McInerney Holdings - Competitors

McInerney Holdings Competition

Now Viewing McInerney Holdings's competition in: Residential Real Estate Construction

Recent Developments

Builders Seek Larger Tax Credit - Homebuilders want Congress to pass a $15,000 tax credit to home buyers to help stimulate demand. The National Association of Home Builders estimates that single family home sales will decline 33 percent in 2008 from 2007, but climb 5 percent in 2009. With new home sales declining in August to their lowest level in 17 years, homebuilders seek relief as their losses mount. Evidence of industry decline is that over 12 builders have declared bankruptcy.

New Home Sales Fall - Sales of new homes fell 34.5 percent in August 2008 from the previous year. Inventory stands at almost 11 months, well above a healthy inventory level. As prices decline and bargain hunters seek new homes in depressed markets such as California, Arizona, and Nevada, credit requirements are toughening, further depressing the market.

Cheaper Homes Attracting Buyers - Declining home prices are beginning to attract more home buyers and leading to fewer unsold homes on the market, according to the National Association of Realtors. Some economists expect home prices to continue falling, which might lead to stronger new home sales. But making matters worse for potential home buyers is that mortgage rates are increasing.

Competitive Landscape

Demand for new housing depends on population growth and is linked to low interest rates. Large builders have some advantages in purchasing and marketing, but building methods are essentially the same for large or small builders. While larger builders have efficiencies because they can repeatedly build the same home models, they generally develop projects on large pieces of land. Small builders, therefore, build most homes in dense urban markets where little land is available.

Full Industry Overview For Residential Real Estate Construction

Residential Real Estate Construction Industry Forecast

from Hoover's/D&B subsidiary First Research

The value of US new residential home construction and renovations is forecast to grow at an annual compounded rate of 2.1 percent between 2007 and 2012.

Residential Construction Growth Drops and Recovers

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.