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

• The Employment Situation – Disappointing But Not Disastrous
  Employment grew at a slower rate than expected in November. However, the numbers may not be quite as bad as they first appear. Posted: Dec. 4
  
  
• Deficit Commission Presents Final Report: Impact on Housing
  An examination of the impact of the Deficit Commission’s deficit reduction proposals on the housing market. Posted: Dec. 3
  
  
• Federal Reserve Reports Economy Continues to (Slowly) Improve
  The economy continued to improve in November, albeit slowly, according to a review of the Federal Reserve’s December Beige Book, which surveys regional economic conditions, including the state of the residential real estate market. Posted: Dec. 2
  

• October Residential Construction Spending Up Again Thanks to Multifamily and Improvements Activity
  The U.S. Census Bureau’s October residential construction spending report showed increased residential construction spending. Posted: Dec. 1
  
  
• S&P/Case-Shiller Home Price Indices Show Declines, But Some Perspective Softens the Blow
  Digging into the S&P/Case-Shiller price indices gives better news for house prices than the headline number would suggest. Posted: Nov. 30
  
  
• The Recovery in Existing Home Sales Stalls in October
  As foreshadowed by the September Pending Home Sales Index, October existing home sales fell. As recovery in housing continues, some volatility and minor setbacks are to be expected. Posted: Nov. 24
  
  
• Nationally, House Prices Edge Down, But Some States Show Improvement
  The Federal Housing Finance Agency (FHFA) price index declined in the third quarter. Posted: Nov. 24
  
  
• Upward Revision to Third Quarter Real GDP Signals Momentum Building in Recovery
  More complete data resulted in third quarter real gross domestic product (GDP) growth being revised up from 2.0% to 2.5%. Posted: Nov. 24
  
  
• New-Home Sales Establish New Lows
  New-home sales fell 8% in October after rebounding in September from a record low of 275,000 homes sold in August. Posted: Nov. 24
  
  
• Comparing Deficit Proposals: Impact on Housing
  A comparison between two deficit reduction proposals’ impact on housing. Posted: Nov. 19
  
  
• MBA Reports Small Declines in Mortgage Delinquencies
  The Mortgage Bankers Association (MBA) third quarter delinquencies and foreclosures report examined. Posted: Nov. 18
  
  
• Builders’ Access to Credit
  Results of an NAHB quarterly survey of home builders’ assessment of credit conditions and a monthly survey follow-up. Posted: Nov. 18

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.