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Posts Tagged ‘new home construction’

UFPI has Bright Future, but Short Term Risks

September 24th, 2015 Comments off

ufpi__creditMHProNews has learned from Nasdaq that Universal Forest Products, Inc. (NYSE:UFPI) has bright prospects for future growth but is dependent in the near term on housing construction, which is not consistent.

The company earns top grades for expanding and improving its product line, and expects to generate sales of $3 billion by 2017, including $250 million from a new product line. This year the company expects revenues of $190 million in new product sales, $100 million from five acquisitions from last year, and is poised to gain from rising demand in commercial construction.

UFPI’s retail building material sales are expected to reap the benefits of increased home improvement spending, while the housing and construction division will profit from new products and increased distribution capacities in the manufactured housing industry, to which it is a component supplier. The company will also gain from housing starts in the residential construction sector, providing that industry continues to expand.

However, rising costs and expenses, customer concentration and dependence on housing markets for its extensive line of wood products exposes it to risks, as does unfavorable movements in foreign currencies. As a result, Zacks has issued a hold rating on the stock.

In today’s trading UFPI closed down -1.24 percent at $59.62. ##

(Photo credit: Universal Forest Products, Inc.)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

 

Existing Home Sellers may be Surprised

July 8th, 2014 Comments off

Although construction spending grew insignificantly in May—a mere 0.1 percent—and private residential spending fell 1.5 percent for the same month, following an increase of 0.5 percent the previous month, analysts speculate that residential construction will rebound in the coming months, making the overall market for homes more competitive, according to housingwire.com. CoreLogic says in May there were 47,000 foreclosures completed nationally, down from 52,000 in May of 2013, shrinking that inventory, as MHProNews understands. Trulia.com reports collected data indicate 41 percent prefer building a new home to buying an existing home, suggesting that in markets where new home construction is increasing, sellers of existing homes may have a more difficult time than anticipated making a sale. Although mortgage rates have once again fallen, credit continues to be tight. ##

(Photo credit: comstockpremium.com)

Lot Shortage Sidetracks New Home Construction

September 5th, 2013 Comments off

A National Association of Home Builders (NAHB) survey reveals a shortage of buildable lots is contributing to the lack of a more robust housing market recovery. “In our August 2013 survey, 59 percent of builders reported that the supply of lots in their markets was low or very low—up from 43 percent September of last year, and the largest low supply percentage we’ve seen since we began conducting these surveys in 1997,” said NAHB Chief Economist David Crowe. “One reason is that many residential developers left the industry, abandoned certain markets or simply stopped buying land and developing lots during the downturn.” The shortage of lots leads to a higher price for the lots, which is ultimately passed on to the home buyer, further stymying a fuller recovery. Housing starts bottomed out at 550,000 in 2009, and has risen to just under 900,000 annually according to the Census Bureau. MHProNews has learned starts averaged 1.5 million from 1960 to 2000, always above the one million mark until 2008.

(Image credit: Fotosearch)

New Home Construction Continues to Stimulate Economy

July 4th, 2013 Comments off

According to the Commerce Department, of the 45,000 new houses sold in May, construction has not begun on 16,000, nearly 36 percent, up from 26 percent a year ago, and over two times the 14 percent rate from 2008 during the recession. Total new home sales in May rose to their fastest annualized pace since 2008, and permits for building new homes increased to a five-year high. As mortgage rates increase and prices continue to rise, would-be buyers will want to lock-in interest rates, and increasing values make homes a more attractive asset to lend against. However, as National Association of Home Builders Chief Economist David Crowe points out, builders still feel stymied by tight credit as well as shortages in available lots, labor and materials. He estimates starts on single-family homes will increase 150,000 over last year, as nationalmortgagenews informs MHProNews. These figures indicate strength in the home building market which translates into stimulus in the overall economy: Each new home creates three jobs, and triggers purchases of building materials as well as appliances and furniture.

(Photo credit: Fotosearch)

Modular Builder Holding Workshops on Construction

May 7th, 2013 Comments off

According to northbaybusinessjournal in Calif., Santa Rosa-based HybridCore Homes is designing the first phase of an 81-unit modular apartment complex in Williston, North Dakota, where the Bakken Oil Field has created a large demand for housing. The second phase calls for an additional 324 apartments. The name refers to the melding of off-site and on-site construction techniques for building a home, beginning with a module. Other modular projects HybridCore is working on include a 24-unit apartment in LaCrosse, Wis. and three single homes in Austin In California, the company has two projects with Calistoga Affordable Housing, a 60-plus townhome development, and several individual homes around the state. Otis Orsburn, vice-president of construction, says, “As new home construction gets back on the radar, we are getting calls daily about using the HybridCore Homes methodology of homebuilding.” The firm won the Best New Home Design in the 2,200 square foot category awarded by the National Modular Housing Council in April. MHProNews understands the company is holding a two-day workshop for builders May 22 and 23 in Santa Rosa to learn the technology.

(Photo credit: northbaybusinessjournal–HybridCore Home in Los altos, Calif.)

New Home Construction Tops One Million

April 16th, 2013 Comments off

As MHProNews has learned from CNNMoney, the seasonally-adjusted annual rate (SAAR) of housing starts topped one million in March for the first time since June 2008, 1.4 million, seven percent better than Feb. 2013 and a 47 percent improvement since last March, primarily attributable to the growth in multifamily construction (five or more units). The rental market is growing due to younger workers who have been living with their parents are moving into rentals as the job market picks up. Former homeowners who experienced foreclosure and/or bankruptcy continue to enter the rental market. Kevin Finkel, of Resource Real Estate, owner of 24,000 rental units, says the shortage will last for years. “We have had a very weak supply of apartments for almost 20 years now,” he says. The rising cost of supplies and shortage of construction workers could, however, dampen the recovery.

(Photo credit: nakedphilly)

Economists Expect Home Construction to Rise nearly 20%

April 16th, 2013 Comments off

MoneyMorning tells MHProNews residential construction is currently 2.44% of the gross domestic product (GDP), half of its historical norm, even with last year’s increases in new home construction. According to a Bloomberg survey of economists, housing starts are expected to increase by roughly 20% this year, and over the next two years 1.2 million residential construction jobs will be created. New home-building also has a ripple effect on the economy as a whole—demand for appliances, paint, tile, draperies, furniture, concrete also rise. If home construction returns to adding five percent to the GDP, and related economic activity adds another 13%, the economy could get enough of a shot in the arm to spur the recovery and create jobs and a housing renaissance as well.

(Image credit: Fotosearch Clip Art)

Fallout from the Improving Housing Market

March 21st, 2013 Comments off

The nytimes informs MHProNews the turnaround in the housing industry has led to such a shortage of existing homes for sale that would-be buyers in some areas are reluctant to list their homes for fear it will sell before they can find a replacement. Others are waiting to see how high prices may rise before they sell. In Sacramento, Calif., where the median house price has spiked 15 percent in 2012, realtor Kurt K. Colgan says, “In my 27 years I’ve never seen inventories this low. I’ve also never seen a market turn so quickly.” Across the country sales prices increased 7.3 percent in 2012, surging 23 percent in Phoenix. While new home construction languished during the recent lean years following the bubble, many tradespeople sought other careers, making it tougher for builders who now have work to find skilled labor. Many hard hats have gone to the high-paying oil field jobs in Texas and North Dakota. In addition, builders who own land may want to wait and get a better price as values rise. Harry Elliott III, president of 100-year old Elliott Homes who built 1,400 homes in 2006, 250 last year, and plans on 350 this year says, “If we could build 500 houses right now, could we sell them? Possibly, but I don’t want to sell all my lots that I’ve held on to forever and have to give them away at these prices. We lost money for a lot of years, and I’d like to make some money for a change. I’m not building because I need the practice.”

(Photo credit: Reuters)

Modular Homes Rising near Baltimore

March 20th, 2013 Comments off

According to baltimoresun, while new home construction is on the rise in Harford County, MD just northeast of Baltimore, it is well below the 1,800 to 2,000 residential permits issued in the early 2000’s. In 2012 the county issued 450 residential building permits for modular homes, townhomes, apartments and condos, 240 of those for single-family dwellings. Homes that took up to 18 months to sell in 2008 are now on the market less than six months, says Jim Richardson, director of the county’s Office of Economic Development. MHProNews has learned most of the existing homes currently on the market in the county are REOs owned by banks or those going through the short sale process.

(Photo credit: merchantcircle–modular home under construction)

New Home Construction Spikes

January 18th, 2013 Comments off

CNNMoney says the Census Bureau reports new home construction rose 12 percent Dec. 2012 over Nov. 2012 to a seasonally-adjusted annual rate (SAAR) of 954,000, well beyond the 889,000 expected by economists at Briefing.com, and almost 37 percent higher than Dec. 2011. While applications for building permits in Dec. changed little from Nov., Dec.’s 905,000 was 28.8 percent above the rate in Dec. 2011. As MHProNews learned, last month home prices notched the largest percentage rise in two years.

(Photo credit: Fotosearch)