DS News

» VISIT US ONLINE @ DSNEWS.COM 25 HOUSING MARKET GETS A VOTE OF CONFIDENCE FROM BUILDERS After reaching an 18-year high of 74 points in December, builder confidence for newly built single-family homes dropped slightly in January to 72 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Despite this drop, builders remain confident about the year ahead as demand for housing increases along with an overall strong economy. "Builders are confident that changes to the tax code will promote the small business sector and boost broader economic growth," said Randy Noel, Chairman of NAHB, on the overall confidence of NAHB members in the housing market. e monthly HMI index gauges builder perceptions of current single-family home sales and sales expectations for the next six months on a scale of good, fair, or poor. e survey also asks NAHB members to rate traffic of prospective buyers. Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor. e three HMI components posted minor losses in January with the index measuring buyer traffic falling four points to 54, the component charting current sales conditions dropping one point to 79, and the component gauging sales expectations for the next six months falling a point to 78. "e HMI gauge for future sales expectations has remained in the 70s, a sign that housing demand should continue to grow in 2018. As the overall economy strengthens, owner-occupied household formation increases, and supply of existing home inventories tightens, we can expect the single-family housing market to make further gains this year," said Robert Dietz, Chief Economist at NAHB. Looking at the three-month moving averages for regional HMI scores, the Western region rose two points to 81, the South increased one point to 73, the Midwest rose a single point to 70, and the Northeast climbed five points to 59. FANNIE MAE TACKLES AFFORDABLE HOUSING AND SUSTAINABILITY To coincide with the launch of its Sustainable Communities Innovation Challenge (e Challenge), Fannie Mae announced the formation of an Expert Advisory Panel. e panel will support e Challenge, a two-year, $10 million initiative by the GSE to advance the growth of sustainable communities while addressing the nation's affordable housing shortage. e GSE recently launched the first phase of its three-phase plan, which includes accepting contract proposals to be reviewed. e final round of review will be performed by the Expert Advisory Panel. "Affordable housing is not an isolated issue. It requires a broad set of solutions and dedicated individuals," said Maria Evans, VP, Sustainable Communities Partnership and Innovation. "We have brought together a stellar group of experts representing a diverse range of backgrounds and industries. All will bring an important perspective to the panel that will take us one step closer to improve access to affordable, sustainable communities." According to Fannie Mae, the Expert Advisory Panel is a "key element" of e Challenge, as it brings in experts in economic development, employment, and innovation from the public, private, and nonprofit sectors. e panel will select proposals that it determines to be the most relevant in addressing issues regarding affording housing in the United States. According to Lucretia Murphy, Senior Director of Jobs for the Future, and Expert Advisory Panel member, efforts to increase economic mobility do not often connect with those to provide more affordable housing. is is a problem Fannie Mae hopes to address through e Challenge. "Investing in communities' efforts to develop a comprehensive solution for employment and affordable housing could be a game changer for residents and communities," said Murphy. "I look forward to serving on the advisory panel for the Fannie Mae Innovation Challenge."

• Cover