In the real estate market all the focus has been on existing homes sales. Home builders and contractors have also had major concerns over the past few years about their cancellation rates and whether or not new projects would be proposed to them.
Overview of the last five years
2005 Total of 1,283 new homes were sold.
2006 1,052 homes were sold.
2007 Only 776 homes sold.
2008 A total of 485 homes were sold.
2009 the housing market sold even less homes, totaling to 373 homes.
Home builders market has dropped dramatically, but according to the new data, they seem to be improving. Builders received help from the government just as lenders and auto industries did. The reason for the profits they are noting in their industry is mainly due to the government support and help.
Beazer Homes USA showed that there was a 27% decrease in contract cancellations and there was a 37% increase in orders.
- Quarterly tax benefit: $101 million (cause of their $48 million profit) D.R. Horton Inc. confirmed a 45% increase in new orders and 26% decrease in their cancellation rates.
- Tax benefit: $149.2 million (resulting in a $192 million profit)
With the unemployment rate constantly increasing, many businesses are worried about the growth of their company. Pending homes sales and a higher demand in work orders gives them a better perspective about the future of their company.