Archive for the ‘Home Building’ Category

Most home building companies in Memphis, Tennessee have learned to adapt to the impact of the foreclosure crisis on the housing market. A big number of home builders are varying their designs and are opting for more functional home features instead of focusing on aesthetics.

According to local reports, most builders are choosing usable space over tall roofs, while others install laminate countertops and not the more expensive granite. Vinyl floors have also become much preferred over hardwood that could increase the price of a home considerably. Still others are building smaller houses to make sure that the price stays within the $271,000 mortgage limit imposed by the Federal Housing Authority.

For those who continue to build larger homes, they try to lower the price by offering sparse amenities to buyers and keep the selling price at $150,000 or less. Such techniques have been adopted by majority of home builders in the city and this, according to home building industry observers, have resulted in most firms having the ability to cope with the housing market downturn and the recession. Some have even recorded profits despite the economic downturn.

These efforts exerted by local home building companies are being rewarded by recent increases in new housing sales. According to the latest housing market figures, a total of 100 new houses were sold in March 2010 compared with the 31 dwellings sold in March 2009.

April 2010 saw the city selling 96 newly built dwellings compared with 61 in April a year ago. June 2010 totals were at 134, with June 2009 total at 44, while July 2010 saw 126 residences being sold compared with the 77 total posted in July 2009. So far, building permits for 2010 total 437, a figure that is considerably higher than the whole 12-month total of 385 recorded in 2009.

According to some home builders, this improved condition in the house building industry shows that most buyers are realizing that the prices of dwellings will not get any better and it would be better to make a purchase now instead of later. They also stated that the coping strategies used by most home building companies in Memphis have worked to keep most of the firms in business despite the recession.

The National Association of Home Builders has reported that builders' monthly confidence index has declined in August 2010. This marks the third month in a row that the home building construction industry shows a lack of belief in the housing market. The index dropped to 13, making it the lowest score since March of last year.

According to industry observers, the poor economic condition of the country and the onslaught of cheap foreclosed dwellings that have discouraged people from purchasing new houses both played major roles in the industry's declining confidence. The score of 13 is way below the confidence threshold of 50. April 2006 was the last time builders' confidence index reached over 50.

The continuous decline of industry confidence was primarily blamed by analysts on fewer homebuyers investing in new residences. This is despite the fact that mortgage rates are at record lows and prices of residential properties have stabilized in most markets, allowing people with good credit history to qualify for loans. Analysts explained that the reluctance of homebuyers to make purchases is primarily due to high unemployment rates and stricter credit rules. In addition, home prices are expected to decline again in the coming months.

Most home building construction industry members believe that the confidence index will remain way below 50 unless the condition of the job market gets better. Majority of consumers are wary of making any residential purchase with the housing sector exhibiting a weak recovery and the job market remaining in poor condition. This sentiment is highly evident in the home building activity for June which recorded its lowest level since the start of the fourth quarter of 2009.

For the small number of people who are buying homes, most of them opt for cheap foreclosed dwellings, making hardly any contribution to the house building sector. A survey of homebuilders showed how much foreclosures have hurt the residential construction industry, with 90% of respondents blaming foreclosures for the industry's woes.

The confidence of the home building construction business is expected to continue to decline for the rest of the year, with analysts predicting that the only way the confidence index will improve is for the job market to show some positive movements.

A recent conviction is of great interest to home building contractors all around the country. At the Middlesex Superior Court, new home and renovation contractor Peter DeGennaro was convicted of fraud in five counts and another five counts for embezzlement.

DeGennaro was a businessman who operates in Tewksbury and Wilmington in Massachusetts. He was convicted for allegedly cheating customers for money totaling over $100,000. His co-defendant and bookkeeper, Charlene Conners, was also found guilty of fraud on five counts, although she was acquitted on 11 other charges.

Sources from the office of the Middlesex District Attorney have revealed that the crimes were committed between November 2001 and August 2002. DeGennaro reportedly accepted over $100,000 of escrow funds meant for the construction of two houses, but the money was allegedly used for something else. When the customers asked the contractor to return the money, he was unable to do so since the funds were allegedly already spent on something else.

In one of the cases, DeGennaro was revealed to have accepted an initial deposit worth $5,000 for the construction of a house in Wilmington. Once the contract had been signed, he supposedly accepted an additional $43,500. The money was supposed to have been put on escrow like most home building contractors usually do, but DeGennaro deposited it instead on a checking account. Conners, DeGennaro's co-defendant, was reportedly present during the meeting with the customer.

The second case was almost the same as the first one. DeGennaro accepted a deposit for the construction of a house. The $5,000 deposit was reportedly followed by a check worth $41,000 after the building contract has been signed. Additional $7,000 was allegedly received by DeGennaro for extra expenses in the building of the house. The total amount was then deposited in a private account instead of being escrowed as promised by DeGennaro to his customer.

According to court documents, both homes were never built by DeGennaro. The two customers even signed extensions to have their homes built, but it turned out that the contractor had not even secured the property rights from the city. Authorities have stated that the case of DeGennaro should serve as a lesson to other home building contractors who are planning to commit questionable actions towards their customers.

The process of house building in Sidney, Montana involves several steps and one of these is acquiring a building permit. Based on local statistics, more than $80 million worth of building permits were issued by the area for commercial and residential construction between 1999 and 2009.

The home building sector remains discouraged about the housing market and new home construction as of November, according to a recent survey held by the National Association of Home Builders.
The NAHB index for home builders’ confidence dropped to 17 in November from the unrevised index of 18 in October. Before the housing crisis, [...]

Building a home in some parts of Georgia, particularly in Somerset, Canton and other parts of Cherokee County, has been profitable for niche builders.
These niche builders have been constructing homes for retirees in active adult communities that have amenities for homeowners aged 55 and above.
Steve Romeyn, head of homebuilding firm Windsong Properties, said [...]

Nowadays, it is not enough that you think about you and your family’s needs when building a home. With the many campaigns to reduce energy consumption worldwide, you will also have to consider the environment’s as well.
Lucky for you, there are a lot of home builders who specialize in this particular home construction. You [...]

Confidence of the home construction industry has declined by one point this October to 18. This is according to the most recent Housing Market Index report from Wells Fargo and the National Association of Home Builders.
One of the reasons for the decline is the nearing expiration date of the tax credit program. For the [...]

Joining the “green revolution”, Mississippi’s house building industry has started to incorporate environmentally-friendly features into new home and building designs.
Jackson-based company, Residential Advantage, is just one of the new breed of home builders which specializes in such field. For the company, building greener homes is considered to be a part of their responsibility to [...]

Two proposals is currently being debated in the Congress involving the extension of the federal program that gives first time homebuyers $8,000 in tax credit. The said bills are being supported by the building home industry to pave the way for a long term recovery.
Many housing analysts are not sure if the extension is [...]