NBN Online for the week of February 1, 2010

Builders Looking to Repair Broken Home Finance System

Amidst growing signs that housing is on the mend, builders attending last month’s International Builders’ Show (IBS) in Las Vegas turned their sights on repairing a badly broken housing finance system to restore the flow of credit for home mortgages and acquisition, development and construction (AD&C) loans.

Builders also heard from multiple sources on how best to negotiate with lenders on working through problematic existing loans for projects that have succumbed to the negative forces prevailing to at least some extent in most parts of the country.

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Lumber Prices Provided by Random Lengths

High Unemployment Levels Put Housing on Slow Growth Track

The end of the economic recession along with the continuation of low mortgage interest rates and stabilizing housing prices will result in growth in the nation's housing market this year, according to economists speaking at the International Builders' Show in Las Vegas on Jan. 19. But improvements will come slowly, they said, as high unemployment levels continue to discourage consumers and push home foreclosures higher.

"The stage is set for the consumer to return," said David Crowe, chief economist for NAHB, and because of the slow pace of the recovery home builders will profit from generally low inflation in building materials prices and wages.

Builders Need to Act Fast on Home Buyer Tax Credit

In order to make the most of the home buyer tax credit, which was extended and expanded by Congress toward the end of last year, builders need to act fast and get the word out to their prospective customers, according to panelists at the recent International Builders’ Show in Las Vegas.

“Many buyers still don’t understand the tax credit or realize it is available to them,” said Michael Sivage, a home builder with businesses in Albuquerque, N.M. and San Antonio. “In all our advertisements and marketing materials, we reference the  tax credit. We have a link on our Web site to the "Opportunity Knocks" home brochure site at NAHB.org and the NAHB consumer Web site at www.federalhousingtaxcredit.com. We also educate our sales office team so that they fully understand how the tax credit works and can explain it to our customers.”

Nation's Building News Begins Biweekly Publication

Beginning with this issue, Nation's Building News will be published and distributed every two weeks. Look for the next NBN to arrive at your desktop on Monday, Feb. 15 with more stories from the 2010 International Builders' Show in Las Vegas as well as the latest housing news.