Volume Buyers

Keeping you informed and updated!

Manufactured Home Shipments

Again we are seeing an increase in housing sales.  Nationwide this year’s year to date is 19.3% higher than last year with unit sales increasing by 5,249 homes.  Overall the housing market is looking good, and we are beginning to be able to take advantage of it.

Maine and Connecticut, +97.4% and +188.2%respectivly, are the two states that have seen the biggest increase in manufactured housing shipments as the housing and job market stabilization is finally planting roots on the Northeastern coast.

Some in the Midwest such as the Dakotas and Wyoming have seen a decrease in manufactured housing sales but this is mostly due to the seasonal and volatile nature of jobs in the Oil industry.  The drop in sales in this region is more reflective of the Oil industry than it is the housing industry.

Overall sales are up nationally and I’ve spoken with several bankers and realtors from my area expressing that the flood of foreclosures that had been on the market has begun to dry up and property values are on the rise.  Due to the rising property values and the shrinking inventory of existing homes in the housing market, new buyers are being forced to either site-build or turn to manufactured housing as a way of becoming homeowners or purchasing their next home.

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July 26, 2016 Posted by | General Information | , , , , , , , , , , , , , | Leave a comment

7 ways you don’t want to enable buyers to abuse you

Fred Ashforth, sales coordinator at Titan Homes, found this article and was sharing it with his co-workers. The article was then brought to my attention by my sales rep, Ron Major, at our Open House last weekend.  I discussed it with my team this morning at my sales meeting. I thought I would share it with all of you! Have a great weekend!

From Close the Deal: Smart Moves for Selling by Sam Deep and Lyle Sussman©2000

 

  1. Don’t give buyers free consulting.

Yes, buys should get all the information they need to make an informed buying decision. They shouldn’t, however, “pick your brain” or let you serve as an unpaid consultant. You can help buyers discover that you can help them solve their problem. Don’t show them how until they become customers.

 

  1. Don’t prepare detailed, costly proposals without assurance that the proposal will receive serious consideration.

Buyers should receive a written proposal if they ask for one. Some buyers ask for one after a decision has been made, just to get multiple bids. Don’t play the game. Get a guarantee that the proposal will be reviewed fairly.

 

  1. Don’t allow you and your proposal to travel up and down the buyer’s organizational hierarchy.

In your up-front contract, clarify the buyer’s decision-making process. Get an agreement that each presentation you make will be followed by a mutually agreed upon action by the buyer. Stick to your position.

 

  1. Don’t tolerate open-ended indecisiveness.

If buyers think you’ll hang around indefinitely, they are in no hurry to make a decision. Extract an up-front agreement on some length of the buying cycle. If time starts to drag, impose the limit.

 

  1. Don’t let your products or services be demeaned.

Some buyers will minimize what you do and what you sell. If you allow that to pass without a challenge, you’re reinforcing the notion that you’re just another salesperson with a product no better than anyone else’s. If you don’t show respect for your product, and company, who will?

 

  1. Don’t let your company or coworkers be demeaned.

Be open and candid in accepting responsibility for past failures. At the same time stand up for the integrity, competence and commitment of your team. Buyers who demean your people to your face are saying even more to others behind your back. Be sure they have the facts about any situation s they claim to have knowledge of. Defend the honor of the good people who work in your company. Your loyalty will not be lost on buyers.

 

  1. Don’t enable buyers to put you in ethical or legal dilemmas.

Should you bend over backwards to get a sale? Certainly. Should you marshal all the resources at your disposal to make the buyer happy? You bet. But don’t ever let that mean that you compromise your integrity or sell your soul.

 

April 15, 2016 Posted by | General Information, Uncategorized | , , , , , , , , , , , , , , | Leave a comment

Will there be a rate hike? How will that affect us?

Growth in the housing market is an indication that the future is bright for our industry but as people whose lively hood is consumed by market performance we need to be prepared not for just growth, but any market movements.  In the past two decades, through two major market implosions we’ve seen how a trend in growth can indicate and in fact cause a market downturn.  Growth is great but over heating of any market creates volatility and usually a painful correction.

Currently statistics from the Multi-Indicator Market-Index (MiMi) reveals that the housing market has grown 6% from 2010 and is seeing its best year since 2007.  This growth has been spurred from both sustained low interest rates and employment growth.  This growth in the market is expected to continue through year end but employment growth will not be enough to sustain the market moving into 2016.  For growth to stay steady in 2016, wages will have to increase.  Home appreciation rates have outgrown wage growth and the Federal Reserve is concerned that, similar to our last two housing market crashes, homeowners and potential buyers are experiencing false equity.  One measure creating this concern is that construction and replacement costs have risen 3% over the last year while resale and purchase prices have risen 13%.  This 10% gap is potentially caused by inflated appraisals where homes are being sold for more than they are worth simply because there are enough buyers out there who are willing to pay the price.

Inflated appraisals and false equity in the resale value of an existing home may seem far removed from any concerns that we have in the Modular and HUD home industry, but this problem doesn’t take too long to become relevant to us.  If the market continues to grow at an increasing rate and the Federal Reserve finds that false equity is occurring as a mechanism to keep up with housing demands then the Fed will enact an interest rate hike.  The safest way to keep an overheated housing market in check is not in the costs of the home, but in the costs of borrowing money.  The Federal Reserve understands this, and this is where we will be affected.  We are already dealing with a demographic that has restricted credit options and an interest rate hike would restrict our demographic further.  This rate hike could cause a decrease in sales, which is its intention, and could be harmful if unprepared for.  This is still better than the alternative of an overheated market running out of flame.

To see the graphs better, please click on them

1            2

To demonstrate this I’ve provided two graphs and a couple statistics to illustrate what happens when a housing market’s overheating simply becomes too hot.  In the 90’s the manufactured housing industry was on an incredible rise, sales and prices were steadily increasing and the demand seemed just as steady.  In the mid-late 90’s, specifically 1996 and 1997, because of apparently unending demand home prices rose and in 1997 the average home price was $20,290 more than in 1996.  This is equivalent to an overnight increase of more than $30,000 in today’s dollars.  With a constant interest rate on a 30 year mortgage and adjusted for inflation this price increase would make monthly payments for a 1997 buyer increase by $143.61 over a 1996 buyer.  Home sales in numbers fell 2%, the first decrease in five years, while home sales in dollars rose 54%.  This rapid increase in price to curb demand led to a five year slide in home sales that averaged a 16% loss in sales for five straight years.  This same practice of inflated pricing happened in a more openly fraudulent way in the late 2000’s and as long as people are willing to take major risks to earn money we will always have to watch out for markets crashing.  So, by all means ride the wave, just hold onto your life vest.

November 7, 2015 Posted by | General Information | , , , , , , , , , , , , , | Leave a comment

February 2014 HUD-code Home Shipments

The report has been released for February 2014 new manufactured home sales. 4,359 new manufactured homes were shipped in February 2014 which is up 5.9 percent from February 2013.  The total floors that were shipped were 6,706 which was an increase of 7.9 percent in comparison to February 2013.

The SAAR or seasonally adjusted annual rate of shipments was 61,881 in February 2014.  These numbers are down 2.5 percent from the adjusted rate of 63,457 in January 2014.

The number of plants that are reporting production in February 2014 was 123, and the number of active corporations was 46, both unchanged from the number in January 2014.

*The SAAR corrects for normal seasonal variations in shipments and projects annual shipments based on the current monthly total.

May 1, 2014 Posted by | Uncategorized | , , , , , , , , | Leave a comment

December 2013 HUD-code Home Shipments

The report has been released for December 2013 new manufactured home sales. 4,005 new manufactured homes were shipped in December of 2013 which is up 14.0 percent from December 2012.  The total floors that were shipped were 6,289 which was an increase of 15.1 percent in comparison to December 2012.

The SAAR or seasonally adjusted annual rate of shipments was 60,956 in December 2013.  These numbers are down 0.2 percent from the adjusted rate of 61,074 in November 2013.

The number of plants that are reporting production in December 2013 was 123, one up from prior month and the number of active corporations was 46, unchanged from the number in November 2013.

*The SAAR corrects for normal seasonal variations in shipments and projects annual shipments based on the current monthly total.

February 21, 2014 Posted by | General Information | , , , , , , , , | Leave a comment

June 2013 HUD-code Home Shipments

The report has been released for June 2013 new manufactured home sales. 5,347 new manufactured homes were shipped in June of 2013 which is up 6.2 percent from June 2012.  Good news all around because increases were up across the board including both single and multi-section home shipments in comparison to June 2012.  The total floors that were shipped were 8,299 which was an increase of 4.7 percent in comparison to June 2012.

The SAAR or seasonally adjusted annual rate of shipments was 55,493 in June 2013.  These numbers are down 9.8 percent from the adjusted rate of 61,536 in May 2013.

The number of plants that are reporting production in June 2013 was 122 and number of active corporations was 46, both unchanged from the prior month.

*The SAAR corrects for normal seasonal variations in shipments and projects annual shipments based on the current monthly total.

August 31, 2013 Posted by | General Information | , , , , , , , , | Leave a comment

January 2013 HUD-code Home Shipments

The report has been release for January 2013 new manufactured home sales.  4,190 new manufactured homes were shipped in January of 2013 which is up 6.2 percents from January 2012.  Good news all around because increases were up across the board including both single and multi-section home shipments in comparison to January 2012.  The total floors that were shipped were 6,417 which was an increase of 7.5 percent in comparison to January 2012.

The SAAR or seasonally adjusted annual rate of shipments was 63,588 in January 2013.  These numbers are up 19.4 percent from the adjusted rate in December 2012.

The number of plants that are reporting production in January 2013 was 123 and number of active corporations was 45.  These numbers have not increased nor decreased from December of 2012.

*The SAAR corrects for normal seasonal variations in shipments and projects annual shipments based on the current monthly total.

March 28, 2013 Posted by | General Information | , , , , , , , , | Leave a comment