NABA News
UPCOMING NABA ACTIVITIES
- The Jim Steves Golf Tournament will be Oct. 16 at the Flagstaff Ranch Golf Course.
- We are having a fantastic membership drive with the Oliver Group assisting. Now is the time to join and receive many additional benefits.
- The Navajo Housing will be hosting a Green Build Conference titled "Going Green in Native Communities" with NABA's assistance at the High Country Conference from Oct. 26 to Oct. 28.
- The Annual Meeting will be held on Oct. 29 at the High Country Conference Center in Flagstaff, with Chief Economist and Senior Vice President of NAHB, David Crowe, as guest speaker.
HOUSING INDUSTRY CHALLENGES
Before breathing a sigh of relief on the improving state of the nation's economy, the housing industry deserves a closer look. It's true that housing has recently shown some encouraging signs, with home sales slowly beginning to rally from the steep decline of recent years. But to bring an end to the current recession, some formidable obstacles still remain.
Chief among them is the credit crunch that is sharply constricting new home building activity. Congress can help put the housing industry back on its feet by exerting its influence on regulators and the banking industry to restore lending for viable homebuilding projects. By encouraging banks to restore the flow of credit that builders need to start new development, Congress can boost new housing production, especially as the inventory of unsold homes continues to decline.
At the same time, it can help stabilize housing prices by bringing change to the valuation of appraisals on new and existing construction. With unemployment soaring and consumer confidence at a low ebb, it's hard enough to sell new homes these days; the appraisal process is making it even more difficult. In a recent survey of more than 500 builders by the National Association of Home Builders, 25 percent reported losing sales because the appraisal is coming in below the contract sales price.
The process has become flawed because some appraisers are using distressed properties--many of which have been neglected and are in poor physical condition--as comparables in assessing the value of brand new homes without accounting for major differences in condition and quality. Congress can help resolve this issue by urging the housing agencies in Washington to adopt and enforce guidelines that will deter inappropriate appraisal practices.
Lastly, the continuation of the $8,000 first-time home buyer tax credit for another year and its expansion to all home buyers would further bolster demand in an unstable marketplace.
While the downward spiral that has devastated housing in the last few years may be drawing to an end, it is all the more important for Congress to take actions that will create a sustainable upward momentum in the housing industry. After all, this is one sector of the economy that is poised to create jobs, build consumer confidence and restore the economy.
For more detailed information, visit www.revivehousingnow.com. For information about the benefits of a healthy housing market in Northern Arizona, call 928.779.3071.
