “reduced” signs as you drive around – those marked-down prices represent someone’s nest egg or dream fund evaporating.

With all of the above elements in place, you can pull together a compelling home sales package. For the Web, consider video interviews or tours with stranded homeowners, or an interactive graphic mapping recent home sales and prices in selected communities. Your audience will be clicking for more.

Here are a few other residential real-estate resources you should bookmark:

* The Real Estate Center
* Real Estate Magazine
* Builder: the online trade journal for the construction industry

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.

Prepping for the Home Builders' Forecast

Real-estate watchers are hoping for an upbeat omen Thursday when a trade group releases its monthly builder sentiment report, which showed an uptick in May but then dropped in June after hitting record-breaking lows over the winter and early spring.

Why should you and your audience care about a dry-as-a-bone industry index? The National Association of Home Builders polls its members about what level of demand they expect in the near future for new houses. The results of the survey – formally known as the NAHB/Wells Fargo Housing Market Index - are considered a harbinger for the overall residential real-estate market and the ripple outward toward consumers, lenders and suppliers – not to mention appliance dealers, furniture stores, painters and other businesses that serve home builders and buyers.

In short, most of us. Any story that addresses the precarious local housing scene and its effect on just about everyone’s fortunes will grip your readers’ attention. With a little digging, you’ll find myriad options for localizing and adding color to an otherwise abstract report.

First, visit the NAHB newsroom and sign up for their e-mail delivery, so you’ll get future releases automatically. Familiarize yourself with the methodology and historical results of the poll; you’ll notice the dramatic dip into single digits late in 2008 and early this year; a five-year look-back would make an eye-catching graphic, or you might just add a link to this chart with your story.

Then delve into the impact on your audience. On the NAHB site, locate the state-by state list of local builders’ associations. Click on the URLs for local sites and you'll get a member directory or search engine leading you not only to area builders but to industry trades and suppliers, from masonry experts to architects to electrical contractors. All of these small- and medium-sized businesses have a housing-related story to tell. And since most are privately owned, they’re not under the corporate constraints of large and publicly traded developers – meaning you're apt to get more candid comments and even access to workers, job sites and dynamic photo/video possibilities.

Layer those anecdotes with specific data - in prose or in graphic form - about housing permits issued in your region. County governments often can provide recent stats; otherwise check out the U.S. Census’ Building Permits report - which is current through May right down to the county level for many major U.S. markets.

The NAHB also has subsets of data you can tap for quirky angles, depending on your audience demographic. For example, the 55+Housing Market Index (55+HMI) measures developments aimed at mature buyers and retirees – helpful info if you’re in snowbird territory.

Another go-to residential real-estate resource you should bookmark: The National Association of Realtors; this trade-group site offers statistics, analysts and assistance with local contacts. They’ll be releasing their monthly existing home sales report on July 23.

It’s nearly impossible to overestimate your readers’ interest in home sales trends and real-estate values. In an era of dwindling equity, a tidal wave of foreclosures and a glut of new construction, the fallow housing market still is fertile ground for enterprising reporters.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.