MHMSM.com presents Factory Built Housing Industry News at Noon with Erin Patla.
Coming up – 5,430 New HUD Code Homes Shipped in June 2010, up 21.8 Percent from June 2009
But first…these stories:
Area sales up sharply as more people turn to manufactured housing
Overall home sales have taken a hard hit in our region, much like the rest of America. But not at Clayton Home Sales Centers, including the stores serving Santa Rosa Beach. Clayton’s numbers for the first half of 2010 are in, and the company’s sales are up 22 percent from this time last year.
Clayton Homes’ results are astonishing considering the challenges homebuilders face. The nation’s seasonally adjusted annual rate of new single-family house sales in May 2010 was 300,000. That’s down almost 33 percent from the month before, which was down 18 percent from the month before that according to the U.S. Census Bureau and the Department of Housing and Urban Development. In fact, new home sales in May 2010 were a record low.
But Clayton customers, both here and elsewhere, are keeping the numbers from going even lower. According to The New York Times, nationally, manufactured homes made up nearly a quarter of all new homes sold for less than $200,000 in 2009. Manufactured homes are a major factor in the affordable-housing sector.
So why is manufactured housing bouncing back when traditional site built homes are still fatigued? Essentially, purchasing a manufactured home gives buyers more “bang for their buck.” Clayton Homes offers amenities like flexible floor plans, a size that suits their family and more style choices than ever before.
“A Clayton home buyer will ultimately receive more amenities than someone who buys a traditional site-developed home,” said Bobby Alberts, zone vice president, Clayton Homes. “Prices of residences that are built on-site are soaring, and if you find one that is affordably priced, it probably doesn’t have many features or luxurious amenities like a manufactured home can offer.”
“Home construction and sales are important economic drivers,” said Kevin Clayton, president and CEO of the company. “We hope the trend we’re seeing is part of an economic turnaround for all industries.”
IN MARKET NEWS
Thursday Cavco Industries announced financial results for the first quarter of its fiscal year 2011 ended June 30, 2010 revealing a turnaround. Net sales for the first quarter of fiscal 2011 totaled $47,505,000, up 249 percent from $13,595,000 for the first quarter of fiscal year 2010. The first quarter 2011 results include the Fleetwood Homes operations which, as previously reported, were acquired during the second quarter of fiscal year 2010. Net income attributable to Cavco stockholders for the fiscal 2011 first quarter was $518,000 compared to net loss of $1,449,000 reported in the same quarter one year ago.
Cavco’s senior management will hold a conference call to review these results today, August 6, at 12:00 noon (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at cavco.com under the Investor Relations link. An archive of the webcast and presentation will be available for 90 days at cavco.com under the Investor Relations link.
The news at UMH Properties wasn’t a rosy. UMH released operating results this week. Total income at UMH decreased by approximately 3 percent from $8,118,648 for the quarter ended June 30 to $7,862,640 for the quarter ended June 30, 2010. Total income increased by approximately 2 percent from $15,760,947 for the six months ended June 30, 2009 to $16,023,912 for the six months ended June 30, 2010. These variances were primarily due to an increase in rental and related income, but a decrease in sales of manufactured homes. Income at the company primarily consists of rental and related income from the operation of its manufactured home communities. Income also includes sales of manufactured homes. Sales of manufactured homes amounted to $1,091,480 and $2,548,431 for the quarter and six months ended June 30, 2010, as compared to the $1,494,118 and $2,579,918 for the quarter and six months ended June 30, 2009. The company says sales have continued to be disappointing due to weaknesses in the overall economy.
Stocks ended modestly lower Thursday on disappointing employment news. Stocks were down 5 points to close at 10,674. Big movers among manufactured home stocks included Skyline Corp, off more than ten percent to close at $19.35 per share. Meritage Homes was off two and a half percent to close at $16.98 per share. The manufacture home composite value was off more than four percent.
Dick Ernst Discusses Progress Made at Elkhart, MHI Summer Meeting in Part One of Our Exclusive Interview
MH Industry InFocus Reporter Eric Miller, joined by MHMSM.com Publisher ‘Tony’ Kovach, spoke Wednesday with industry consultant and once interim-president of MHI, Dick Ernst. The conversation produced some perceptive insights into some of the most pressing issues in the manufactured housing industry today. Ernst shared his view with MHMSM.com that Fannie Mae and Freddie Mac are using their conservatorship as an excuse not to serve the manufactured housing industry as mandated by Congress.
Be ready to read Part Two of the InFocus interview with Dick Ernst Monday at MHMSM.com.
“Up next, 5,430 New HUD Code Homes Shipped in June 2010, up 21.8 Percent from June 2009”
But first, this podcast of News at Noon is sponsored in part by: LifeStylist.com – Lifestyle Driven Designs by Lifestylist® Suzanne Felber. Furniture, Decors and Model Homes designed for your budgets and your customers’ lifestyles.
5,430 New HUD Code Homes Shipped in June 2010, up 21.8 Percent from June 2009
MHI’s Monthly Economic Report© for June 2010 is now available.
The Manufactured Housing Institute’s actual shipments report indicates that 5,430 new HUD Code homes were shipped in June 2010, up 21.8 percent from June 2009. Increases were across the board with both single-section and multi-section home shipments up, compared with the same month last year.
In comparison with the first half of 2009, 2010 started off with a decline in January (down 17.4 percent); shipments in February were essentially flat, followed by consistent gains in March through June. In net, industry shipments for the first six months of this year stands at 26,402 homes compared with 24,395 homes in 2009, a year-to-date increase of 8.2 percent.
The seasonally adjusted annual rate (SAAR) of shipments was 59,235 in June, up by 6.3 percent from the rate of 55,703 posted in May. The SAAR corrects for normal seasonal variations in shipments and projects an annual shipments pace based on the current monthly total.
Total floors shipped in June 2010 were 8,789, up 19.2 percent from the same month in 2009. The number of plants reporting production in June was 133, and the number of reporting corporations was 57, both reduced from the prior month.
If you are an MHI member, you can also access the complete report on MHI’s website at manufacturedhousing.org.
“On behalf of Production and IT Manager Bob Stovall, Editor L.A. ‘Tony’ Kovach, Associate Editor Catherine Frenzel, INdustry in Focus reporter Eric Miller, and the entire MHMSM.com writing and support team, this is Erin Patla. G’day!”