HOMEBUILDING INDUSTRY NEWS
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Local homebuilders say 'worst is over'
Industry execs Emile Haddad, Steve Ruffner point to demand, mortgage rates as reasons for optimism.
BY Steve ChurmPublished: May 27, 2010 03:47 PM
Courtesy of FotoliaTwo of Southern California’s top homebuilders today predicted the worst is over for the beleaguered industry as demand for new product grows and mortgage rates hover at record lows.
Speaking at the Hyatt Regency Irvine, Emile Haddad, founder and CEO of FivePoint Communities, went as far as to suggest that next year will be even better and that 2012 “will be very good” in terms of construction starts and sales of new homes. He told 150 business leaders at the Orange County Forum that he hopes to be building the first of what may well be 4,900 homes at the Great Park in Irvine by the late spring of next year.
Haddad said it was the housing collapse that led California into the Great Recession of recent years, and it will be housing “that will lead us out of it. I’m confident we are turning a corner.”
Steve Ruffner, president of KB Home Southern California, was equally bullish about the prospects of an industry that has witnessed historic job losses, company closures and downsizing. In fact, the home-construction industry alone lost more than 700,000 jobs over the past 36 months, he told the lunch crowd.
“It’s been devastating,” Ruffner said. “But I believe we are walking along the bottom (of the recession) and I’m confident things are looking up.”
One reason Ruffner and Haddad are optimistic is two active buying groups: Gen Yers and empty nesters.
Ruffner called Gen Yers, those buyers between 25 and 35, the sweet spot for KB home. Some are married, starting families, and they are looking at a market that hasn’t been this affordable in a half century.
“All of the factors intersect to make this a great time to buy,” Ruffner said about this demographic group. Interestingly, he said, many Gen Yers are being coaxed into buying by their parents, who believe the pricing and mortgage rates won’t remain this favorable forever.
Haddad believes empty nesters, those whose children are grown and have moved out, also are looking for communities that cater to their lifestyle: smaller homes, lots of activities, and ease and maintenance of their residences.
“It’s about lifestyle, and we are going to build homes with that in mind,” he said.
Related headlines
Irvine Co. Apartment Communities launches Smartphone Web site
Median home price rises year over year in county
Orange County's median home price rises in April
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Courtesy of Fotolia Speaking at the Hyatt Regency Irvine, Emile Haddad, founder and CEO of FivePoint Communities, went as far as to suggest that next year will be even better and that 2012 “will be very good” in terms of construction starts and sales of new homes. He told 150 business leaders at the Orange County Forum that he hopes to be building the first of what may well be 4,900 homes at the Great Park in Irvine by the late spring of next year. Haddad said it was the housing collapse that led California into the Great Recession of recent years, and it will be housing “that will lead us out of it. I’m confident we are turning a corner.” Steve Ruffner, president of KB Home Southern California, was equally bullish about the prospects of an industry that has witnessed historic job losses, company closures and downsizing. In fact, the home-construction industry alone lost more than 700,000 jobs over the past 36 months, he told the lunch crowd. “It’s been devastating,” Ruffner said. “But I believe we are walking along the bottom (of the recession) and I’m confident things are looking up.” One reason Ruffner and Haddad are optimistic is two active buying groups: Gen Yers and empty nesters. Ruffner called Gen Yers, those buyers between 25 and 35, the sweet spot for KB home. Some are married, starting families, and they are looking at a market that hasn’t been this affordable in a half century. “All of the factors intersect to make this a great time to buy,” Ruffner said about this demographic group. Interestingly, he said, many Gen Yers are being coaxed into buying by their parents, who believe the pricing and mortgage rates won’t remain this favorable forever. Haddad believes empty nesters, those whose children are grown and have moved out, also are looking for communities that cater to their lifestyle: smaller homes, lots of activities, and ease and maintenance of their residences. “It’s about lifestyle, and we are going to build homes with that in mind,” he said. Related headlines Irvine Co. Apartment Communities launches Smartphone Web site Median home price rises year over year in county Orange County's median home price rises in April |
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