NBN Online for the week of March 3, 2008

Builders Adjusting Business Plans to Survive 2008

Builders and remodelers who work steadily on readjusting their business practices in response to the current economic downturn stand a good chance of surviving until better times arrive and trouncing the competition during the recovery, according to housing industry veterans appearing at the International Builders’ Show (IBS) in Orlando last month with the battle scars to prove they have weathered previous housing slumps.

“Today's housing market is obviously not the same housing market that existed a couple of years ago, and that means you can't afford to run your company the same way you did then,” said Michael Sivage, of Sivage Community Development in Albuquerque, N.M., who moderated the panel. The industry faces “another challenging year” following a “tough” 2007, he warned, and the burden is on builders to persuade consumers to consider the home-buying opportunities in today’s market despite the daily barrage of negative reports in the news media.

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Congress Told Home Buyer Tax Credit Would Help Rally Economy

With the housing industry facing its greatest crisis since the Great Depression and the economy teetering on the brink of recession, NAHB last week called on Congress to move quickly to enact a second round of economic stimulus directed squarely at the housing sector — including a tax credit for the purchase of a home.

"The biggest bang for the buck most likely would be provided by a temporary home buyer tax credit," NAHB Chief Economist David Seiders told the Senate Finance Committee on Feb. 28. "Tax credits for the purchase of a home are a means of eliminating excess inventory, relieving some of the pressure on falling housing prices and ending the waiting-on-the-sidelines strategy some potential buyers have adopted in response to overly negative media stories concerning the future of the housing market."