NAHB Webinar Features Bullish Economists

Washington, DC, Oct. 19, 2012 -- Sparked by rising home prices across much of the nation, the housing recovery is now under way, but fiscal uncertainties and other challenges could result in a bumpy ride in the coming months, according to economists participating in yesterday’s National Association of Home Builders webinar on the construction and economic outlook.

“We’re seeing a more robust housing sector than many other parts of the economy,” said NAHB Chief Economist David Crowe.

“One of the reasons is we have finally begun to see on a national scale that house prices are picking up again.”

Crowe cited a number of other factors that are carrying the housing momentum forward. These include:

• Pent-up household formations
• Rising consumer confidence
• Increasing builder confidence in all three legs of the industry: remodeling, multifamily and single-family construction
• Growing rental demand
• More than 100 metros currently on the NAHB/First American Improving Markets Index

However, Crowe offered several cautionary factors that continue to put a drag on housing activity at this time – including builders who are experiencing difficulties in obtaining production credit, qualified buyers who are unable to obtain mortgage loans, inaccurate appraisals, seriously delinquent mortgages that are at least 90 days late or in foreclosure, and a limited inventory of developed lots in certain markets.

NAHB is forecasting a 21% increase in single-family starts this year to 528,000 units and a further 26% climb to 665,000 units in 2013.

Multifamily housing starts are expected to rise 26% this year to 224,000 units and 6% in 2013 to 238,000 units.

Expressing a more bullish outlook on housing and economic growth, Mark Zandi, chief economist for Moody’s Analytics, forecast that GDP growth will range in the 2% range this year and next and “double that growth closer to 4% in 2014 and 2015.”

At the same time, he expects job growth to go from two million per year to closer to 3 million in 2014 and 2015.

“A big part of this optimism is the housing market,” said Zandi. “I expect 1.1 million total housing starts in 2013, 1.7 million to 1.8 million in 2014 and over 1.8 million in 2015.”



Other Archived Articles

CRI Posts Model Specification for Commercial Carpet   Full Article
Dalton, GA, July 9, 2014 -- The Carpet and Rug Institute said its Model Specification for Commercial Carpet is now available online at Carpet-Rug.org.

Bamboo Hardwoods Names Flooring Sales Director   Full Article
Seattle, WA, July 9, 2014 -- Bamboo Hardwoods has named Bruce Boulden as the company’s national flooring sales director.

Mortgage Application Volume Increases Last Week   Full Article
Washington, DC, July 9, 2014 -- Mortgage application volume rose last week, according to the Mortgage Bankers Association.

Ardex Academy Sets Training Dates   Full Article
Aliquippa, PA, July 9, 2014 -- Ardex Academy offers free classroom and hands-on product installation training at eight locations throughout North America. Participants learn substrate preparation and the newest installation techniques.

Judge Ends Laminate Copyright Dispute between Home Legend and Mannington   Full Article
Rome, GA July 3, 2014 -- A U.S. District Court in Rome, Georgia ruled in favor of Home Legend in a legal dispute over similar looking laminate floorcovering. The judge ruled nature can't be copyrighted.

Job Openings at Highest Level Since 2007   Full Article
Washington, DC, July 8, 2014 -- Job openings in the U.S. rose in April to the highest level since September 2007, according to the Labor Department.

CARE Seeking Proposals for PET Market Project   Full Article
Dalton, GA, July 8, 2014 -- Carpet America Recovery Effort is seeking proposals for a 12-18 month project to demonstrate value-added uses for polyethylene terephthalate (PET) derived from post-consumer PET carpets.

Quick-Step Hosts Event for Shelter Charity   Full Article
Dallas, TX, July 8, 2014 -- Laminate maker Quick-Step recently co-hosted an event to benefit the local charity Dwell With Dignity.

Prince of Wales Hosts Wool Campaign Event   Full Article
London, England, July 8, 2014 -- To commemorate the fifth anniversary of the Campaign for Wool, the campaign's Patron His Royal Highness The Prince of Wales hosted a major celebration of wool at Clarence House.

Curacao Firm Develops New Locking System   Full Article
Willemstad, Curacao, July 7, 2014 -- Innovations4Flooring, a technology company formed last year to supply flooring installation products, said it has developed a unique locking system for flooring.

UK Carpet Recycling Presents Awards   Full Article
Birmingham, England, July 7, 2014 -- Inspiration for manufacturers to design new carpet products for recycling or reuse at end of life was a key theme at Carpet Recycling UK’s sixth Annual Conference.

Estillon Wins Export Award in Netherlands   Full Article
Uden, The Netherlands, July 7, 2014 -- Estillon, a provider of subfloors, carpet underlays and accessories, took third prize for the Fenedex Frank Hauwert Trophy.

Mortgage Rates Lowest Since Last October   Full Article
Washington, DC, July 7, 2014 -- Mortgage rates hit 4.12% for a 30-year fixed rate last week, according to Freddie Mac.

Services Sector Growth Slows Slightly in June   Full Article
Tempe, AZ, July 3, 2014 -- Growth in the services sector of the economy slowed slightly in June, according to the Institute for Supply Management services index.

Planned Job Cuts Tumble in June   Full Article
Chicago, IL, July 3, 2014 -- Planned job cuts announced by U.S. companies in June fell to 31,434, the lowest level of the year and down 20% from a year ago, according to outplacement firm Challenger, Gray & Christmas.

Economy Adds 288,000 Jobs in June   Full Article
Washington, DC, July 3, 2014 -- Employers added 288,000 jobs in June, the Labor Department said Thursday.

Cersaie Show Set for Sept. 22-26 in Bologna   Full Article
Bologna, Italy, July 3, 2014 -- Cersaie—the world’s largest exhibition of ceramic tile and bathroom furnishings—will take place at the Bologna Exhibition Center in Bologna, Italy from Sept. 22-26.

NAFCD Issues Employee Compensation Report   Full Article
Chicago, IL, July 3, 2014 -- The North American Association of Floor Covering Distributors has released the 2014 NAFCD Employee Compensation Report.

E.J. Welch Promotes Two to Vice President   Full Article
St. Louis, MO, July 2, 2014 -- E.J. Welch Co. has promoted two employees to full time management positions.

Factory Orders Fall in May   Full Article
Washington, DC, July 2, 2014 -- Factory orders fell 0.5% in May, largely because of fewer orders for military goods, the Commerce Department said.