The overall median sales price of new privately constructed one-family houses sold by region of the United States.
Hurting Builders Look to Congress
Published Monday, November 24th, 2008
Another industry, builders, tugs on the purse of Congress while the financial industry, this time Citigroup, gets $25 Billion to prop up its losses. Called ‘Fix Housing First’, the $250 billion package will, according the the builders industry, correct the housing price drop and thus fix the financial markets. To accomplish this, they want to introduce a tax credit of 10% of the home’s value up to $22,000 and a federal subsidy to lower the home mortgage rate from 6.2% to 3%. History recalls a similar package that was issued after the 1975 recession in which Congress gave a 5% tax credit up to $6000 and 1.5% drop in Home Mortgage Rate.
The Builder Industry has had an amazing rise in productivity in the last decade. The supply of over 2 million houses built each year as of 2007 and demand fueled by lenders were helping housing prices go through the roof and has created a situation where the builder industry has been pressured to build and build for a growing homeowner population. Now the reverse is occurring, where supply is outstripping the demand, causing the builders’ employment numbers to fall by 49,000 in October.
National Association of Realtors - http://www.realtor.org/research.nsf/pages/EcoIndicator?OpenDocument
In addition to NAR’s own existing-home sales series, NAR Research monitors other indicators such as new-home sales, housing starts, producer prices, mortgage rates and more.
US Federal Reserve: Mortgages - http://www.federalreserve.gov/pubs/mortgage/morbro.htm
This brochure explains about dealing with mortgage lenders. It tells you where to look, what to look for, and what takes place when you apply for a mortgage. Knowing what to expect, especially if you are a first-time homebuyer, may make it easier for you to get through the process.