NBN Online for the week of October 6, 2008

Rescue Plan Shores Up Hopes for Housing Turnaround

With the strong backing of the nation’s home builders, the U.S. House of Representatives on Oct. 3 by a vote of 263 to 171 approved an economic rescue plan aimed at stabilizing and restoring confidence in worldwide financial and credit markets.

Out of concern that turmoil in the financial markets was severely curtailing the flow of credit for housing and other business sectors and that the global economy was teetering on the brink of catastrophe, the leadership of NAHB on Sept. 24 called on Congress to pass the Emergency Economic Stabilization Act of 2008 “as soon as possible.”

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Builders Cite Appraisal Problems in Declining Housing Markets

At a time of rising foreclosures, low-ball appraisals have emerged as a significant stumbling block in lining up credit for the construction and sale of new homes, builders attending NAHB’S fall board of directors meeting in San Diego complained to representatives from the Appraisal Institute.

In a special presentation convened and moderated by NAHB Chairman Sandy Dunn on Sept. 24, two appraisers — Jim Amorin, vice president of Atrium Real Estate Services in Austin, Texas and the incoming 2009 president of the institute; and Robert Caringella, a principal of Jones, Roach & Caringella, Inc. in San Diego — said they have been seeing some systemic problems in today’s appraisals of residential properties, but they also made several suggestions about what builders should be doing to make the best of a less than perfect situation.