St. Joe County Housing Starts Down in 08

This post is actually from Mark Peterson @ WNDU. I am just re-posting it here for you to read.

Another economic crisis is vying for the attention of Congress.

The National Association of Home Builders has descended on Washington D.C. in search of a helping hand.

Some local home builders think that 2009 is bound to be the year things start looking up for the industry, if only because it's hard to imagine things getting any worse.

"You know, I don't thing we can honestly go lower," said Kim Baker with Weiss Homes. "As far as that is concerned, the market never goes to zero, I'm confident in that."

The market in St. Joseph county appears to have come dangerously close to zero, in 2008.

The city of Mishawaka had just 44 housing starts in 2008, compared to 112 the year before. In South Bend, there were just 55 housing start in 2008, down from 103 in 2007. In St. Joseph County, a total of 183 single family homes were built in 2008, compared to 287 the year before. Housing starts in the county had topped 500 back in 2004.

"Our national group is going before the capital to promote a stimulus package there," said Andy Place of Place Builders. "It's not a bailout, it's definitely not a bailout."

The plan is more a series of suggested tax incentives for people who buy new homes.

Last summer, Condgress did pass a tax credit for home buying, but that was limited to first time home buyers and it had to be paid back over a 15 year period.

The Home Builders Association would like to see a true tax credit extended to all buyers of principal residences. The group has also proposed that the credit amount be increased to as much as $22,000.

Some believe that the incentives would carry benefits well beyond those who wield power tools.

"If homes aren't being built, then the electrician might be out of work, or not have as much business, or the plumber might not have as much work," said Kim Baker.

"Let's look at carpeting, let's look at appliances, landscaping, all that is part of it," said Andy Place.