The clock is ticking for Tennessee's housing industry and if congressional action isn't taken soon, the state will feel serious consequences in 2009, according to members of the Home Builders Association of Tennessee.
In a conference call this morning, three developers from across the state offered their personal experiences with the slumping residential real estate market and outlined the organization's recommendations to remedy the situation.
“A bad housing market impacts every person in a state,” said Phil Chamberlain, owner of Cordova-based Chamberlain & McCreery.
Chamberlain was joined by Dan Mitchell, president of Seymour-based Eagle CDI Inc., John Montgomery of Franklin-based Carbine & Associates, as well as Bernie Marksteen, senior economist with the National Association of Home Builders.
The association has three measures it recommends the U.S. Congress consider for immediate legislation. First, the existing homebuyer tax credit must be raised from its current amount at $7,500.
“The credit needs to be more than 10 percent of the home value up to three and a half percent of certain loan limits,” Chamberlain said.
The second measure is the creation of a below-market, 30-year fixed mortgage for home purchases, one possibly lower than the 4.5 percent rate currently proposed.
Finally, the group proposes further measures to stem foreclosures and keep people in their homes.
“What we're talking about here are things that are going to help put a floor on housing, stop the slide in housing prices,” Marksteen said. “We want to get those people that are on the sideline who are fearful of buying, give them that incentive to buy. That will turn housing around and that will pull the economy out of the recession.”
The builders emphasized that the stimulus measures the association is advocating will not go directly to builders or Realtors, but will empower homeowners and buyers.
“Don't hand us a dime,” Chamberlain said. “Let us help build the economy through the demand that's driven through this stimulus package.”
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