Monday Morning Briefing Letter - 08/11/2008 (Plain Text Version)By Sandy Dunn, NAHB President and View Graphical Version
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| E-mail Our Editor Spotlighting the benefits of the new housing stimulus legislationthat was signed into law by President Bush last week, NAHB held a special media teleconference on August 4. NAHB President Sandy Dunn led the discussion with an explanation of how the $7,500 first-time home buyer tax credit will get buyers back into the marketplace and help end the current cyclical downturn in the housing industry. Reminding listeners that first-time home buyers make up about 40% of the entire market, she noted that more than two million taxpayers are expected to claim the credit, with their purchases then stimulating demand up the housing ladder. NAHB member Ed Brady, who builds about 130 homes annually, also participated in the call, noting that the first-time buyer tax credit and foreclosure relief provisions in the new law should together help reduce inventories, which in turn will "signal that we are either at the bottom of the market or very near the bottom, and that there isn't a better time to buy than today." Providing the big builder's perspective was Richard Dugas, president and CEO of Pulte Homes, whose company has decided to match the $7,500 tax credit for first-timers with its own $7,500 discount. Finally, NAHB tax economist Rob Dietz explained exactly how the tax credit works and encouraged those who want to see if they qualify to consult NAHB's newly developed Web site, www.federalhousingtaxcredit.com. This site attracted more than 50,000 unique visitors during its first four days in existence – a very positive indication of consumer and industry interest. The teleconference itself was also a major success, attracting approximately 226 participants who dialed in, including representatives from major media outlets such as the Associated Press, Dow Jones Newswires, CNN Money and Businessweek. Contact: Liz Warin, x8495.
A more upbeat perspective on the outlook for home valuesthan we've seen in some time appeared in The Washington Post this week when three experts said it is extremely unlikely that home prices will dramatically sink in most markets nationwide. Despite fears about declining home prices in certain major metros, say the authors, "Most Americans have not experienced any significant decline in the value of their homes – nor are they likely to." The article, which will be reprinted in its entirety in the next NBN Online, was written by Columbia University Professor Charles Calomiris, Wichita State University Center for Real Estate Director Stanley Longhofer and Wichita State Associate Economics Professor William Miles. In it, the researchers note that only four states – Arizona, California, Florida and Nevada – have posted house price declines of more than 4% over the past year. They offer several reasons that the often-cited S&P/Case-Shiller house price index is "a poor measure of what is happening to the value of most homes," and point to their own research that suggests declines in house prices will likely remain small. They maintain that the effect of multiple foreclosures on house prices is marginal, and that other factors such as job growth can cushion the impact of foreclosures in certain markets. While the housing downturn has been far from a "trivial" phenomenon, they conclude, "fears of a huge loss in home values for most homeowners – and especially for middle-income home owners – and fears of the devastating losses by financial institutions that would accompany them, are greatly overblown." Read the complete article in the Aug. 11 NBN Online. [return to top] A new system for selecting FHLBank Directorshas been implemented as a result of language in the newly enacted housing stimulus legislation. Would-be appointees to FHLBank Public Interest Director slots should know that the Federal Housing Finance Board is being replaced by the Federal Housing Finance Agency, which has regulatory oversight over Fannie Mae, Freddie Mac and the Federal Home Loan Bank system. Moreover, the new legislation notes that all directors will be elected by FHLBank members and, contrary to previous rules, the new regulator will not have a role in the selection process. Instead, the FHLBanks will nominate qualified candidates, and member banks within the district will elect directors from that list. Candidates themselves will still be required to submit a standardized eligibility form directly to the FHLBanks for consideration. While not all of the details are yet known, it is apparent that sitting appointive directors will be allowed to serve out their terms. NAHB has informed several of our members who are seeking PID appointments about the revised selection process, and will provide additional details as they become available. In the meantime, please direct any questions on the new system to John Dimitri, x8529. [return to top] New IRS regulations on utility allowances for LIHTC propertiesare a victory for affordable housing and something that NAHB and our Housing Credit Group have urgently advocated. The change will give Low Income Housing Tax Credit (LIHTC) property owners more flexibility in the way they calculate utility allowances for their low-income residents. With LIHTC properties already under pressure from the current woes in the housing and capital markets, the future of new and existing LIHTC-financed affordable housing was being seriously threatened by the previous regulation governing these costs. NAHB therefore led a coalition effort to get the IRS to modify those regulations so that utility allowances can more closely reflect actual expenses. Read NAHB's press release for more info, or view the complete IRS announcement online. Contact: Ann Marie Moriarty, x8350. [return to top] Don't forget to dial into NAHB's audio conference on Tuesdayto find out how to "Get Hesitant Boomers to Buy Now." This interactive educational event starts at 2:00 pm EDT on Aug. 12. Presented by NAHB and the NAHB 50+ Housing Council, the program will show you ways to overcome prospective buyers' fears and motivate them to take the plunge in today's market conditions. A panel discussion moderated by Rich Carlson, CAASH, MIRM, CMP of Carlson Communications will include speakers Deborah Blake from Pulte Homes and Chuck Covell from Covell Communities. Note: There is a $79 fee per phone site for this audio conference. Register and get more information at www.nahb.org/boomersbuynow. Contact: Jeff Jenkins, x8292.
It's time to register for the 2009 IBS!Registration for the 2009 International Builders’ Show (IBS) in Las Vegas on Jan. 20-23 — the single most important industry event of the year — is now open. This year, IBS will feature:
Full Registration Full registration provides attendees with access to four days of exhibits on one million net square feet of exhibit space, all the educational sessions and new, daily-featured speakers. Full registration is $295 for members through Nov. 7 and $425 thereafter. Full registration for non-members is $475 and $575, respectively. Exhibits-Only Registration Exhibits-only registration is $50 for members through Nov. 7 and $100 after, and $50 for their spouses. Exhibits-only registration for non-members is $100 through Nov. 7 and $200 after, and $70 for their spouses. Education Session Tickets Exhibits-only registered attendees can purchase tickets to individual IBS education sessions. Individual tickets are $50 for members and $70 for non-members. Registrants can purchase packages of four tickets and get one free or seven tickets and get three free. (Attendees who purchase full registrations do not have to purchase education session tickets or exhibits-only registration.) To Register For registration information, click here. For hotel information, click here. To register online, click here. For the latest IBS information — including floor plans, renderings and construction photos of The New American Home — visit the 2009 International Builders’ Show Web site at: www.BuildersShow.com. [return to top] For more information or to contact us directly, please visit www.NAHB.org | ©2008, National Association of Home Builders |