Housing Price Drop Could Fall Another Eight Percent
CNN reports housing prices could fall another eight percent. Problems facing housing include a weak economy, sluggish hiring, tight mortgage underwriting, falling home prices, slowing sales and the potentially disastrous number of foreclosures that may occur over the coming years. Adding 8 percent to the drop would put the total peak-to-trough decline at 34 percent.
Tornado Video Misleading, Manufactured Homes Safe
From Chattanooga, Tennessee and News Channel 9 comes a story on the safety of manufactured homes during tornados. A television station there posted surveillance video from the Chickamauga Dam showing a tornado destroying two construction buildings. The video made many manufactured homeowners ask, how safe are they at home? Inspectors, however, told the station that manufactured homes are not any more vulnerable than conventional houses. Darlene Warren with the Tennessee Department of Commerce Manufactured Home Division explained to the reporter that homes in Tennessee are built to wind zone-1, which can handle wind speeds up to 100 miles per hour. The modular buildings seen getting blown away in the surveillance video are not strapped down. Warren said that’s because the law doesn’t require anchoring for temporary buildings at construction sites. Explore more about the safety of manufactured homes in wind storms in an earlier report at mhmsm.com, Tornado Caused More Destruction to Conventional Construction than to Mobile or Manufactured Homes
Delaware County Seeks to Clear Up Manufactured Homes with Back Taxes
From Delawareonline.com, Sussex County officials are targeting abandoned manufactured homes to clear up county tax rolls and help landowners rejuvenate residential home communities. The report indicates nearly half of the back taxes and fines owed to the county and local school districts are owed on manufactured homes located on leased land, which may be worth less than the taxes owed. People who live in manufactured homes on leased land owe the county and schools $5.3 million, out of $11.3 million total for all properties in the county. To collect some of that revenue, the county will pursue state legislation and develop a local plan to deal with future delinquencies. Some of the taxes may be waived. An official pointed to one home with a tree growing through the center, not inhabitable, but still amassing taxes and penalties.
UMH Purchases Five PA Communities
RTT News reported that UMH Properties reported Monday it reached a definitive agreement to buy five manufactured home communities located in Pennsylvania. The aggregate purchase price to be paid by UMH in this transaction is approximately $25 million. The transaction is expected to be completed during the fourth quarter of 2010. Company representatives did not respond to a request for comment by the filing of this report.
New Manufactured Housing Plant Comes to Indiana
From Indiana the Greene County Daily World reports that commissioners there passed a resolution Monday that designates the entire county an Economic Recovery Development Zone and opens the door for a new manufactured housing plant. Stone Creek Homes, a manufactured housing firm, will utilize the bonds for the opening of a facility in the old Sunbeam plant. Winalta USA and Advanced Building Concepts previously occupied the building. The county’s share of low-interest bonds for public works projects were made available through the American Recovery and Reinvestment Act of 2009.
On Again, Off Again Development Irks Homeowners
Fox 5 in San Diego, California reports that Seniors residents at a Mission Valley factory-built housing community have been “living in limbo” since a national developer sent multiple lease termination notices over the last three years. Residents told the reporter Archstone-Smith Group, has recalled and resent notices announcing it was going remove the [single family homes] and build more than 400 condos. According to plans, Archstone-Smith wanted to build a 444-unit complex with a retail value of roughly $400,000 per unit. Neighbors indicate the lack of resolution is stressful.
Atlanta Neighborhood Becomes Home to New World Modulars
Mother Nature Network reports that a revitalization project in the Reynoldstown neighborhood in Atlanta, Georgia is home to a new green affordable housing pilot program. The pilot program is the result of a partnership between New World Home and Resources for Residents and Communities (RRC). The new eco-friendly housing development is within walking distance of Atlanta’s public transportation system, which is an important part of creating a 21st century sustainable community. The community being called Legacy Pointe will feature approximately 14 New World Homes built on the company’s New Old Green Modular (NOGM) housing platform. The first model home in the Legacy Pointe community is scheduled to open next month.
Homeway Homes Produces Green Home for Its General Manager
The Schieler family manufactures over one hundred modular homes each year for families in five Midwest states with their company, Homeway Homes in Deer Creek, Illinois. Now, the company has manufactured a special one for general manager, Ted Schieler, and it’s green. Schieler’s new house, a 1,700 square foot, ranch-style home based on the company’s existing “Concord” model, incorporates energy-efficiency, water capture and conservation, sustainable or recycled products, and measures to protect indoor air quality, and doesn’t sacrifice on style or attractiveness. The home also includes a geothermal energy source instead of fuel, which refers to a process using heat from deep in the earth to heat or cool the home. The Department of Energy (DOE) and Environmental Protection Agency (EPA) have endorsed ground source heat pump systems as among the most energy-efficient and environmentally friendly heating, cooling, and water heating systems available. Schieler’s new home includes ENERGY STAR appliances, low flow plumbing fixtures, dual flush toilets, a rainwater retention system, low to no VOC paints, and sustainable building products throughout.
Drew Says MH Performance on Par with 2009
Drew Industries Incorporated (NYSE: DW), a leading supplier of components for recreational vehicles (RV) and manufactured homes, reported net income for the third quarter ended September 30, 2010 of $8.0 million, or $0.36 per diluted share, compared to $7.2 million, or $0.33 per diluted share, for the 2009 third quarter. Drew say net sales in the third quarter of 2010 reached $147 million, 21 percent higher than the $122 million of net sales in the third quarter of 2009. This sales increase was largely the result of a 17 percent increase in industry-wide wholesale shipments of travel trailers and fifth-wheel RVs, Drew’s primary market. Drew’s RV Segment represented 83 percent of Drew’s consolidated net sales in the 2010 third quarter. Industry-wide production of manufactured homes in the third quarter of 2010 is estimated to have been level with last year.
Dow Flat After Wild Ride
Finally, after an early day surge of more than 100 points, the Dow closed just six points higher Monday. The Manufactured Housing Composite value was essentially flat, gaining just two tenths of one percent. There were some big movers among manufactured housing and related stocks, however. Cavco and Sun Communities moved ahead more than two percent while Drew Industries, Barnes Group, Nobility Homes, Palm Harbor Homes, All American Group and Skyline Corporation lost value