State and local HBA presidents, with the help of HBA Executive Officers and newly developed NAHB resources, are being engaged in the front lines of this initiative to become more vocal spokespersons for the industry. In some markets, local HBA presidents may also recruit a few of their most seasoned and knowledgeable builder colleagues to create a team of "myth busters" who can talk to reporters about current conditions in the housing market. To assist in this effort, NAHB has created a new Myth Buster section under our Back to Basics Toolkit resources that are available to NAHB members-only on our Web site.

Understanding that the press has a tremendous influence on consumer behavior, NAHB's National Vice Presidents and State Representatives have initiated this program as a way to pro-actively engage the media and present a more balanced and accurate picture of current and projected conditions in the housing market. Specifically, the aim is to correct the record on the following:

Myth # 1: The sky is falling. Housing has always been a cyclical business, and it WILL bounce back with time. During the mid 1970s and early 80s and 90s, housing production and sales dropped by more than 60% in a matter of months. At those times, we confronted and overcame many of the same problems we face today, including an inventory overhang, tight credit and reluctant buyers.

Myth # 2: There's no mortgage money.  The vast majority of home buyers are seeking conventional, conforming mortgages at or below $417,000. These loans are purchased by Fannie Mae and Freddie Mac and carry an implicit government guarantee. So, while underwriting standards may be tighter for all loans, credit-worthy home buyers should have no problem finding conventional conforming mortgages at very attractive rates. Moreover, the latest moves by the Fed to cut interest rates and increase liquidity mean the availabilty of money for jumbo loans has also improved for credit-worthy borrowers.

Myth # 3:  Foreclosure rates are skyrocketing. While foreclosure rates have increased, almost all American home owners are making their mortgage payments on time and are in no danger of losing their homes. Most foreclosures are concentrated in the once-super-heated markets of California, Florida, Arizona and Nevada and the upper Midwest states of Michigan, Ohio and Indiana that have been hit by job losses and weak economies. Meanwhile, 97% of prime borrowers – the bulk of the market – are up-to-date on their mortgage payments.

Myth # 4: Home values are in a free-fall with no end in sight. Outside the 30 or so high-flying metro markets where home values doubled in four or five years, the correction in home values has been relatively modest. And, over time, home values will stabilize and then edge upward with the next recovery. To argue that home values will never recover, you would have to believe that it will cost less to build a new home five years from now than it does today – and that's not likely. 

NAHB Member Benefit: See our Myth Buster resources for HBA leadership, including media talking points, Q&A examples and helpful statistics, on our Web site. Note: you must be logged in as an NAHB member to view these resources. Also, visit www.nahb.org/toolkit for additional resources on coping with a down housing market, or contact Jay Shackford at x8406.

NAHB Member Benefit: NAHB has strongly encouraged and supported recent efforts by the mortgage industry to provide foreclosure prevention counseling and assistance to borrowers who have encountered mortgage difficulties. Such efforts can help Americans keep their homes, while reducing the buildup of vacant units on the market and showing that home builders care about their customers and the communities they help create. Going forward, NAHB will continue to publicize foreclosure prevention resources in communities throughout the country. [return to top]

-Three HBAs with existing green building programs
-Three HBAs just starting their own local green building programs
-Four builders willing to test the verification process directly
  through the NAHB Research Center
-Two types of verifiers at each pilot location

For the latest developments in our efforts to create a national green building program, visit www.nahb.org/greenbuildingprogram, or contact Calli Schmidt at x8132. 

NAHB Member Benefit: NAHB is committed to helping our members take advantage of arising opportunities in green building while avoiding inflexible, unworkable and costly mandates. [return to top]