Gloves Come off on Fix Housing First
From PROSALES, by Craig Webb: When home builders get stuck not being able to build homes, alliances might wind up being the next best thing to build. In a sweeping effort to reel in comrades at arms in an all out war with economic and financial system stresses that have all but paralyzed residential construction amid home value destruction, the Fix Housing First coalition of home builders, manufacturers, materials suppliers and their Capitol Hill persuaders (i.e. lobbyists) seems to be making progress at expanding its ranks.
Craig Webb, editor of ProSales, reports on a National Lumber and Building Material Dealers Association announcement in support of Fix Housing First’s proposed tax-credit-cum-mortgage-rate-buydown shock treatment to get consumer confidence, spending, and home buying to finally put a floor on home prices. Webb reports:
NLBMDA chief O'Brien
The National Lumber and Building Material Dealers Association (NLBMDA) today added its voice to a coalition of builders and construction suppliers urging Congress to approve a housing stimulus plan this year.
NLBMDA called on Congress to enhance and extend the Home Buyer Tax Credit for primary residences purchased between April 2008 and December 2009, to up to 10% of the home price up to a maximum of $22,000, depending on geography. In addition, buyers should have access to discounted 30-year fixed-rate mortgage financing that would encourage eligible home buyers to enter the market.
Of no surprise, not all housing organizations want to see a lot of Congressional focus on stimuli that could rekindle home buying. The National Multi Housing Council, which practically blames for-sale new-home builders for the global economic crisis, has come out in vocal opposition to a Fix Housing First extra-enzyme program.
Says NMHC president Doug Bibby:
NMHC's Doug Bibby
“We understand the desire of lawmakers to bolster the economy and stem the tide of foreclosures, but new homebuyer tax credits, seller-financed downpayments and interest rate buydowns will not stimulate the economy or stop house prices from falling further. They are simply bailouts for the for-sale housing market, the very sector of our economy that helped trigger the global economic crisis.
“The only issue a homebuyer tax credit addresses is the oversupply of single-family houses, which is something best left to the marketplace–not taxpayers–to correct. Oversupply situations happen in every industry, and the housing industry will recover with or without Congressional action, just as it has in past oversupply situations. Moreover, why should taxpayers help out an industry that recognized a downturn was coming and still kept overproducing?”
Guessing who’s fighting to fix and who’s fixing to fight might be just the antidote to another day of bleak economic and financial reports from all your usual sources.
Here’s some links to orient yourself to the dots-connected housing and construction news of the moment:
- From HousingWire.com: Foreclosures Drop in California, as Lenders Boost Workout Attempts
- From Builderonline.com: Louisville, Colo.-based McStain Neighborhoods will shut its headquarters offices.
- From Inmannews.com: Housing hints for president-elect Barack Obama
- From The New York Times: Columnist Floyd Norris writes about accountability and bailouts.
- The Wall Street Journal reports on Fed Chairman Ben Bernanke’s latest pronouncements as to the initiatives taken and those that may still be taken amid the crisis.
Gentle Ben says:
“The continuing volatility of markets and recent indicators of economic performance confirm that challenges remain.” (Read the full remarks.) For this reason, policymakers will remain in close contact, monitor developments closely, and stand ready to take additional steps should conditions warrant.”
Hence, Friday’s market will proceed as it will proceed across the dark abyss to eventual recovery in the months down the road.
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Just wanted to say HI. I found your blog a few days ago on Technorati and have been reading it over the past few days.
[...] From PROSALES, by Craig Webb: When home builders get stuck not being able to build homes, alliances might wind up being the next best thing to build. In a sweeping effort to reel in comrades at arms in an all out war with economic and … Original post [...]
[...] In a sweeping effort to reel in comrades at arms in an all out war with economic and financial system stresses that have all but paralyzed residential construction amid home value destruction, the Fix Housing First coalition of home … Read more [...]
[...] the home builders came prepared, at least with a slogan. They are calling their plan the “Fix Housing First” plan. The way home builders see it, a recovery in housing is what is needed in order to jump start [...]