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Home builders have probably started on more houses last April, after the US economic outlook increased for the first time in a long time. This is a clear sign that the dust is already settling, and that the recession is already abating. This insight was given by economists last week.

House construction has risen by around 2 percent to an annual rate of 520,000 units. This is a good sign amid the slump in the housing industry that has been happening in the past four years. Among the other components are rising customer confidence and increasing stock prices. The economy is seen to be experiencing growth in the next coming months.

According to Zach Pandl, a Nomura Securities International Inc. economist, house construction had already reached their toughest and lowest time last year, and is now on its way to recovery. He further adds that with this slow growth, the recession is seen to be coming to an end.

The housing report from Commerce strengthens this outlook and sees future house construction starts. Other data about the housing industry have been showing good signs of stability and continuous, although slow, growth.

Home builders are even becoming more optimistic about the construction industry, although they continue to experience some negative effects of the recession. For one, the largest home builder in the country, D.R. Horton Inc., has in fact experienced loss for the last quarter. According to Donald Horton, chairman of the big construction company, the condition in the construction market are still difficult and quite challenging for them.

In addition, financing is still difficult for home buyers. This is according to a recent report by the Federal Reserve. A lot of lending companies are becoming stricter in releasing and approving loans, giving home buyers a very hard time before they can start on their houses.

The jump in the economic outlook for house construction was the first and the biggest in almost a year. This is further strengthened by data showing that even manufacturing companies are slowly easing their way out of the economic recession. Lastly, the Labor Department is expected to report that jobless claims that resulted from the shutdown of some Chrysler LLC plants has caused applications in the week before.

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.

New house construction is expected to improve with the move of home builders around the country to turn renters into buyers of homes. By gathering contact information of renters across different areas, they attract renters through different marketing strategies.

According to Dan Klinger, K. Hovnanian American Mortgage president, construction companies are going back to basics as the market for the construction industry gets tougher as time passes by. He further adds that talking to renters and reaching out to them is one of the most basic strategies in the market.

Also, home builders are redesigning their houses by making them smaller and more affordable than before, this move is expected to attract first-time home buyers. Home builders are now faced with a lot of other challenges, such as fears from home buyers that prices may even fall further, their inability to get enough credit for new house construction, foreclosure cases, and the insecurity of almost all jobs in the country now. All these problems have hurt the construction industry badly.

According to Mid-America Apartment Communities, the number of people who are leaving their houses for rent to buy new homes have already fallen by around 31 percent, compared to a year before. With around 89 million occupants of properties or apartments for rent, home builders still see positive light and sense that people would still opt for a new house than stay in a house for rent.

According to Jeffrey T. Mezger, president and chief executive officer of KB Homes, the renting market is an untapped one. There are a lot of opportunities to sell new homes, so this is a very important area that home builders are currently exploring.

The company, KB Home, has recently redesigned its website to give more emphasis on savings and good deals for those interested to buy homes. According to Mezger, this strategy has been very useful in their marketing strategy. The company is also more flexible to customer requests now, such as specific requests in floor plan. This strategy has improved their performance in the market.

They also hold seminars in which they teach renters to design their houses and make a nearly customized house. This helps new house construction companies attract buyers. Further, KB Homes work with Equity Residential for its Rent with Equity Program.

The economic crisis has gotten from bad to worse in the past weeks. According to Ivy Zelman, the CEO of Zelman & Associates, the current financial situation right now have actually been worse than what people have imagined. With this, the house construction industry has been taking defensive measures to keep their profits coming. Some […]

House construction continues to attract more and more buyers, as the industry sees new hopes in the past weeks. Now, a lot of companies are giving incentives to buyers, resulting to better sales. Now, buyers can start their house construction even if they are not sure of what their future could bring them. House construction […]

New house construction for Americans aged 55 and above has recently dropped by 50 percent. This data was released by the National Association of Home Builders on Tuesday, adding that only 126,000 new houses are set for construction this year. This was half of the 249,000 houses last year. Next year, however, house construction for […]

Green house building is getting more popular in new house construction. In fact, two newly constructed homes in Elmhurst are both green homes. This information was given by Laura Reedy Stukel, a certified agent of EcoBroker at LW Ready Real Estate. The first house was constructed under the supervision of Styczynski Walker and Associates. The […]

The house construction industry saw its second lowest point in March when it dropped by 10.8 percent. This is a sign that the crisis in the housing industry is not yet over, and is continuing to loom over the whole country. Both industry players and the regular homeowner or buyer sees this situation as a […]

Employees of the call center of JP Morgan Chase, as well as those of Washington Mutual, join together on a project that aims to reaffirm their dedication and commitment to San Antonio. The project is a new house construction for the nonprofit organization Habitat for Humanity. According to Jay Clingman, chairman of the JP Morgan […]

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