Maryland Home Builders Encouraged by Good Market Signs
When the mortgage industry collapsed, home builders were among those who suffered the worst of it. Those who had the foresight to prepare for the collapse of the housing market were able to survive while most of those who ignored the warning signs were left with no other option but to declare bankruptcy.
In the past months, however, nationwide home sales have displayed a steady gain which encouraged those in the home building industry to slowly inch back in Maryland’s new single-family home market. In addition, inventory of newly-constructed properties is starting to dwindle as consumers take advantage of the $8,000 tax credit that the federal government gave as an incentive to first time home buyers.
Although the market conditions are not as favorable compared to that of the boom years, home builders are starting to reposition themselves in the market, fearful that they will be left behind once the industry fully recovers.
For instance, KB Home, a Los Angeles-based construction company, resumed its plans of building energy-efficient houses to meet the growing demand for green homes in Maryland. In addition, these residential properties come with floor plans that can meet any preferences and budget, allowing them to somehow compete with re-sales as well as foreclosures.
Caruso Homes, a local builder which suffered through a bankruptcy during the worst of the mortgage crisis, is already preparing to enter the market especially after it has fully satisfied its obligations to their creditors.
Now, the scaled-down company has already sold several homes in the past couple of weeks and will begin their construction in the next two months.
Of course, there are still a lot of challenges that these builders face. Among them is the lack of credit availability to purchase land for development. The enduring mortgage problems as well as rising unemployment are also important factors that need to be considered.
In summary, home builders find the current market conditions quite challenging. The building of these planned communities will still depend on the availability of financing and the pace of the recovery of the entire housing market.
But with the right products and careful planning, recovery for the industry is no longer an elusive dream.
