Housing Giants - January 15, 2009 - (Page 12) FEATURE that’s because builders have simply stopped building or are renting out homes they’ve already built until conditions improve. Inventories of existing homes rose to a 11.2-month supply in November, up from a 10.3-month supply a month earlier, according to the National Association of Realtors. For builders like Perry Bigelow, chairman of Bigelow Homes in Aurora, Ill., sales of new homes won’t improve until the government gets a handle on foreclosures, which are swelling the market of available homes. His target market — first-time and first-time move up buyers — are purchasing those right now rather than new homes — and even if he cuts costs to the bone, he can’t compete with their prices. “I can’t afford to build,” says Bigelow, whose houses range from about $175,000 to $250,000. Peter Morici, a business professor at the University of Maryland, says that although the Obama administration and 12 00 1.5.099 15.0 HOUSING GIANTS www.HousingGiants.com Congress will probably enact plans to help stem foreclosures — ”what is politically feasible to help the little guy” — builders themselves are unlikely to get any bailouts. One of the roots of the current economic problems, he contends, is that builders created more houses than people needed during the boom years and now are suffering the consequences. “It would be madness to subsidize the creation of more housing,” he says. LABOR: Howard says that NAHB wants to make sure that the government doesn’t hold builders responsible for illegal immigrants employed by subcontractors and that standards are set for verifying the legal status of workers they employ directly. Moreover, an administration and Congress that’s controlled by Democrats is likely to be more favorable to unions, and big builders are a target for those who want to unionize workers. “We have to be on guard,” he says. Many builders pitch quality, but can they prove it? The National Housing Quality Award differentiates you from other builders. Are you an NHQ award winner? What differentiates you from other builders? CLICK HERE to learn more and download the NHQ application. For 16 years, the NHQ criteria for performance excellence have been important tools for hundreds of home builders and trade contractors to assess and improve their performance on critical factors of business success. Identify high-priority opportunities to improve your business. You may just hit gold. Recent NHQ Gold Award Winners: 2009 - T.W. Lewis 2007 - Estes Builders 2006 - Shea Homes San Diego 2006 - Ideal Homes 2006 - Veridian Homes 2005 - Grayson Homes 2005 - Pulte Homes (National Winner) Applications due by April 30, 2009. Click here to learn more http://www.bigelowhomes.com http://www.probuilder.com/nhq http://www.HousingGiants.com
Table of Contents Feed for the Digital Edition of Housing Giants - January 15, 2009 Housing Giants - January 15, 2009 Contents Viewpoint News & Moves M&A The New Administration Housing Giants - January 15, 2009 Housing Giants - January 15, 2009 - Housing Giants - January 15, 2009 (Page Cover1) Housing Giants - January 15, 2009 - Contents (Page 2) Housing Giants - January 15, 2009 - Viewpoint (Page 3) Housing Giants - January 15, 2009 - News & Moves (Page 4) Housing Giants - January 15, 2009 - News & Moves (Page 5) Housing Giants - January 15, 2009 - M&A (Page 6) Housing Giants - January 15, 2009 - M&A (Page 7) Housing Giants - January 15, 2009 - The New Administration (Page 8) Housing Giants - January 15, 2009 - The New Administration (Page 9) Housing Giants - January 15, 2009 - The New Administration (Page 10) Housing Giants - January 15, 2009 - The New Administration (Page 11) Housing Giants - January 15, 2009 - The New Administration (Page 12) Housing Giants - January 15, 2009 - The New Administration (Page 13) Housing Giants - January 15, 2009 - The New Administration (Page 14)
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