Wednesday, January 19, 2011

BUILDER CONFIDENCE STILL AT LOW ACCORDING TO NAHB

Manufacturers and retailers in most industries are feeling more optimistic but prospects for the housing market remain dim.  Modular housing is one of the bright spots in housing with many builders and developers looking at modular homes as a way to cut their costs and improve the green appeal of their homes.

Th NAHB just announced that the Housing Market Index is stuck at 16 again This is the lowest rating in decades.  A rating of 50 or higher would indicate that a majority of builders have a favorable outlook.  Even if the index were to double next month, it would still be dismal.


Housing starts fell 4.3% to a seasonally adjusted annual rate of 529,000 from an downwardly revised 553,000 a month earlier, the Commerce Department said Wednesday. However, building permits, a gauge of future construction, surged 16.7% to an annual rate of 635,000.


Small and mid-size developers are struggling to obtain financing they will need to ramp up production because of the record number of foreclosures, continuing declines in home values and high unemployment, the demand for new homes is still weak.  Home builders are also competing with demand for previously owned homes.

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