Archive for the ‘House Construction’ Category

May turned out to be a period when a home construction company found itself with a lot of free time. According to the latest homebuilding statistics, residential construction activities declined by 10% during the month, leading homebuilders to say that their sector is unlikely to play any significant role in the economic recovery.

House construction and building permit applications declined in May, offsetting the strong performance of the manufacturing sector and the favorable wholesale inflation reports. The lack of construction projects also means that more people working in the industry are out of jobs. This further contributes to the high unemployment rates all around the country.

Industry analysts state that the performance of the construction industry has a huge impact on various sectors of the economy. The higher the unemployment rate, the less number of people are buying new houses or having dwellings constructed. Although mortgage rates have declined to an almost record low, the house construction industry still struggles.

Some economists have seen a slight positive to the trend. They stated that while the economy is growing, the housing industry remains in recession. However, despite the fact that the industry will not be able to contribute to the growth of the economy, it is also not going to pull it back down.

Home construction company activities for apartment and residential dwellings declined by ten percent, while building permit applications dropped by almost six percent. According to homebuilders, the decline is largely due to the expiration of the tax incentive offered by the federal government to home buyers.

Meanwhile, construction of single family dwellings dropped by 17%, making it the largest monthly decline since January 1991. Builders have stated that, with the tax incentive gone, it is unlikely that the sector will be able to sustain its first half performance. They added that the strong numbers posted by the sector during the first four months of the year were largely due to the tax credit.

Although home construction company projects are expected to remain flat for the rest of the year, industry observers believe that the national economy is still on its way to recovery and that the weak construction market will not hinder its pace.

Home construction firm Pulte Homes, the biggest home builder in the country, has been trying to perform its obligations to homeowners affected by the collapse in January of the retaining wall of its housing development called Rivermist in San Antonio, Texas.

The collapse of the wall caused crevices about 8 feet wide and about 15 feet deep in some portions. It also caused soil movement underneath several houses and it made 27 homes totally unsafe for homeowners.

After the collapse, about 90 families were evacuated and moved to hotels and other residential properties. Most homeowners returned to their homes later, except for the owners of the 27 severely damaged homes.

Last week, Pulte Homes offered to buy back the 27 damaged homes from the owners. It also offered to pay moving expenses, home improvements and legal fees. Centex, the division of Pulte Homes that developed Rivermist, also said that homeowners who opt to keep their houses will be provided with temporary housing while the retaining wall is built, completed and certified.

Pulte Homes said that it will take about six months to build a new retaining wall and will cost about $4 million to $5 million. City officials of San Antonio said that no permit was issued for the building of the retaining wall, but Pulte Homes insisted that all necessary permits were obtained and all city requirements were followed before home construction, retaining wall construction and all housing development activities.

Homes at Rivermist were sold at an average of $200,000, with units adjacent to the retaining wall priced higher because of their city views and their bigger sizes.

Some residents are complaining that the collapse of the wall has cut down home values. Homeowner Dell Hammett said that owners are angry because they put all their life’s savings into properties that lost value quickly.

In response, Pulte spokesperson Valerie Dolenga said that the housing development has been holding up in value, as evidenced by the recent sale of six homes after the collapse at the original listing prices. In addition, two of the properties affected directly by the wall collapse just got sold.

Last week, Pulte Homes Inc. was lauded by Fortune magazine as among the most admired firms in the world. Two of its home building companies, Centex and Pulte Homes, were among the top 5 firms in the home construction category. Pulte was second in the ranking while Centex, which was acquired by Pulte last year, was ranked fifth.

The pace of house construction stepped up in August, based on data from the U.S. Commerce Department. Construction of new houses and apartments increased by 1.5 percent to an adjusted yearly pace of 598,000 units in

August, with multifamily buildings contributing substantially to the growth. The adjusted annual increase was slightly below the 600,000-unit rate predicted by economists and lower by over 70 percent than the peak rate in 2006.

The number of building permit applications also increased in August by 2.7 percent to an adjusted yearly pace of 579,000 units, just a thousand below the 580,000 units predicted by economists. Permit applications for single-family houses declined by 0.2 percent while applications for multifamily units increased by 15.8 percent.

The increase in house construction in August, which followed a slight decline in July, was driven largely by the more than 25-percent surge in multifamily construction, which experienced a 15.2-percent slowdown in July.

The house construction sector that declined in August was the large single-family housing sector, which dropped by 3 percent to an adjusted yearly pace of 479,000, its first drop after five consecutive monthly increases.

Capital Economics economist Paul Dales said that new construction data remains 74 percent lower than the peak in 2006 and that housing recovery may take a longer time.

In contrast, Joel Naroff of Naroff Economic Advisors said that new construction will contribute significantly to nationwide economic recovery.

In the Northeast, home construction increased by 23.8 percent and in the Midwest, construction rose by 0.9 percent. Construction declined in South by 2.4 percent while it remained unchanged in the West.

Since the housing downturn, home builders have been cutting down their construction activities, but now that first time home buyers are looking for new homes to buy to take advantage of the federal tax credit, builders have returned to the market.

According to the National Association of Home Builders, the housing market index increased by one point in September to 19 points, indicating growing optimism among home builders. The index reading was the highest level reached since April last year.

Share prices of home builders also increased as home building firms reported improvements in their financial results. The stocks of Beazer Homes USA and Hovnanian Enterprises rose by over 6 percent this week.

Additionally, the Dow Jones House Construction Stock Market Index also rose since falling to its lowest level in November last year.

Build construction projects are expected to increase and stabilize in the coming months. This was according to the chief of Lennar Corp. Stuart Miller, as he launched his review of the company’s performance during the third quarter of this year. Miller expressed that the house building industry is already on its way to recovery, as […]

Although home builders have decided to construct fewer homes because of the economic recession, the quality of the new property construction is getting better as indicated by the increasing customer satisfaction. A report released by JD Power and Associates, it was revealed that overall satisfaction rose by 32 points for the second year, bringing it […]

To attain an energy-efficient and green home, you do not have to change your house design significantly. You just have to incorporate several features or change some of the materials used in your residential home construction. Some of the materials that you can use are wood composites and recycled plastic lumber. You can use these […]

Janalee, Moquin, a single mother living in York, Maine, was recently chosen by Habitat for Humanity to receive a house that would be constructed this summer. The board of the York County Habitat voted last Wednesday and decided that Moquin is the best applicant for the new house construction. As the new partner of the […]

Getting your very own house is probably one of the most important investments a person can make. A new house construction is a big project that an individual or a family can undertake. Aside from getting the best engineers, architects or contractors for the construction of your new house, it is also important for you […]

There is currently a lot of suffering new home builders across the country. As the US continue to suffer from an economic crisis, the housing industry continues to turn bad, and one of the most affected areas are those involved in new house construction. There are fewer and fewer houses to build because people are […]

There seems to be a new trend in new house construction. As the economic crisis looms over the housing industry, some Americans find ways for them to save up on construction costs. Homeowners are now taking the role of being home builders. Nine families took part in constructing their own houses through the Self Help […]