The commerce department released data this week that January new home sales plunged 11.2% to an adjusted pace of 309,000 units, the lowest rate in 50 years. The results came as a surprise to many expecting to see an increase in new home sales.
So is it time to panic? Not so fast. But the news certainly serves as a reality check and reminder to keep a close eye on costs and performance as we navigate through these challenging times.
The companies still standing in the home building industry have already overcome a slew of obstacles to even arrive at this point. With signs of recovery happening all around us, you may hear sighs of relief or sense an eagerness to get ‘back to the way things were’.
Last month’s sales results should serve as further evidence that we have a long road back and may never see things the ‘way they were’ again. As you, no doubt, have already done, it’s time to continue reinventing yourself and your business.
We all saw how fast the dominoes can fall when companies blindly follow the masses. Measure twice and cut once. Take a close look at your business and ways to improve efficiencies in driving revenue and protecting margin. These are the times that will ultimately separate the leaders from the pack.
Good things are still happening in home building, but we’re not out of the woods just yet.
Tags: home building, housing, marketing, sales
