MHMSM.com presents Factory Built Housing Industry News at Noon with Erin Patla.
Coming up, Concrete houses from South
Florida headed to hurricane-prone region
But first…these stories:
Single-Family Housing Starts Virtually
Unchanged in June
National Association of Home Builders (NAHB)
Single-family housing starts were virtually unchanged from the previous month at a seasonally-adjusted annual rate of 454,000 units in June, according to newly-released figures by the U.S. Commerce Department. Meanwhile, a 21.5 percent decline on the more volatile multifamily side weighed down the overall housing production number, which fell 5 percent to a 549,000-unit rate.
“As our most recent member surveys have indicated, builders remain very cautious in light of the sluggish pace of the economic recovery and the hesitancy they are seeing among potential home buyers,” noted Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “However, today’s report is actually somewhat encouraging, because it indicates that single-family production is stabilizing following an expected lull that occurred with the end of the home buyer tax credit program.”
“The government’s figures suggest that single-family housing production may be finding a bottom following the tax credits,” agreed NAHB Vice President and Senior Economist Bernard Markstein. “Over the next several months, we expect to see some improvement in both housing starts and sales activity as buyers come forward to take advantage of the very attractive home prices, historically low mortgage rates and excellent selection that characterize today’s new-home marketplace. However, builders continue to confront significant challenges in obtaining financing for viable new projects, and this problem remains a formidable obstacle to economic growth.”
Nearly all of the 5 percent decline in housing production was on the multifamily side this June, which fell 21.5 percent to a seasonally-adjusted annual rate of 95,000 units. Meanwhile, single-family starts hardly budged, with a 0.7 percent decline to 454,000 units. All four regions posted declines in overall housing production, with an 11.3 percent reduction in the Northeast, a 6.9 percent decline in the Midwest, a 2.4 percent decline in the South, and a 5.9 percent decline in the West.
Meanwhile, nationwide permit issuance, an indicator of future building activity, rose 2.1 percent to a seasonally adjusted annual rate of 586,000 units in June. While single-family permits fell 3.4 percent to 421,000 units for the month, that decline was due entirely to a drop-off in the South, with every other region holding steady or better on the single-family side. Multifamily permits rose 19.6 percent to a seasonally adjusted annual rate of 165,000 units in June. Combined single- and multifamily permit issuance was up 32.3 percent in the Northeast, down 10.8 percent in the Midwest, down 3.1 percent in the South, and up 9.7 percent in the West in June.
IN MARKET NEWS [for July 21, 2010], although stocks started yesterday with a big drop as new earnings at Goldman Sacks plunged 82 percent—homebuilders, chatter about the Federal Reserve and the hope of good news from Apple helped turn things around. An increase in building permits sent homebuilders and commodity producers higher, also helping the market. Building permits rose 2.1 percent last month propelled by a 20 percent jump in multifamily applications. In addition, Fed Chairman Ben Bernanke is scheduled to testify before Congress on Wednesday and may outline additional efforts to encourage bank lending. Manufactured-home-related stocks also moved up today with Deer Valley Corp rising more than 48 percent to close at 40 cents a share. Meritage Homes and Beazer Homes were both up nearly seven percent to close at $16.59 and $3.83 a share. Sun Communities, Skyline and Equity Lifestyle Properties were all up more than three percent for the trading day. The Dow ended up 75 points.
Cavco revenue gained ground for fiscal 2010, coming in at $116 million, up from $105 million, but still well off the Phoenix company’s five-year high of $190 million in 2006. Fiscal 2010 also marked the company’s first loss of the past five years, $3.79 million.
Equity LifeStyle Properties announced results Tuesday for the quarter and six months ending June 30. Funds from Operations were $27.1 million, or $0.76 per share compared to $23.7 million for the same period in 2009. Net income available to common stockholders totaled six million, or 20 cents per share. Property operating revenues were $119.0 million, compared to $116.1 million in the second quarter of 2009.
Trulia.com has announced that 24 percent of listings currently on the market in the United States as of July 1st experienced at least one price reduction. This represents a nine percent increase from the previous month. The total dollar amount slashed from home prices http://www.trulia.com/ was $27.3 billion and the average discount for price-reduced homes http://www.trulia.com/ continued to hold at 10 percent off of the original listing price. Price reduction levels for luxury homes (those listed at $2 million and above) continue to provide large discounts with an average of 14 percent off of the original listing price. The average discount for homes priced less than $2 million remains at 9 percent.
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“Up next, Concrete houses from South
Florida headed to hurricane-prone
But first, this podcast of News at Noon is sponsored in part by: LifeStylist.com http://www.LifeStylist.com – Lifestyle Driven Designs by Lifestylist® Suzanne Felber. Furniture, Decors and Model Homes designed for your budgets and your customers’ lifestyles.
Contact them on the Web at email@example.com mailto:firstname.lastname@example.org or LifeStylist.com http://www.LifeStylist.com or call 214-941-8341.
“And now, back to the news…”
Concrete houses from South Florida
headed to hurricane-prone region
South Florida Sun-Sentinel
A community of hurricane-resistant concrete homes will soon rise in the storm-battered city of Gulfport, Miss., under a new contract acquired by Royal Concrete Concepts.
The company, which builds its concrete modular homes on a 180-acre facility in Okeechobee [OH-keh-CHO-bee], will sell 248 homes capable of withstanding Category 5 winds through its Mississippi distributor, Concrete Building Concepts.
“Their biggest problem in that area is getting insurance for the homes,” said Anna Niehaus, director of residential business development for Royal Concrete Concepts, which has an office in West Palm Beach. “These homes are built with solid concrete floors, walls and roof, making them eligible for big discounts.”
A Category 5 hurricane carries winds greater than 155 miles per hour. Royal Concrete Concepts says its homes are resistant up to 186 miles per hour.
The 13-year-old company, which has about 150 employees, began building schools. It now has 18 floor plans for single-family homes. The homes are 95 percent completed when they are transported by flatbed truck to locations and then assembled by crane within a few days.
In Gulfport, which is still recovering from 2005’s Hurricane Katrina http://www.sun-sentinel.com/topic/disasters-accidents/meteorological-disasters/hurricanes/hurricane-katrina-%282005%29-EVHST0000123.topic, the Royal Concrete Concepts homes will be Southwest in style with between 1,000- and 1,400 square feet.
Sales prices for the homes, which will become part of a community called Turtle Creek, will range from $140,000 to $170,000.
The community is expected to get a designation of Fortified for Safer Living from the Tampa http://www.sun-sentinel.com/topic/us/florida/hillsborough-county/tampa-PLGEO100100404010000.topic-based Institute for Business & Home Safety guidelines. The certification should allow homeowners to pay cheaper insurance premiums. “Just because things are affordable and transportable doesn’t mean they can’t be strong,” Niehaus said.
“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!”