August housing starts were down to 854,000 according to the U.S. Department of Housing and Urban Development, 35 percent lower than August 2007, and 53 percent lower than the 1,800,000 of August 2006. While the national news media is all over this with negative tones, I would like to point out that we still have more inventory that we can easily sell. And the only way to catch up, is to stop flooding the market with new inventory. This is a step in the right direction.
I believe that when the election is over, and we know where we are headed for the next 2 years (congress really controls this country), the buyers of homes will start to come back. Everybody has to live somewhere, and most think that homes are a great investment for the long term. Rates continue to improve, and as inventory levels start to diminish, buyers will become more aggressive. Remember that builders cannot replenish the inventory quickly, so when the current inventory is gone, we will again be in a sellers market. Every market is based on Supply and Demand. When the supply shrinks, the demand will cause an increase in prices. Right now we have weak demand and an over supply.
The Nashville real estate market has been known to change very quickly, I'm ready for it.
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Housing starts will likely continue to slow, competing with high foreclosures and existing home sales, until the approvable demand can catch up. We have lost a bunch of buyers. Can low rates offset the tighter credit requirements, loss of stated income programs, increased down payment requirements, and loss of DPA?
There does seem to be some pent up demand out there. It just seems like things are slowly picking up.
Richard
Richard - It's just a matter of time before people decide that the bottom is past. When it happens, those of us that are still in business will be swamped.
Representative Henry Fincher (D) of TN has completed the draft of House legislation to implement employer tax credits for participation in employer assisted housing. Rep. Fincher is a practicing attorney from Cookeville, TN. Fincher had a very short window of opportunity to research the federal legislation from 2007: Housing America's Workforce Act that outlines the benefits to communities, employers, and states that adopted the tax credits as a means of stabilizing and revitalizing housing markets. He reviewed similar legislation from others states like Massachusetts and Illinois before fashioning the TN version. Fincher will sponsor this in the TN House and work with Senate sponsors to further support both TN employers and rebuild the TN housing market. Economic Development experts hail this as a viable tool for economic growth in TN. Employers seeking an inviting home to place their companies place a great deal of consideration on state's that assist in homeownership programs. Fincher's work is truly a reflection of the Monday evening call for innovative solutions between government and the private sector by President Obama.