Contractor Update

Construction job news from the Contra Costa Times: "It was bound to happen. The job market for home building in the East Bay has begun to stumble, halting a strong run. The pace of employment expansion in the housing sector is a fraction of what it was earlier this year."

"Only last spring, residential construction was booming in the East Bay. Jobs in home construction were being added at a 10 percent annual rate in April and May. But by October, jobs were being added at a 3.5 percent annual rate."

And from Florida's TC Palm: "Layoffs at another leading Treasure Coast homebuilder again raises questions as to when the new-home market will rebound. DiVosta Building Corp. executives said Tuesday they will lay off 218 employees in the Treasure Coast and Palm Beach County."

"'I think this is a continuing indication of larger national builders downsizing to accommodate the changes in the residential housing market,' said Don Santos, past president of the Treasure Coast Builders Association. 'I think there's a lot more of this going on in the field, but we don't hear about it.'"

Finally, from the Associated Press: "Alex Barron, who follows homebuilders for JMP Securities, said the industry will get worse before it gets better. He said with so much inventory, builders like Hovnanian must cut their prices to compete."

"'Until those inventory levels come more in line with historical levels, it's going to be very difficult for builders to show an improvement,' he said. While Hovnanian posted a large write-off, he said the company is being more realistic than other large homebuilders 'about how deep this current downturn is.'"

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Labels: construction jobs, Construction News