MHMSM.com presents Factory Built Housing Industry News at Noon with Erin Patla.
Coming up, New Manufactured Home Community Opens in Staunton, Virginia
But first…these stories:
Four Leaf Properties Reports Robust Sales
Gains in Q2
Manufactured housing sector outlook very
positive for remainder of 2010
CHICAGO, July 19th/PRNewswire. Four Leaf Properties, a privately-held manufactured housing community owner and operator with communities across the Midwest Corridor, announced Monday its second quarter sales figures and provided future guidance for the year. For the second quarter (Apr-Jun), the company posted a 2.5% increase in occupancy across its portfolio for a net gain (less repos and move outs) of 53 units. Q2 Gross Sales were up 18% from the previous year. The company posted particularly strong sales for its Michigan operations, and noted stronger than expected sales for its Southern Indiana properties.
Noted Michael Callaghan, Managing Partner, “As unemployment levels out, we’re seeing buyers come back to the MHC market with a renewed desire for home ownership. In terms of the broader market, we’re finally seeing the light at the end of the tunnel.”
Although federal stimulus plans started tapering off in the latter part of the quarter, the company noted little impact from the sunset of the home buyer’s credit. Kevin Shaughnessy, managing partner, noted, “This continues a trend of solid sales increases starting in Q3 of last year. We’re seeing demand out-pace supply in nearly every market.”
In providing guidance for the remainder of the year, the company projects 3-4% occupancy growth for same-site locations for Q3/Q4 in support of 8-9% growth for the year.
American Integrity Insurance Company
Responds to Market Demand for Home
Insurance Options
TAMPA, Fla., Jul 19, 2010 [BUSINESS WIRE]. American Integrity Insurance Company announced today its launch of a new residential property insurance product that responds to demands for affordable property insurance options in today’s economic climate. As a means to create more affordable policy options, marketplace demand has increased for a policy to cover basic major perils. American Integrity’s Dwelling Policy (DP-1) provides a solution for this need by providing a no-frills policy to insure for catastrophic or large loss events.
Features of American Integrity’s DP-1 include coverage for a home or condominium and can be occupied by the owner or another party. This product is particularly well-suited for seasonal residents who live in Florida part-time. Currently, the market for a DP-1 policy is limited, which has forced coverage to be placed with Citizens, the state-run insurer of last resort. American Integrity’s policy offers more coverage options than its marketplace competitors and is attractively priced throughout the state. American Integrity reports its call volume has significantly increased with requests for this type of product, which underscores that the need is growing, and customers are seeking affordable home insurance alternatives.
Richard Parniawski, a St.Petersburg homeowner said, “I just want the basics covered, so I can sleep at night. Just give me coverage in case there is a hurricane, a fire, or lightning hits the house. That’s all the peace of mind I need.”
IN MARKET NEWS [July 20, 2010]: The Dow closed up 56 points Monday, making up for some of Friday’s losses. Strong corporate earnings were offset, however, by a report from the National Association of Homebuilders that said its index of builder confidence in the market for new single-family homes fell in July to the lowest level since April, 2009. The organization’s latest survey of 502 residential builders nationwide suggests the market will remain sluggish for the remainder of 2010. Homebuilder stocks including KB Homes and Toll Brothers were lower, but some Manufactured Home-related stocks eked [eek’d] out profits. Equity Lifestyle Properties and Palm Harbor Homes were both gainers for the trading day.
Cavco Industries, Inc. announced the company will release earnings for the first quarter of fiscal year 2011 on August 5th after the close of market. Senior Management will discuss the first quarter results in a live webcast the following day at noon Eastern Time.
NVR is scheduled to announce earnings before the market opens on July 21st. The investor site Smart Trend says it appears most traders believe NVR is going to announce a profit of $8.45 per share. Comparing the consensus estimate with NVR’s profit of $6.79 per share a year ago, things are looking good. NVR was down $ 2.58 for the day, closing at $635 a share.
Finally, if they don’t come, buy them. Toll Brothers announced it was getting into the distressed property business. Toll Brothers created Gibraltar Capital & Asset Management LLC to pursue a broad range of real-estate acquisition-and-investment opportunities. The operations, which may fall outside the core homebuilding business, include the acquisition and disposition of loan and property portfolios; the development of sites for sale to other builders and providing assistance to banks and developers in the workout of troubled real estate.
“Up next, New Manufactured Home Community Opens in Staunton, Virginia”
But first, this podcast of News at Noon is sponsored in part by: MHMSM.com/solutions.
Do you have vacant homes or sites? Does your financing, market, sales or management need a boost? From high Return on Investment online marketing, to public relations, sales, lead and management systems and more, make us your Solutions Resource. When you are ready for the answers to your needs, visit MHMSM.com/solutions.
“And now, back to the news…”
New Manufactured Home Community Opens in Staunton, Virginia
Staunton, VA, July 15, 2010. It’s a rare breed these days: a newly-established manufactured home community. In the foothills of Western Virginia, the town of Staunton is home to just that. More than ten years in the making, Augusta Woods opened in March.
Augusta Woods is the pride of Jeanie Jones and Raymond Eavers, who see it as an opportunity to provide affordable housing in a serene and healthy environment. With some 18 homes placed, young couples and retirees alike have moved in and begun to call it home.
The path to the new community wasn’t without its trials and tribulations, however. Gaining a permanent easement to the 120-acre property involved many years in negotiation and court.
Jones, who spent 23 years working in the mortgage industry, says many of the properties are being financed in-house. Three couples have paid cash for their homes.
[But] financing is difficult to come by and permission from the county will be sought to sell parcels of land, which Jones believes will make all the difference when it comes to getting financing. Jones says, “I hope we get some help. It’s extremely hard to get financing without land.”
Resident Sandy Craven found her home through a classified newspaper ad. Recently relocated from Florida, Craven says she spent some time looking at site-built houses, and narrowed it down to two, but neither was quite right. Size was a major concern; but to her surprise, the 2300-square-foot Keystone model by Clayton Oxford was plenty.
“There’s no way I would ever change my mind,” Craven says. “I love it here.” Craven also says the lot rent isn’t an issue either; even with that added in, the payments now are less than they were in either of her last two homes. [This article will be cont’d on the next page.]
“It’s affordable living for young couples,” Jones says. “These homes are beautiful and this community is serene. It’s a benefit to young couples who can’t afford a $250,000 home; they can find one here for less than $100,000. It’s also a benefit to older people who don’t want to take care of their property.”
The complete illustrated version of this story is available at mhmsm.com/eric-miller/augustawoods.
“On behalf of Production and IT Manager Bob Stovall, Editor L.A. ‘Tony’ Kovach, Associate Editor Catherine Frenzel, INdustry in Focus reporter Eric Miller, and the entire MHMSM.com writing and support team, this is Erin Patla. G’day!”