NBN Online for the week of May 12, 2008

Housing Bill Moves Forward One Week After Builder Visits

 
One week after a large delegation of home builders scoured Capitol Hill to advise lawmakers of the urgent need to stabilize the nation’s rapidly eroding housing market, the House of Representatives on May 8 passed H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, legislation that would help home owners who are struggling to pay their mortgages and boost housing and the faltering economy.

“On April 30, more than 1,200 home builders delivered an urgent message to Congress to enact legislation to jump-start housing, save jobs and restore confidence,” said NAHB President Sandy Dunn. “H.R. 3221 would help achieve these aims. With the economy on the edge of a deep recession, we urge House and Senate negotiators to move swiftly to reconcile their differences and craft a final bill that the President can sign into law in order to bring much-needed relief to the American people.”

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Foreclosure Hike Tied to Single-Family Permit Drop in Most States

Rising foreclosure rates show a strong correlation with declining single-family housing permits, according to a new research study from NAHB economists, but market dynamics vary so widely that there are “extreme” variations in how foreclosures, production, house prices and homeownership rates match up on a state by state basis.

The study takes a hard look at unfamiliar trends in many local housing markets over the past year or two — including rising foreclosure rates, declining production and prices of owner-occupied housing and a falling homeownership rate.

In California, for example, the rate of all mortgages going into foreclosure was 1.04% during last year’s fourth quarter and 4.62% for subprime loans, increases of 158% and 146%, respectively, from the same period of 2006.

Catch 'The Big Hunt' Webcast On National Membership Day, May 20

NAHB members and membership chairmen will don bush jackets and pith helmets for ”The Big Hunt” — the National Membership Day webcast on Tuesday, May 20 to help grow and revitalize their local builders associations.

But a hungry lion, elephant and gorilla have no intention of becoming fair game during NAHB’s annual event this year. Instead, they’ll be stalking members and HBAs for commitments on new members and retention during the three-hour webcast.

“Over the years, National Membership Day has become a key part of our culture,” says Vince Butler, NAHB membership chairman. “It’s always an exciting event.”

Wichita Builders Give Buyers a Boost in Confidence

The Wichita, Kan., housing market was in pretty good shape at the beginning of 2008, with its single-family permits down less than 10% for 2007, compared to 24% for the state and 30% for the country.

Economic indicators were also good. The unemployment rate was lower and payroll employment and home prices were higher than in 2006.

But buyer confidence was beginning to falter.

So the Wichita Area Builders Association (WABA) went on the offense to help keep their market as healthy as it could be.

“We needed to be preemptive so our members didn’t find themselves in a hole they couldn’t dig out of,” said WABA President and CEO Wesley Gaylon.