Construction of new homes posted the biggest increase in more than 2 years, thanks to a
jump in apartment connstruction, the Commerce Dept. in Washington reported last week.
The single-family sector dropped y 1.7% to an annual rate of 692,000 units, but apartment
building jumped by 36% to a seasonally adjusted annual rate of 340,000 units.
Building permits also showed a gain.
In TEXAS the MEDIUM PRICE for a home in MARCH 2008 was $147,100, but in MARCH 2007 it
was $144,700 or a 1.6% INCREASE IN PRICE THIS YEAR from last year at the same time.
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Texas in general is faring better than the rest of the country, but that could change. People
are still wealthy; this country is strong & so far Texas has been immune to what’s going on at a national level, but must be careful. We’re isolated from the national problems, but not
immune according to economist Dr. Mark Dotzour, Texas A&M U Real Estate Center.
Building seems to be off a bit, which is good to help get rid of inventory. Dr. Dotzour said we
needed to Trans-Texas corridor to help handle the 13 million more folks in Texas by 2030.
He also commented that using corn for ethanol is “absolutely WRECKING our economy”. 1/3 of
the corn crop is going to the gas tank & what has happened? Corn goes up. Wheat goes up.
Rice goes up. Oil goes up. The value of the dollar does nothing & gas is $3.50 per gallon.
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The National Association of Realtors urged Congress to made the proposed FHA & conforming loan limit increases a permanent part of the 2008 Housing Stimulus bill.
H.R.5958, also known as the Homeowner Opportunity Act, was introduced this week. The bill,
which would make permanent the increase to the FHA & conforming loan limits for high-cost
areas, will be consider an amendment to the large housing stimulus bill.
“By making the loan limit increased to FHA, Fannie Mae & Freddie Mac permanent the mortgage
market, will achieve an immediate increase in liquidity”, said NAR President Dick Gaylord. “This
increased liquidity should help drive down mortgage costs & creat stability in the mortgage
market”.
Gaylord added the amendment can help working families achieve the dream of homeownership
by offering a safe & affordable alternative to risky subprime loans.
quote from RECON, Texas Real Estate Center, A&M U.
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Today, investor-owned one-to-four family rental properties account for almost 20% OF ALL
FORECLOSURES. Moreover many of the high-risk home purchase & home refinance loans now
in default are concentrated in low-income & minority communities, so the fallout from foreclosures is hitting the same neighborhoods where many of the nation’s most economically
vulnerable renters live. Some renters on foreclosed properties are hit with sudden EVICTION.
Policy makers need to focus more attention on those rental households severely harmed by the current mortgage market turmoil. The demand for low-rental housing is increasing at the
same time the supply of low-cost rent is declining. Policies that honor the role of rental housing should be addressed as well as homeownership.
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