Property ManagementNAHB Endorses President Bush"s Tax Plan
The National Association of Home Builders (NAHB)
officially endorsed President George W. Bush"s tax plan and related housing
incentives at the conclusion of its record-breaking International Builders"
Show in Atlanta last week.
At a meeting of NAHB"s Board of Directors held during the International
Builders" Show, the association representing more than 203,000 professionals
in the home building, remodeling, multifamily construction, property
management, subcontracting, design, housing finance, building product
manufacturing and other residential and light commercial construction trades
resolved to work with Congress and the Administration in support of
President George W. Bush"s proposed tax package.
The NAHB Board also specifically resolved to encourage including in the tax
package a temporary tax credit of up to $6,500 for first-time home buyers
and temporary tax-free withdrawals from 401(k), IRA and other retirement
accounts for investment in a first-time home by the purchaser, his parent or
grandparent.
"Historically, housing tax incentives have helped stimulate housing
activity, employment and the U.S. economy, which is why we feel that a
timely stimulus to home buying will reverse the downward trend in the
economy and increase housing opportunities," said Bruce Smith, a home
builder from Walnut Creek, Calif., who became NAHB president on the final
day of the record-breaking International Builders" Show.
Economists appearing at the convention said that, while definite signs of
economic weakness have begun to appear, housing activity will probably not
fall too far or too fast in 2001. Odds of an economic recession occurring
were an estimated 30 to 40 percent, with the first half of this year seen as
more susceptible to a downturn than the second. Without a significant growth
slump, said the experts, conditions should start improving in late 2001 and
early 2002.
NAHB chief economist David Seiders predicted a 5-6 percent decline in sales
and production of new homes this year, but said favorable interest rates
should be a stabilizing factor. On top of two interest rate cuts in January,
he noted, the Federal Reserve will likely lower rates by another full basis
point by May.