News You Can Use - Trends and Numbers

Market Recap: RISI Crow’s House Residential Framing Index
A price index of lumber and panels used in actual construction for June 19, 2009
*Western - regional species perimeter foundation; Southern - regional species slab construction.
Crow's Market Recap -- A condensed recap of the market conditions for the major North American softwood lumber and panel products as reported in Crow’s Weekly Market Report. Read more.

Despite Programs, Stabilzing Housing Market May Prove Difficult, Officials Warn
Source: The Philadelphia InquirerPublication date: June 21, 2009
By Alan J. Heavens, The Philadelphia Inquirer

Government officials and other observers agree that the U.S. housing market cannot recover until the foreclosure crisis is solved and a regulatory system is put in place that ensures no repeat of the lending debacle that caused it.

Yet the remarks of Obama administration officials and consumer advocates at a conference of real estate writers and editors here suggest that the very depth of the crisis means a resolution is far from close in coming. Read more.

State of the Nation's Housing
A study released today by the Joint Center for Housing Studies of Harvard University finds that the housing downturn -- the worst in generations -- continues to grind on.

The positive news is there has been some stabilization in home building and home sales in the spring. Also, long-term demographics for future demand are strong. But real home prices continued to fall, and foreclosures mount in most areas in the first quarter of 2009. With mortgage interest rates heading higher in June and the economy still contracting, a sustained recovery for housing still faces an uphill climb, according to the report.

“Although there are some signs of improvement or at least steadiness in new construction and sales,” said Nicolas Retsinas, director of the Joint Center, “housing starts stand near 60+ year lows, and any life in home sales is coming from distressed foreclosure sales, temporary first-time buyer tax credits, and low interest rates that moved higher in recent weeks.” Read more.

Dealers Surge in Popularity Among Small Remodelers
HIRI study finds LBMs now top big boxes, but the economy may be warping the results
Source: PROSALES Information ServicePublication date: 2009-06-22
By Craig Webb

LBM operations nosed out big-box stores to become the preferred shopping source for small, general-service remodelers in 2008, a new study by the Home Improvement Research Institute (HIRI) finds. But the study's author believes the economic slump figured heavily in the swing, and he notes that specialty remodelers continue to rank LBMs fourth in popularity behind wholesalers, specialty suppliers and the big boxes.

HIRI based its just-released findings on a telephone survey earlier this year of 538 general and 1,203 specialty remodelers. The poll also carved out results from 100 Hispanic-owned general contractors, who unlike their non-Hispanic counterparts tended to be much more loyal to the big boxes.

'Vanilla' home loans could benefit borrowers
Source: Associated Press/AP
By ALAN ZIBEL

If President Barack Obama gets his way, consumers who take out mortgages would automatically get a "plain vanilla" loan - such as a traditional 30-year fixed-rate mortgage - unless they opted for a riskier variety.

Obama's plan to revamp financial regulation aims to protect borrowers from the confusing and high-risk mortgages that fed a pandemic of delinquencies and foreclosures, led to the worst financial crisis in decades and thrust the nation into a deep recession.

Obama is expecting opposition to the plan, and cautioned Saturday in his radio address, "While I'm not spoiling for a fight, I'm ready for one."

Government officials want to make the process of getting a mortgage as simple and abuse-free as signing up for a retirement savings plan: A growing number of companies now automatically enroll new employees in 401(k) plans unless they opt out. Read more.

Fed unlikely to try new aids for economy, for now
Source: Associated Press
By JEANNINE AVERSA

With the recession easing, Federal Reserve policymakers are unlikely to launch any major new efforts to revive the economy when they meet this week. Instead, Fed Chairman Ben Bernanke and his colleagues, wary of overdoing the stimulus medicine and fanning inflation later, are expected to stand pat, economists say.

The Fed has taken unprecedented steps to try to lift the country out of recession. They include a bold effort announced in March to plow $1.2 trillion into the economy in an attempt to lower interest rates and spur more spending by Americans.

"There are a lot of good signs that an economic recovery could get under way later this year, and with inflation currently low, the Fed for now has the luxury of sitting back and watching this recovery unfold," said John Silvia, chief economist at Wachovia. Read more.