House Construction is Dead – For Now
House construction around the country has been stagnant the past months. This has resulted to a lot of disadvantages, including job loss. Banks are cutting off on loans, home builders are selling off projects, and homebuyers are on the sidelines.
However, experts and even home builders are not entirely discouraged. According to them, this situation is a freeze that would welcome a thaw. From the housing boom that preceded the current economic crisis, builders are now expecting the construction industry to bounce back, even slowly.
According to Adam Greenberg, BayBridge Real Estate’s managing director, there are no good starts at the moment. The market is stabilizing from the hard blow that it had experienced the past months.
This freeze in the construction industry has also been the reason for people to lose their jobs. Also, even major building companies have been felled after experiencing a lot of loss.
According to Anthony Saijas, the biggest factor that has been hurting the construction is the increasing number of properties that are being foreclosed and resold. He further adds that until the Multiple Listing Service inventory decreases, then the new house construction industry would continue to experience decrease.
According to Brad Hunter, the chief economist of Metrostudy, the housing boom afflicted the Miami-Dade area. This was the second place that stumbled, after Las Vegas. Hunter further adds that the number of houses being sold as brand new is outnumbering those that are being built. Also, the number of houses on the market is already declining, showing signs that the construction would soon reach its low point and would then bounce back.
Miami-Dade has been the area that has the number of houses that were listed for sale fall by around 50 percent, as compared to the first quarter of 2007. Also, Broward had experienced 50 percent decline in the same period. Condominiums also experience a lot of negative situations in the past months, as well as single-family homes and town houses.
According to Hunter, Miami has been experiencing the worst housing situation in the house market, but sees some light in terms of detached houses. It has seen big improvements in the past months. With these reports and information, the house construction industry is expected to rise and get back to normal in the coming months.
