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NAHB Chief Economist on Housing Confidence

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    NAHB chief economist David Crowe on consumer housing market sentiment.

  • Duration 3:33
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Sorry guys more help for house public confidence now at its highest levels.

May of 2006.

The national association of homebuilders reporting it's monthly index rose five points in November.

Joining me now from Washington David -- he's -- economist for the it's an -- being an outmoded -- right into the issue of the regions with you.

-- -- particular because -- David I was looking at the northeast this does include hurricane sandy data correct.

That's correct -- -- but yet still the northeast dragged behind the other three regions of the country.

So why.

Well partially due to the fact that we just didn't get many responses.

People were either busy trying to help with the repairs -- didn't have electricity so they couldn't respond this is all done by Internet.

So our response rate was very low in the northeast that wouldn't take a lot of counsel from that particular number.

Okay okay now obviously this is you know current -- is current single family homes.

You prospective buyer traffic things like that what are the builders telling you about 85 points actually pretty decent job what are they sent.

Well the main thing they're saying is that the buyers they are seeing now are serious buyers so we've we've been seeing a lot of traffic and model homes and offices but the difference now is.

-- -- they intend to buy either they're not just tire kickers.

And those consumers are comfortable that house prices -- started to rise again.

They're comfortable that their jobs are probably more secure than they thought before.

I'd sell those postponed plans are finally coming to fruition to actually leap forward and purchase a house.

Brosseau -- a lot of the foreclosed homes to distressed homes that inventory is as decreasing.

Across the country and I'm sure that's helping as well but I -- -- -- but interest rates because Fed Chairman Ben Bernanke give a speech last week he said housing is not -- the what's this thing I thought was interesting he said.

At this point the panel has swung too far the other way overly tight lending standards may not be preventing.

Creditworthy borrowers.

From buying homes that that that's thereby slowly -- housing so who's a lasted a drop here -- of the banks.

Gonna get on board and start to -- we see any movement.

Had not much that's the same report we get from -- builders is that they -- -- a buyer or they're ready to go but they miss on some credit qualification issue.

That probably would not have occurred had this been back in a more normal period say in the early part of the two thousands.

On I don't know what's holding up the bank certainly there are a lot of uncertainties out there there's still many.

Rules to be passed after the Dodd-Frank legislation that could be part of it.

It's also the case that the federal government is basically control -- virtually the entire mortgage market and and and their.

Policies aren't exactly clear about future so there is a lot of hesitation.

In the mortgage market that's making it difficult.

A lot of concern about visiting USA today that the whole whole debacle from Friday -- for the privacy concern about a look at what ask is -- biggest land shortage.

At this -- -- -- senate they're having trouble acquiring new land to build on.

Yeah out that it that is going to be a more more serious problem that land development process is a long one.

And that pipeline completely shut down during this collapse.

-- so there isn't any inventory of developed lots coming on at least not much.

And so as the market begins to heat up and as buyers do come back to the marketplace we could see some shortages of -- land.

Interest saying so land developers once again and business that looks like after five long long years say the crow.

David thank you very much appreciate it.

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