New-home construction rises???

Discussion in 'Economy' started by DavidS, Mar 17, 2009.

  1. DavidS
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    DavidS Anti-Tea Party Member

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    New-home construction logs unexpected gain: Financial News - Yahoo! Finance

    WASHINGTON (AP) -- The number of new housing projects that builders broke ground on in February rose sharply, defying economists' forecasts for yet another drop in activity.

    The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units. Economists were expecting construction to drop to a pace of around 450,000 units.
     
  2. mascale
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    mascale VIP Member

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    In Weird Los Angeles, which even has a newspaper, bucking the trend--and going against the grain--is itself actually normal.

    "Hopes Stir In Housing Market," is front page March 18 story. Mostly, the Irish Pubs on the Westside had lines forming: Way before the sun went down., (and likely before lunch).

    So with things looking up, what is the news? The six Southern California counties turned in a 41.3% increase in home sales compared with February, 2008. The median selling price was down about the same percentage from last year: But was unchanged from January, 2009.

    Even in pop culture advertising: You can't have a bottom without Southern California. And you can't have a tan without Coppertone!"

    "Crow, James Crow: Shaken, Not Stirred!"
    (Now watching Her Majesty's former aborigines--Now Post-Davos, like the PM accurately suggested--just magically discovering their bottoms again.)
     
    Last edited: Mar 18, 2009
  3. auditor0007
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    auditor0007 Gold Member

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    This is wonderful news; more homes on the market to help drive prices down further.
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Recession in the home building industry continues...
    :eek:
    Building permits fall to all-time low
    March 16, 2011 -- The housing market just can't seem to catch a break. The number of permits issued in February for future housing construction fell to a new all-time low, according to a government report released Wednesday.
     
  5. American Horse
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    American Horse AKA "Mustang"

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    I would expect the cost of drywall, cement/concrete, glass, HVAC/furnaces and lumber to go up just like it has in the past when we had domestic disasters such as hurricane's in Florida.

    Prefabricated building systems like trusses or engineered or steel beams won't change much.


    Energy costs such as gasoline or diesel fuel don't have much impact.
    Consider how much an extra hundred dollars worth of fuel (on top of the status quo ante) will add to a product when a 100,000 pounds is transported, and then sold by the piece or individual bunk. S
    Say a bunk of 350 studs costs $10 more to get to the yard; that's an increase
    of $0.03 per stud increase.
     
    Last edited: Mar 20, 2011
  6. American Horse
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    American Horse AKA "Mustang"

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    Builders aren't holding back because of fuel costs.
    They are holding back because they already have unsold inventory, or they realize they can't compete with the distressed inventory that is held by others. If they go ahead and build it speculatively they stand a very good chance of working for nothing.

    Some will have to start something, but mostly builders will do just enough to survive. In a case like that they might build a singly unit and do as much as they can with one key employee and work at it themselves. The big companies like TK-Constructors will go ahead with any project they have customers for. And that particular company (one of the biggest) has no land acquisitions, and they only build for customers.
     

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