07 Jan Gloomy Building Predictions For 2011

Builderonline.com has some predictions for 2011 and most of them are not positive.

Despite its 10 predictions for next year, Builderonline.com smartly warns that any predictions now should be taken with a grain of salt.  There are simply too many important components and major parts to the building industry and if expert predictions were always right, we probably would have had a better idea what was coming in 2008.

Probably the biggest factor that will continue to dictate the health of the real estate market is the unemployment rate.  A high unemployment rate and the continuing threat of job losses do little for the confidence of homebuyers who would normally be participating in the market.

Experts also believe that the foreclosure situation plaguing the industry is only going to get worse in the coming year, especially at the beginning.  For builders specifically, finding credit will continue to be a challenge and costs are going to increase due to the growing costs of commodities.

A big challenge for the coming year will have a lot to do with company staffing.  Those builders who have cut large portions of their staff will have a hard time hiring skilled workers to meet any quick spike in demand.  The article references quick push to build homes that took advantage of the tax credit last year.  As far as business plans go, tt is predicted that companies will fall into two different camps.  There will be one camp that focuses on being profitable now, and one where the goal is to sustain for the coming years.  This will have a direct affect on job loss and gain in the industry.