Spring 2010 issue of Horizons

INDUSTRY u HOME BUILDERS

What To Plan For In 2010

WHY ARE THERE SOME REASONS FOR OPTIMISM IN 2010?

• Pent-up demand exists — The market, except for the first-time home buyer, has been sitting on the sidelines since July 2005. New home formations, move-up buyers and downsizers will all need to move. • It is a “once in a generation” time to buy — Considering the outstanding and still depressed values that exist, the lowest interest rates in a lifetime, and the two tax credits available, no time period in history has provided a greater opportunity to purchase a new home. • The job market has begun to “settle down”— While double-digit unemployment continues to be a major lag on the economy, it appears job loss has hit its worst. Once people begin to feel confident their jobs are safe, “life” purchases will start again.

By Steven W. Hays Sr., CPA

The year 2009 served as the third year of the most troubling economic times in home building history. Those who were fortunate enough to survive have suffered substantial financial hardship. However, most economists, as well as the National Association of Home Builders (NAHB), feel the worst is behind us, although the recovery is expected to be slow.

29 u spring 2010 issue