December 6, 2010
Nation's Building News

The Official Online Weekly Newspaper of NAHB

Eye on the Economy: Housing Struggles Even As Economy Advances

With this issue, Eye on the Economy will provide the latest economic and housing policy news, analysis and studies on NAHB’s free, new housing and economics blog, Eye on Housing.

No longer presented as a bi-weekly column, Eye on the Economy is a digest of the latest postings on Eye on Housing, with links to expanded commentary and analysis by NAHB Chief Economist David Crowe and NAHB economists Robert Denk, Robert Dietz, Paul Emrath, Peter Grist and Bernie Markstein.

Housing Struggles Even As Economy Advances — Tough Lending Standards to Blame?

The economy is advancing, albeit slowly, as housing continues to struggle.

Overall construction spending increased, primarily because of a surge in the dollar amount spent on improvements, which overshadowed a slip in single-family construction spending. At this point, house prices seem to be essentially flat with minor monthly and quarterly fluctuations.

Some small solace can be found in the decline in the third quarter mortgage delinquency rate and the percentage and number of mortgages in foreclosure at the end of the quarter, but tight credit for home builders remains a major impediment to a stronger housing recovery.

Two proposals addressing federal deficit reduction can have significant adverse effects on residential real estate. Given the fragility of the housing market, these impacts must be avoided.

The Latest Postings



Subscribe to the Free Eye on Housing Blog

Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/follow-us/ for the latest observations whenever the federal government or NAHB releases the latest housing-related statistics or study. They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.



Want to Know Your State’s Starts Forecast for 2011?

Find out in HousingEconomic.com’s State Starts Forecast (sample).

The forecasts include downloadable Excel tables of total, single-family and multifamily starts by region and state.

To learn more, visit www.housingeconomics.com.

Also in This Issue