NAHB Analyzes the State of Industry in Light of Presidential ElectionDecember 7th, 2012 | Category: Industry News
The National Association of Home Builders (NAHB) officials addressed the fiscal cliff, tax reform and the future of government sponsored enterprises as three major issue areas the industry is facing in the wake of the election.
During the organization’s seminar on December 4, Jerry Howard, CEO of NAHB, noted 01/03 tax cuts, sequestering, alternative minimum tax and payroll reductions contribute to President Obama’s plan to raise taxes on the wealthy so the GOP can build a bridge to tax and entitlement reform. Howard went on to say the housing industry is now on the brink of positive change from years of lackluster results. The organization’s fear is that the current political plan will stifle advancements the industry has made.
“Our industry has been in a state of depression the last four years,” says Howard. “Why tinker with us now when we’re beginning to get back to normal?”
Organization officials claim these three points have the potential to affect the economic and housing outlook. While there is no consistent national trend, recovery is local, but spreading. The panel also noted that the industry is now transitioning from lack of demand to lack of supply.
“Oddly we are in a position now where housing is beginning to show its colors at the same moment that the rest of the economy isn’t doing so well,” says David Crowe, NAHB chief economist.
During the seminar, officials acknowledged promising housing data amid a not so promising economy, stating the housing price trend has display 6.2 percent annualized growth the last nine months. Household formations are also on the rise and owner-occupied remodeling is back up to its 2000-2002 levels. Although the industry is showing growth, the recent GOP plans leave field leaders with political uncertainty.
“Please remember that Romney was pushing just as hard as the President was for tax reform,” says Howard. “I leave it to each of you to determine whether we would have been better off.”
by Kaitlan Mitchell, firstname.lastname@example.org