Ernst & Young LLP conducted a survey of US homebuilders to obtain their perspectives on the future of the homebuilding industry, by asking them 49 questions that pertained to the industry and their lookout for the coming months.
The full report can be accessed here. These are some of the highlights from the report:
- Question 10: Does the company have serious concerns about the continuing availability of its line of credit facility? 94% said that this was not an issue.
- Question 13: Do you expect to see an increase in merger/acquisition activity among homebuilders in the next 24 months? 57% said yes.
- Question 19: How do you expect average selling prices to change during the next 24 months? 10% says that the price would decrease, and ½ of those thought the decrease would be less than 3%.
- Question 20: What are the company’s anticipated gross margins during the next 24 months? 84% said that they expected over 17% gross margin.
- Question 25: As of 2012, rank in order of importance what you consider to be the biggest external impediments to restoring growth in unit sales. 76% said the most important thing was customer confidents
My take on the data is that according to this and other market inductors the US market is ready to bounce back. The only thing it lacks is the confidence of the consumers to push it forward. I think with the presidential election over, we are looking at boom in the next building cycle come 2013.
Advertising Partner
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