Well, it looks like there is a mild housing boom going on here in the United States. Many people noticed that houses were selling quite well as credit had loosened a bit in October, November and December 2012. The rebound was not extreme, but it was a nice change to see the growth in the sector, especially considering how many construction work that it would represent. From January 2013 to March 2012, home builders said they had a positive level of confidence in the future of their industry.
In many places, such as Houston, Texas, home construction increased between the end of the fourth quarter of 2012 and January of 2013 by between 30 and 40%. Unfortunately, in February 2013, confidence in the industry among home builders receded. Why is this what you ask? Home sales fell a bit, and a slight rebound in home values and the prices of homes for sale seemed to stagnate. Why do you ask? Well, I have my theories, but I think it has to do with the 3.8% ObamaCare tax on real estate sold, since that tax increase influenced the wholesale price, so it gave the market a false reading.
Also, there is a lot of hidden inventory on the market where banks have not foreclosed on various properties because frankly they couldn’t afford to take the hit, and many people who wanted to sell their home between 2008 and now they had been put up for sale. market. Was this a one-time wonder, or will home prices continue to rise due to heavy pent-up demand? That’s hard to say, but it looks like in 2013 we should expect stabilization, and that would mean there won’t be a big carnage from home builders.
In many respects this is a shame because we need construction jobs right now, and the housing and construction industry has a huge supply chain that would also help put people to work. Both Home Depot and Lowe’s have announced large numbers of hires between now and mid-2013. The question is whether all of those jobs will come to fruition, or the market just gave us a giant fake, and we hit another plateau where everything Will that extra inventory on the market have to be sold first before you see any real gains in new home construction?
It’s interesting, when I look around my own city and I see that there is a lot of construction going on, no, not at the level between 2005 and 2007, but an amazing level considering the pause in the market that we have had for so many years. . There is a good chance that the home construction industry will recover in a diverse way depending on the region, almost in a similar way to how it collapsed, that is, where some regions are doing well and others are not. In fact, I hope you will consider all of this and if you want to talk about it at a much higher level, please email me.