Industry News

NAHB: Flashback to the 1990s recession

Credit crunch hits housing market hard

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It's beginning to look a lot like the early 1990s for the housing market, officials for the National Association of Home Builders trade group said during a "Credit Crunch" presentation Tuesday. "The housing market is down, it's hurting, and it doesn't look like it's going to bounce back as quickly as we'd hoped," said Jerry Howard, CEO for the builders' group. The focus of the presentation was on problems in the mortgage market and the impacts on the overall real estate market and economy. While the economy is not in a recession this time around -- at least not yet -- the risks of recession are increasing, said David Seiders, chief economist for the home builders' group. Seiders also said he believes the economy can withstand the drag of the housing market, though that will become progressively difficult if the housing market remains in the doldrums. "The contraction we have under our belts to this point, in percentage terms, certainly rivals the 1990-91 contraction when we...