I have just attended the NAHB Fall Board Meeting in Seattle and the huge topic of conversation in the committee meetings, at the Executive Board and on the Board floor is the overall condition of our housing industry - its current state, how we got here and where do we think it is going. On a National perspective, the Home Building Industry is experiencing a significant slowdown and many builders/developers are in tight spots never before experienced. In the news, we hear daily about such things as the increase in foreclosures, the effects of sub prime lending, the results of no doc loans, interest only loans, adjustable rate loans, investor flight to quality thereby dumping huge amounts of completed inventory into the market, tightening of the entire credit picture, difficulties in the jumbo loan, developments in the pipe line now ready to move onto the market,  etc., etc…….. Add all of this to an ever increasing regulatory environment, increasing construction costs, tighter building codes, difficulties in the insurance industry …….and well it makes you want to shout out loud – I just love my job!

Take heart though in the knowledge that out market is cyclical – it always has been and it always will be. The last thing any of us need to do is to suffer any paralysis or panic. First of all, we here in North Carolina still enjoy a market of some strength. Our state is not in the same dire straights as Michigan or Arizona or Florida . We still have come areas within our state that are experiencing fabulous growth and opportunity (Western Mountains), there are many markets still chugging along at a respectable pace (the Piedmont) and yes, there are some areas which are struggling (the Coast.) The reasons for these challenging times are varied and diverse. I don’t feel like any of us should feel like we made huge mistakes and are total failures. We may have missed some of the early warnings the press was constantly screaming about (remember the three years of headlines predicting the bursting of the housing bubble) – but quite honestly the significant increase in interest rates, which has always been on the front end of a housing slow down, was just not there- the absence of “qualified” buyers was not there ( we had folks standing in line to buy out product) and the retreat of real estate values was just not there. All of these items are with us not and I would have to say—they came upon us at a rate which none of us have ever experienced. If these market situations have moved against us at  a slower rate, perhaps many of us would have been better prepared.

So, if you are finding yourself in tight places at this time may I suggest to you that now is the time to call on every resource you can to help you weather this “storm” and be one of the survivors who will be poised for huge success as our market returns in the future. Some of the resources available to you are found through NAHB with its hundreds of educational opportunities, the Back to Basics tool kit, Selling in Tough Times tips- use the NAHB.org website- spend an hour on it and you will be amazed at the quantity of resources available to you.

You can also gain insight though the State Association with its educational opportunities and especially it’s networking opportunities (talking to veteran builders and learning how they survived the pervious downturn can sometimes be a blessing to a new builder who is just getting started). If you are a builder member, communicate with your suppliers and trades and keep them informed about your plans and actions. Make them partners in your survival and growth and quite possibly you could receive some assistance form them through lower interest, material and/ or labor costs. Possibly consider some diversification  by taking on remodeling , room additions and even perhaps some light commercial work as those areas are still maintaining strength. Deal with your costs and analyze every piece  of your overhead looking for any unnecessary expense. Do not become invisible in your market- continue to promote your product, your service and your quality. We still have customers out there; just not as many as we had 18 months ago. Remember if your market is 30% off it is still 70% on. Act now versus later; don’t become “a deer in headlights” paralyzed by inaction and uncertainty.

Now I would like to report some of the NAHB highlights:

1). International Builders Show is scheduled for February 2008 in Orlando ( a critical  learning and networking opportunity).

2). International Builders Show for 2009 will be in Las Vegas (another opportunity)

3). NAHB Senior Officers and staff are communicating directly with the Federal Reserve Board making sure that our housing industry condition is clearly and accurately reported.

4). For any of you who want to learn  and serve the NAHB Committees still have ample room for you to participate.

5). NAHB Member Advantage Program has delivered more than $7 mil in savings to us across the nation. If your local association is not participating- do so now, the discounts available to us are significant.

6). NAHB approved the name change for the New Bern   HBA.

7). NAHB has agrees to financially help us in our fight against impact fees and transfer taxes.

I conclude this report with the following request--- USES THIS RESOURCE- www.nahb.org --- it is loaded with nuggets!!

Thank you for allowing me the privilege of serving you as the NCHBA State Representative. Let me know if I can help you in any way.