The market seems to indicate that homebuilders are feeling the pressure of the economic crisis and aren’t expecting it to let up anytime soon. It appears as though this country not only has a real estate crisis and a foreclosure situation on its hands, but not surprisingly, the homebuilding industry is suffering as well.
Builders were surveyed by The National Association of Home Builders and the overwhelming sentiment is that the economy has consumers concerned and is the reason they’re delaying building new homes and buying new homes. With consumers reluctant to buy, old homeowners cannot sell their property and build new homes. The tightening of the mortgage lending situation is also another area that has potential new home owners worried and is slowing the homebuilding business.
It looks like this current trend is far from over as prospects for future building are grim. Most homebuilders say that their 2009 outlook is considerably slower than it had been in previous years. And unfortunately for this industry, a turn around is not on the immediate horizon. Consumers are going to have to feel more secure in the value of their dollar as well as the value of their homes before they once again look to expand. The homebuilding industry will most likely be facing some serious problems for the foreseeable future.