Friday, January 25, 2013

Confirmation of New Construction/Housing Growth from National Builder

An earlier post stated that the housing market was improving not due to resale of existing homes but of the strong sales of new construction, which had a better value for new over the currently existing homes with maybe older appliances and a maybe need of TLC in one form or another.

Now a new article has come out from the Dow Jones Newswires talking about the major home builder KB Homes (one of the largest home builders in the country) stating that orders for new home construction are up over 50% in this Jan from last Jan of 2012.  The company is feeling positive momentum and is going to be offering $100 Million dollars worth of stock for land acquisition/development, as well as general purposes.  Its stock hovering around 18 has been up 74% in the past 6 months.  Furthermore it has expanded into mortgage banking services as it has teamed with Nationstar Mortgage Holdings to form Home Community Mortgage LLC.

KB Homes position is not unique, as DR Horton (another nationwide home builder) has found itself expanding again.  The housing market is indeed turning around in a positive direction.  Now we only need to see if the resale current existing homes can go positive as well.

In the statement that A rising tide lifts all boats, its possible that in the future if home resales don't go positive it will have to be restated: A rising tide lifts all new boats.

Today's Tidbit:  Several things are going on.  First the Alabama Super RV show is going on from 1/25-27 at the VBC.  2nd, The 2013 Explorers Ball is celebrating 40 Years of Skylab at the Davidson Center at the US Space and Rocket Center on 1/31. Lastly, what does everyone think of American Airlines new logo?

Huntsville Metro Area Homes