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Posts Tagged ‘economic downturn’

Iowa Climbing Back from Low Manufactured Home Sales

August 5th, 2013 Comments off

While the manufactured housing industry continues to recover, it still has a long way to go, according to Troy Hames of Hames Homes in Marion, Iowa. Noting the company has sold manufactured homes for 44 years in east central Iowa, Hames says new home sales in the state were 2,200 in 1996 but only 220 in 2012 and are expected to rise to 280 this year. The company also owns five manufactured home communities with a 90 percent occupancy rate, about 1,200 families, but 80 percent of sales are for previously-owned homes, thegazette informs MHProNews. Joe Kelly, executive vice president of the Iowa Manufactured Housing Association (IMHA), states financing has always been tough for manufactured home buyers, but the economic downturn combined with consumers taking advantage of low mortgage rates to buy site-built homes has made matters worse. Kelly says while there is pending legislation in Congress to ease lending for manufactured homes, he does not expect matters to change anytime soon.

(Photo credit: Adam Wesley/thegazette–Troy Hames entering a manufactured home)

NAHB Testifies before Congressional Subcommittee

April 10th, 2013 Comments off

The National Association of Home Buyers (NAHB), testifying before the House Financial Services Subcommittee on Housing and Insurance, urged lawmakers to move cautiously in reforming the Federal Housing Administration (FHA) because the tight lending standards are already preventing qualified home-buyers from obtaining mortgages, as MHProNews has learned. NAHB First Vice Chairman Kevin Kelly stressed the important role the government has played in this recovery because the private sector has “been unable or unwilling to meet housing capital needs,” especially for first-time home buyers, minorities, and those with limited down payment capabilities. “Changes to FHA’s programs cannot be separated from the larger discussion of reforming the complex housing finance system, including future reforms to Fannie Mae and Freddie Mac. Housing has led America out of every economic downturn and can do so again if the future policies regarding housing finance reforms are addressed in a manner that provides liquidity for the entire housing sector,” he added.

(Photo credit: Fotosearch)

Real Estate Guru Expresses Optimism

November 15th, 2012 Comments off

Dr. Mark Dotzour, chief economist at Texas A & M’s Real Estate Center, proclaims tax credits to buy homes or cars represents a fake economic recovery. When people buy because they want to marks a real recovery, which he says is starting to happen now because there is so much pent-up demand. As reported in CommercialSource, speaking to a National Association of Realtors (NAR) gathering, Dotzour stated that real estate is an investment, but the commodity markets are “hedging instruments, not investments.” He says Americans once again have credit after five years of postponing life events because of the economic downturn, which gives him optimism that the housing recovery is taking hold. But as MHProNews has learned, he also says many commercial real estate loans are buried in the system. Requiring another 5-8 years to flush them out. For more of his remarks, click here.

(Photo credit: CommercialSource/NAR’s Jan Hope welcome Dr. Mark Dotzour)

Is the Recovery Spinning Down?

April 5th, 2012 Comments off

The etruth in Elkhart County, Indiana says business leaders are cautiously optimistic about the future given business expansion and new jobs, but concerns remain about the increase in fuel costs that ultimately will be passed on to consumers that could drag the economy back down. Despite the 12.1 percent unemployment rate in this northern Indiana area that is home to numerous manufactured housing and recreational vehicle plants, as well as component suppliers, one employer says some jobs go begging because recent applicants work histories indicate they work until they qualify for unemployment and then quit. Another concern, according to Kevin Deardoff of Lake City Bank who has over 30 years in the banking industry, is people who used to pay their mortgage first now pay their credit card first, causing mortgage delinquencies to rise. MHProNews.com has learned homeowners who lost jobs became dependent on credit cards during the economic downturn, and realized it takes lenders longer to file foreclosure than to cut off a line of credit.

(Photo credit: Idaho Statesman/Chris Butler)

MH Community Proposed Again

January 16th, 2012 Comments off

MHProNews has learned from the Orlando Sentinel that a developer who was denied the right to site 1,500 manufactured homes in Volusia County on Florida’s east coast on a 1,033 acre tract in 2002 is trying again. Plantation Oaks of Ormond Beach LLC would border a very scenic route of overhanging oak trees along Old Dixie Highway, state parks, and beaches and wetlands. When owners of homes that sell in the $200,000 to $400,000 range filed a lawsuit ten years ago, the development was shelved, and county officials approved 1,577 single-family homes that were never built because of the economic downturn. Rick Smith says, “We tolerated the fact that there would be homes built there, and we settled our lawsuit based on the fact that they took mobile homes off the table.” The plan calls for multi-section homes for an MH community of 55 and older residents with patios and garages, with a price range of $80,000 to $140,000. Jim Morris, attorney for the developer, says, “Denying this request denies my client the opportunity to do something positive economically.” Jim Ayotte, executive director of the Florida Manufactured Housing Association (FMHA), says the trend has been for MHCs to be developed into conventional homes. But he notes there is pent-up demand for manufactured housing “because 10,000 people in America retire each day, and these communities are a good option for them.”

(Graphic credit: BingImages)