Future Looking Brighter For Builders
It’s been a rough few years for home builders. With the decline of the economy in general and the explosion of the housing bubble in particular, the home building industry has been one of the hardest hit in the recession. But now, finally, things are starting to improve.
Builders across the country are reporting higher order rates, fewer cancellations and less write-downs than they’ve been experiencing in recent years. That means that one of the nation’s most struggling industries is finally starting to see profitability again.
Builder D.R. Horton Inc. reported that the company had a 45% increase in new home orders compared to last year. Their cancellation rate also dropped to 26%, as opposed to last year’s 38%. Similarly, Beazer Homes USA Inc. had a 37% increase in new orders and a cancellation rate that fell from last year’s whopping 46% to 27%.
What has lead to this long-awaited improvement? Well, the slow stabilization of the housing market that we’ve seen in the last year or so has finally started to affect new home builders. The government has also stepped in with some programs to stimulate the industry. The first-time home-buyer tax credit and longer tax-loss carry-backs have gone a long way to helping the housing market get back on its feet.
It would be foolish to say that home builders are completely out of the woods, but things are starting to get better and that is good news for everybody. With a little more breathing room let’s hope that now, finally, home builders can start to rebuild.
—Via LeeCamronRealtor.com
