February 25, 2010
Window and Deck Manufactures Struggle as Tampa Houses for Sale Start to Sell
According to a recent survey conducted by one of the leading lending institutions in the country – Wells Fargo, in conjunction with the National Association of Home Builders – NAHB – new home construction builder’s confidence is at a record low. They are not getting the credit they desperately need to purchase the supplies in order to build the homes people are wanting again and this puts some workers back in the unemployment line, creating a vicious cycle.
Even though many economists are predicting Tampa houses for sale will increase for the year 2010, up from the rock-bottom prices of 2009, the construction market that supplies the vinyl for windows and door manufacturers; all plastics industry divisions that supply the building and making of vinyl windows and doors; vinyl siding or wood decks and siding manufacturers face an uphill challenge in 2010.
There is a bright spot; increased window sales for the replacement market – existing homes. With a $1,500 government tax credit to first time home buyers, people are beginning to purchase existing homes again and that means remodeling jobs or a homeowner getting their house into shape for the new owners.
Economists predict that the housing market will be growing stronger over the next year and then even stronger in 2011 and continue to increase its sales every year for a while but is it enough to help those in the industry now? The family of a Tampa house for sale on the market for many months would like to know.
The windows and siding businesses are tied to the housing markets – both existing for home improvements and new construction – and they have been down since 2004. A major concern is that there is more excess among siding companies than there are window companies, so there could be some consolidation of companies in order to help as many people as possible.
According to a windows profile, tubing accounts for approximately 17 percent and pipes for about 40 percent of PVC consumption in the US and construction as a whole accounts for 75 percent of PVC demand.
According to the economists, housing starts, even though they will be slightly higher, will be no where near the 1 million mark they need to be healthy.