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Posts Tagged ‘slowdown’

Modular Becomes Solution for Supply Chain Slowdown

January 19th, 2017 Comments off
ModularBecomesSolutionforSupplyChainSlowdowncreditIndependentIE-postedtothedailybusinessnewsmhpronewsmhlivingnews

A Skyclad modular home. Credit: Independent IE.

As the U.K. battles an ever-increasing housing crisis, more and more people are looking to manufactured and modular housing as a solution.

Ashley Ilsen, Chief Marketing Officer and Head of Lending at development finance lender Regentsmead, tells MHProNews that supply chains, in the wake of the recent Brexit vote, have presented a unique opportunity.

Supply chains seem to have slowed since the Brexit vote and this is severely hampering the rate that we are able to build houses,” said Ilsen.

Cost of building materials is predicted to rise dramatically over the next few years, following our rather painful exit from the EU. Worryingly, this seems to be widely ignored by the government, which I can’t understand given that housing is such a prominent topic these days.”

ModularBecomesSolutionforSupplyChainSlowdowncreditRegentMead2-postedtothedailybusinessnewsmhpronewsmhlivingnews

Ashley Ilsen. Credit: RegentsMead.

Ilsen believes he knows the solution.

Modular housing could well be the answer here. We have come a long way from some of the pre-fabricated solutions that we saw during the 1990s. With a huff and a puff it would be touch and go whether these would stay standing, and after a few winters you were lucky if the size of your house wasn’t very different to when you first moved in,” said Ilsen.

Today we are of course in a very different age where we now have a plethora of various modular housing products. Each one I see seems to be even more superior to the last. The house is constructed in a third of the time as a brick and block structure. Usually, the house arrives on site in sections and is pieced together almost like a giant puzzle, something that has caused headaches for lenders that haven’t necessarily comprehended how to fund such buildings.

Ilsen feels strongly that as modular housing solutions become more mainstream in the U.K., it’s critical that lenders better understand them.

There may well be a different type of warranty required for a modular house; funds will need to be released in a different structure and when problems occur on site a lender should have the expertise to deal with it,” said Ilsen.

Modular builds will also carry a different site value as they are constructed, which means no more hiding behind the ‘bricks and mortar’ phraseology that we hear so often. There are also numerous risks involved in modular construction that a good development lender will have a deep understanding of.

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Credit: The Daily Mail.

The Daily Business News has covered the U.K. housing crisis, and potential solutions closely, including supermarket giant Tesco adding modular units on top of their store locations and an “urban bungalow” home created by Willerby Innovations. That story is linked here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Report says Housing Market may Return to Sluggishness

July 2nd, 2013 Comments off

As housing inventory expands, Redfin says the housing market is undergoing a slight slowdown, based on data from 22 markets across the nation that ranks the percentage of homes that go under contract within two weeks of their listing. HousingWire reports 32 percent of homes went under contract within 14 days of their entering the market in May, a drop of 1.2 points from April and the biggest decline since Dec. 2012. MHProNews has learned a rise in inventory may have contributed to the drop, as housing stock for sale grew 6.4 percent from March to April, 2013, and 4.2 percent from April to May. Additionally, the recent rise in interest rates may contribute to a further slowdown.

(Image credit: viewpoint.ca)

Hitch in the Housing Market Recovery?

April 11th, 2013 Comments off

BusinessInsider tells MHProNews the chief economist at Gluskin Sheff, David Rosenberg, citing the drop in mortgage applications from a year-over-year rate of 16% in Jan. 2013 to only three percent today—they fell 1.3 percent the week ending April 5– says U. S. housing demand is beginning to slow. He says real estate loans which rose last year following the housing bubble have turned down again. He adds that rising foreclosure starts combined with an apparent slowdown in job growth does not bode well for the housing market.

(Image credit: Fotosearch–question mark houses)

Warren Buffett Opines

October 24th, 2012 Comments off

NASDAQ reports in a TV interview this morning, Oct. 24, on CNBC, Warren Buffett says the housing market has turned a corner and home construction is improving, and he expects Berkshire businesses tied to that industry to pick up. Despite the global economy slowdown, the Oracle of Omaha says the U.S. is doing better than either Europe or Asia, and has high praise for Fed Chairman Ben Bernanke, saying he “has done an absolutely superb job,” although he questions his policy of quantitative easing. Buffett says he expects Berkshire’s carpet business to double its profits this year, and Clayton Homes will see an increase of 15 percent in production. As a result he expects Berkshire to add 8,000 employees to the roughly 270,000 employed at the beginning of the year, MHProNews has learned.

(Photo credit: businessinsider)

Housing Shortage: The Next Crisis?

August 23rd, 2012 Comments off

The Huffington Post reports Alex Charfen, CEO of the Charfen Institute and considered to be an expert on the U.S. housing market and the foreclosure crisis, says the coming housing crisis will be a housing shortage. Home sales and median sales price have both increased, while existing inventory has declined 24.4 percent, when comparing Q2 2011 to Q2 2012. Average home construction has been 1,531,900 each year between 1968 and 2008, but dropped to 647,600 between 2009 and 2011, according to the U.S. Census. The Joint Center for Housing Studies says the nation will need 1.18 million to 1.38 million housing units per year to meet the demand between now and 2020. Writes Charfen: “We will see a constrained inventory market in the immediate future. Couple this with the fact that housing is more affordable than it has ever been, and interest rates are at record lows, and the picture of an oncoming national shortage becomes much clearer.” As MHProNews has learned, due to the slowdown of the homebuilding industry in terms of supplies, suppliers, and available labor, the market could not respond to an increased demand very quickly.

(Image credit: FotoSearch)

Forecast Slows, says Canada Mortgage and Housing Corp

August 14th, 2012 Comments off

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GlobeMail tells MHProNews that Canada Mortgage and Housing Corp (CMHC). is forecasting a moderate slowdown in new-home construction starts as well as sales of existing housing. CMHC states that housing starts and home sales have been good in 2012 – particularly when it comes to multiple-dwelling units such as condos and apartments – but will soften moderately moving into 2013. “Balanced market conditions in most local housing markets will result in a slowing in house price growth as well,” Mathieu Laberge, CMCH’s deputy chief economist, stated. CMHC estimates between 196,800 and 217,000 units of housing starts in 2012. ##

(Graphic Credit: CMHC)

Will the Job Market Rise to Fuel Housing Recovery?

July 4th, 2012 Comments off

HousingWire reports an article in The Hill notes with barely four months before the presidential election, the Obama administration has a lot riding on employment figures. With tepid manufacturing numbers in June, a slowdown in China’s economy, and the European debt crisis still festering, analysts anticipate the jobs report due out Fri., July 6, will only show 100,000 new jobs created, not nearly enough to put a dent in unemployment statistics. The Institute for Supply Management (ISM) reports national manufacturing activity dropped from 53.5 in May to 49.7 in June. Any number below 50 indicates a contracting in activity; a reading of 47 would spell recession. As MHProNews.com has learned, the three keys to a significant housing market recovery are jobs, job, and more jobs.

(Photo credit: SuperStock)

Philadelphia Slowdown

June 22nd, 2012 Comments off

MarketWatch reports the Philadelphia Federal Reserve in its June Business Outlook Survey states manufacturing in the region is down for this month as firms noted a decline in new orders and shipments. Employment remained nearly the same, but average hours fell. More companies experienced a decline in prices for their products than experienced increases. Compared to the Nov. 2011 survey, fewer companies expect to decrease their capital spending, but 60% more firms plan to keep their capital spending constant. MHProNews has learned the respondents expect business to pick up in the next six months.

(Photo credit: Joseph Kaczmarek/The Post-Standard)

 

Hopes for Housing Recovery in Central MA

January 2nd, 2012 Comments off

The Telegram reports from Worcester, Massachusetts, that building permits for single and multifamily dwellings were down 55 percent for the first ten months of 2011. Timothy M. Warren, chief executive of the Warren Group, which publishes Banker and Tradesman, tells MHProNews.com he expects home sales to increase slightly in 2012, “and if that’s the case it would be the first time in seven years the volume has increased from the prior year.” He says foreclosures were up almost six percent over last October, but its an artificial increase. “We’ve seen dramatic declines in foreclosure activity, and my gut feeling is that’s not really an indicator of people being current on their mortgages,” he says. “It’s an artificial slowdown by lenders who keep getting their wrists slapped.”

(Graphic credit: City of Worcester, MA)