ADDRESSING HOUSING PROBLEMS WILL AID ECONOMIC RECOVERY

As we start the new year, there is reason for optimism amid the continuing difficult market conditions.
Early signs from the incoming Obama administration indicate our new president is serious about delivering on his campaign promises to stimulate and fix the economy. We hope to see the Obama administration work in a bipartisan manner to get the economy back on track.

Undeniably, problems in the housing industry contributed to the economic crisis, and we believe that addressing ongoing housing problems will help aid our recovery.

The Home Builders Association of Metro Denver was one of the first HBAs in the nation to endorse the Fix Housing First initiative, which we believe outlines viable relief. It would actually stimulate housing demand by providing a true tax credit for home buyers of between $10,000 and $22,000 for existing and new homes. The credit would be repaid to the government if the home buyer sells within three years. The initiative would also provide, for a limited time, below market mortgage rates of 2.99 percent for 30 years. We believe the program would help stimulate demand for housing and decrease the oversupply we still see in many markets. Until we stop the fall in home values, a broader recovery will be difficult to achieve.

Your HBA is taking a leadership position in advocating for this program that is targeted directly at helping consumers. As more and more businesses around the country are aligning their support behind this initiative, we hope to work on Fix Housing First and other programs with the new leadership in Washington to improve conditions for all Americans. While foreclosure relief continues to be a primary target of relief efforts, the uncertainty of the auto industry may take priority in the new session of Congress.

There are signs that Denver is well-positioned to lead the way out of the housing slump. Foreclosures have started to slow down, excess inventory is being absorbed, and office and apartment vacancy rates are stabilizing. Those are good signs that our market is trying to recover.

But things are still tough, not only for many of our members but for many members of our community. Until we see more lending, many of us will remain in survival mode.

During these tough times, the HBA remains focused on our mission to improve our members’ abilities to responsibly meet the housing needs of our community.