Home construction industry profits are expected to fall 20%

(Source: Calgary Herald)

More evidence of a buyer’s market for residential real estate emerged Wednesday in reports relating to new-home prices, builders’ profits and improved opportunities for those looking to jump into home ownership for the first time.

Separate reports from Statistics Canada and the Conference Board of Canada showed an increasingly hostile environment for home builders in this country.

The residential-construction industry is expected to see profits fall nearly 20% this year — the biggest decline since 1995 — as the economic downturn dampens demand for new homes, the Conference Board said.

Earnings will drop to $3.2 billion in 2009 and to less than $3 billion in 2010, the board said.

Read Derek Abma’s full article “Homebuyers win, builders lose, according to reports” in the Calgary Herald (April 8, 2009).

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