NBN Online for the week of April 13, 2009

NAHB Steps Up Efforts to End Severe AD&C Credit Crunch

Expanding efforts this spring to restore the flow of credit that is needed for the production of housing, NAHB is seeking case studies from its members who have run into problems with their lenders.

“Turmoil in the housing credit and broader financial markets is now affecting every corner of our nation’s economy, but the effect on financing for housing production is especially severe and is resulting in economic hardship in communities throughout the country,” 47 members of the U.S. Congress said in a March 27 letter to Treasury Secretary Timothy Geithner.

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Lumber Prices Provided by Random Lengths

Foot Traffic Up as Home Buying Becomes More Affordable

Thanks to record low mortgage rates and declining home prices, 55 million families — or half of all U.S. households — can afford today's $200,000 median-priced new home, according to figures released by NAHB.

"That's an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years," said NAHB Chairman Joe Robson. "We are now seeing the first signs that buyers are returning to the marketplace."

Homeownership Tax Benefits a Big Selling Point for Prospective Buyers

Home builders can use new research from NAHB economists as a source of information for their prospective customers on the tax benefits of homeownership.

“Purchasing a home is typically the largest purchase and among the most important financial decisions a family makes,” said Robert Dietz, NAHB’s director of tax issues. “There are numerous factors that influence the home buying decision, and among the most important are the tax benefits that help offset some of the cost of homeownership.”