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In this Issue
 Challenging Economy
Shows Underlying Resilience and Flexibility
NAHB Says Builder
Confidence Edges Down In June
NMHC/NAA Seek Ruling on Section 8 Program
Challenging Economy Shows Underlying
Resilience and Flexibility
During Arbor’s recent finance conference, “How to
Navigate the Capital Markets Storm with Agency Lending” in Dallas on June
10, Dr. Sam Chandan, Chief Economist for Reis, Inc. outlined a number
of forces that are weighing on the economy:
- The housing market
- The economy
- Inflation (how we
spend our money)
- Value of the U.S.
dollar
- Increase in food and
fuel prices
- Loss of confidence in
international markets (as reflected in devalued U.S. dollar)
However, he noted the underlying resilience and
flexibility of the U.S.
economy remains intact in the midst of most challenging adjustments.
Other stresses on the economy Dr. Chandan pointed
out are:
1.
The housing market: The pool of houses for
sale has changed significantly. There were more homes built than
Americans can (afford to) live in.
2.
Corporate profits: While they have slowed
significantly as of late, they will prevail over the next 1-2 years.
3.
Oil: Our economy is more information- and
services-based rather than on manufacturing. As a result, there is
reduced energy consumption.
4.
CMBS: The CMBS market has been sidelined. At its
peak, almost 70 percent of all multifamily mortgages were from CMBS.
As of first quarter 2008, that number has fallen to 7 percent.
Click to read more
NAHB Says Builder Confidence Edges Down In
June
Builder confidence in the market for newly built single-family
homes edged down in June, according to the National Association of
Home Builders/Wells Fargo Housing Market Index (HMI). The index
slipped to 18 this month, returning to the record low that was posted
in December of 2007 (the series began in January of 1985).
The HMI was released today during a special
teleconference held by NAHB. At that event, association CEO Jerry
Howard pointed out the urgent need for Congress to pass targeted
housing stimulus legislation amidst ongoing and severe weakness in
the housing sector that is exerting a substantial drag on economic
growth.
“Each week that goes by, another 15,000 workers are
losing their jobs and 47,000 families are entering foreclosure. Home
equity has fallen by $879 billion during the past year alone,” said
Howard. “How many more Americans have to suffer before Congress will
act?”
“Clearly, conditions in the housing market remain
very weak, and our builder members are not seeing any signs of
improvement,” noted NAHB Chief Economist David Seiders. “Indeed, the
continuing erosion of employment and consumer confidence/sentiment
coupled with surging energy costs, falling house prices and rising
home mortgage foreclosures, pose considerable downside risks to the
economy and our housing forecast. A targeted stimulus such as a
temporary home-buyer tax credit would help turn this situation around
and restore housing as an engine of economic growth."
Click to read more
Source: The
National Association of Home Builders, www.NAHB.org
NMHC/NAA Seek Ruling on Section 8 Program
An alliance of apartment organizations have joined
forces to file a “friend of the court” brief asking the United States
Supreme Court to weigh in on whether states and localities can force
property owners to participate in the federal Section 8 program by
passing laws that make it illegal to deny a voucher holder based on
their “source of income.”
The effort is spearheaded by the National Multi Housing
Council (NMHC) and the National Apartment Association (NAA) and the
Louisville (KY) Apartment Association. They are joined by
National Leased Housing Association, the Apartment and Office
Building Association of Metropolitan Washington; the Delaware
Apartment Association, the Greater Lexington (KY) Apartment
Association, the Mobile Bay Area Apartment Association and the New
Jersey Apartment Association.
“When Congress created the Section 8 program, it
explicitly made the program voluntary because it recognized that
there are costs and burdens imposed on property owners who choose to
participate,” said Jim Arbury, NMHC/NAA Senior Vice President of
Government Affairs. “Now states and localities are trying to
alter the voluntary nature of the program by passing so-called
“source of income” non-discrimination laws that essentially make
property owner participation mandatory.”
Click to read more
Source:
The National Multi Housing Council, www.NMHC.org
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