Fragile Housing Demand Turns Down Again

 

National Association of Home Builders Chief Economist David Crowe, testified before the Senate Banking Committee on the fragile state of the nation?EUR??,,????'?????< Courtesy of Home Builders Association

February’s housing production numbers plumbed new depths with housing starts remaining only marginally above their record low of April 2009. Building permits fell to their lowest level on record in a series started more than five decades ago.

NAHB Chief Economist David Crowe urged caution on housing policy issues, including land acquisition, land development and home construction (AD&C) lending, reforming the government sponsored enterprises (GSEs), the Dodd-Frank financial reform law, and preserving the mortgage interest tax deduction.

Crowe’s testimony — and the dismal state of the housing industry — were further punctuated by additional government data releases that indicated that continuing consumer frugality and elevated savings are improving household balance sheets but undercutting a more robust near-term economic recovery. In addition, producer prices increased because of global factors, raising construction costs for home builders despite weakness in U.S. housing markets.

– Courtesy of NAHB