Construction spending was up 0.2 percent in August from July, according to the latest data from the U.S. Census Bureau.  The seasonally adjusted annual rate of spending for August was $1,166.7 billion, up from a revised July estimate of $1,164.4 billion, and 1.7 percent below August 2006 at $1,186.3 billion.

The use of the internet for hobbies is on the rise according to a telephone survey conducted by the Pew Internet & American Life Project from February through March of this year reveals that 83 percent of Americans who go online, say they have used the Internet to seek information about their hobbies, and 29 percent of that group say they do so on a regular basis.

Searching for information about hobbies is among the most popular of online activities, on par with shopping, surfing the Internet for fun, and checking news headlines, according to the PEW study.  The online hobby population has jumped from roughly 45 percent of all American adults in 2005 to 59 percent between February and March, while the online hobby population on a typical day has increased from roughly 12 percent to 20 percent of all adults, according to the study.

The U.S. Department of Housing and Urban Development (HUD) published a final rule on October 1, 2007 on Standards for Mortgagor’s Investment in Mortgaged Property.  The rule goes into effect on October 31, 2007, and establishes that a prohibited source of downpayment assistance is a payment that consists, in whole or in part, of funds provided by the seller or any entity that financially benefits from the transaction. 

Two studies by HUD and the Government Accountability Office have shown that homes with seller funded down payments tend to have an inflated sales price, and result in higher rates of foreclosure, short sales, and negative equity in the home.

The Ways and Means Committee modified, but did not eliminate, a tax planning opportunity for owners of vacation and rental properties.  Under current law, the owner of a vacation home or rental property may sell his/her principal residence.  Once the 2-year residency requirement has been satisfied, the individual may sell that property and once again exclude as much as $500,000 from taxation.

The new rule modifies the application of the exclusion when an individual converts a rental or vacation property to his/her principal residence.  Under the new rule, effective January 1, 2008, the owner will still have the option of receiving the benefit of the exclusion, but will be required to pay capital gains taxes on the appreciation attributable to the time that the property was used as an investment property.  The amount excluded will be a fraction, determined at the time the vacation/rental property is sold.  Assuming that the owner has satisfied the 2-year residence requirement, the amount of gain that can be excluded will be determined by a fraction. The numerator of the fraction will be the number of years the property was used as a principal residence, measured from January 1, 2008.  Thus, the legislation has no retroactive impact.  Congress sought a policy that would provide a capital gains exclusion on a principal residence only for the time that the property was actually used as a principal residence.

Going green is not a concern for most consumers according to findings of a recent Yankelovich survey of environmental attitudes among 2,763 consumers.  Only a third, 34 percent, are more concerned about environmental issues than they were a year ago and less than a quarter feel they can make a difference when it comes to the environment.

California tightened its licensing requirements beginning this month for real estate sales professionals.  The new rules require applicants to complete three college-level courses before taking the state licensing exam.

Previously, applicants could seek a conditional license after taking a single class and passing the state exam, completing course work over 18 months.  Under the new law there will be no more conditional licenses.

The CALIFORNIA ASSOCIATION OF REALTORS® reports that August home sales declined by 27.8 percent in August in California compared with the same period a year ago, while the statewide median price of an existing home increased 2 percent.