Posts Tagged ‘david edwards’
April 13, 2009 – In scouring the net for the latest news which affects the California construction industry, I recently came across a couple articles that I felt were quite encouraging in nature, indicating a likely increase in California construction work and construction projects as a whole.The first snippet is a statistical analysis taken from www.dqnews.com and is a comparison of Southern California home sales for February 2008 vs. February 2009.
|Sales Volume||Median Price|
Though this may not look immediately encouraging, the increase in sales volume, despite the low sales prices, means good news for new construction, general constractors and their subs. With so many loans in default and so many homes in foreclosure, it is a necessity that this market surplus in lower-income home supply be first depleted before lower-income new construction projects can thrive again.
The other article I’d like to share with you is from the WordPress blog of David Edwards. His article summarizes the ideas presented recently at a Realtors summit by Lawrence Yun, chief economist of the National Association of REALTORS®. Here are a couple key quotes from David’s blog:
. . . and:
Yun also spoke of the correlation (or lack or correlation) between jobs, the recession, interest rates and home sales. In the 2000 recession, “we lost jobs yet had rising home sales because of falling interest rates.” Interest rates make the difference, he said.”
. . . also:
Yun also cited a return of multiple offers in some California markets. That suggests prices may be bottoming or have bottomed out,” he stated.”
I know what you might say: It’s this guy’s job to put a positive spin on our current recession. But, whenever an “expert” invokes historical evidence and statistics the way Yun has here, I am much more willing to pay attention. Let’s hope that his interpretations have some validity, as it could indicate that California construction is rounding the corner, on its way to a rebound.