The NAFCU Journal January - February 2018 - 28

"

While credit unions have been able to
squeeze more out of the vehicle market
than other lenders, we expect some of that
momentum to fade in 2018.

"

- CURT LONG, CHIEF ECONOMIST AND VICE PRESIDENT OF RESEARCH, NAFCU

of 2017. More than one cautioned that
conditions could change suddenly in
light of the political world we now live
in. As a result, credit unions should
consider the following advice as guidance, not gospel.
LENDING FOR HOUSING
AND AUTOS
Previously depressed housing prices
have finally bounced back in many markets, particularly "sand states" hit hard
by last decade's housing bust. Some
regions, such as cities on the West Coast
and throughout the Southwest, are
scrambling to increase housing stocks
to keep up with demand. Low inventories and land or labor constraints are
pushing up pricing in "hot" markets.
Elsewhere, natural disasters such as
recent hurricanes and wildfires may
influence sales in early 2018. A spike
in new construction could force some
homeowners, especially those with
larger and more established dwellings,

to seek home equity loans instead of
competing with new neighborhoods.
"It's definitely now a seller's market,"
Jacksonville's Inman said. "The purchasers have outpaced the sellers now, and I
think it's very, very strong." He predicts
the preference for moderate-sized homes
will continue.
"What I hear is an increase in housing
across the state. I think there's a net
migration coming back to Florida," he
continued. "What's most unusual to me
is we still have a vast amount of land to
develop and are going well outside core
communities to build new communities."
In Greensboro, N.C., housing is expected
to remain solid.
"Our region never experienced the boom
as did certain other regions, but we have
witnessed steady growth for a number
of years," said Fred Eisel, senior vice

president and chief investment officer for
Vizo Financial Corporate Credit Union.
"Both housing starts and building
permits are up nicely since this time last
year and above national trends. Home
values appreciated around 3 percent year
over year since late summer, which is
slightly below the national average but
trending nicely, given this area didn't see
a drastic drop in prices either."
As for 2018, Eisel predicts similar
growth for his region, though those
who left the construction industry
during the Great Recession haven't all
returned. "This has pushed the construction of a new home from around
six months to closer to eight months,"
he explains. "Materials costs continue to
increase, but what we are seeing in this
area is labor costs have not increased as
much as in other regions, so a number
of subcontractors are going to other
areas where costs are higher so they can
earn higher wages. Looking into 2018,
it appears to be more of the same, and
it is expected construction costs will
increase as labor costs will catch up to
other areas given the limited supply of
labor currently available."
In Michigan, Michigan Schools and
Government Credit Union Finance
Director Bill Walby saw a strong housing

THIS YEAR'S CREDIT UNION ECONOMICS GROUP PANELISTS

Fred Eisel, senior
vice president, chief
investment officer,
Vizo Financial
Corporate Credit
Union, Greensboro,
N.C.
28

Sam Inman, chief
financial officer, Community First Credit
Union of Florida,
Jacksonville, Fla.

Scott Knapp, director
of investment strategy,
CUNA Mutual Group,
Madison, Wis.

Curt Long, chief
economist and vice
president of research,
NAFCU

Bill Walby, finance
director, Michigan
Schools and Government Credit Union,
Clinton Township,
Mich.

THE NAFCU JOURNAL  JANUARY-FEBRUARY 2018



Table of Contents for the Digital Edition of The NAFCU Journal January - February 2018

Conferences
From the Chair
Advocacy Snapshot
Washington and Industry Briefs
Growth Strategies
Stepping Into the Future
A Clear Path Forward
Economic Outlook: It’s Complicated
NAFCU 2018 Vendor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal January - February 2018 - Cover1
The NAFCU Journal January - February 2018 - Cover2
The NAFCU Journal January - February 2018 - 1
The NAFCU Journal January - February 2018 - 2
The NAFCU Journal January - February 2018 - Conferences
The NAFCU Journal January - February 2018 - From the Chair
The NAFCU Journal January - February 2018 - 5
The NAFCU Journal January - February 2018 - Advocacy Snapshot
The NAFCU Journal January - February 2018 - 7
The NAFCU Journal January - February 2018 - Washington and Industry Briefs
The NAFCU Journal January - February 2018 - 9
The NAFCU Journal January - February 2018 - 10
The NAFCU Journal January - February 2018 - 11
The NAFCU Journal January - February 2018 - 12
The NAFCU Journal January - February 2018 - 13
The NAFCU Journal January - February 2018 - 14
The NAFCU Journal January - February 2018 - 15
The NAFCU Journal January - February 2018 - Growth Strategies
The NAFCU Journal January - February 2018 - 17
The NAFCU Journal January - February 2018 - Stepping Into the Future
The NAFCU Journal January - February 2018 - 19
The NAFCU Journal January - February 2018 - 20
The NAFCU Journal January - February 2018 - 21
The NAFCU Journal January - February 2018 - A Clear Path Forward
The NAFCU Journal January - February 2018 - 23
The NAFCU Journal January - February 2018 - 24
The NAFCU Journal January - February 2018 - 25
The NAFCU Journal January - February 2018 - Economic Outlook: It’s Complicated
The NAFCU Journal January - February 2018 - 27
The NAFCU Journal January - February 2018 - 28
The NAFCU Journal January - February 2018 - 29
The NAFCU Journal January - February 2018 - 30
The NAFCU Journal January - February 2018 - 31
The NAFCU Journal January - February 2018 - 32
The NAFCU Journal January - February 2018 - 33
The NAFCU Journal January - February 2018 - 34
The NAFCU Journal January - February 2018 - NAFCU 2018 Vendor Directory
The NAFCU Journal January - February 2018 - 36
The NAFCU Journal January - February 2018 - 37
The NAFCU Journal January - February 2018 - 38
The NAFCU Journal January - February 2018 - 39
The NAFCU Journal January - February 2018 - 40
The NAFCU Journal January - February 2018 - 41
The NAFCU Journal January - February 2018 - 42
The NAFCU Journal January - February 2018 - 43
The NAFCU Journal January - February 2018 - 44
The NAFCU Journal January - February 2018 - 45
The NAFCU Journal January - February 2018 - 46
The NAFCU Journal January - February 2018 - 47
The NAFCU Journal January - February 2018 - 48
The NAFCU Journal January - February 2018 - 49
The NAFCU Journal January - February 2018 - 50
The NAFCU Journal January - February 2018 - 51
The NAFCU Journal January - February 2018 - Executive Spotlight
The NAFCU Journal January - February 2018 - 53
The NAFCU Journal January - February 2018 - Management Insight
The NAFCU Journal January - February 2018 - 55
The NAFCU Journal January - February 2018 - Compliance Central
The NAFCU Journal January - February 2018 - 57
The NAFCU Journal January - February 2018 - Inside NAFCU Services
The NAFCU Journal January - February 2018 - 59
The NAFCU Journal January - February 2018 - From the President’s Desk
The NAFCU Journal January - February 2018 - Cover3
The NAFCU Journal January - February 2018 - Cover4
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